UK-based M&G Investments has signed an agreement to use Calastone’s settlement and matching service. Calastone is a provider of cross-border transaction network and settlement service for mutual funds industry.

Signing up to Calastone’s settlement service is expected to enable M&G’s clients to benefit from Calastone’s straight-through-processing approach, which removes any need for manual processing and reduces risk by automating business flow processing, from orders through to settlement, claims Calastone.

Alexander Hofmann, sales director of Calastone, said: “Our settlement service was developed in collaboration with the industry to deliver a primary market approach designed specifically for settling mutual fund transactions. We are delighted to see yet another fund manager sign up to Calastone’s settlement service and reap the cost and efficiency benefits on offer.”

Laurence Mumford, retail chief operating officer at M&G Investments, said: “As a member of the IMA’s investment funds operation committee, M&G are fully committed to initiatives to automate mutual fund dealing. M&G’s decision to sign up to Calastone’s settlement messaging represents the latest in a series of initiatives to eliminate inefficiencies and reduce costs.”