Transcription of The Stock Network Interview with MUFG Corporate Markets, Head of ETP Services Rakitha Amaranath
Lel Smits: As ETFs continue to grow in popularity among Australian investors, much of the focus is placed on performance fees and investment strategy. However, behind every ETF is a network of specialist service providers that help to ensure investors can buy, sell and hold ETF units efficiently. One of these important functions is ETF registry services, which support investor records, corporate actions, distributions and the broader administration of ETF products.
In this ETF education spotlight with women in ETFs, I’m joined by Rakitha Amaranth, Head of ETP Services at MUFG Corporate Markets. MUFG Corporate Markets is the biggest ETF registry provider in Australia, holding around 50% of the market. Rakitha will discuss the role of ETF registries, how they fit into the ETF ecosystem and why understanding the infrastructure behind ETFs can help investors to become more informed market participants.
Rakitha, welcome to The Stock Network.
Rakitha Amaranath: Thank you, Lel. Thank you for inviting me.
Lel Smits: Now, when investors buy an ETF, they often focus on the fund manager and also the underlying investments. Can you walk us through the broader ETF ecosystem and also where registry services fit within that structure?
Rakitha Amaranath: Thank you, Lel. So when investors buy an ETF, they naturally focus on the fund manager, the strategy and the underlying investments.
But behind every ETF sits a broader, complex marketing infrastructure that helps the product operate efficiently. That ecosystem includes the issuer or responsible entity, the investment manager, market makers, authorised participants, the exchange, custodians, fund administrators, brokers, platforms and registry providers such as MFG Corporate Markets. Now, broadly speaking, there are a lot of cogs in place to ensure that the ETF product works efficiently for the end investor.
The registry sits close to the investor side of that infrastructure. It maintains an official record of ETF investors and supports many of the operational touch points that occur after an investor buys into an ETF. So while investors may buy through a broker or platform, the registry helps ensure the ownership record, distributions, tax statements and investor communications are maintained accurately.
In simple terms, if the ETF is the product, the registry is a key part of that infrastructure that helps connect that product to the investor.
Lel Smits: Excellent. And Rakitha, what does an ETF registry actually do? And also, could you outline perhaps some of the key functions that investors may interact with without even realising that they are?
Rakitha Amaranath: Okay. At its core, an ETF registry maintains the register of who owns units in the ETF and in what quantity. But in practice, that role is much broader than record-keeping. The registry supports a critical system of record with ongoing registry maintenance, chest connectivity, which is how the ASX sends messages, ASX or CBO sends messages, and processing unit issuances, cancellations, connectivity to investor portals, contact centre support, AML KYC, distribution calculation and payments, AMIT tax statement issuance, general communications, pre-organ exit statements, FACACRS, AIR, SULI and other registry reporting type functions.
For investors, many of these interactions happen in the background, and when they receive a distribution statement, access tax information, update their details, receive a communication from the fund, or interact with an investor centre, those services are often being delivered by the registry. So while the registry is not usually the most visible part of the ETF experience, it is one of the functions that requires deep domain expertise, operational discipline, and proven governance frameworks, and ensures the investor experience is safe, simple, and engaging and reliable.
Lel Smits: Yes, and from distributions and tax reporting through to that investor communication and corporate actions, can you outline how the registry really helps to ensure ETF investors receive accurate information and services?
Rakitha Amaranath: The registry plays an important role in making sure investors receive accurate, timely, and useful information.
For example, when an ETF pays a distribution, the registry helps calculate, process, and communicate those payments. When investors need information for tax time, the registry supports the production and communication of statements, such as distribution and AMA statements, and provision of data to the ATO for pre-filling. MEFG Corporate Markets is an example, generates 8 million statements for ETF clients in FY25, including just over 3 million distribution and AMA statements.
The same applies to corporate actions, investor communications, ongoing account maintenance. The investor expects the process to be straightforward, receive the right payment, receive the right statement, and have access to the right information when they need it. Behind that simplicity is a lot of operational discipline and clean data, strong controls, timely processing, registry awareness, and careful communication.
The registry helps bring all of that together, so the investor experience remains consistent as the ETF market grows. As you would have seen today, the ASX has announced that it’s been the largest year of ETF issuances with 17 new products coming to market. So you can see that the market has been growing annually quite.
Lel Smits: Absolutely. And more on that ETF growth, as you mentioned, it’s growing rapidly over the past decade. How has that growth changed the demands really placed on registry providers? Also, Rakita, what trends are you seeing across the industry?
Rakitha Amaranath: Growth of the ETFs in Australia has changed the demands on assets registry providers and quite significantly at that.
As the market has expanded, we have seen more issuers, more funds, more investors, more product types, and larger volumes of transactions, payments, and reporting events. That means registry providers need to operate on a much greater scale. MEFG Corporate Markets, as I previously outlined, we look after a considerable amount of ETF issuers, over 230 plus ETFs on the market and representing about 140 billion in AMFUM and around 2 million investors.
For that type of scale comes a lot of complexity. Investors expect digital access, fast communication and accurate information. Issuers expect stronger data, efficient reporting and the ability to manage increasing volumes without compromising quality.
As such, across the industry, the key trends have been around automation, data integration, digital investor engagement, regulatory readiness and operational resilience. As ETFs become more mainstream investment vehicles, the infrastructure supporting them has to keep evolving as well. Yes, and Rakeetha, finally, as ETFs continue to evolve, including active ETFs, thematic products and new investment structures, how is the registry function adopting really to support the next phase of this industry growth? As ETFs evolve, the registry function needs to evolve with them.
We are seeing broader range of products come to market, including dual access ETFs. That type of product effectively means that investors can come in through the primary market, which is our listed channel, or through the listed market. It’s the one product.
Fixed term type ETFs, which are similar to, you know, like a bond or a capital note type structure. Active ETFs, thematic ETFs and more complex investment structures. These products can create different requirements around reporting, communications, distribution, processing, investor data and operational workflows.
For registry providers, the focus is increasing on flexibility and integration. That means stronger digital portals, better data connectivity, automated reporting, API integration, analytics and tools that help issuers, i.e. the fund managers, better understand their investor base. Here at MEFG Corporate Markets, we continuously are enhancing or developing innovations in areas such as mobile apps, investor portals, fund website services, investor analytics, API integrations and beneficial holder analysis, part of our broader ETF registry and investor engagement offering.
The future of ETF services is not just about processing transactions. It is about helping clients, the issuers, the fund managers operate efficiently, communicate clearly and use data to better support their investors.
Lel Smits: Rakitha, I really appreciate your time and thank you for joining us for the Women in ETFs Education Spotlight.
Rakitha Amaranath: Thank you, Lel. It was my pleasure.
Ends