Fund Data Hub as industry solution


18. August 2011

IDS, as a distributor of fund information to asset managers, distribution agents, research providers and investors, developed the Fund Data Hub to promote the efficient exchange of fund information. The Fund Data Hub is a unique product, and IDS is the only company providing a solution of its kind. After offering it as a service to clients for many years, the company began actively offering its Fund Data Hub as a product in 2010.

In the wake of the financial crisis, IDS recognized that there was a major need for action in creating greater investment transparency. Amendments to the regulatory guidelines for banks and insurance companies in Germany, e.g. Investment Ordinance (Anlageverordnung-AnIV) or the Regulation Governing Large Exposures and Loans (Großkredit- und Millionenkreditverordnung – GroMiKV) have considerably increased the need among investors for transparency over individual fund holdings. The Fund Data Hub fulfills this need by offering efficient distribution of fund master and portfolio data that meet both of the above-mentioned regulatory requirements. It currently supplies data from 14 asset management companies, with up to 2,000 funds available.

When a bank requests information on fund holdings from an asset manager, including a transparent overview of the holdings of individual funds within the fund, this usually means an enormous expenditure of money and resources for funds with target funds from third party asset managers. The information is not readily available, and obtaining it involves retrieving information from many different points, which may even mean upholding an interface with every asset management company in the mix. The Fund Data Hub considerably reduces costs for providing consistent and complete fund information to banks, by reducing the number of interfaces to just one. Data is provided by the asset managers, and IDS bundles it on a single platform – the Fund Data Hub, where the data is validated and converted to the target format. IDS also handles most of the communication and contractual issues.

Clients wishing to use the Fund Data Hub receive a full service offering: Once the required format for data delivery has been determined, the client delivers the data, which is entered into the Fund Data Hub. Thereafter, IDS deals with all the necessary steps of data management in order to deliver the required data. Quality is assured at every step throughout the process. The client can specify how detailed the reporting data should be and if there are any special requirements, such as specific time-delays or reductions in the volume of information through delivery on a “need-to-know” basis. A significant added value lies in the fact that all non-disclosure agreements are handled by IDS at no extra cost to the client. With the Fund Data Hub, confidentiality of portfolio information is thus guaranteed, and undesired insights into investment processes by other asset managers are prevented.

By using this joint platform, our clients benefit from economies of scale. Depending on the individual situations of our client companies, they are able to save up to 75% on costs through use of the Fund Data Hub.

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