SunGard to Provide Solution for Full Disclosure and Fee Transparency
HINSDALE, IL, September 27, 2005 -- SunGard today announced 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, a solution for managing the complexities of mutual fund revenue receipt and allocation, facilitating full disclosure and fee transparency. The firms will also deliver a new service, Catch-22, a combined data warehousing, analytics engine, and administration tool to ensure buy side and sell side compliance with the new SEC 22c-2 ruling.
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. Furthermore, STN's fully resilient outsource 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, targeted 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.
STN will marry SunGard's data management expertise, the connectivity of STN's buy and sell side interfaces, and Delta Data's analytics and contract management engines to simplify compliance. Catch-22 will seamlessly link the entire data path from the fund companies and transfer agents to the NSCC to the financial intermediaries in order to manage the intricacies of 22c-2 compliance and administration.
Kevin Rafferty, president of SunGard's STN business unit, said, "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. 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."
About Delta Data
With a 20-year legacy of building, implementing, supporting and maintaining sophisticated software systems, Delta Data Software is uniquely skilled in the delivery of transaction-based applications specifically tailored to meet the technology needs of the retirement and investment services industry. Delta Data's FUNDLinx is one of the industry's most advanced and comprehensive mutual fund and securities processing systems - driving profitability for its clients with better edits and audit controls, less risk and dramatic cost reductions from straight-through processing. Visit Delta Data at www.deltadatasoft.com.
About STN
A trade automation and connectivity solution, the SunGard Transaction Network (STN) links institutions throughout the financial services value chain, facilitating the purchase and sale of many securities types, including US and foreign equities, fixed income, mutual funds, money market funds, certificates of deposit, and commercial paper. Integrated directly with SunGard systems and with third-party systems, STN helps automate the entire transaction lifecycle. Some 2,000 asset managers, 1,000 issuers, and 175 broker/dealers are connected to STN.
About SunGard
With annual revenue of $4 billion, SunGard is a global leader in software and processing solutions for financial services, higher education and the public sector. SunGard also helps information-dependent enterprises of all types to ensure the continuity of their business. SunGard serves more than 25,000 customers in more than 50 countries, including the world's 50 largest financial services companies. Visit SunGard at www.sungard.com.
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