FOR SPECIALIZED DEPOSITORIES AND SPECIALIZED REGISTRARS
The Aladdin-Systems company offers an integrated system for
a specialized depository and specialized registrar based on
the modules of the ALADSYS.SDEPOô software
package. This solution allows uniting the control department
of a specialized depositary and the department that keeps
the unit-holder registers of mutual (unit
investment) funds (PIF) by the single corporate document
flow system. This helps to simplify the control process, to
avoid imputing the same data twice, to reduce the workload,
and to cut the cost of the specialized depositary recording
and the unit-holder register keeping.
The integrated system is constructed from modules and includes
the following products:
The financial system kernel ALADSYS.SQLô
Specialized Depositary system ALADSYS.SDEPOô,
The "Mutual Funds Control recording " subsystem
" Mutual Funds Register" subsystem
The "Pension reserves
of non-government pension funds (NPF)" subsystem
modules and integration modules.
The software ALADSYS.SDEPOô product was developed
on the basis of the ALADSYS.SQLô financial
system kernel, which makes possible using this product in
a single corporate system with the other products of our company.
This product can be used either as a separate software package
in the Control Department or as the common document-flow and
recording environment together with the depositary recording
system ALADSYS.DEPOô. One of our recent products
is the Pension Accruals Control subsystem for pension
accruals that are transferred to NPF by the Pension Fund
subsystem "Control recording for PIFs"
to current legislation, the PIF recording should be performed
by the management company and should be duplicated by the
independent control recording of the specialized depository.
This means that the specialized depository has to keep independent
recording of all the fundís operations in categorization by
unit-holder, and to perform the daily matching. Among the
functions of the Recording and Control Division there is also
the independent calculation of the fundís net
asset value (NAV) and the control over the compliance
of the methodology of its calculation with the regulatory
requirements. The subsystem ďControl recording for PIFsĒ is
designed for the automation of the abovementioned functions.
It allows the Control Department of a specialized depository
to perform the following functions:
Input, posting and matching of all the operations with
the investment units and with fundís assets.
Calculation of deductible taxes Ė for each investor that
has sold his or her units.
Calculation of the fundís total assets, net assets, NAV
Producing of the report on the deviation of assets composition
and structure from the legal requirements and standards;
producing the report on the cases of failed deadlines
in the operations with PIFís investment units.
the reports for the Federal Financial
Markets Service (FFMS) for matching with the reports
from the management company.
" Mutual Funds Register " subsystem
According to current legislation, specialized depositories
may perform the functions of mutial funds (PIF) unit-holder
register keeping; another alternative is that these functions
are performed by a separate specialized registrar.
The function of keeping the register of unit-holders of a
mutula funds (PIF) is quite different from that of keeping
the corporate share register. The main differences are as
follows: first, the constantly changing number of outstanding
units, and secondly, the dual function of the investment unit
itself (it is a security and a trust management contract at
the same time). The "Mutual Funds Register" can
help perform the following functions:
The control over the selling and redemption of units;
making postings into the register of unit-holders on the
basis of accepted investorsí requests.
The calculation of total number of outstanding and redeemed
investment units; producing reports for the fund manager.
Reports for investors on the account balances and current
operations; account activity statements for unit-holder
The " Mutual Funds Register " subsystem is a registry-keeping
system with all standard functions, such as servicing nominee
accounts, collaterals, conversion of units, splits and consolidations
and others. In case of a unified system, different types of
recording can be performed on the basis of the same input
documents on operations with units, which allows to decrease
the workload on the employees.
is a separate product for specialized registrars - ALADSYS.SREG ô
"Pension reserves of non-government pension funds NPFs"
an ordinary specialized depository, a specialized depository
servicing non-government pension funds has to control the
fundís and fund managersí activity related to the investment
of pension reserves in order to ensure the fundís compliance
with the rules and restrictions on pension reserve investment
and with the rules on the composition and structure of pension
reserves Ė in accordance with the Russian Federation Government
Statement Ļ383 of 28.04.2000. This means that the specialized
depository performs the independent control recording of all
the fundís operations and performs daily checks of the fundís
compliance with the requirements of legislation and with the
fundís rules. As the amount of information coming from the
NPFs is quite large (it includes all operations with the fundís
assets), it is impossible to produce the required reports
within reasonable time unless you have a special software.
subsystem "Pension reserves of NPFs" helps to perform
the following functions:
The input, posting and matching of all operations with
the fundís pension reserve assets that are made by the
fund manager or by the fund itself.
estimations for each fund.
The calculations required for the report on the composition
and the structure of pension reserves in accordance with
the fundís rules
Producing the report on the deviations of the composition
and structure of assets related to pension reserves from
the regulatory requirements.
Producing of reports required by the FFMS and the Labor
Ministry NPF Inspection.
The modul ALADSYS.SDEPO also allows to perform
the accounting both for the funds and for management companies.
The company Aladdin-Systems is the absolute leader in the
market of specialized depository automation systems; it is
substantially ahead of the competition by the number and the
scale of finished projects in this field (more than half of
existing specialized depositaries use the software ALADSYS.SDEPO,
including 11 depositaries from the top 24).
Investment Fund (PIF) Ė is the instrument of collective
investment in Russia that allows investors to combine their
savings and invest them under the management of a professional
management company. Functionally, unit investment funds
in Russia are similar to mutual funds in the USA, but their
legal status and regulation are somewhat different. One
of the important differences is that the US mutual funds
are forced by law to make distributions (they have to distribute
at least 90% of their realized capital gains and dividend
income each year), whereas the Russian PIFs donít have to
make any distributions. The ďsharesĒ of PIFs are called
units (or investment units), and the investors are referred
to as unit-holders.
accruals are the funds that come from the mandatory
pension deductions of employed individuals and are recorded
in the special section of their pension accounts. These
funds are to be invested in various financial instruments
determined by the government, and by the time a person reaches
retirement age, this money will be used to finance the accumulative
part of the personís government pension. (The government
pension now consists of three parts Ė basic, insurance and
accumulative, and the pension accruals are used to finance
the accumulative part. For more detail see Federal Law Ļ173-FZ
of December 17, 2001, ďOn the labor pensions in Russian
reserves are the funds coming from the payments
to non-governmental pension funds from the individuals who
participate in voluntary pension schemes.
assets value (NAV) of a unit investment fund is
the fundís net assets (= the market value of all the fundís
assets less all its liabilities) divided by the number of
units outstanding (here we use the US mutual fund terminology).
Federal Financial Markets Service (FFMS) is the
federal executive body that controls and supervises activity
in the financial markets, including the activity of exchanges,
and issues the relevant regulations. It also regulates the
investment of pension savings.