DTCC – Mutual Fund Presentation

Report
© DTCC
Wealth Management Services
Wealth Management Services Update
Karin Billias
September 25, 2013
DTCC Non-Confidential
Wealth Management Services
Alternative Investment Products
(AIP)
DTCC Non-Confidential
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3
AIP Overview
 AIP is a platform that links global market participants — including
broker/dealers, product sponsors, fund managers, administrators and
custodians — to provide straight through processing of alternative
investment products, including
•
•
•
•
•
Hedge funds
Funds of funds
Private equity
Real estate investment trusts
Limited partnerships
 AIP standardizes the way the alternative investment industry
communicates pre- and post-trade information about the security and
the associated value of the fund.
 By effectively addressing the operational challenges related to capital
investments and investor activity, AIP provides the alternative
investment community scalability through improved efficiencies,
reduced operational risk and lowered costs.
DTCC Non-Confidential
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4
AIP Industry Adoption – 2013
•
Currently 90 members live on AIP representing 225+ entities
•
Over 50 companies are currently in the membership application queue
•
600+ fund profiles on AIP Security Master
•
Significant new members
•
Guggenheim Investment Advisors
UBS
Huntington Asset Services – Central Park
Group Funds
Goldman Sachs – (pending membership)
Bank of New York Mellon - AIS
Permal – (pending membership)
Citi Fund Services – (pending membership)
BlackRock – (pending membership)
Both Executive Advisory Boards (EAB) of global hedge fund administrators and
Fund of Funds continues to provide direction and leadership
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3
Wealth Management Services
Mutual Funds
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6
US
Mutual
Fund
AUM
vs.
Fund/SERV
Volume
&
Fees
US
Mutual
Fund
AUM
vs.
Fund/SERV
Volume
&
Fees
US Mutual Fund AUM vs. Fund/SERV Volume & Fees
Mutual Fund AUM
* As of July 2013
$13T
Daily Avg Trade Vol
*August 2013 YTD
$13.6T*
868,814*
812,177
0.5
0.35
0.25
0.175
0.05
0.07
0.06
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Collective Investment Trust Annual Transactions
and Settlement
$196 Billion (2013
Annualized)
CITs Transactions
CITs Settlement
2.9 mm $145.7 Billion
As of August
3.6 mm (2013
Annualized)
$130.4 Billion*
2.3 mm
2.1 mm
1.9 mm
1.8 mm
$95.2 Billion
2.4 mm
$51 Billion
$47.5 Billion
$42.6 Billion
2008
2009
2010
2011
2012
2013
© DTCC
Collective Investment Trust Statistics
As of Sept 2013
• 83 Collective Trust Sponsor Members with 5698
CUSIPs (trading with 146 firms)
• 14 Stable Value Sponsor Members with 427
CUSIPs (trading with 51 firms)
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Wealth Management Services
Completed Initiatives
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Wealth Management Services
•
Omni Invoicing Phase I:
• Reporting and Settlement of Omnibus Invoices for:
• 12b-1
• Finders Fee
• Underwriter Fees
• CDSC
• Short Term Redemption Fees
• Rule Filing / Name Change for Commission Settlement –
DTCC Payment aXis
• Implemented on February 13, 2013
•
Phase II – TBD
• Sub – TA Fees (Omnibus; Retirement and Networking)
• Requirements in progress
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Wealth Management Services
Retirement Plan Reporting
Goal:
To create a set of standard formats that can accommodate multi-directional
retirement information flow between business partners.
To complete the data exchange using an existing transmission channel to
minimize the expense of establishing and maintaining point-to-point connectivity.
Phase I (Implemented in March 2013) :
• Retirement Plan Reporting files from Record Keepers/Retirement
Platforms to Firms (via Networking)
• 408(b)(2) Reporting (Profile II enhancements)
Phase II (TBD):
• Retirement Plan Reporting files from Record keepers/Retirement
Platforms to Fund Families (via Networking)
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Wealth Management Services
Profile II Security Database –
Comparison Tool
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Wealth Management Services
Profile II Comparison Tool
Web-based feature to automatically source and populate data points in
Profile II, allowing Funds to compare data against public source documents
filed with the SEC
• Data points will be mined from source document filings (Prospectus,
SAI, Stickers) in the SEC’s EDGAR database (nightly) and compared
along side the existing data points.
• Variances between Profile data points and the source document
would be systematically identified and displayed to Funds. Funds will
edit and approve the data while alerting Firms to exceptions.
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Wealth Management Services
Features of Comparison Tool
• Fund dashboard identifying data variances
• Daily variance email alerts to Funds
• Annotations on variances
• Messaging from Firms to Funds
• Fund scorecard – (implementation TBD)
• Firm view - daily report
• Fund view - real-time updates
• Variance Charting
• Additional data points to accommodate Department of Labor
regulatory requirements under ERISA 408(b)(2) and
404(a)(5)
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Wealth Management Services
2013 Enhancements
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Wealth Management Services
2013 Release – Target Date – November 18, 2013
Will incorporate enhancements to Wealth Management Products for:
• Social Codes
• Add Blue Sky State for Exchanges
• Networking Control Number – alpha numeric versus numeric
• Dividend Rate and Entitlement Shares
• Additional Enhancements to Networking – transparency for cost basis
• Add Retirement Plan Account information to Fund/SERV, Networking and
DTCC Payment aXis
• Support Foreign Account Tax Compliance Act (FATCA)
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