FolioDynamix, a company engaged in technology platforms and services to the managed accounts industry, has joined DTCC’s Managed Accounts Service.
Managed Accounts Service has a wide range of clients. Among them are Citi’s Smith Barney and Global Transaction Services. JPMorgan, UBS Financial Services Inc, Dreyfus Investments, SunGard Transaction Network and Peridrome Corporation are also programming to use the service.
The Depository Trust & Clearing Corporation (DTCC) delivers a single gateway for the managed account industry to exchange information on account initiations, as well as ongoing customer profile updates and account maintenance. By automating and centralizing the information, the Managed Accounts Service reduces risks. The service is provided by DTCC Solutions LLC, a subsidiary of DTCC.
According to Cerulli Associates, FolioDynamix has a 6% market share of the managed account consultant programs in the U.S.; managed account assets under management were $16 billion at the end of the third quarter 2008. The company provides technology and investment service applications to sponsors, registered investment advisors, asset management firms and banks. The company processes more than 3.8 million accounts daily, with a growing segment of the account base attributed to the managed accounts industry.
To have the support of the service-provider and vendor communities is extremely important, as they provide their sponsor broker/dealer and investment manager customers with a direct link to the service, says Ann Bergin, managing director and general manager, DTCC Wealth Management Services. This makes adoption easier and, therefore, the benefits of the service can be spread across the industry more quickly.
By connecting to the Managed Accounts Service, we’ll be able to offer our client base a straight-through connection to a platform that is a breakthrough solution for this industry, says Aaron Schumm, senior vice president, Product, FolioDynamix.
This kind of one-to-many communications network can have a significant effect on the industry, because for the first time members will be able to grow their businesses without the counterproductive expense of supporting multiple technology platforms and proprietary systems. The net effect allows sponsors and investment managers to gain operational efficiencies, while helping to minimize investment time delays for the end client.
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