Underwriting & Tender Offers, a unique function within the  Fund/SERV®  system, automates the process by which investment companies offer new funds, initial public offerings (IPOs) and underwritings.  The service also streamlines the tender offer process by which mutual funds redeem shares during specified periods.

Benefits 
By processing these types of large-volume transactions through Fund/SERV, participants can:

• Reduce Costs
  Decrease operating costs by processing large-volume transactions through a single connection to DTCC.  With this centralized solution, costs associated with manual, paper-intense processes are significantly reduced.
  
  
• Increase Operational Efficiency
  Automate and streamline back-office operations. When marketing new securities, distributors can process a large volume of orders without overloading their data entry staff at the end of an offering period.
  
  
• Centralize Money Settlement
  Simplify the settlement process for mutual fund offerings and tenders. The money settlement system calculates a daily net money settlement figure for each participant.

Features
Underwriting & Tender Offers provides automation and standardization for this manual, paper-intensive process. Features include: 

• Flexible Access
   Funds have the ability to enter and correct orders over an extended period of time, as well as restrict transactions to specific distributors, and limit exchanges and initial and subsequent orders during the IPO or cooling-off period.
  
  
• Process Control
  Through the system, mutual funds can institute the controls that best match their individual needs.  Funds can choose specific distributors or transactions to be included in the underwriting/tender offer.  They can also select the beginning date, end date, and settlement date for the transaction.

How it Works
Processing begins upon completion and receipt of an Underwriting/Tender Initiation Form from the fund.  Mutual Fund Services must receive this form at least five days prior to the beginning of the transaction.  Through the system, the fund establishes criteria for the transaction.  The fund determines the beginning and end dates for the IPO cooling-off or tender offer periods, and the settlement date for the entire transaction.  The system supports the following transaction flow throughout the Underwriting and Tender Offer process:

• Notification
• Order
• Confirmation
• Deletions
• Release to Settlement
• Registration
• Settlement
• Changes/Cancellations

Participants can access Underwriting & Tender Offers through a mainframe or Internet connection.

Who can use Underwriting & Tender Offers
Mutual fund companies and other product issuers, broker/dealers and independent broker/dealers can use Underwriting & Tender Offers. Participants must become members of National Securities Clearing Corporation in order to utilize the service.