Global custody and related services in more than 100 markets

As custodian bank, we take care of the settlement, clearing and custody of local and foreign securities in more than 100 markets. We open segregated accounts on behalf of our clients. Once the broker has completed the transaction, we manage the process until the buyer has received their securities and the seller their money. The process is completely automated, allowing tight cut-off times and ensuring a high level of security. As a client, you have access to a web service, online reporting, documentation of corporate actions, as well as services for securities lending, taxation and payments.

Examples of services:

• Safekeeping of Swedish and foreign assets
• Settlement and clearing of stock-exchange transactions and transactions carried out on commission
• Custody tax services (relief at source, tax reclaim processing, qualified intermediary)
• Corporate actions and proxy voting
• Issuing paying agent
• Global fund execution services that enable fund trading in the majority of investment funds worldwide

Derivatives clearing for clients

Swedbank is a clearing member on Nasdaq Stockholm and London Clearing House (LCH), which means we can offer clients clearing of derivatives that are cleared on Nasdaq Stockholm and/or LCH. With more than twenty years’ clearing experience, Swedbank has developed a strong platform and a competitive service in clearing and collateral management.

Swedbank offers an integrated clearing service for derivatives that are cleared on Nasdaq Stockholm and LCH via several different account models that provide varying degrees of segregation for clients.

Collateral Management

New regulations and increased capital requirements have led to increased demand for collateral management in relation to derivatives transactions. Swedbank offers a time-saving and efficient service for simplified collateral management, where the bank takes over many of the administrative tasks that a client would otherwise handle. This service is well integrated with Swedbank’s other post-trade services.

Related documents

EMIR Disclosure (PDF)

Our third-party ManCo solution provides investment managers with a complete Swedish-domiciled fund offering, enabling them to focus solely on portfolio management and marketing. This unique and comprehensive solution is offered in collaboration with our ManCo partner FCG Fonder AB. Swedbank provides fund administration and transfer agent services; depositary services and safekeeping; and straightforward integrated management of securities and target funds transactions. FCG is a fully licensed super ManCo providing risk and oversight for delegated investment managers. Investment managers are thereby able to do what they do best – asset management and fund marketing.

Our third-party ManCo solution comprises:

• Depositary services (Swedbank)
• Safekeeping (Swedbank)
• Fund accounting (Swedbank)
• Transfer agency services (Swedbank)
• ManCo services for distribution, risk monitoring, governance and delegation oversight (FCG)

Swedbank offers a comprehensive back-office service for fund companies so that they can focus on fund management and sales. We maintain the unitholder register, take care of portfolio accounting, perform NAV calculations, and ensure that the authorities receive the information and reporting they require by law. In addition, we offer middle-office services such as portfolio valuations relating to various risk measurements, attribution and performance.

Examples of services:

• Maintenance of the books and records of the fund
• Trade matching
• Net Asset Value (NAV) calculations and management of commissions
• Financial and standard tax reporting
• Maintenance and updating of unitholder register

We act in the interest of unitholders

Through our depositary services, we safekeep the fund's assets and review the company's routines and systems for management and administration. As depositary institute, we have one task and one responsibility – to protect the interests of unitholders.

We monitor deposits and payments, and secure that purchases as well as redemption of the fund units are carried out correctly. In addition, we conduct regular controls to ensure that investments take place in accordance with the fund provisions.

Examples of services:

• Safekeeping of financial instruments
• Cash monitoring, including daily monitoring of all cash flows for the fund
• Oversight of the fund's operations

Global investment opportunities

We offer investments in more than 30 000 different funds around the world, through partners and directly with fund companies. On behalf of our clients, we open individual accounts as well as buy and sell fund units – locally and globally. We also take care of the communication, administration and payments, regardless of where the fund is domiciled. Our clients use a standardised interface for order entry and gain a good overview of their assets through Swedbank’s web service. Swedbank manages any rebates on an individual basis.

Examples of services:

• Trade and payments
• Administration

Quality-assured investments

Together with our collaborative partner FCG GRC, we offer insurance companies and foundations, as well as pension and life insurance companies, an independent review of their holdings based on defined criteria for portfolio allocation, choice of asset class and geography, as well as ethical and environmental criteria. These services can be beneficial even for asset managers who are not required to appoint a custodian to ensure that investments are compliant with the prevailing regulatory frameworks; they help provide quality assurance in the company's investment process.

Examples of services:

• Portfolio analysis
• Ethical evaluation

Risk and performance

Together with Advisense, Swedbank offers a risk- and performance calculation service for financial institutions and operations. Currently, a number of risk and performance measurement calculations are available, such as gross and net exposure, VaR, attribution and contribution. Stress tests can be performed, and liquidity risks for each portfolio can be calculated and reported.

Examples of services:

• Risk measurement calculation
• Detailed monitoring of portfolio performance
• Stress-testing of portfolios

CLS (Continuous Linked Settlement) is a system for simultaneous settlement of FX transactions developed to minimize the settlement risk as well as the number of settled transactions as CLS nets transaction flows in the same currencies. The solution enables a higher degree of "STP" (Straight Through Processing). Swedbank has for many years been a direct member of CLS where we liquidate our own FX transactions and also offer our customers the opportunity to settle their FX transactions through our membership.

CLS reduces the settlement risk as disbursements are made only when corresponding payments have been received by CLS. The operational risk is reduced as all settlement in CLS takes place on a net basis versus one counterparty, even if trading takes place against several counterparties.