Archive for the ‘Announcements’

New RDC product was launched

New York – Recognos Financial, the provider of semantic data analysis for the financial services industry, has launched the Recognos Reference Data Center for Mutual Funds (RDC). The RDC is an industry utility designed to provide participants and their clients with all the mutual fund information necessary to support their business from start to finish. It acts not only as a central repository for documents relating to all U.S. based open-ended mutual funds, but transforms the unstructured data in these documents into actionable and verifiable insight using Recognos Financials’ proprietary semantic technology.

“Two of the major benefits of the RDC are that it eliminates manual data entry and processing, and the source data comes directly from the SEC even before it is published to EDGAR, so users can be assured that the insight they are getting is accurate, up-to-date and actionable,” said Ira Cohen, EVP of Asset Management Services, Recognos Financial. “Not only does this help ensure compliance with the evolving regulatory landscape, but it provides a reliable and cost-effective source of critical mutual fund data that can be used across the business.”

More read here.

Delta Data Software and Recognos Financial form Integrated Technology Partners (ITP)

Delta Data Software and Recognos Financial form Integrated Technology Partners (ITP) to provide the mutual fund industry with the data and documents required to comply with new SEC regulations governing mutual funds. Read more…

Integrated Technology Partners (ITP), a joint venture of Delta Data Software and Recognos Financial, was founded to address the mutual fund industry’s need to easily access fund data and distribute fund disclosure documents. The result of that effort is the Mutual Fund Information Portal (MFIP). The MFIP is an industry utility designed to provide the industry participants and their clients with the Mutual Fund Information necessary to support all aspects of the business from start to finish.

The MFIP is a repository of compliance documents that include summary prospectus, statutory prospectus, SAI, shareholder reports and other disclosure documents that can be used by both Fund Managers and Distributors in flexible and innovative ways to satisfy their specific internal informational needs as well as their compliance obligations around disclosure document delivery.

Additionally, MFIP provides a reliable and cost-effective source of critical mutual fund information directly from SEC-filings, ensuring that the integrity of the source data is maintained and easily verifiable. MFIP requires no data entry, no data cleansing and provides industry consistency by showing all parties the same source data. The mutual fund industry currently incurs direct costs in excess of $300 million per year for data subscriptions and to print and mail prospectuses and other documents. ITP’s goal is to reduce these direct expenses by 50% within the first two years, and up to 60% to 70% in year three.

To view the MFIP and see how it can save you time and expense contact us for a free trial.

Recognos Financial Introduces Alternative Investments Document Processing Product

Alternative Investments refers to a category of investment types that are difficult and problematic to process for all types of firms that have responsibilities associated with them. The roles firms play relative to alternative investments differ, i.e. administrator, custodian, guarantor, etc. Consequently the data required by each firm is dependent on their particular role in the process. Asset types included in the category are Hedge Funds, Fund of Hedge Funds, Private Equity Funds, Variable Rate Annuities, Derivatives, REITS, Swaps (approximately 20 types), and several other investment types that lack the structure and regulation associated with more traditional investment types. It is this lack of structure and regulation that results in no reporting standards. This means that the various documents arrive with no consistency of format nor pre-defined structure. Consequently, each firm involved in any aspect of the process is required to devote human resources to the time consuming and tedious task of extracting the information necessary to meet their particular processing requirements. Recognos Financial has developed an application that handles the extraction process and allows valuable resources to focus on more important tasks.

Recognos Financial has developed an application that creates structured data from unstructured documents. While the application can be applied to any type of unstructured text document, for Alternative Investments it includes: Offering Statements/Prospectuses, Shareholder Reports, Subscriptions, etc, in short – all of the documents required to meet the specific functions of a particular firm based on their role in the process.

Currently the function is labor intensive with the overwhelming majority of time spent by the clerical staff in reading and extracting key data from the hundreds of reports and documents received on a regular basis from fund managers, administrators, and other sources. This extracted data is then keyed into spreadsheets or other applications that feed internal applications. The Alternative Investments application does most of the tedious work by performing the data extraction and automatically populating required applications with the appropriate data. In addition, errors are reduced through the elimination of the re-keying of data. A summary of the process is essentially as follows:

  • Receive e-mails, faxes and hardcopy documents from fund managers and/or administrators, etc. Hardcopy documents are scanned and merged with faxes – these documents are then processed via OCR and converted to text. E-mail attachments are stripped off and merged with the other document types.
  • The text documents are then processed through the Recognos Financial syntactically and semantically based parsing agents where the key data elements are extracted. The results are displayed interactively in conjunction with the original document. Any exceptions are identified and directed to a work queue where they are reviewed by the staff.
  • Resulting data is then available for review and export to both internal applications and a semantic data repository.

An average group of ten clerical staff can be reduced by as much as 70%. The remaining staff are focused on exceptions and the group functions that require a greater level of expertise. The resultant data can also be used as part of the firm’s counter party risk program as the holdings within a given fund are identified and a security master of these privately held firms is maintained. Supplementing that security master with data from external sources (i.e. D&B) provides a reasonable assessment of the stability of the firms in which the fund, and ultimately the client is invested.

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Semantic Technology within the Financial Services Market Webcast

Drew Warren, the CEO of Recognos Financial, recently presented a webcast focused on the use of semantic technology within the Financial Services market. This webcast was given in conjunction with Expert System, a key technology partner of the Recognos Group, and was hosted by, the leaders in disseminating information about semantic web technology. This event showcased the Mutual Fund Information Portal, the subscription service provided by the Recognos Group in partnership with Delta Data.

This service provides online access to the SEC filings for Mutual Funds but with:

  • Document searching
  • Document navigation at the chapter level
  • Automated alerting to new documents as they are filed
  • Comparison across documents.

The Mutual Fund Information Portal is currently being extended to include data analysis at the data element level within chapters, and a new capability known as the Document Advisor, allowing user interaction to ‘ask questions’ of the document. The Mutual Fund Information Portal is the first in a range of semantically-enabled business applications for the financial services market. The vision is to create a range of subscription services that provide access to ‘smart’ data, and which provide the foundation on which to provide a range of knowledge-based business applications that are at the leading edge of risk management and compliance solutions available in the market today.

View webcast