Deciding the scope of your Product Master: Beyond a simple list of funds?

One of the pivotal decisions firms face in implementing a product master is defining the scope of their product master, this boils down to roughly two questions – what is a product, and what product features would we like to master?

What is a product?

You will need to define carefully what a product is to your organisation. As you start engaging with stakeholders you may be surprised at how varied views may be – you will hear definitions of a product of anything from a fund, its share classes, to the strategy the fund follows.

To help define what a product is, it can help to produce and examine "use cases" within your business. You will probably have to decide if (and on what conditions) a segregated / separately managed account or an advisory account is considered a product.

What should be mastered?

You will likely encounter stakeholders who envisage the scope of a product master as a simple list of funds or product strategies, through a broader spectrum including umbrellas, disclosures, product strategies, distribution strategies, pricing rack rates, country of registration tables, and more.

The decision on the scope of the product master should be driven by several key factors:

Technology Infrastructure: Existing IT systems may influence the scope of the product master, if there is already a core data master management solution in place there will be a classic choice of whether to extend the existing master data management solution or to build a new system and integrate as needed.
Regulatory Requirements: Compliance needs can dictate the level of detail and types of data that must be readily accessible, often necessitating a broader scope.
Strategic Goals: The firm’s strategic direction may require a comprehensive dataset that includes detailed product strategies, pricing, and disclosures to support decision-making processes.
Operational Capabilities: The firm's ability to manage and maintain a more extensive product master should be considered, balancing the benefits against the administrative overhead. We will delve further into this topic next week.

Fundipedia's Approach to Data Masters Fundipedia Case Study About Fundipedia

Fundipedia's Approach to Data Masters

Since 2007 Fundipedia has been on a mission to make managing fund product data easy. We firmly believe that the best way to do this is by establishing a fund product data master and that to build one effectively, fund product data has to be treated holistically across its entire lifecycle. This means that from the very first spark of an idea through to end of a fund’s life (whether that is in the form of a final pay-out at maturation, a merger with another vehicle or a wind-down and liquidation) all fund product data – from identification and system codes to investment objectives and ESG disclaimers to the names of the board of directors etc etc – must be captured, stored centrally and made readily available to those who need it. It is this understanding of what data is needed by whom and for what purpose that is the key to setting up an effective product master. This is a complex undertaking and requires intelligent systems backed by experts who truly understand both the software and the product perspective. Very few companies have both of these skill sets in house and are increasingly turning to SaaS.

Fundipedia Case Study

Fundipedia is the first and only fully agnostic data management platform operating in this area and we have implemented fund product masters for multiple asset managers and servicers. To illustrate our approach and the benefits delivered, we have included a short case study below.

The challenge

A global asset management company with assets of over USD 630 billion relied on an external provider to manage product data and to produce data feeds and regulatory reporting. They identified a business risk due to data errors, low speed of data provision and increasing regulatory demands for data. They were also facing rapidly growing costs.

They decided to replace the external provider with a flexible, agile and scalable in-house product master whilst respecting budgets, improving data quality, meeting increased regulatory demands and ensuring continuity.

They wanted to give autonomy and control over data to individual teams across the global entities. The ability to interface with internal and external stakeholders, and to support information transfers, bulk loading, regular reporting and data quality monitoring was a mandatory requirement.

The implementation

Following a comprehensive RFP process and proof of concept study, Fundipedia was selected. In order to minimise disruption and to ensure ongoing global business operations, our project team employed a phased approach, conducting continuous testing and validation throughout. The solution was delivered on time and within budget.

The benefits

Fundipedia has delivered:

an agile and scalable product master giving autonomy and control over all product data for all funds, irrespective of domicile and legal structure.
standardised and consistent product data at all levels of the business enabling global oversight.
an intuitive and user-friendly interface, giving rights-based access to a single source of product data globally and across all levels of the business.
oversight and transparency of data quality of all dynamic data (NAV, dividend, holdings, etc.) generated by third-party administrators.
automated, intelligent data dissemination and quality checks.
powerful user-rights based reporting functionality enabling easy creation and sharing of data across all products.
oversight of data usage and external dissemination.
integration with up and downstream systems and providers.
automated collection and delivery of accurate data using open application and data integration standards.
automated reconciliation of fund data sent to third parties such as Bloomberg, Morningstar and FE.
robust and secure platform meeting all the client’s internal cybersecurity requirements.
ongoing support and enhancements with 24/7 Omnichannel support.

Fundipedia has a long history of on boarding clients looking for product master solutions and we are extremely proud that all these clients are still with us. It helps that we were the first to realise that fund product data could (and should) be industrialised and, based on our wide experience, we have developed fast implementation methodologies that are minimally disruptive. We passionately believe that getting fund product data management right is the key to tomorrow’s innovations in a fully digital world. To find out how Fundipedia’s solutions can help you achieve this, please reach out to us.

About Fundipedia

Conclusion

Choosing the scope of your product master is a strategic decision that has far-reaching implications for your firm's operational efficiency, regulatory compliance, and ability to innovate. Whether opting for a basic list of funds or a more comprehensive dataset that includes data like disclosures, pricing, and distribution strategies, the key is to align the scope with the firm's strategic objectives, regulatory obligations, and operational capabilities.