wEALTH management services


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wEALTH management services

  1. 1. AN INTRODUCTION TO DTCC’S wEALTH management services
  2. 2. About The Depository Trust & Clearing Corporation For more than 30 years, DTCC’s family of subsidiaries has provided the financial services industry with continuously improving effi- ciencies, reduced risk and lower costs through streamlined pro- cessing solutions that are automated, centralized and standardized. DTCC’s post-trade infrastructure system handles millions of trans- actions each day and ensures uninterrupted connectivity to thou- sands of financial firms in the U.S. and overseas. DTCC’s subsidiaries are leading processors of a broad range of asset management services, including mutual fund and fund retire- ment plan programs, as well as managed accounts. Another family of services in development will help the alternative investment products sector gain similar efficiencies. In 2006, DTCC settled more than $1.5 quadrillion in securities trans- actions. DTCC's depository provides custody and asset servicing for 2.8 million securities issues from the United States and 100 other countries and territories, valued at $36 trillion. The organization has operating facilities in multiple locations in the United States and overseas. For more information, visit www.dtcc.com.
  3. 3. AN INTRODUCTION TO WEALTH MANAGEMENT SERVICES D TCC’s Wealth Management Services can offer you a suite of services designed for the distributors of mutual funds, managed accounts and, with approval from the Securities and Exchange Commission, alternative investment products. And underpinning all these services is a centralized infrastructure known throughout the world for reliability and resiliency. By using our Wealth Management Services, you can expand your trading relationships, increase your processing efficiencies, lower risk and reduce your market and operational costs. DTCC is industry owned and operates on an at-cost basis, which means that as volumes grow, we return profits back to our customers through rebates, discounts and, over time, fee reductions. Our goal is to help you grow your business, achieve economies of scale and increase your revenues.
  4. 4. M U T UA L F U N D S E RV I C E S T hrough decades of explosive growth and change, our Mutual Fund Services have been at the center of operations, helping the fund industry reach a pinnacle of over $11 trillion in assets under management. Offering end-to-end connectivity, our automat- ed and centralized services have allowed fund companies and the distributors of their products to expand the breadth of their offer- ings and the network of their strategic partnerships, while continu- ously decreasing operational costs and risks. We can demonstrate to you the power of Fund/SERV,® our flagship transaction service and the industry standard. On an average day, it’s capable of handling and settling money obligations for close to 700,000 mutual fund trans- actions worth trillions of dollars. And it has the built-in capacity to process many more than that, so it’s always ahead of market growth. Other mutual fund solutions reconcile account information between you and your business partners, and allow you to streamline the exchange of vital data on your clients’ accounts, as well as your firm. Our newest service was created to give you a state-of-the art information repository for all the rules-based information contained in a fund prospectus. 2 W E A LT H M A N AG E M E N T S E RV I C E S
  5. 5. With competition increasing, margins decreasing and compliance requirements becoming more complex, our Mutual Fund Services can transform your fund busi- ness into a highly efficient operation. Mutual Fund Services include: Global Update ACATS-Fund/SERV Transmits updated information to funds on Transfers fund shares from one firm to firms’ branches and account executives. another. Mutual Fund Profile Service Commission Settlement Provides a central source for funds’ prospec- Simplifies payment reconciliation between tus information. funds and third-party distribution firms. Networking Daily Price & Rate File Exchanges and reconciles account-level Provides daily net asset values and rates information between funds and firms. for daily accrual funds. Networking for Standardized Defined Contribution Clearance Data Reporting & Settlement Allows fund companies to request informa- Facilitates the processing and information- tion on omnibus and super-omnibus exchange of retirement and other benefit accounts to better monitor trading activity. programs. Transfer of Retirement Assets Fund/SERV® Transfers the value of fund shares held in Centralizes order entry, confirmation, fund-sponsored IRAs from one fund to registration and money settlement. another. Fund/SPEED SM Mutual Fund Services are offered by National Securities Exchanges orders and account informa- Clearing Corporation, a DTCC subsidiary. For more tion, in real time, between funds and bro- information, visit www.dtcc.com/mutualfunds ker/dealers, financial advisers and planners. W E A LT H M A N AG E M E N T S E RV I C E S 3
