The solution will initially be rolled out in Australia and New Zealand where DST has had a presence for two decades. It serves more than 70 per cent of custodians and fund manager firms in the region.

The corporate actions solution will be used for DST’s flagship investment accounting platform, HiPortfolio, which is used by around 160 investment management organisations, and will be offered as a module powered by XSP. 

Currently, investment managers face a growing operational challenge, as manual processes add complexity to corporate actions, making processing of accurate information across front, middle and back offices expensive and time consuming.

The collaboration is expected to facilitate availability of a more robust corporate actions solution for investment managers, backed by the proven market-leading technologies of both companies, said the firm in a statement.

Philip Hogan, DST Global Solutions managing director for Asia-Pacific said: “We are responding to our clients’ desire for improved operational efficiency in corporate actions. Our joint working relationship with XSP is expected to help reduce costs and risks for third-party administrators and fund managers automating corporate actions such as dividends, mergers and acquisitions and rights issues. HiPortfolio clients will soon have access to XSP’s proven platform through an integrated corporate actions solution, benefiting from a more efficient back office with a single point of contact for services and support.”

Under the agreement, both companies will retain ownership of key intellectual property while leveraging each other’s global sales and support services. DST Global Solutions will provide local market support and expertise plus client facing services including client relationship management, professional services and pre-sales and sales support, while XSP will provide a tailored corporate actions solution and sales support for DST Global Solutions’ front line teams.