Fund accounting and liquidity are two salient operational topics among market participants
in the ETF market. Among fund issuers, these topics are considered not only priority areas for
their businesses – but also as key areas for improvement. The results of our survey also show the
importance to them of the transfer agency function.

Fortunately, fund administrators appear to be aligned with these topics, as our results show
administrators are looking to make improvements in these areas.

Funds Europe‘s research into ETF operations was carried out in partnership with global fund
transaction network provider Calastone and the survey reached 104 personnel working within
fund issuers, 14 within fund administration and 95 within authorised participants internationally.

As ETFs have grown exponentially over the past decade – and will be boosted still more by the
advent of active ETFs – our survey gives pointers to where operational resources need to be
placed and also highlight the importance to fund issuers that their service partners can offer a
broad geographical coverage as ETFs expand throughout the world.