  6. 6. M A N AG E D AC C O U N TS S E RV I C E O ur Managed Accounts Service offers a centralized communica- tions platform for the seamless exchange of information required to initiate and maintain a client’s portfolio. We realize it’s been difficult to juggle multiple connections and manual processes for portfolios that reside in a multitude of distinct sponsor programs. It’s a chaotic mix of communications that’s been squeezing your profit margins and straining your potential for future growth. When several industry leaders came to strengthen your core client service and us for a solution, we swiftly responded, client-update capabilities. We built this and worked with them and The Money service with an open architecture designed Management Institute (MMI) to create for easy access and using XML-based our Managed Accounts Service. It is the standard messaging developed by the first of its kind and brings a new level of MMI, so errors, delays and operational efficiency, risk reduction and streamlined costs are greatly minimized. communications to an industry poised to And DTCC’s time-tested infrastruc- grow to $1.5 trillion by 2011. ture provides you with unparalleled data With this service, you can set up a integrity, security and business continu- new account at lightning speed and at a ity capabilities – crucial factors for pro- fraction of your current costs, and tecting your investors’ records. 4 W E A LT H M A N AG E M E N T S E RV I C E S
  7. 7. Our Managed Accounts Service currently offers a complement of messages that support the account-opening life cycle. These include: New Account Set-Up As the industry changes, our Managed Accounts A complete composite of information and Service will be expanded to support new industry instructions to initiate and activate a new man- product innovations, as well, including unified aged account between a sponsor and an invest- managed accounts, multiple-style portfolios and ment manager. model-only programs. Account Maintenance We plan to further extend the service with addi- A function that streamlines core activities such tional account maintenance messages, such as as contributions and distributions to and from tax-trading guidelines, investment-manager style an account, as well as account terminations, changes, and address, broker and custodian minimizing processing and market risk. changes. We will also add functions to transmit Client Profile Update corporate action messages. A periodic client update that provides informa- The Managed Accounts Service is offered by DTCC tion on such changes as investment objectives, Solutions LLC, a DTCC subsidiary. For more informa- tion, visit www.dtcc.com/managedaccounts client profile modifications and other relevant investor information. W E A LT H M A N AG E M E N T S E RV I C E S 5
  8. 8. A LT E R N AT I V E I N V E S T M E N T P RO D U C TS D TCC has proposed a new suite of services to automate the processing of hedge funds, funds of hedge funds, real estate investment trusts (REITs), managed futures and commodity pools, as well as other alternative investment products. Alternative investments are becoming increasingly popular with investors looking to grow their wealth in non-traditional products. Global hedge fund assets alone have grown to $2.4 trillion in 2007 and are projected to reach $4 trillion by 2010; and REITs, at $438 billion in assets, have almost tripled in just five years. It’s an exciting time to be active in these markets, with new opportunities to build your business. At the same time, you’re facing some profound operational challenges. Right now, transactions are processed manually, an envi- ronment that is error-prone and, therefore, susceptible to high operational risk. Added to that, spreadsheet-based record keeping and lengthy subscription documents slow processing even further. Our proposed solution will link broker/dealers, fund managers, administrators and custodians through a central network that will automate and streamline all the processes related to trade order, sub-account document exchange and reporting. Money settle- ment will be reported in multiple currencies, and virtually straight- through-processing will increase the speed of settlement and eliminate delays in reconciling transactions. 6 W E A LT H M A N AG E M E N T S E RV I C E S
  9. 9. Our services for alternative investment products will initially offer these features: New Account Set-Up Distributions Exchanges information required to initiate Distributes share dividends and fund income a new account. payments through an automated platform. Initial Subscriptions Account Maintenance Automates the process for submitting the Simplifies day-to-day activities, including trade and provides a documents inventory. changes in account information and other non-financial updates. Subsequent Subscriptions Standardizes confirmation of subscription Commissions amount, effective date, account registration Allows funds to report and settle detailed and settlement date. commission data, at both an account level and a firm level. Redemptions/Tender Offers Automates the liquidation of assets in a fund. DTCC’s service for alternative investment products will Exchanges be offered by its National Securities Clearing Corporation Moves customer shares from one share class subsidiary, pending approval by the Securities and to another. Exchange Commission. For more information, visit www.dtcc.com/aip Position/Valuation Reporting Provides detailed, up-to-date reports on the value of your clients’ investments. W E A LT H M A N AG E M E N T S E RV I C E S 7
  10. 10. DTCC’s Wealth Management Services A business unit of The Depository Trust & Clearing Corporation Providing Mutual Fund Services Managed Accounts Service A Service for Alternative Investment Products (Proposed) To learn more, please call us at 1-212-855-8877 Or visit our Web site, www.dtcc.com
  11. 11. www.dtcc.com