The Money Money Management Institute Technology Spotlight: Outsourcing for Separately Managed Account Operations Presented...
Agenda <ul><li>Technology Platform </li></ul><ul><li>Managed Account Technology Solution </li></ul><ul><li>Service Offerin...
Technology Platform
Technology Platform (Investment Manager) Sponsors Mellon Backoffice Environment New accounts (fax, e-mail) Account Adminis...
Technology Platform (Sponsor/TAMP) Mellon Backoffice Environment New accounts (Mellon Workflow) Account Administration Inv...
Managed Account Technology Solution
Managed Account Technology Solution <ul><li>Features </li></ul><ul><li>Displays all business events that require attention...
Managed Account Technology Solution <ul><li>Features </li></ul><ul><li>Displays all indexing data associated with the busi...
Service Offering
Service Offering <ul><li>Support Multiple Client Types </li></ul><ul><ul><li>Investment Managers </li></ul></ul><ul><ul><l...
Service Offering Services  Provided Benefits to Clients Account Opening <ul><li>Verify receipt of new account paperwork an...
Service Offering Services  Provided Benefits to Clients Transaction Support <ul><li>Process contributions/withdrawals </li...
Service Offering Services  Provided Benefits to Clients Daily Reconciliation <ul><li>Review daily reconciliation reports (...
Service Offering Services  Provided (optional) Benefits to  Clients Performance Support <ul><li>Code accounts for AIMR com...
Service Offering Services  Provided Benefits to Clients Account Administration <ul><li>Process account number changes and ...
Service Offering Services  Provided (optional) Benefits to  Clients Other Services <ul><li>Tax loss tracking support </li>...
Implementation
Implementation Services  Provided Benefits to  Clients Implementation <ul><li>Dedicated Implementation/Project Management ...
Implementation Requirements Analysis Mellon Proposal/Fees 0-2 Weeks Negotiate Contract/Service Level Agreement Project Pla...
Contact Information Robert McCormick   First Vice President   Mellon Investment Manager Solutions   200 Park Avenue  Room ...
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Robert McCormick, First Vice-President, Mellon Financial Corp.

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  • Joe Cutrone/Margaret Kelly
  • Joe Cutrone/Margaret Kelly
  • Robert McCormick, First Vice-President, Mellon Financial Corp.

