Mutual Fund Services (MF) delivers a broad range of innovative transactional and information services to automate, standardize and centralize processes to create efficiencies and reduce cost and risk for the mutual fund marketplace. MF solutions drive business relationships between asset managers and their distributors, linking a vast network including fund companies, investment managers, broker/dealers, banks, trusts, and other financial services firms that offer fund investments to the market.
The documentation and information included in this section pertain to multiple products across Mutual Fund Services. Login ID and password required.
A matrix level is the level of control on a sub-account provided to a Firm or Fund using Networking. The matrix level chosen by a Firm determines the activity allowed between a shareholder and a Fund. Each matrix level:
- Provides Firms with the flexibility to select options consistent with their business philosophy
- Identifies the:
- Reporting responsibilities of the Firm and Fund with regard to each sub-account
- Processing capabilities the Fund and Firm have in supporting the exchange of information for those sub-accounts
Money Market Enhancements
Fund/SERV®, NSCC's central processing system for mutual fund transactions, enables mutual fund distributors and firms to enter, confirm, settle and register purchase, exchange and redemption orders in an efficient and automated environment. The service standardizes mutual fund policies, reduces operating costs, and speeds transaction settlements.
The DTCC Networking system is a centralized and standardized data communications system for the exchange of customer account-level activity. Networking is the industry standard product for exchanging mutual fund customer account maintenance and reporting. The Networking system allows non-trade-related client information to appear identically on the records of:
- Firms and Funds
- Transfer agents for Firms and Funds
The Networking system provides a controlled environment in which Firms and Funds can exchange timely and accurate information about their customers.
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. Investment options often include stock mutual funds, bond mutual funds, and money market funds, as well as, age-based portfolios that automatically shift toward more conservative investments as the beneficiary gets closer to college age.
Historically, many new 529 accounts were set up with the mailing of a physical application to the 529 program. This labor-intensive, paper-based process does not meet current industry standards for automated account set-up and trade settlement. Most accounts are held off-book, resulting in greater operational overhead and unrealized improvements in client service.
Since 2010, NSCC Fund/SERV® and Networking systems have supported the automation of 529 account processing.
DTCC Payment aXis
The DTCC Payment aXis® service provides an automated method for the transmission and settlement of various commission and fee types between funds and firms.
The DTCC Payment aXis® Commission and Fee Settlement service provides an automated process for the distribution of commission and fee payments. The use of DTCC Payment aXis®:
- Automates and standardizes commission and various fee payments
- Simplifies the reconciliation of records between Funds and brokers
- Reduces clerical costs. Eliminates the need to send or receive paper, diskettes, and tapes containing commission run information
- Uses existing NSCC communications links
- Consolidates money settlement with all other NSCC service transactions
Additionally, the Global Update process within DTCC Payment aXis® allows funds to globally update all their accounts associated with a specific account representative or a specific Firm branch in the event of a change to that rep or branch.
The DTCC Payment aXis® Invoicing and Fee Settlement service provides an automated solution for the exchange of Omnibus invoices and the settlement of various fee for accounts held in omnibus accounts. The Invoicing and Fee settlement service supports the following invoice fee types:
- Sub-Accounting 12b-1 / Shareholder Service Fee
- Sub-Accounting CDSC
- Sub-accounting Underwriting Fee Adjustment
- Sub-Accounting Short Term Redemption
- Sub-Accounting Finder Fee Adjustment
- Sub-Accounting Service Fee
- Retirement / Bank Trust Service Fee
- Networking Service Fee
Mutual Fund Profile Service I
Mutual Fund Profile Service II
The purpose of this Web guide is to provide NSCC members, which includes but is not limited to, mutual funds, insurance companies, brokerage firms, dealers and trading partners participating in the mutual fund services, with the information necessary to utilize the features and functionality of the Mutual Fund Profile Service (MFPS) II system.