Money Market Mutual Fund Management
The scope item helps you to better manage your Money Market Mutual Fund instruments.
The Money Market Mutual Funds (MMMF) are traditionally traded at a stable 1.00 Currency Unit. An SEC rule in the U.S. for investment companies requires the MMMFs to declare their Net Asset Value (NAV) to be floating on a daily basis. This scope item incorporates the processes to manage both traditional and floating NAV MMMFs.
The scope item covers the processes to create a securities class, and to purchase, bookkeep, and receive dividends of and sale of a money market mutual fund.
Key Process Steps Covered
- Create security account and class
- Create fund purchase transaction
- Set settlement status
- Create payment to depository bank
- Recognize dividend distribution
- Capitalize dividend distribution
- Perform period-end closing
- Create fund redemption transaction
- Receive payment from depository bank
Benefits
- Review the status for Money Market Mutual Fund instruments easily
- Support the management of Money Market Mutual Fund, including creation of security class, security accounts and the transactions, payments, recognize and capitalize dividend distribution, and so on
- Make better operational and strategic decisions using the comprehensive reporting and analysis tools
- Improve internal operational compliance