NN Asset Management Transforms Mutual Fund Distribution with PCS
NN Asset Management, a leading investment firm, is making waves in the mutual fund industry by embracing digital transformation. With a portfolio of 12 mutual funds and approximately 171 million in assets, NN historically relied on manual processes and intermediaries for mutual fund distribution and investor servicing, limiting direct digital access for their clients.
To enhance operational efficiency and cater to the growing demand for real-time information, NN has launched a new digital platform that streamlines administration and provides investors with immediate access to their investment data.
Business Case
Manual workflows and delayed investor communication
Prior to this digital shift, the mutual fund subscription process was entirely manual:
- Paper Forms & Re-entry: Investors would complete subscription forms with agents, leading to the repetitive entry of investor data for every transaction.
- Manual Processing: These forms were then faxed or emailed to the back office for manual registration, verification, and unit calculation.
- Delayed Confirmations: Physical mail was used for confirmation, causing significant delays in informing investors about their transactions.
This cumbersome process resulted in high administrative costs, operational risks, and frustrated investors. NN needed a solution that could:
- Support a fully digital operating model.
- Seamlessly integrate with their existing back-office systems.
- Enable straight-through processing for transactions.
- Grant investors immediate access to transaction and performance data.
Solution
PCS Funds Platform & Mutual Funds Portal
NN partnered with PCS to implement the PCS Funds Platform, which includes a dedicated Mutual Funds Portal. This integrated digital environment revolutionised investor servicing and fund distribution.
The project was successfully executed in two phases:
Phase A — Digital Investor Access
The initial phase provided investors with secure online access via a responsive web platform (usable on desktops and mobile devices). Key features include:
- Investment Visibility: Investors can see their mutual fund investments and current positions.
- Portfolio Overview: Access to portfolio valuation and performance data.
- Historical Data: Ability to view historical fund prices.
- Document Access: Online access to Key Investor Information Documents (KIIDs), factsheets, and prospectuses.
Phase B — Transaction Processing & STP Integration
The second phase expanded the platform’s capabilities to handle the complete transaction lifecycle. This phase fully integrated with NN Asset Management’s back-office systems, enabling straight-through processing:
- Online Transactions: Investors can now submit subscriptions, redemptions, and fund switches online.
- Real-time Status: Visibility into the real-time status of transactions awaiting settlement.
- Automated Settlement: Streamlined and automated settlement workflows.
- Digital Confirmations: Immediate digital confirmation of transactions.
- Online Reconciliation: Digital processes for reconciliation and approvals.
Business Benefits
Operational efficiency and cost reduction
By automating the entire mutual fund distribution and investor servicing process, NN has drastically cut administrative effort and complexity. The seamless integration between the front and back-office systems eliminated data re-entry, leading to faster, more accurate, and more controlled transaction flows.
A modern, self-service investor experience
The new platform offers a modern, self-service experience. Investors can now access their portfolios, submit transactions online, and track performance in real-time, without the need for intermediaries. Transaction confirmations and unit allocation updates are provided immediately after pricing finalisation, replacing slow offline processes.
Strategic and commercial impact
Beyond operational improvements, this digital initiative strengthens NN Asset Management’s market position. By aligning their services with modern client expectations and providing easy access to investment information and products, the company has established a robust digital foundation for future growth and engagement.