Fund Administration

Asset valuation, unit pricing, fund accounting and registry services

Providing the engine room of the investment sector.

The engine room of investment

At MMC we make the engine room of the investment sector run so smoothly our clients are literally set free from it. It’s our sweet spot.

Fund administration is at the heart of what we do. We’re quietly proud of our attention to detail, our technical know-how and our ability to keep clients on the front foot.

MMC Fund Administration runs off our proprietary software, designed and built specifically for the New Zealand financial services sector and its legislative and compliance requirements.

Our service offering includes:

  • Asset valuation, unit pricing and fund accounting for over 350 funds; and
  • Registry (scheme administration) for nearly 80 per cent of our clients, maintaining over 215,000 investor/member accounts for 280,000 investments.

Asset valuation, unit pricing and accounting

Security pricing and asset valuation

Prices for all investment types are sourced from independent providers such as Bloomberg and Refinitiv. Where practicable, verification is completed against a secondary independent source. This data is also validated through the price cleansing of identifying and investigating stale or zero prices and significant price movements.

 

Unit pricing and PIE components

MMC calculate a mixture of daily, weekly and monthly unit prices for investment funds, including PIE entities and life company funds.

MMC adopt calculation methodologies that ensure a unit price is an equitable division of a fund’s Net Asset Value (NAV). Similarly, MMC ensure PIE components are an accurate representation of the daily incremental values of taxable income and associated tax credits.

MMC also supply two fee components for personalised fee calculations in investor/member registries. One represents management and administration charges, and the other performance fees.

 

Trade matching and instructing settlements

Where we have been contracted by the client, MMC provide trade matching services. This includes communicating with managers and custodians to ensure the timely resolution of any issues. Other trades are assumed matched but are monitored for price variance to current price.

For some clients, with appropriate authorisation from approved signatories, MMC undertake instruction of trades or other cash flows to the client’s custodian. Transactions and settlements are reconciled to the client’s custodian.

 

Processing corporate actions and proxy voting

MMC refer to data provided by the client’s custodian and stock exchange diaries, with further reference to company websites and managers. MMC work with managers and custodians to register proxy votes in a timely manner.

 

Distributions

MMC support the calculation of income distributions, in alignment with clients’ governing documents.

 

Investment accounting, performance, risk indicators and Total Expense Ratios (TERs)

MMC support the reporting requirements of clients and supervisors, including regulatory requirements such as Fund Updates and Disclose register entries. MMC ensure such reporting is completed accurately and distributed on a timely basis.

Clients are provided with access to asset classification tables that enable the individualised catergorisation of holdings for reporting purposes.

 

NZ IFRS financial statements

Annual and interim financial statements are produced in accordance with NZ IFRS Standards, to a timetable agreed in advance with clients. MMC work with the client through the external audit process.

 

Investment mandate monitoring

Where requested MMC provide monitoring of a fund against investment limitations laid out in a fund’s investment mandate.

 

Third party reconciliations (banks, custodians and underlying counterparties)

Reconciliations of security holdings, cash and, in some cases, asset valuations are undertaken between MMC and third parties on a daily basis prior to calculating unit prices.

Registry

Maintaining individual investor/member records within a PIE fund

MMC apply automated onboarding and work flow processes to set up new investor/member accounts. When agreed with the client, established integration with electronic identification verification services ensures the investor/member complies with our clients’ Customer Due Diligence requirements.

 

Processing investor/member transactions

MMC use Robotic Process Automation and automatic file ingestion, to enable automation and straight through processing irrespective of volumes.

Investor/member transactions processed by MMC include applications, redemptions, switches, transfers, administration fees, fee rebates and income distributions.

Additional transaction types are processed by MMC for KiwiSaver funds, including government contributions. MMC operate a B2B link with the IRD to facilitate processing, and automate the communication required for transfers between KiwiSaver providers to ensure efficient processing.

Bank statements are monitored daily for all funds that have been credited to the applications accounts.

 

Investor/member fulfilments

MMC ensure the timely production and dispatch of customised fulfilments using a preferred method of delivery. These include transactions advices, periodic PIE statements, zero rated investor reports, tax year end packs and other requested mailings. The KiwiSaver tax year end fulfilments include the calculation, for each member, of personalised fees (expressed as a dollar amount and a percentage) and retirement savings and income projections.

 

PIE income attribution and tax payments to and from IRD

MMC undertake the calculation of any investor/member PIE tax liability or refund based on the PIE fund specific election with the IRD (i.e. annual or quarterly). MMC perform the tax payment or receipt process on behalf of the client – cancelling investor/member units to pay the IRD or allocating additional units to investors/members on receipt of IRD tax refunds.

 

Preparing and filing of IR852, 853 and 854 tax returns for PIE funds

These returns are completed by MMC accurately and filed electronically within IRD deadlines.

 

Anti-money laundering (AML) and countering of financial terrorism (CFT)

MMC assist with Customer Due Diligence and account monitoring based on the AML/CFT Act 2009 and guidance issued by the FMA. MMC support and assist clients with their internal compliance monitoring to ensure the service meets the requirements of their AML/CFT programmes.

 

Interfund transactions

MMC adopt controls and reconciliations to ensure these transactions are processed in a timely and accurate manner, with oversight to the impacts on the flow of PIE components.

 

Reconciliations

To maintain the accuracy of investor/member records, MMC undertake numerous reconciliations on a daily basis including: client money and fund bank accounts; units on issue between registry and unit pricing; interfunding trades; and PIE taxable income and components.

 

Regulatory reporting and register audits

MMC support clients with the production of reporting to assist with regulatory requirements including FATCA and FMC regulations annual reports. Investor/member register audits are supported through our PricewaterhouseCoopers controls audits.

 

KiwiSaver annual reporting

MMC produce annual reporting for the FMA’s statistical KiwiSaver return, FMCA reports, member statements and financial statements.

 

Other reporting

MMC have proven integration with CRMs and integration platforms and can facilitate data importing and exporting using a variety of formats, including banking files and transactions for supervisers to execute.

 

APIs and web portals

MMC enable our clients’ digital strategies via a range of APIs. These help our clients to develop their own web portals and allow for the delivery of new investor/member on-boarding, transactions and static data changes.

A skinned and branded investor portal is also available enabling our clients’ investors and their advisers to view their accounts (value and transaction history), documents, investor/member specific performance, investment mix, top ten holdings and unit prices.

For more information about our Fund Administration services, please contact us at info@mmcnz.co.nz or call us on 09 309 8926