Case Study: Leading Money Market Fund Manager

Multi-provider model suffered from inefficiencies across data, operational structures and liquidity management

Case Study: Leading Money Market Fund Manager

Multi-provider model suffered from inefficiencies across data, operational structures and liquidity management

August 2019

About the Client

 

  • Leading North American mutual fund company with a wide range of fund offerings including money market, fixed income and equity portfolios
  • Approximately $250 billion in assets under management

Challenges

 

  • Fragmented relationships: Multiple service providers and multiple relationship contacts delayed issue resolution.
  • Operational inefficiencies: Custody, Transfer Agency and Fund Accounting services not integrated, requiring the need for multiple transmissions and wires throughout the day.
  • Limited liquidity: Delays in shareholder payments and additional overdraft fees incurred on their custody account due to unlinked custody and transfer agent services.

 

BNY Mellon Solution

 

The client was a long-time BNY Mellon custody client, using another provider for Transfer Agency services and performing Fund Accounting in-house. By combining services with a single provider, the client benefitted from one operating model for all services, thereby reducing risk, improving oversight and gaining access to an expanded universe of liquidity.

 

Risk Mitigation

 

One provider for Custody, Transfer Agency and Fund Accounting streamlined processes, enhanced control and provided a single point of accountability for issue resolution.

 

Operational Efficiencies

 

Integrated systems provided straight through processing, reducing wire overdrafts and fees.

 

Expanded Liquidity

 

Linked cash accounts maximized balances and enabled use and access to daylight credit.

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