It’s indisputable that fintech is rapidly changing the landscape of financial services. It seems as though there’s a new innovation every day promising that Mutual Fund asset managers can leave their outdated legacy systems behind. Broker-dealers have been particularly hampered in recent years due to where they sit in the mutual fund supply chain. They are pulled in all directions, whether it’s their fund company partners adding or altering share classes or responding to demands from their investment managers around product availability, performance, and transparency. Read more
Fund Communication is Ready for an Upgrade
Tech innovation necessary to cut industry’s ties with legacy software.
The industry’s move to an email-based system has been the only minor update to the blast fax infrastructure in the last 30 years with regards to communicating fund changes and events. The mutual fund industry is rooted in a complex data set and has embraced its own way of processing data.
Fund companies currently send thousands of emails to their distributors. Recipients of these emails must parse through each one to determine if the communication is even relevant. In the case that an email is pertinent, that firm must then figure out the appropriate changes to process and move it downstream in their organization. It is a time-consuming process that relies heavily on manual intervention, making it riddled with risk.
We recently had the privilege to host some of our clients and Mutual Fund industry leaders for a roundtable discussion in Boston. It was an opportunity for us collectively to step away from our daily workplace rituals and talk about the future of our industry. Read more
COLUMBUS, GA (February 27, 2018) – Delta Data has announced its participation as a presenter and sponsor at NICSA’s Strategic Leadership Forum (SLF), to be held February 28 – March 2 at the Doral in Miami, FL. Read more
The SEC voted on Wednesday to delay the compliance date of the classification requirement of the Liquidity Rule in what turned out to be a whirlwind of a week for the regulatory body.
With a delay now formalized, fund firms with more than $1 billion in assets now have till June 1, 2019, to comply with the classification requirements, while smaller firms have till Dec. 1, 2019. The SEC also issued an FAQ document detailing compliance requirements for the rule, which you can find here. The other requirements of the rule still go into effect December 1, 2018, for large funds and June 1, 2018, for smaller funds. Read more
ATLANTA (February 21, 2018) – The Technology Association of Georgia (TAG), the state’s leading association dedicated to the promotion and economic advancement of Georgia’s technology industry, today announced Delta Data as one of its Top 40 Innovative Technology Companies in Georgia. TAG will recognize this prestigious group at The Summit 2018 on March 20th and 21st, 2018, at the Cobb Galleria Centre. Read more
Tech Shop to B-Ds: We Can Eliminate Risk, 21K Fund E-Mails
By Bradley Saacks February 8, 2018
By Delta Data’s estimates, the typical broker-dealer sifts through more than 21,000 e-mails every year, piecing together information about changes to funds ranging from portfolio manager retirements to breakpoint tweaks.
The Columbus, Ga.-based back-office systems shop says its new FundBlast system can eliminate that manual work — and the errors it can cause — by serving as a portal between mutual fund providers, their transfer agents and their distribution partners more efficiently. The result, the company says, will cut operational and compliance costs on both sides of the distribution equation.
In part three of our series looking at the world of mutual fund changes and how they’re communicated, we look toward the future. To recap, funds and distributors have been frustrated with the fund event communication process since the beginning. The main issue is that manual processes, lack of standardization, and massive amounts of irrelevant data confuse both the funds and the distributors – and leads to errors, audit issues, and fines. Read more
New digital portal aims to revolutionize how mutual fund changes are communicated.
February 7, 2018, Columbus, Ga. — Delta Data, a leading provider of software and data management solutions for the mutual fund industry, today announced the launch of FundBlast™, a transformational digital portal for communicating mutual fund changes in real time.
Developed to seamlessly facilitate the notification and processing of fund events such as new products, mergers, liquidations, accounting changes, and trade rule updates, FundBlast serves all parties involved in the fund actions lifecycle. This includes fund companies, distribution partners (broker-dealers) and fund service providers such as transfer agents, fund accountants, and record keepers. Read more
Over the past two years, the industry has seen a growing trend of platform rationalization across the board for broker-dealers, with several in the top tier seeking to offer advice as part of their value proposition, similar to what the end investor receives. The supermarket approach of the early 2000s was expensive to maintain, and research coverage was relegated to a small list of preferred mutual fund products. Read more
It’s the most wonderful time of the year … unless you’re an intermediary in charge of processing mutual fund dividends. December is a high-volume month, with an onslaught of dividends that have to be posted in a timely fashion. Years ago when most fund accounts were held fully disclosed on the fund company’s TA system, dividends were a non-event. But the move to omnibus accounts and the growth of 401k plans now requires the intermediary to calculate the amount of each shareholder’s dividend and get it posted to their account the evening of ex-date. Read more
For some people, taking a sales meeting is on par with going to the dentist — they’ll avoid it at all costs. Avoiding the dentist due to an unreasonable fear will eventually come back to haunt you, just like skipping an informative sales call could mean missing out on the latest industry technology — ultimately impacting your business. Read more