Service provides utility and analytics on unstructured data
Semantic data analytics company Recognos Financial has launched an industry utility for mutual funds.
The Recognos Data Center (RDC) is now live for mutual fund and broker-dealer clients.
Recognos says the RDC is not only a central repository for documents relating to all US-based open-ended mutual funds, but provides analytics on the unstructured data in these documents using Recognos Financial’s proprietary semantic technology.
“The RDC builds upon Recognos’s behind-the-scenes involvement in the mutual fund profile service of the Depository Trust and Clearing Commission (DTCC)”, says Ira Cohen, executive vice president of asset management at Recognos Financial.
“About 10 years ago, there was a scandal in the mutual funds arena,” says Cohen. “That scandal involved brokers or registered investment advisors selling mutual funds to clients and charging clients more commission than they should have been. This resulted in fines for the broker-dealer community.
Their defense was that all of these funds have different rules, different pricing structures, different processing capabilities – how was it possible to keep track? So the solution was to build this black box, the DTCC’s mutual fund profile.”
“The RDC has improved on this registry”, says Cohen, “by capturing data on the entire universe of US-based open-ended mutual funds: 600 mutual fund families—some big, some small—and about 35,000 individual funds.
Secondly, the RDC allows funds to view each other’s fund profiles in order to do competitive analysis (the data is all public).”
Cohen explains: “Recognos has built a facility where funds can not only view other funds’ data, they can go in and do analysis on any of the 200 data points that we are capturing. So if a fund wants to start a new fund, a class A European growth fund, for example, before they do so, they can go out and do an inquiry and say, ‘Let me look at all the European growth funds out there, let me see what their expenses are, what privileges they offer the shareholder’—all public information.
But we bring it all together in a way where you can get a report, look at a graph, it gives you very quick analysis. It takes all this non-structured data and structures it to be much more usable for the fund companies themselves.
And to the consumer—the broker-dealer—the advantage we believe we have is this entire universe of funds.