Milestone Group launches purpose-built target date funds solution

London - 25 May 2011

Delivers significant cost savings and improves reporting, transparency and speed to market.

Milestone Group, the specialist supplier of automated funds processing software, today announced the launch of a target date funds solution, built on its enterprise funds processing platform, pControl. Designed to address the specific requirements associated with this fast-growing product space, the new solution reduces risk and increases efficiency by automating cash allocation, rebalancing to target and the critical process of transitioning asset allocations through time. It also automates and manages the preferred path to maturity, sometimes referred to as investment ‘glide’ or ‘flight’ path.

“Target date, or ‘lifestyle’ funds have clear advantages for investors, but ensuring dynamic asset allocations remain correct at all times presents operational challenges,” said Phil Davies, Milestone Group Product Head. “Our pControl funds platform addresses each risk area, providing a more efficient solution than using spreadsheets or trying to bend existing accounting or TA platforms to fit a space for which they were simply not designed.”

Milestone Group’s pControl solution allows target date fund providers to undertake asset allocation and fund rebalancing through multiple levels of investment pools and accounts according to predetermined parameters. It provides a full range of functionality including NAV/unit pricing and dissemination to external stakeholders, integration with TAs and depositories and related investment and redemption activities. pControl also supports fund order transaction lifecycle management along with fee, rebate and income processing, reconciliations, data integration and end-to-end process control. The solution represents a complete, low cost and powerful architecture supporting processing for any fund type within the target date structure.

Geoff Hodge, Milestone Group CEO, said, “For the first time, operators of these types of funds have a purpose-built solution enabling considerable operational efficiencies and risk reduction. As with all our solutions, these new additions to the pControl platform enable our clients to stay ahead of the market and to deliver products to their investors with reduced cost.”

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