Automated tools save time, reduce the chances for errors, and reduce client fees
DENVER (April 16, 2009) – Trust Company of America, a specialized provider of asset custody and technology services to fee-based Registered Investment Advisors, today announced an upgrade to their trading platform designed to help advisors comply with the terms of a fund company prospectus, thus reducing client short-term redemption fees (STRFs.) Note: Trust does not charge their own STRFs. With this upgrade, advisors can now combine the benefits of state-of-the-art, model-based trading and systematically managing their funds’ holding periods.
The new automated feature streamlines the process of either removing accounts or reducing trade lots containing non-complying shares from a trade. When a trade order – generated by rebalancing, block trading, or individual buys or sells – has an account that will be subject to a STRF, the order will display the potential STRF amount and allow advisors to take action based the information.
Advisors can chose one of the following by clicking on the drop down box:
• Accept – The Trust trading platform includes all accounts in the trade regardless of their potential STRF amount.
• Reduce – The trading platform systematically reduces the amount of the STRF by removing trade lots containing STRF shares. The system continues removing trade lots containing STRF shares until they all have been removed or until it encounters a trade lot without STRF shares.
• Remove – The trading platform removes any account that is subject to a STRF from the trade.
The systematic reduce or remove feature not only helps advisors comply with a fund’s prospectus and reduce client fees, it reduces trading time by eliminating the need to research, calculate, and track holding periods associated with multiple trade lots and their potential STRF fees. This automated tool lessens the change of error for advisors who previously managed holding periods manually.
By providing advisors with tools to better serve their clients, Trust makes firms more successful and makes advisors’ lives easier.
