Last quarter, we brought together the transfer agent (TA) community through our Luxembourg forum, part of a series we have been running with TAs over the past few years. Alongside this, we launched our Digital TA Forum to enable more regular dialogue across the industry.
Across both of these discussions, a consistent picture has emerged: while the industry continues to evolve, the core priorities for TAs remain firmly centred on efficiency, scalability, risk management and supporting the next generation of fund structures.
Automation remains the top priority
Automation continues to dominate the agenda. Despite the digitalisation of many parts of the fund lifecycle, transfers and account opening remain among the most operationally intensive areas. These processes are closely tied to AML and KYC requirements, and in many cases still rely on fragmented workflows between distributors, platforms and transfer agents.
Many operating systems are not yet equipped to handle fully automated transfer instructions, and equally, automation on the distributor side is far from universal. The result is a process that remains heavily manual, with multiple touchpoints, delays, and operational risk.
There is clear alignment across the TA community that this is one of the most significant remaining opportunities for improvement. The ability to centralise and standardise transfer processing – enabling automated instruction flow and reducing reliance on manual intervention – would represent a meaningful step forward for the industry.
Importantly, this is not simply a question of technology. The underlying capabilities already exist. The greater challenge lies in achieving coordination across the ecosystem and driving adoption at scale.
We are starting to see this addressed through network-based approaches that act as a central hub between counterparties – standardising how transfer instructions are created, matched and processed. At Calastone, this is a key focus of our transfers capability, which enables firms to automate both single-leg and matched transfer models through a single connection.
ETFs move into the operational spotlight
Alongside this focus on automation, there has been a clear shift in the product areas commanding attention. ETFs are now firmly in focus, reflecting both investor demand and the strategic direction of asset managers.
The growth of ETFs is now translating into tangible operational implications for transfer agents. Many are either entering the ETF servicing space for the first time or reassessing whether their existing operating models are sufficient. As discussed in our Digital TA Forum, the ETF ecosystem introduces additional layers of complexity, particularly in the primary market where multiple participants and workflows must be coordinated in near real time.
At the same time, many of the existing servicing approaches rely on fragmented systems and manual processes, creating cost and scalability challenges.
This is prompting a broader rethink of how ETFs should be supported operationally. A key theme emerging from our discussions is the desire among asset managers to avoid duplication – specifically, to work with a single transfer agent across both their mutual fund and ETF ranges. For TAs, this creates both a challenge and an opportunity: adapting existing infrastructure to support ETF-specific workflows while maintaining a unified servicing model.
Semi-liquid funds introduce new operational complexity
In parallel, alternatives, particularly semi-liquid fund structures, are becoming increasingly prominent.
From a technical perspective, semi-liquid funds sit between traditional open-ended UCITS funds and closed-ended private market vehicles. They typically allow periodic subscriptions and redemptions, but not on a daily basis, with dealing frequencies ranging from monthly to quarterly. Liquidity may be managed through mechanisms such as notice periods, redemption gates, deferred settlement, and, in some cases, side pockets. The underlying portfolios are generally composed of less liquid assets – such as private equity, private credit or real assets – which introduces additional complexity in valuation and cash flow management.
For transfer agents, this fundamentally changes the operational model. Unlike daily-dealing funds with predictable workflows, semi-liquid structures require more dynamic and event-driven processing. This includes managing dealing calendars, tracking investor instructions over longer cycles, applying liquidity constraints, and supporting more complex redemption scenarios, including the variation of sell charges.
Liquidity management tools, particularly gating, are a key area of focus. As highlighted in our forums, there is currently limited standardisation in how these mechanisms are applied or communicated, creating friction between asset managers, distributors and TAs.
Addressing this will require greater alignment across the industry, not only in terms of process, but also in how information is shared and understood across the value chain.
Coordination, not technology, is the real challenge
Across both ETFs and alternatives, a common theme emerges: the increasing complexity of fund structures is placing greater demands on TA operating models.
However, it is notable that technology itself is rarely seen as the primary barrier. In many cases, the required capabilities already exist. The challenge lies in integrating these capabilities into cohesive workflows and ensuring consistent adoption across all participants.
This reinforces the importance of connectivity and standardisation. As the number of counterparties, systems and processes increases, the use of an agnostic central point of integration, mutualising solutions, simplifying interactions and enabling interoperability, becomes increasingly valuable.
A confident and evolving TA community
One of the most striking takeaways from this quarter’s discussions is the level of engagement and confidence within the TA community.
There is a clear focus on delivering greater value to clients, automating wherever possible, and adapting to new product structures as they emerge. TAs are actively investing in their operating models, prioritising efficiency, and embracing the changes required to support a more complex and dynamic fund landscape.
This is an industry that is leaning into change. The conversations taking place – across automation, ETFs, and alternatives – reflect a community that is not only aware of the challenges ahead, but actively working together to address them.
Looking ahead
As we continue these forums throughout the year, these themes will no doubt develop further. Automation will remain a priority, ETFs and alternatives will continue to shape demand, and collaboration across the industry will be key to unlocking the next phase of growth.
What is clear is that the TA community is not standing still. It is actively adapting, modernising its operations, and reinforcing its role at the centre of an increasingly sophisticated investment ecosystem.