    1. 1. The Money Money Management Institute Technology Spotlight: Outsourcing for Separately Managed Account Operations Presented by: Robert McCormick March 1, 2006
    2. 2. Agenda <ul><li>Technology Platform </li></ul><ul><li>Managed Account Technology Solution </li></ul><ul><li>Service Offering </li></ul><ul><li>Implementation </li></ul><ul><li>Contact Information </li></ul>
    3. 3. Technology Platform
    4. 4. Technology Platform (Investment Manager) Sponsors Mellon Backoffice Environment New accounts (fax, e-mail) Account Administration Inventory & Record- keeping Performance Measurement Statements (Flexpack) & Billing (Billvue) Daily Cash & Position Reconciliation Mellon Workflow (Workflow/Imaging & Data Retention) Transactions/Account Detail Sponsor 2 Sponsor 1 CheckFree APL XYZ Company Management CheckFree APL Trades Trading Reporting Thin Client Workflow (web based)
    5. 5. Technology Platform (Sponsor/TAMP) Mellon Backoffice Environment New accounts (Mellon Workflow) Account Administration Inventory & Record- keeping Performance Measurement Statements (Flexpack) & Billing (Billvue) Daily Cash & Position Reconciliation Workflow/Imaging & Data Retention System Transactions/Account Detail Custodian 2 Custodian 1 Trading Reporting Thin Client Workflow (web based) Portfolio Management System Manager 2 CheckFree APL Trades Trading Reporting Thin Client Workflow (web based) Portfolio Management System Manager 1 Sponsor/TAMP
    6. 6. Managed Account Technology Solution
    7. 7. Managed Account Technology Solution <ul><li>Features </li></ul><ul><li>Displays all business events that require attention </li></ul><ul><li>View detail on any specific business event </li></ul><ul><li>Access to open items displaying all work in progress associated with the investment manager </li></ul><ul><li>Submit comments back to Mellon regarding business events </li></ul>
    8. 8. Managed Account Technology Solution <ul><li>Features </li></ul><ul><li>Displays all indexing data associated with the business event stored in Workflow </li></ul><ul><li>All comments on business events are tracked and displayed </li></ul><ul><li>View Paperwork hyperlink is available for user to view related documentation </li></ul><ul><li>An entry box is available to reply to the alert notification </li></ul>
    9. 9. Service Offering
    10. 10. Service Offering <ul><li>Support Multiple Client Types </li></ul><ul><ul><li>Investment Managers </li></ul></ul><ul><ul><li>Sponsors </li></ul></ul><ul><ul><li>Turnkey Asset Management Provider </li></ul></ul><ul><li>Support Multiple Account Types </li></ul><ul><ul><li>Equity, Fixed Income, ADR, Balanced, MSP, Long / Short </li></ul></ul><ul><li>Partnership With Leading Application Provider </li></ul><ul><ul><li>CheckFree Investment Services </li></ul></ul><ul><li>Largest and Most Experienced Managed Accounts Outsourcing Provider </li></ul><ul><ul><li>100% Growth in Accounts Supported in the Past Two Years – 65,000 accounts </li></ul></ul><ul><ul><li>On average, open 130+ Accounts Per Day </li></ul></ul><ul><ul><li>$5 Billion Growth in AUM in 2005 – over $32 Billion in assets </li></ul></ul><ul><ul><li>Investment Manager Support for 37 Sponsor Platforms </li></ul></ul><ul><ul><li>Sponsor/TAMP Support communicating with 57 different Investment Managers </li></ul></ul><ul><li>Dedicated Support Structure for Managed Accounts </li></ul><ul><ul><li>Sales, Product Management, Relationship Management, Client Service, Operations </li></ul></ul><ul><li>Controlled and Scalable Operating Environment </li></ul>
    11. 11. Service Offering Services Provided Benefits to Clients Account Opening <ul><li>Verify receipt of new account paperwork and resolve discrepancies </li></ul><ul><li>Establish account numbers and data </li></ul><ul><li>Post seed assets and cash if necessary </li></ul><ul><li>Set account investment restrictions as instructed </li></ul><ul><li>Provide portfolio suitability support (optional) </li></ul><ul><li>Perform quality control checks to ensure correctness </li></ul><ul><li>Establish account tradability and notify manager </li></ul><ul><li>Streamline account set-up process through Mellon </li></ul><ul><li>Reduce amount of paperwork and faxing via Workflow solution </li></ul><ul><li>Ensure accuracy of account opening </li></ul><ul><li>New accounts available for trading next day </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    12. 12. Service Offering Services Provided Benefits to Clients Transaction Support <ul><li>Process contributions/withdrawals </li></ul><ul><li>Set-up pending cash movements for one-time or periodic client requirements </li></ul><ul><li>Perform asset transfers </li></ul><ul><li>Obtain confirmation/notification on all cash and asset transfers based on established tolerances </li></ul><ul><li>Verify receipt of daily trade files </li></ul><ul><li>Access to investable cash </li></ul><ul><li>Daily update of accounts requiring rebalancing </li></ul><ul><li>Ensure cash/share movements are authorized </li></ul><ul><li>Administrative support for all transaction activity </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    13. 13. Service Offering Services Provided Benefits to Clients Daily Reconciliation <ul><li>Review daily reconciliation reports (cash, positions, accounts) and resolve discrepancies </li></ul><ul><li>Notify managers of accounts with exceptions </li></ul><ul><li>Post corrections </li></ul><ul><li>Perform trade discrepancy analysis to identify pending price differences and resolve </li></ul><ul><li>Identify and notify managers of accounts with cash shortage </li></ul><ul><li>Ensure consistent, accurate records between manager and sponsor </li></ul><ul><li>Confirm tradeable balances </li></ul><ul><li>Unresolved accounts are removed from trading environment </li></ul><ul><li>Timely reporting through Daily Notification Report </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    14. 14. Service Offering Services Provided (optional) Benefits to Clients Performance Support <ul><li>Code accounts for AIMR composites </li></ul><ul><li>Report sponsor level performance returns </li></ul><ul><li>Review restricted accounts </li></ul><ul><li>Administer month-end closing process </li></ul><ul><li>Identify performance outliers to benchmarks </li></ul><ul><li>Review outliers and perform adjusting entries to correct performance </li></ul><ul><li>Support AIMR Compliance </li></ul><ul><li>Timely, accurate performance reporting </li></ul><ul><li>Process to review/resolve performance outliers </li></ul><ul><li>Comprehensive performance measurement tools and reporting for managers </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    15. 15. Service Offering Services Provided Benefits to Clients Account Administration <ul><li>Process account number changes and establish new accounts </li></ul><ul><li>Update client profile data </li></ul><ul><li>Modify investment restrictions, investment strategy for account </li></ul><ul><li>Restrict accounts from trading based on client instruction </li></ul><ul><li>Process account terminations </li></ul><ul><li>Perform file and records management </li></ul><ul><li>Mellon assumes accountability for account maintenance </li></ul><ul><li>Mellon facilitates communication with brokers/sponsors to ensure data integrity </li></ul><ul><li>Electronic access to data and historical records via workflow </li></ul><ul><li>Controlled process for account terminations </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    16. 16. Service Offering Services Provided (optional) Benefits to Clients Other Services <ul><li>Tax loss tracking support </li></ul><ul><li>Fulfillment (welcome letters/Form ADV mailings) </li></ul><ul><li>Customized reporting </li></ul><ul><li>Support other managed account applications for clients </li></ul><ul><li>Billing support </li></ul><ul><li>Dual Contract account support ( manual reconciliations, compliance support, statement generation/mailing) </li></ul><ul><li>Support for tax-sensitive trading requirements </li></ul><ul><li>Tailored solutions </li></ul><ul><li>Flexible, value-added services available </li></ul><ul><li>Established model for supporting dual contract accounts </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    17. 17. Implementation
    18. 18. Implementation Services Provided Benefits to Clients Implementation <ul><li>Dedicated Implementation/Project Management Team </li></ul><ul><li>Established Implementation Procedures </li></ul><ul><li>Customized Conversion Implementation Plan </li></ul><ul><li>Requirements and workflow analysis </li></ul><ul><li>Detailed Testing Process </li></ul><ul><li>Facilitate Electronic Transfer of Assets </li></ul><ul><li>Training </li></ul><ul><li>Controlled Process </li></ul><ul><li>Accountability </li></ul><ul><li>Proven implementation methodology </li></ul><ul><li>Relationship Focused Team </li></ul><ul><li>Experience implementing start-up clients and large asset transfers </li></ul>Account Opening Services Daily Reconciliation Performance Support Other Services Account Administration Implementation Transaction Support
    19. 19. Implementation Requirements Analysis Mellon Proposal/Fees 0-2 Weeks Negotiate Contract/Service Level Agreement Project Plan 2-8 Weeks Implementation/Conversion Training (e.g.: Workflow) 8-16 Weeks Production Environment Anticipated Timeframe Tasks
    20. 20. Contact Information Robert McCormick First Vice President Mellon Investment Manager Solutions 200 Park Avenue Room 105-5400 New York, NY 10166 (212) 922-8227 Office (212) 922-4505 Fax [email_address]

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