SunGard has formed an alliance with Delta Data Software through which it will offer Delta Data’s FundLinx solution suite on an outsourced basis over the SunGard Transaction Network (STN).
The first offering available through STN’s service bureau will be based on Delta Data’s Revenue Manager, an application designed to handle the complexities of mutual fund revenue receipt and allocation, facilitating full disclosure and fee transparency.
SunGard and Delta will also deliver a new service, Catch-22, a combined data warehousing, analytics engine, and administration tool taht aims to ensure buy side and sell side compliance with the new SEC 22c-2 ruling.
SunGard says the revenue management service available through STN will calculate, track, invoice, post and reconcile account servicing and distribution fees due from fund partners. It will also provide similar services for pass-through payables to an institution’s individual investor base or retirement plan clients. Revenue Manager supports revenue and commission processing for accounts traded at an omnibus level, enabling accurate accounting and allocation of fees to the underlying investors on a single omnibus fund account. Sungard says STN’s outsourcing model helps eliminate the need for regular maintenance and support costs on the part of its customers.
With the SEC’s adoption of rule 22c-2, aimed at preventing market timing abuses, a rapidly unfolding landscape of fees, schedules and rules around the early redemption of shares is creating new challenges for fund companies and financial intermediaries.
“Delta Data’s Revenue Manager and market timing analytics components are widely recognized as industry leading solutions for mutual fund fee management and frequent trade monitoring, particularly as they apply to the hot button issues of revenue accrual, allocation, control and 22c-2 compliance,” says Kevin Rafferty, president of SunGard’s STN business unit. “By bringing these tools onto STN as fully-hosted services, and linking them to our other services for mutual fund processing, we will offer an automated, end-to-end solution for mutual fund trading and administration. The seamless connectivity will help bring greater efficiency and transparency to the mutual fund markets, assisting both buy-side and sell-side participants to streamline revenue management and achieve regulatory compliance.”
Delta Data Software’s FUNDLinx is a mutual fund and securities processing system, while the SunGard Transaction Network (STN) links some 2,000 asset managers, 1,000 issuers, and 175 broker/dealers through a single network.