Knowledge Center

Creating Technology to Meet Client and Industry Requirements

Mutual Fund Solutions
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Business Challenge

The Securities and Exchange Commission imposed increased disclosure regulations upon mutual funds, which required more frequent and transparent reporting, including filing quarterly Schedules of Investments through Form N-Q.

Our Solution

The process to create quarterly Schedules of Investments took several weeks from start to finish using a manual-processing environment involving spreadsheets. We recognized the existing infrastructure could not support our clients’ growth and ongoing regulatory mandates for enhanced reporting, so we leveraged our industry intelligence to identify and develop a new automated solution.

We facilitated a critical research project to develop a best-in-class reporting workflow process by analyzing our clients’ needs and tracking industry trends. We then partnered with Confluence, a leading provider of automated data management solutions for the investment management industry, to apply the findings and pilot the technology for an automated solution.

Our knowledge base was instrumental in creating the system’s functionality. By pairing our expertise with the flexibility and capabilities of Confluence, we revolutionized the creation, validation, and delivery of Schedules of Investments across the mutual fund industry. Every client benefits from the comprehensive and cutting-edge technology that automatically collects data, creates holding reports, and reviews for accuracy. This system also allows U.S. Bancorp Fund Services to eliminate disconnected and redundant business processes and apply additional risk management and compliance oversight to our clients’ Funds.

The Result

U.S. Bancorp Fund Services increased the efficiency of creating compliant Schedules of Investments by 65 percent. Additional benefits of our automated solution include:

  • Elevated scalability and service levels. We can automatically flag, footnote, sort, group, aggregate, and round holdings data.
  • Heighten risk mitigation and transparency. We reduce errors and produce more accurate reporting through automated mapping and notification features, defined user rights, and a complete audit trail.
  • Increased data integrity. We receive automatic alerts when data conflicts and exceptions arise through the use of a centralized database.
  • User-defined customization. Funds create customized industry categories for analysis, comparison, or compliance.

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