Enterprise Solutions
Enterprise-Wide Mutual Fund Process and Control Technology
The Challenge
Most off-the-shelf accounting systems on the market today are designed to interface electronically with a handful of depositories – the Depository Trust Company in New York being the most prevalent.
When dealing with mutual funds you have the operational equivalent of 600 different depositories: roughly one for each fund company in the U.S. If this increase in depositories is not addressed at both the business process and technology levels, it will almost certainly lead to process-control problems in your back-office.
In organizations with a single mutual fund department, this problem is bad enough. Extend the dynamic across multiple departments within a single large bank or brokerage firm and significant risk to the enterprise as a whole exists.
The Solution
If your firm is looking to gain as much automation and control over mutual funds as you have over stocks and bonds, while retaining your existing accounting system(s), then please give us a call. VMS has been doing this type of enterprise-wide integration for over 15 years now, and its Mutual Fund Desk TM platform has been designed from the ground up, for just this type of task. In fact, one of our largest clients is using it to integrate 24 different accounting systems within their organization, plus a number of pension recordkeeping systems that reside outside their firm!
Cross-Enterprise Mutual Fund Process and Control Technology
In addition to supporting one or more departments within a single organization, VMS’s technology can be configured to straight-through automate trading and data publication across a network of TPAs and/or RIAs. If your firm has a network like this and data integration with your partners has become a problem, we’d love to talk with you about our solution!
Key Features of VMS’s Mutual Fund Clearing Technology include
| • | Straight-through automation of mutual fund trades between your system(s) -of-record and 600+ fund companies / 23,000+ funds |
| • | Electronic collection, reconciliation and posting of income and capital gain transactions between the fund company’s T/A system (including Networking) and your system(s)-of-record |
| • | Full Integration with VMS’s Mutual Fund Data Services for timely and accurate announcement of mutual fund dividends, capital gains, daily accrual factors and Audited NAVs |
| • | Exception-based position reconciliation between your system(s)-of-record and the fund companies |
| • | Exception-based trailer fee processing including invoicing, accrual, collection and aging of fees on all your accounts (i.e. 12(b)1s, sub-T/A fees, Networking fees etc.) |
| • | Interfaces with DST and DAZL when Networking is not an acceptable option |
| • | Interfaces with your trust accounting system for Common Trust Funds |
| • | Out-of-the-box integration to a number of existing trust and recordkeeping systems, with more being added all the time |
| • | Full support for DTCC’s Automated Fund Account Registration of Initial Purchases as well as full support for Networking B50, B51 and B52 interfaces |
| • | All Trading, Reconciliation and Income links between your accounts and the fund companies accounts, can be configured as either omnibus or non-omnibus hands-free, depending on your business requirement |
| • | Straight-through trading and data publication across Networks of TPAs, RIAs etc. |
| • | VMS acting as a clearing house for fund account positions and transactions, so your firm doesn’t need to build communication and file interface links to DTCC and other transfer agency systems |
| • | All technology is hosted by VMS in our fully redundant, Level 1 data centers in California and New York |
| • | All system functionality is available to your users via web browsers from their desktop, eliminating the need for any installed software |
To learn more about how VMS can help you get and keep control of your mutual fund back-office processes, please contact us at vmsportal@vmshelp.com, or by phone at 1-800-867-4357 (1-800-VMS-HELP).