DTCC Connection

Oct 01, 2010 • DTCC Connection

DTCC Enhances Mutual Fund Profile Service to Improve Data Integrity

by Richard Marulanda


DTCC has enhanced its Mutual Fund Profile Service (Profile) to further improve the value of the system’s data, expand the service’s technological capabilities for the fund industry and help firms remain in regulatory compliance.


Profile is a comprehensive repository of three databases that allows funds, broker/ dealers and other distribution firms to automate and streamline the exchange of accurate and timely information on securities, participants and distributions. Profile helps firms remain in compliance with rules in a fund’s prospectus and distribution policies by serving as the central data source for fund prospectus and operational rules.


“Profile’s security issue database is recognized as the industry standard for access to information critical to the intermediaries that market and distribute mutual funds,” said Ann Bergin, DTCC managing director, Wealth Management Services. “Our recent enhancements and continued focus on improvement underscore our commitment to reduce operational risk through automation and centralization while providing the fund industry with affordable access to reliable data.”


DTCC completed the service enhancements in cooperation with Delta Data Software, Inc., a firm that provides DTCC with technical support for the Profile database, and the Investment Company Institute’s (ICI) Profile Steering Committee.


“We are very pleased to play a role in the ongoing enhancements of DTCC’s Profile service,” said Don Beck, CEO of Delta Data. “Today, Profile delivers the most accurate and cost-effective source of fund information, and we applaud DTCC and all those who participated in its transformation.”


Data integrity

The enhancements to Profile’s security issue database and web interface improve the overall data quality available to the fund industry by enabling users to more easily enter and maintain fund information. Profile’s improved functionality provides front-end edits to data entry via upgraded web pages that feature new tools such as a data dictionary function, which provides definitions and examples for the approximately 250 data points in the database.


In addition, the upgraded database incorporates a “hierarchical relational” design that takes the entered fund data and uses it as the default information for the Profile application, eliminating the need for redundant input.


Other enhancements include consolidating all data entry, inquiry and reporting within a single application and adding built-in features to help ensure that the data entered by users is complete.


User confidence

To date, more than 140 fund companies have populated their data, encompassing slightly more than 19,000 security issue IDs. In addition, more than 125 distributors are set up to automatically receive Profile’s output files. Furthermore, fund companies and broker/dealers are not required to perform any additional data coding to benefit from Profile’s new enhancements.


“Data integrity is critical to us as well as to the broker/dealer community,” said Jennifer Craig, assistant vice president of Operations, Delaware Investments. “The enhancements to Profile have made it easier to ensure that our data are both current and accurate. And it has also proven to be a strong resource for us to ensure timely completion of broker/dealer specification packages.”


“Profile is our go-to solution for checking fund minimums, linkage rules, breakpoint schedules and other fundamental processing functions,” said Christopher Rhodes, group leader, Mutual Funds Operations, Edward Jones. “We’ve been using Profile for several years and find that the data is highly accurate. In fact, we’ve had great success in using the data for our internal auditing processes related to fund set-ups.”@


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