2001
"Insights and Administrative Solutions for Providers of Alternative Investments"
Stephen M. Wynne, executive vice president
Portfolio International
October 2001
Hedge fund managers are finding that challenges can come not only from managing the investments themselves but also from the complexity of administering them and meeting tax, regulatory and accounting requirements.
Given the perceived risks of hedge funds, anything less than first-rate handling of these tasks could badly shake investor confidence.
As hedge fund investments grow in response to turbulent global markets, fund operators must have a comprehensive set of services to meet their accounting and administrative needs, to simplify the intricacies surrounding their partnerships and to handle complex tax and regulatory requirements.
To request a copy of this article, click here.
"401(k) Recordkeeping: Not a Job for Everyone"
Jeffrey Hemker, managing director
Ink Spot News
October 2001
Today’s asset managers of 401(k) funds face continuing challenges to offer outside investments, brokerage accounts and other non-proprietary asset classes.
The requirement of multi-fund family offerings, the expansion of brokerage accounts and the need to achieve scalability is forcing many 401(k) providers to take a hard look at fixed costs, upgrade costs and the true cost/value proposition of in-house service delivery.
This article describes how outsourcing, consequently, is now becoming a market segment-driven option that most providers are seriously considering.
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"Straight Through Processing & T+1: A Call to Action"
Joseph T. Gramlich, executive vice president and
Sam Sparhawk, IV, senior vice president
ABA Trust & Investments
September/October 2001
Efforts to achieve T+1 (settling securities trades one day after they are executed) include strategies such as streamlined communications, electronic processing of trades and straight through processing.
This article outlines how these initiatives will enable banks, brokers and investment managers to manage growing equities trading volume, reduce risk and minimize strain on system capacity.
To request a copy of this article, click here.
"Superior Technological Capabilities: The Key to Servicing European Mutual Funds"
Joan Kehoe, executive vice president, PFPC International Ltd.
Global Investment Management
September 2001
The European mutual fund market is growing rapidly due to the recent formation of a single currency, lower government bond returns increasing equity investing, uniform regulations and a shift to privatization and funded pensions.
Along with this growth, however, the European fund industry is also changing as evidenced by new non-bank distribution channels, non-proprietary products and increased competition based on price and performance.
This article explains why administrative service providers that wish to meet the challenge of the European market must be respectful and cognizant of regional and local requirements in addition to offering sophisticated, fully intergrated services.
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"Exchange-Traded Funds, New Opportunities to Meet Special Servicing Needs"
Stephen M. Wynne, executive vice president
Mutual Fund Service Guide
July 2001
Exchange-traded funds, or ETFs, are one of today's fastest growing investment products as investors seek tax efficient investment alternatives.
First offered in their present form in 1993, the demand for ETFs exploded in 2000, creating a $62 billion market by year end, an 86% increase from 1999.
ETFs are traded on exchanges, much like individual stocks and are generally lower in cost and more tax efficient than traditional mutual funds.
They can be structured as either an opened-ended mutual fund or a unit investment trust.
ETFs track specific stock indices, such as the Dow Jones Industrial Average or the NASDAQ 100.
The article identifies the unique attributes of ETFs and outlines how service providers can meet the special servicing needs of these complex investment products.
To request a copy of this article, click here.
"529 Plans: New Opportunities, New Challenges for Fund Companies"
Michael DeNofrio, executive vice president and senior managing director and
Steven Turowski, senior vice president
The 2001 Transfer Agent Service Guide
March 2001
529 college savings plans, named after the section of the Internal Revenue Service code that authorizes them, were introduced only three years ago, and the demand for this financial services product is fast increasing.
The plans, sponsored by states and managed by fund companies, offer great opportunities for families who wish to save for their children's education.
Money is set aside in tax-deferred accounts and contributions are invested in a mix of mutual funds.
It is believed that assets under management in these plans will total $100 billion within a few years.
The authors identify several challenges confronting fund companies managing 529 college savings plans.
To request a copy of this article, click here.
"Growing Popularity of Hedge Funds Creates Complex Servicing Needs for Investment Managers"
Clayton H. Burton III, executive vice president and,
Neal J. Andrews, senior vice president and senior managing director
MarketVision
Winter 2001
To an administrator, hedge funds are private investment pools that use complex investment instruments such as options, futures, derivatives, short selling and investments in emerging markets.
The hedge fund market is growing rapidly: the number of hedge funds jumped from 200 to 3,800 over the last decade and the number of assets under management rose $300 billion in 1999 to $475 billion at the end of 2000.
The authors identify several key functions of hedge fund administration that require special expertise and servicing.
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2000
"J. Richard Carnall, PFPC"
Operations Management
December 18, 2000
Dick Carnall, PFPC chairman, highlights the major current marketplace trends, industry challenges and discusses how PFPC is addressing these trends, including a reduction in the settlement period for equity trades, expansion to European markets and the growth of customized Internet services.
Find out the details of PFPC's initiatives in each of these areas.
To request a copy of this article, click here.
"Service: A Strategic Asset in Brand Building"
Clayton H. Burton, III, executive vice president
Ink Spot News
September 25, 2000
In the financial service industry, branding is much more than an ad, a logo or a name.
Companies want to fully leverage a brand's power and ability to attract customers, increase sales or leverage higher prices.
This can all be done through a blend of skills, technology and experience that delivers performance for customers.
In addition, there are several key steps financial service firms can take to build their brands through outstanding service.
This article clarifies why and how quality servicing can be an invaluable asset in differentiating brands.
To request a copy of this article, click here.
