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Fund/SERV® is a highly automated system that brings standardization to mutual fund transaction processing. Fund/SERV centralizes
order entry, confirmation, registration and settlement of mutual fund transactions for mutual fund companies and distributors.
Fund/SERV is the industry standard for the processing and settling of investment funds, including 1940 Act Funds and other
pooled investment products for investment companies, money managers and financial intermediaries. These products include:
- Bank Investment Collective Trusts
- Bank Investment Contracts (BIC)
- Guaranteed Investment Contracts
- Load Funds
- Money Market Funds
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Benefits
Fund/SERV offers superior processing capabilities. Its unique database design provides optimal flexibility to manage the processing
of mutual fund transactions. Fund/SERV enables participants to:
Features
Fund/SERV incorporates a wide range of functionality including Order Entry, Confirmations, Exception Processing, Cash Adjustments,
Account Registration, Settlement Overrides and Alternate Settlement Cycles. In addition, Fund/SERV:
- Supports Underwritings and Tender Offers
Fund/SERV supports the complex, high-volume processing needs associated with mutual fund IPOs and fund-share redemptions.
- Facilitates Account Transfers
A link to the Automated Customer Account Transfer Service (ACATS) allows fund companies to transfer and re-register customer
accounts from one full service broker/dealer or bank to another.
- Accommodates Different Operating Requirements
Fund/SERV accommodates various processing capabilities, including single-batch, multi-batch and interactive communications.
- Incorporates Trust Processing
Special trust indicators exist to facilitate processing for banks and trust companies. See the Trust Processing Guidelines for additional details.
How Fund/SERV Works
Using a mainframe or Internet connection, transaction processing and account registration information is entered directly
into Fund/SERV. Customers can access Fund/SERV’s automated trading platform from 2 a.m. until midnight EST, Monday through
Friday. There are 29 processing cycles.
The steps in a typical Fund/SERV transaction include:
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Distributors can input orders from 2 a.m. until midnight. Orders that can be processed include buy, sell, exchange and ‘as-of’
instructions.
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Fund companies can retrieve orders, including buy, sell, exchange and ‘as-of’ instructions from 2 a.m. until midnight, once
a day, several times a day or immediately, depending upon whether their processing is multi-batch or interactive.
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Fund companies can confirm orders and distributors can retrieve confirmations from 2 a.m. until midnight. Money market funds
are confirmed after settlement on trade date, except for liquidations, which are confirmed prior to settlement.
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Distributors may make corrections before and after the settlement date, depending on the fund company’s capabilities.
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The settlement cycle of each transaction is defined at the individual security level. Settlement summaries are sent to both
the distributor and fund company prior to settlement.
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Registration instructions can be sent along with an order or at any time from 2 a.m. until midnight after an order is sent.
Funds have the option of receiving registration instructions as soon as the distributor sends them or of warehousing the instructions
at DTCC until settlement. For money market instruments, registration instructions must be submitted with the purchase order.
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Who Can Use Fund/SERV
Mutual fund companies and other product issuers, distributors including broker/dealers, independent broker/dealers, banks
and trust companies, third-party administrators, insurance carriers and other financial intermediaries can use Fund/SERV.
Participants must become members of National Securities Clearing Corporation in order to utilize the service.
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