APL Platform Delivers Unique Overlay Management and Advanced Monitoring and Reporting on Individual Strategies and Overall Account Performance
ATLANTA and JERSEY CITY, N.J., March 8 -- CheckFree Corporation (NASDAQ:CKFR) today announced that its client base of sponsor firms and professional money managers are now managing over 115,000 Unified Managed Accounts (UMAs) on the CheckFree APL(TM) platform. UMA assets under management on CheckFree APL now total nearly $80 billion and comprise more than 60 percent of the total industry UMA assets under management of approximately $125 billion.
UMA represents the next generation of the managed accounts landscape, packaging multiple investment products such as separately managed accounts (SMAs), mutual funds and exchange traded funds (ETFs) into a single managed account environment. By offering a single account/registration, UMAs enable program sponsors to take a holistic approach to manage investors' comprehensive portfolios using a range of investment products that combine multiple asset allocation plans.
CheckFree APL treats UMAs as a single account with sub-models to improve administration, trading and tax efficiency and avoid reconciliation discrepancies. The platform provides advanced overlay management with active or passive functions to coordinate all the trading activity in a multi-manager account, including overlay or sub-manager trading. CheckFree APL offers overlay functions with customizable asset allocations as well as tax efficient trading via Gain/Loss Trade Modeling (GLTM) tools. Advanced portfolio monitoring and reporting provide total account and sleeve level performance, including wash sale and security overlay monitoring across sleeves.
"Multi-style portfolios and unified managed accounts are expected to cross the $500 billion mark in assets under management by 2011, representing a combined 35 percent of the entire SMA market (1)," said Alois Pirker, senior analyst at Aite Group, referencing his report focusing on MSPs and UMAs. "By leveraging a platform designed to incorporate managed account and overlay management, firms can provide customizable asset allocations. This enables them to target specific investors such as the massive group of retiring baby boomers who are rolling over their retirement savings."
Michael Gianoni, executive vice president and general manager at CheckFree Investment Services, said, "As the next generation of managed accounts, UMAs will further revolutionize portfolio management by providing a complete financial picture while enabling coordinated professional management within and across accounts. As a pioneer in this space, CheckFree is proud that 60 percent of the industry UMA assets under management now run on CheckFree APL. Leveraging the platform's advanced overlay management functionality, CheckFree APL combines both sleeve level and overall account view with advanced monitoring and reporting to help enhance portfolio performance, mitigate risk and improve return on investment."
CheckFree APL delivers an innovative, advanced managed accounts platform that provides remote processing services to sponsor firms, money managers and financial advisors for the automation of investment management, trading, portfolio performance and investor reporting. CheckFree's platform enables approximately 100 of the top Wall Street sponsor firms and 150 separate account managers to interface with each other, and operate in a straight- through processing environment.
About CheckFree (www.checkfreecorp.com)
Founded in 1981, CheckFree Corporation (NASDAQ:CKFR) provides financial electronic commerce services and products to organizations around the world. CheckFree Electronic Commerce solutions enable thousands of financial services providers and billers to offer the convenience of receiving and paying household bills online, via phone or in person through retail outlets. CheckFree Investment Services provides a broad range of investment management solutions and outsourced services to hundreds of financial services organizations, which manage about $1.7 trillion in assets. CheckFree Software develops, markets and supports payment processing solutions that are used by financial institutions to process more than two-thirds of the 14 billion Automated Clearing House transactions in the United States, and supports reconciliation, exception management, risk management, transaction process management, corporate actions processing, and compliance within thousands of organizations worldwide.
Source: CheckFree Corporation
Judy DeRango Wicks
Web site: www.checkfreecorp.com/