Funds Europe: Capturing missed value in corporate actions

Scorpeo outlines its ongoing mission into the CSD space

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Scorpeo, the firm behind the Euroclear Cash+ solution, says more developments in the CSD space should be expected as stakeholders including investors, pension fund trustees, and CSD operators themselves recognise the value that can be unlocked from corporate actions.

Euroclear’s new Cash+ service ensures this value is captured and returned to the investors. Cash + was a response to analysis of how voluntary corporate actions are inefficient. For example, where investors are defaulting to cash rather than electing for securities in scrip dividends means they lose out on significant value.  Scorpeo puts the losses attributable to sub optimal elections on scrip dividends at $1bn annually, or some $14bn since 2011 – according to figures referenced by Euroclear Cash+.

As outlined by Scorpeo’s Matt Ruoss, CEO, and Shivesh Jha, CIO the outcome of the work that has been put into delivering this solution is ultimately an opportunity for greater alpha generation, delivered through creating efficiencies.