Overview

Fund/SERV for Investment Managers is a membership category that gives investment managers who oversee managed account programs direct access to Fund/SERV, the industry standard for processing and settling mutual fund orders. These include 1940 Act funds and other pooled investment products.

Fund/SERV provides standardized formats and automated, centralized processing of purchase, redemption and exchange orders, as well as account registrations, and gives participants a single daily net settlement. Files can be sent and received interactively through multiple processing cycles over 22 hours.

The membership category, called Investment Manager/Agent Member, is an outgrowth of the DTCC Managed Accounts Service, which provides a single gateway for the managed account industry to exchange information on account openings, as well as ongoing account maintenance and customer profile updates . It also allows investment managers or their service providers to use other Mutual Fund Services, such as Networking for customer account-level information reconciliation. The effect will simplify and streamline the processing of mutual funds as part of an investor’s managed account portfolio.

To use Fund/SERV and other Mutual Fund Services, investment managers or their service providers will become limited members of NSCC. Money settlement will be handled by a full member of NSCC, who in most cases is either the manager’s mutual fund unit or a sponsor broker/dealer with whom the manager has a business relationship.

Who Can Use this Service

Any interested financial organization that meets NSCC qualifications can apply for Investment Manager/Agent Member membership.

Benefits

• Automates and standardizes order flow procedures, making processing more efficient.
• Reduces operating costs, and supports volume growth and new product offerings.
• Eliminates the need for multiple links, faxes and phone connections.
• Simplifies the settlement process by calculating a single money settlement figure for each settling participant every day.
• Expands business opportunities for investment managers, agents, sponsors of managed accounts, and mutual fund families.

How the Services Work

For full details on Fund/SERV, Networking and other Mutual Fund Services, please refer to the fact sheets under the Wealth Management Services/Mutual Funds tab in the left menu.

For More Information

Please contact DTCC Relationship Management at (212) 855-8877.