Investment managers will now be able to automate, centralize and standardize purchases, exchanges and redemptions directly though the Depository Trust & Clearing Corporations Fund/SERV and other mutual fund services, instead of having to go through a third party.
Allowing the managed accounts industry access to the exceptional mutual fund services that DTCC provides will improve back-office processing for our membership, said Christopher Davis, president of the Money Management Institute. Replacing transactional methods that are complicated, time-consuming and costly with a model that exemplifies DTCCs unmatched expertise will ensure that managed investment solutions stay on pace as the fastest growing segment in the investment advisory industry.
The new membership category is an outgrowth of the DTCC Managed Accounts Service and will allow investment managers to streamline fund processing, said Ann Bergin, managing director and general manager, DTCC Wealth Management Services.
Connectivity will simplify the trading of these investments and increase efficiency for both investment managers and sponsors, said Anne Kruczek, senior vice president and head of administration and operations at Federated Investors, Inc. DTCC has created a solution that will be particularly useful within the fixed-income managed accounts space. Pooled investment vehicles are the premier choice within the traditional fixed-income managed account portfolio as they offer increased ability to control diversification and risk management of the portfolio at lower managed account minimums.