SunGard’s Asset Arena Transfer Agency Releases Enhancements for Mutual Fund Cost Basis Reporting

Lombard, IL - 10 October 2011

SunGard’s Asset Arena Transfer Agency, a shareholder recordkeeping solution that helps streamline the management of mutual fund investor accounts and transactions, has been optimized for the upcoming IRS Cost Basis Reporting guidelines. Customers can now pro-actively prepare for the regulation’s January 1, 2012 effective date.

The open architecture, Java-based module helps customers meet the high-volume trading needs of asset managers and can integrate with other record keeping solutions. Asset Arena helps customers control when cost basis must be tracked, designate default methodologies, and set accounts to other designations. Asset Arena also offers unlimited historical tax lot data management to handle instances where tax lots may be stored for decades, prior to redemption. In addressing the requirement to move beyond the current mutual fund standard of Average Cost, the solution offers flexibility in supporting more than ten cost basis calculation methods including Average Cost, FIFO, and Specific Identification. Customers will be able to offer a comprehensive, single view of hypothetical calculations to help make the best tax lot depletion decisions, assisting both call center employees and self-service shareholders using Web portals.

In addition, Asset Arena is fully integrated with DTCC’s Cost Basis Reporting Service (CBRS) for mutual funds. CBRS, a service offering of DTCC Solutions LLC, helps centralize and automate the transfer of customer cost basis information from one firm to another, helping fund companies meet their regulatory requirements in an efficient and cost-effective manner.

"SunGard’s enhancements are key to the preparations we are making as transfer agent for our U.S. Registered Mutual Fund clients to meet the new and complex Cost Basis Reporting requirements that are effective in 2012,” said Barbara Nelligan, U.S. Registered Funds product manager at Northern Trust. “SunGard has worked closely with service providers on the development of Asset Arena to help ensure that cost basis data for newly covered shares in mutual funds integrates effectively with 1099 reporting systems."

“Transfer agents rely on SunGard technology to help comply with regulatory requirements and deliver higher levels of service,” said Mark Judah, senior vice president and managing director of SunGard’s Asset Arena Transfer Agency business unit. “In advance of the new cost basis mandate, Asset Arena customers are well-positioned to address this challenge through enhanced capabilities including tracking through multiple methods, integration with industry networks, and upgrades to our servicing tools and Web portals.”

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