Hackensack, NJ, November 21, 2003 â Global Investment Systems, announced today that its June 2003 release of MSHAREÂ® had features in place to combat market timing, once again, proving GIS is the leader in anticipating industry trends and providing for client needs.
In this recent release of MSHARE, GISâ transfer agency and shareholder recordkeeping system, GIS added a redemption fee module, which allows user definable redemption fees based on the age of the shares being redeemed, thus discouraging market timing.
âWorking with Ultimus Fund Solutions, we were the first in the industry to anticipate a critical need on the part of fund complexes for a software solution capable of identifying and discouraging market timers,â said John Bowen, GIS client relationship manager.
âIncorporating a rules-based redemption fee module in MSHARE designed to meet the needs of a third party service provider was a logical next step for us, and we introduced that functionality in June, â he said.
In response to recent industry concerns regarding market timing, and the demand of fund companies looking for solutions, many technology vendors are scrambling to produce and update their offerings to allow clients to implement and regulate redemption fees. The regulation of redemption fees, where a shareholder who is invested longer pays less than one who holds shares for a shorter period of time, can discourage market timing.
âWe are very pleased with the functionality GIS created for us based on our clientsâ needs,â said Bob Dorsey, managing director of Ultimus Fund Solutions. âGISâ ability to quickly react to our needs and the changing industry is why we selected MSHARE.â
MSHARE also offers functionality to identify possible market timers. This functionality proactively warns the user that the investor is repurchasing shares
that they have previously sold within a user definable period. At the time of purchase entry, the system will search for and display all previously entered redemption transactions, allowing the user to mark them as potential market timing transactions.
In addition to MSHARE, GIS offers MFACTÂ®, a highly flexible fund accounting and administration system, used by hedge funds, mutual funds and trusts worldwide; and the MPARTNERSM and MHEDGESM product suites which provide specific functionality for partnership accounting and tax reporting, managed futures funds as well as for âfund of fundsâ accounting.