is making its suite of automated tax services available as a stand-alone product to mutual fund firms. The automated wash sales processing system is also now fully equipped to process wash sales for debt instruments, according to the unit of PNC Bank.
Since it debuted the tool a year ago PFPC has only offered the wash sales tools to its fund accounting clients. It is also converting existing clients to the expanded system.
By covering fixed income investments with the tool, PFPC is hoping to expand use of the product to bond funds, balanced funds and other investment vehicles holding fixed income securities.
"During market gyrations such as those we've seen this past year, there often will be a simultaneous increase in the occurrence of wash sales. We anticipate that this trend will stimulate the interest of companies that are considering the benefits of an automated, stand-alone wash sales processing system," said T. Richard Keyes III
, vice president and managing director of taxation for PFPC.
"Through technology, PFPC has enabled mutual funds to overcome the laborious aspects of wash sales and fund tax analysis, improve efficiencies, better manage their after-tax performance and reduce the risk of error. Furthermore, by adding debt instruments to the functionality of the system, PFPC continues to provide our mutual fund and alternative investment clients with technology solutions that meet their evolving needs. PFPC intends to make further enhancements in 2003, including the integration of short portfolios in the processing of wash sales transactions."
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