Evolution of the mutual fund transfer agent: Embracing the challenges and opportunities
Overview
The mutual fund industry has grown tremendously in both size and complexity during the past 30 years. The variety of mutual fund structures and products has expanded, along with the diversity of investors.
According to the 2015 Investment Company Fact Book published by the Investment Company Institute (ICI), from 1984 to 2014 the number of mutual funds offered increased 537%. This growth led to changes in the way the industry operated and, consequently, in shareholder services and the role of transfer agents.
This article discusses the current growth of “intermediated” accounts and the significant events that led to the evolution of the transfer agent in the mutual fund industry.