In order to differentiate themselves from one another, Investment Managers utilize a wide variety of different variations on the basic theme of a pooled fund.

Fund Variation Examples
Tax Status
  • Post Tax/Qualified Funds, such as 401(k)s and Non-Profit foundations
  • Taxable funds, for individuals and corporations
  • Taxable variation by region
Fund Structure
  • Simple
  • Hub and Spoke (also called Share Class)
  • Fund of Funds
Unit Pricing Method
  • Price Appreciation (qualified funds, GAV/units)
  • Allocation (Allocates part of NAVs to individual Participants for tax purposes)
  • Hub and Share Class Pricing (Accounts for fee accruals)
  • Money Market (always priced at 1 currency unit)
  • Direct entry of unit price (unit price calculated in a separate system)
Fund Domicile
  • US
  • Ireland
  • Luxembourg
Fee Structure
  • Basis Points by Share Class
  • Accrued Monthly or Daily
  • Fee Step based on assets
  • Front-end Load/Back End Load/CDSC
  • Trailer Fees/12b-1
Source of Trades
  • Manual/Fax
  • Direct Web Input
  • Direct Integration with NSCC (automated)
  • Multiple Non-US Trade Exchanges
Trading Cycle
  • Daily
  • Monthly
  • Quarterly
  • Ad-hoc
Trading Volume
  • Low (several trades per month)
  • Medium (100's of trades per day)
  • High (hundreds of thousands per day)
Trade Size
  • Small (several hundred dollars)
  • Large (several million dollars)
Currency
  • Single currency
  • Multiple currencies
Time Zone Coverage
  • Support different timezones between the fund domicile, and the user, including offsets for Savings Time

As you can imagine, each of these variations has implications on the way the underlyng TA technology must process the records.

Historically, an IT group writes a software application that supports only a specific subset of these fund variations, for the specific customers that they know about.  This approach works until the asset servicing group wants to take on a new customer with different fund variations.  The original application was not designed to handle these new variations, so it either has to be modified, or if that's not possible, operations people start writing "on the side" Excel spreadsheets.

Capnetix has taken a completely different approach.  From the very beginning, Capnetix was designing a multipurpose fund processing platform.  In order to do this Capnetix designed Fundix using a modular architectecture, that allows new fund variations to be developed as options to select during fund setup.  Once chosen, the platform automatically processes the underlying records according to the selected options.

This approach allows an asset servicing company to offer a much wider and deeper set of options to their investment manager, at a fraction of the time and cost of competing methodologies.  There is only one platform that can do that.  Fundix.
 

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Capnetix has completed development on it's SaaS 2.0 platform, that provides secure web access to a customer specific record keeping database from anywhere in the world, 24 hours a day.  Perfect for international funds. Contact Capnetix Sales for more details.

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