Mutual Fund Subaccounting
We created the largest omnibus recordkeeping/subaccounting system in the US. We commercialized subaccounting for the mutual fund industry in the early 2000. As a result we have substantial experience developing these systems and services for large money managers, banks, brokerage firms and insurance companies in the US.
We are familiar with most of the large brokerage back office systems and their requirements for mutual fund investor recordkeeping. Virtually all the major clearing broker dealers in the US have or are using software that was developed by the firm we started and managed.
What ever your needs are in this unique area we can economically and effectively assist you.
MUTUAL FUND AND ETF ADVISORY WRAP PROGRAMS
A LOW COST PROCESSING MODEL
We created a unique software service for advisory programs in the early 1990's using a totally integrated solution. Traditionally Mutal Fund/ETF wrap based portfolios have required at least two different software systems to provide the service. Often times a portfolio accounting system and a legacy custodial legacy brokerage system or a trust accounting system were needed for client record keeping. This traditional paring plus the addition of portfolio accounting tools creates a expensive and complex process.
One of the principle advantages of a omnibus processing model was only one incidence of the investor records. For more information see our section on digital advice.
Advisory Wrap low cost processing model
Money Fund Sweep
Mutual Funds offering money funds were one of the original use cases of subaccounting and omnibus accounts in the US. The initially software systems were very straight forward. The fund itself was a constant priced of a dollar so shares and dollar values were equivalent. The primary task of posting earnings (dividends) was straight forward. Banks and Bank Trust companies often use these concepts for their clients and broker/dealers wanted a cash account alternative and used a money fund sweep. Subaccounting was easily done and was offered by a variety of software vendors and inhouse solutions.
KDSPartners has created in the past specialized sweep software that allowed variable price funds, a variety of dividend accrual options and integration with credit card and margin systems that created robust cash component for an investor’s account. Dividend processing throughput is one of the key operational components requiring accruals and posting to be accomplished in very tight operational windows. Integration with other systems and simplified reconciliation with an omnibus account are key components of this implementation of mutual fund subaccounting. Further integration into a portfolio of many funds and ETFs requires additional functionality that needs to be available.
KDSPartners can be very helpful in the design, requirements and implementation/integration assistance for a money fund sweep project you may be undertaking.
Subaccounting Defintion