"The Countdown to T+1: Liftoff to a 21st Century Settlement System"
Joseph T. Gramlich, chairman, PFPC Trust Company and executive vice president, PFPC
Sam Sparhawk, IV, senior vice president
The 2000 Custody Service Guide
August 2000
With the successful 1995 move to T+3 trades, which decreased domestic settlement times for the first time in the 20th century, the SEC is now actively working to further decrease the time between trades and domestic settlement to T+1.
Instead of three days after execution of the trade, T+1 allows next-day settlement of trades.
It will also help the industry manage greater volumes and reduce trade processing costs for investment managers.
Most importantly, find out why a two-day reduction in the settlement period will dramatically reduce the industry's risk of exposure.
To request a copy of this article, click here.
"The SEC's Proposed After-Tax Return Disclosure Rule"
T. Richard Keyes, vice president and senior tax director
The 2000 Fund Accounting Service Guide
June 2000
The SEC has proposed a new after-tax return disclosure rule.
This rule will require mutual funds to disclose after-tax return information to shareholders that can be used for fund comparison purposes.
According to author Richard Keyes, "An after-tax return reporting rule will undoubtedly benefit mutual fund shareholders by providing a resource for adequately gauging the relative after-tax effects of investing in funds."
See how this rule will affect you as a shareholder or a mutual fund company.
To request a copy of this article, click here.
"Targeting Europe as a Growth Market"
Clayton H. Burton, III, executive vice president
Ink Spot News
May 8, 2000
Statistics show individuals and institutions all around the world are significantly increasing their mutual fund and retirement plan investments.
Financial experts believe this trend will continue.
At this time, the main growth markets for investment companies and their service providers are concentrated in Western Europe and Japan.
Despite the attractiveness of the European market to U.S. service providers, however, the corporate leap across the Atlantic remains challenging.
Those service providers who are preparing today to address the needs of tomorrow's market will be best positioned for the success in Europe.
Find out why the European growth market is so promising to U.S service providers.
To request a copy of this article, click here.
"Preparing Tomorrow's Workforce Today: Innovative Partnerships Link Universities and Financial Services Firms"
Stephen M. Wynne, executive vice president
Ink Spot News
April 23, 2000
PFPC teamed with universities that educate and train accountants is a "win-win" formula for students, academic institutions and the industry.
Students need an understanding of the basic principles and mechanics of their profession and appreciate the hands-on experience.
Universities relish the opportunity to create new and unique courses of study to expose their students to a growing marketplace and the industry can take advantage of additional sources of future employees.
Read more about this success story and discover why industry-university relationships are a formula for success.
To request a copy of this article, click here.
"Mutual Fund Accounting: Behind the Scenes of a Six-Trillion-Dollar Industry"
Joseph F. Gorman, vice president and
Joseph M. Hargadon, Widener University
Strategic Finance
April 2000
The day-to-day operations of a mutual fund and the responsibilities of a mutual fund accountant are complex.
From calculating the NAV (net asset value) to recording fund transactions, a highly charged atmosphere keeps these accountants engaged throughout the day.
Find out why the services of mutual fund accountants are important to the financial services industry.
To request a copy of this article, click here.
1999
"Is Outsourcing Accounting and Administration Services the Solution for Your Complex?"
Susan B. Krevolin, senior vice president
Ink Spot News
September 13, 1999
Outsourcing accounting and administration services for your fund company is a hot topic in today's market.
The decision makers should thoroughly assess their company's goals and objectives to determine whether outsourcing is the right solution for them.
As part of this analysis, management will identify their firm's core competencies, evaluate the risks and rewards associated with internalization versus outsourcing, evaluate the financial impact of internalizing and identify required service quality levels.
To request a copy of this article, click here.
"Securities Lending Offers Mutual Fund Yield Enhancement Opportunities"
Brian R. Burns, senior vice president and
Daniel R. Hoover, senior vice president
The 1999 Custody Service Guide
September 1999
In the growing mutual fund marketplace, an increasing number of funds are incorporating securities lending as a key component of their overall trading strategies.
This article examines the benefits and requirements that a mutual fund should review when considering the establishment of a securities lending program.
To request a copy of this article, click here.
"Outsourcing a Matter of Judgement"
Fergus McKeon, vice president
International Investment
August 1999
Have outsourcing transfer agency services been a popular trend in today's marketplace or is it a short-lived dream?
Fund companies need to consider a wide range of issues when considering outsourcing transfer agency services including cost effectiveness, start up costs, experience, ancillary services, technology, regulatory compliance, capacity planning, disaster recovery, staffing and philosophy/strategy.
To find out more about these topics, please read the following article.
To request a copy of this article, click here.
"Online Funds the Future of Investment"
Joan Kehoe, executive vice president, PFPC International Ltd.
International Investment
July 1999
Internet fund selling is becoming increasingly essential for fund administration.
Fund companies have witnessed a myriad of business opportunities from this technology resulting in an explosion of web sites catering to shareholders.
The advantage of an online presence includes tremendous asset growth, cost savings and improved client services.
To learn more about the future of Internet fund selling, please read the following article.
To request a copy of this article, click here.
"One-Stop Solution: The Internet Answer for Management Companies"
Robyn R. Thibodeau, vice president
The 1999 Transfer Agent Service Guide
March 1999
The Internet offers a tremendous opportunity to mutual fund companies because it enables them to reach the maximum number of customers across multiple channels at a relatively modest cost.
The Internet also enables companies to tailor sophisticated services to the needs of different channels.
Read about the ways investment management companies are turning to outsourcing partners to provide them with Internet solutions.
To request a copy of this article, click here.
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