– Iznes reaches a new level in the exchange of fund units. The platform was launched in 2019 by top French managers, and together with the blockchain, it offers all subscriptions and settlements on the funds it hosts. And she’s now taking advantage of a long waiting list of directors willing to join her, with a snowball effect. says Dennis Lehmann, Director of Securities Asset Management at Swiss Life. Asset Manager France: “We are looking at our potential participation in Iznes, as it is an initiative that could become the standard tomorrow in the distribution of funds.” The primary benefit of distributing our funds via the blockchain is to simplify the processing chain for investors. »
The latter can then have direct access to the funds they wish to invest, without delay and in a secure manner, at reduced costs, with the ultimate investors – institutions and corporations – paying, for example, no fees for money market funds.
“The number of investment funds that use Iznes for its distribution is constantly increasing, under pressure from investors, confirms Jean-Pierre Grimaud, general manager of the Ofi group, one of the founders of Iznes. In accordance with its initial goal, the platform is keeping records, exchanging units of Ucits Funds and FIA (Alternative Investment Funds, Editor’s note) in keeping the basic position and position. In addition, it performs the functions of “know your customer” (know your customer, editor’s note), a service highly valued by investors. »
The interest of insurance companies
Several springs have played out in recent months to accelerate Iznes’ growth, starting with the arrival of three shareholders at the beginning of 2021: Generali and Apicil, its capital’s first institutional investor, and Candriam, its first foreign director. Since then, the volume of transactions has doubled by 50 and registered assets have increased from 2 to 7 billion euros. The arrival of the Generali demonstrates the interest of insurance companies, especially as Iznes increases its product offering. Since last summer, it can be used to exchange money other than Ucits, such as real estate trusts. says Jean-Marie Katala, Executive Vice President of Groupama Asset Management. Soon, other “real” asset classes will be integrated. Christoph Liepeter, CEO of Essence, explains.
The acceleration of activity is also due to the last December opening of Isin-coded funds from Ireland and Luxembourg, which facilitates investment in funds from these countries. “Before the platform can be exported, the Iznes must first be developed locally, with the management of funds for which the Isin tokens are international,” emphasizes Jean-Pierre Grimaud.
Managers themselves see the advantage of increased operational efficiency, along with a significant reduction in record keeping costs. “The blockchain solution is also interesting to learn about fund commitments, notes Jean-Marie Katala. While current computer systems do not allow for accurate and automatic tracking of subscribers – distributors or end investors – and every flow must be traced, this work to determine responsibility, from which processes arise Returning the transaction in particular, is automatic with the blockchain. »
It remains for the platform to cancel the transactions. “We are anxiously awaiting the creation of a central bank digital currency to simplify transactions in fund units to the end,” recalls Christoph Liepeter.
* OPCI: Real Estate Collective Investment Pledge; FCPR: Venture Capital Investment Fund.