Columbus, GA: March 30, 2022 – A recent audit by Delta Data of nearly 100 mutual funds in the United States identified intermediary fee payments as one of the top three expenses, and ironically the only one of the three still reliant industry-wide on manual processing. Delta Data is the leading FinTech software and data management company for the mutual fund industry.

The audit reviewed publicly available information on the top 100 U.S. mutual funds, with distribution fees ranging up to nearly $5 billion. Other major expenses include real estate and payroll. Delta Data has amassed 30 years of experiential intelligence on a significant percentage of this sampling and reports that most intermediary distribution fee processing is still conducted manually, while the remaining major expenses are serviced and rely on proprietary software solutions.

“The top expenses for mutual funds are payroll, property, and intermediary fees. While tier one mutual funds have embraced purpose-built software or outsourcing to specialized third-party vendors for payroll and property management, many firms continue to rely on inefficient manual processes for handling critical intermediary fee management,” observed Cameron Routh, CEO, Delta Data. “Clearly, many firms have inadvertently exposed themselves to incurring penalties for overpaying invoices or incorrectly allocating fees despite the availability of proven solutions like Delta Data’s Fee Manager to remediate this problem,” he adds.

Delta Data’s Fee Manager is the industry’s leading tool for asset managers to validate their invoices and payments. Using a combination of TA, transparency, and supplemental data, external calculations can be performed to ensure you are billed correctly. Once you agree the payment is correct, you can then perform reasonability calculations to make sure you are truly comfortable with the payment. These reasonability tests can check for things such as month over month comparisons, potential double billing situations, asset changes, etc.

Once those calculations are approved, the tool will then perform payment funding allocations. These calculations will produce payment advice that will allow your finance team to know exactly what to pay and from what general ledger account. For the dealers that are sending you one invoice as a platform fee, our allocation calculations will make sure you are paying the right portion of the fee from 12b-1, Sub-TA, Rev Share, etc.


About Delta Data:  

Delta Data provides back-end solutions processing trillions of dollars in assets for the mutual fund industry, supporting four of the top 10 US banks, four of the top five US retirement recordkeepers, and four of the top five US investment managers. Delta Data’s industry-vetted SaaS integrated technology suite enables financial companies to control the dynamic environment of regulatory change and risk associated with internal and external data management. Delta Data’s unique position within the financial industry allows for the maximum effective application of the latest technologies such as Artificial Intelligence and Machine Learning to provide a turnkey solution for financial services companies seeking to stay ahead of the change.


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