The Power of Accurate Daily Fund Accruals (MILS)

One of the main areas QUODD has focused on in the past few years is addressing how firms can better serve their middle-and-back-office employees with access to vital market data. What we’ve observed is that the back and middle office professionals don’t always require the bells and whistles that come with the offerings from legacy providers. But what they do need and want is the modern, reliable applications to keep up with today’s demands delivered by technology partners that truly understand their unique business needs. 

The industry trend is rapidly moving towards data-on-demand that involves customized delivery models, coupled with a user-specific experience that works better with the workflow needs of middle-and-back-office employees, who are often either fully or partially remote and need immediate fingertip access.

At QUODD, we built our QX Digital Platform to bring this modern experience to our valued clients across the buy and sell sides; spanning operational workflows within banking & trust, asset management, asset servicing (custody/clearing/fund admin), wealth tech solutions, accounting platforms, capital markets, fintech trading/analytics and other segments. In this series of posts, we aim to highlight a number of the modern workflows we’ve built over the last year to help our clients achieve better operational efficiency and scale in the back office.

Continuous Reflection of the True Value of a Fund’s Assets

Daily fund accruals, also known as MIL rates, are prevalent in money market funds, bond funds, and various fixed-income investments. These accruals represent the calculated daily earnings, which are subsequently added to the fund’s net asset value (NAV) each day. The inclusion of MIL rates as a separate figure from NAV enhances transparency and accuracy, providing a continuous reflection of the true value of the fund’s assets.

QUODD Fund’s MIL rates offering is particularly well-suited for fund accounting teams within financial institutions. Notably, we source the accruals directly from the fund companies on a daily basis, alongside our audited NAVs. With QUODD’s precise and timely MIL rates, these teams can seamlessly execute core tasks such as NAV calculation, performance reporting, cash management, risk management, and audit reconciliation. The QUODD Fund offering goes beyond delivering MIL rates; it encompasses essential data points crucial for fund accounting, including dividend ex-date, end-of-day pricing, and reference data.

Overall, daily fund accruals play a crucial role in the comprehensive management and administration of investment funds, ensuring that investors receive equitable and accurate representations of their holdings’ value on a daily basis. For fund accounting teams, access to daily accruals data is indispensable, facilitating the efficient execution of their responsibilities, including NAV calculation, performance reporting, cash management, risk management, and audit reconciliation.

About QUODD’s QX Digital Platform 

QUODD built a fit-for-purpose digital platform that gives customers access to reliable and comprehensive market data functionality and content for middle and back-office workflows.

The QX Digital Platform delivers the highest quality, proven, reliable, and cost-effective source of comprehensive security pricing, reference data, and analytics across all asset classes, integrating best-of-breed content providers for funds, equities, and fixed income via a web-based market data portal. In 2023, QUODD tripled the number of companies using the QX Digital Platform.

Serving as a cornerstone of the QUODD market data suite of products and services, QX Digital Platform was built to help wealth management servicing firms to connect the workflows between the back to middle to front offices; empowering financial institutions with the operating efficiency and controls to most effectively support data management and client servicing needs.

QX Digital Platform is utilized as a primary or secondary source by leading institutions in the bank wealth management, trust, and retirement segments and/ or by their enabling technology platform providers that are continuing to grow as operations outsourcers.

The technology powering QX Digital Platform ingests, normalizes, and productizes best-of-breed sources of market data content for consumption with the lowest amount of friction.