Jun 13, 2013 • Press Releases

DTCC Enhancement Increases Accuracy of Mutual Fund Data

New functionalities of Mutual Fund Profile Service II will improve user experience and reduce manual errors

NEW YORK, June 13, 2013 – The Depository Trust & Clearing Corporation’s (DTCC) Wealth Management Services (WMS) division has introduced a major enhancement to Mutual Fund Profile Service II (Profile), DTCC’s multi-dimensional repository of databases allowing funds, broker/dealers and other distribution firms to automate and streamline the exchange of timely information regarding securities, participants and distributions.

The new Profile Security Data Comparison Tool is a web-based extraction feature that pulls data points associated with mutual funds from the Securities and Exchange Commission’s EDGAR database. It is available within the Security Issue database, one of the three repositories that make up Profile. The Security Issue database automates and centralizes fund prospectus information and rule-based processing.

The new tool compares mutual fund data points from the EDGAR database to existing Profile information for added accuracy. Additionally, the tool offers new fields designed to capture necessary data points to support new regulatory requirements of the Employee Retirement Income Security Act.

“Previously, industry participants relied on manually-entered data which was labor-intensive and prone to delays when there were changes to the data. To provide for better data accuracy, we created the Comparison Tool which will give distributor firms quicker access to a fuller and more precise profile of information,” said Josephine Torelli, Vice President of Wealth Management Services.

Additionally, WMS has incorporated a new annotations feature that allows funds to communicate with firms regarding variations and exceptions in data, further improving the integrity and transparency of processing. The enhancements will not change how users input and output data in Profile.

Marty Burns, Senior Director, Operations and Distribution, for the Investment Company Institute, explained the organization’s support for DTCC’s new comparison tool. “It will provide the industry with a comprehensive level of assurances that the information in the database matches the information that’s been provided to the fund company’s primary regulator. In addition, the annotations feature gives distributors’ operations staff a level of detail they did not have before when executing trades.”

For fund companies, the addition of this new automated tool in Profile’s Security database means a streamlined process. “I believe it’s going to be the ultimate indicator of data quality that intermediaries have sought for a long time,” said Laura Stanley, Vice President, Invesco Investment Services, Inc. “The Comparison Tool will eliminate the need for separate requests for fund data, which pose the risk of multiple interpretations, and it gives us consistent third-party assessments of our information.”

The Mutual Fund Profile Service was introduced 16 years ago, and since its outset has continually evolved with market changes and participant needs. These enhancements to the Mutual Fund Profile Service are another example of this evolution and DTCC’s commitment to helping the Mutual Fund community get the most reliable information possible.

About Wealth Management Services

DTCC’s Wealth Management Services (WMS) delivers a broad range of innovative transactional and information services to the mutual fund and alternative investment products industries. WMS solutions automate, standardize and centralize processes, driving business relationships between asset managers and their distributors and creating efficiencies while reducing cost, risk and errors.

Fund industry services include DTCC’s Fund/SERV®, Networking, Mutual Fund Profile Service, Defined Contribution Clearance & Settlement, ACATS-Fund/SERV, Transfer of Retirement Assets, DTCC Payment aXisSM and Global Update. The Alternative Investment Products (AIP) is a leading service in processing alternative investment transactions.

WMS is offered through DTCC’s subsidiary, National Securities Clearing Corporation.

About DTCC

DTCC has operating facilities and data centers around the world and, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2012, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from 131 countries and territories valued at US$37.2 trillion. DTCC’s global trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide.

Contacts

Robin Shapiro

Email

rshapiro@dtcc.com

Phone

(212) 855-3254

Kasi Martin
DTCC
kmartin@dtcc.com
(813) 470-2153

dtccdotcom