NICSA MidWest Regional Meeting Vincent Manning

Transcription

NICSA MidWest Regional Meeting
Vincent Manning
Agenda
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Introductions
Industry Primer
Managed Asset Market Place
Servicing Separately Managed Accounts
Outsourcing as an Option
Q&A
Panelists
Vincent Manning
Venture Financial Systems Group, LTD.
Roger Gregory
DST International
Jim Prescott
The Burridge Group, LLC
Walter Makarucha
The Bank of New York, BNY SmartSource
Why Are We Here?
¡
Separately managed accounts (SMA) held $399
billion in assets at the end of 2002
(Source: The Money Management Institute).
¡
SMA assets are expected to increase to $1
trillion by 2006 and $2 trillion by 2011
(Source: Financial Research Corp – “FRC”).
¡
More investors will turn to managed accounts
over the next five years, cutting the ratio of
mutual funds to managed accounts in half
FRC).
Managed Accounts
¡
Separately Managed Accounts – Investment accounts
featuring customized offerings based on providing tax
optimization and security restrictions on an individual basis
(a.k.a. Wealth Management, High Net Worth Accounts,
Wrap Accounts).
¡
Multi-Style Managed Accounts – A fund of funds type of
approach offering the same customization as in SMAs
while spreading investments across multiple products (e.g.,
50% Growth Fund, 40% International Fund, and 10% Fixed
Income Fund).
Benefits of Managed Accounts Vs. Mutual
Funds
Features
Expertise
Tax Related
Features
Separate Account
Access to professional active money
Yes
management
Capable of customizing account to focus on Yes
after tax returns
No, with a separate account the investors cost
Imbedded and unrealized capital gains
basis is initiated at the time each security is
purchased.
Ability to harvest losses to offset gains
Yes
Cost Related
Volume discounts
Features
(Break Points)
General Features Able to be tailored to investor's unique
needs.
Stock screening according to individual
criteria regarding social, ethical, and
economic values/preferences.
Control of asset in-flow and out-flow from
account
Service
(Source:
Separate
Account
Solutions)
Mutual Fund
Yes
No
Yes, the average US mutual fund has 20%
imbedded, unrealized capital gains (Morningstar
Principia, 1996).
No
Yes, discounts of up to 25% or more as the
account grows.
Yes
No
Yes
No
Yes
No, in order to refund clients leaving the fund,
money managers must sell securities to raise the
capital necessary for redemptions.
Direct ownership of securities
Yes
Online access to view account
Transparency of holdings
Yes
Yes
Unlimited
withdrawals/redemptions
Can be used in conjunction with any
financial advisor
Quarterly reports customized to reflect
actual activity and holdings.
Performance reporting
Yes
No, with a mutual fund the investor owns a share
of the fund which is comprised of a diversified
portfolio.
Yes
No, clients are not permitted to view the current
securities that comprise the fund.
No, typically funds have restrictions.
Yes, Personal Financial Advisors, CPAs, and
Lawyers.
Yes, viewable both electronically and in hard
copy.
Yes, viewable both electronically and in hard
copy on a quarterly basis.
Investor Contact
Yes, face to face discussions with an investment
professional.
Evaluation of Professional Money Managers Yes, managers are evaluated and constantly
screened by trained financial analysts.
Yes
Determining Investor's goals
Yes
No, typically with a no-load mutual fund investors
must determine their goals themselves.
No
No, investors must calculate their own
performance.
No, usually semi-annually, but varies with fund
company.
No, most no-load mutual funds only offer an 800
phone number.
Yes
Why Are We Here?
¡
Current technical and operational landscape is
void of industry standards.
l
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Analogous to mutual fund industry in the early 1980s.
Until recently, industry power has been concentrated in
the hands of a few sponsors and systems providers.
Industry Challenges
¡
Lack of standardization among sponsor systems
presents significant operational hurdles.
l Major sponsors, excluding Merrill Lynch, maintain proprietary
portfolio accounting and trading systems.
l Operational complexity increases dramatically as the number of
sponsor connections increases.
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MSP market is very immature with offerings of
operational solutions extremely limited.
l Most vendors are in beta phase with products and offerings.
Industry Challenges
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Leading investment management outsource
providers rushing to enter market space with highcost solutions and little experience. It remains
unclear who will emerge as long-term leaders.
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The life-cycle of current Technology
Platforms/Solutions may be short-lived.
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Assets are custodied by the sponsor, at the
custodian of their choice, and not the manager.
Managers are forced to deal with multiple
custodians for each product offered across multiple
sponsors.
The Players
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Wirehouses/Sponsors
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Investment Managers
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CheckFree APL, IDS, Advent, DST, FIN
Customization Tools
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Top 10 control 35% of AUM (FRC).
Technology Platform
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Top 5 control over 70% of the assets (FRC)
LifeHarbor, SoftPak, Upstream, Parametric,
Placemark, Tamarac, Smartleaf, BTA, Hyland,
Vestmark
Outsource Providers
l
BONY, Mellon, State Street
The Problem: Technical and
Operationally Inefficient Marketplace
Model A
Model B
Portfolio
Manager
Operations
Team
Model C
Model D
Source: Cerulli Associates
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Program #1
Program #2
Program #3
Program #4
Program #5
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Program #6
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Program #7
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Program #8
The Problem: Technical and
Operationally Inefficient Marketplace
¡ Lack of standardization among sponsor systems
presents significant operational hurdles and
technical challenges.
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Majority of major sponsors maintain proprietary
portfolio accounting and trading systems.
No standard technology protocols or workflow
processes across sponsor systems making it difficult
to standardize operations across multiple sponsors.
Operational complexity increases dramatically as the
number of sponsor connections increases.
With Scalability Comes Complexity…
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If you look at the current operational infrastructure through
the eyes of the money manager. The largest managers
participate in upwards of 50 sponsor programs. That
means they have to:
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Reconcile their portfolio management system with 50 different
custodians.
Deal with 50 different new account procedures.
Implement 50 different termination policies.
Execute 50 different billing systems. (Can any manager say
definitively that they know they're being paid correctly by all
sponsors?)
Place trades for the same stock at 50 different broker dealers.
(Who goes first?)
Maintain 50 trade-error accounts.
Receive cost data on securities transferred in 50 different ways.
The list could go on and on. It’s easy to see the immediate
operational challenges.
Source: Lockwood Financial Services
Key Operational Functions
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Account Openings and Closing
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Portfolio Management
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Trading
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Reconciliation
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Performance Reporting
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Marketing Support and Service
Key Operational Functions
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Current Environment
l
Each sponsor relationship requires some level of manual intervention.
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Customized portfolio management systems required to properly manage products
and accounts.
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Institutional front-office personnel can be leveraged for some time while a base of
accounts are established.
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Managers responsible for internal reporting and marketing materials.
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Aggregation of appropriate data represents greatest challenge.
Future Considerations
l
Industry is workings towards standardized, automated solutions.
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Future requirements for account customization and tax considerations are expected
to increase in the future.
l
Market moving towards daily valuations requiring automated interfaces with
sponsors and tight, systematic reconciliation procedures for asset managers.
AIMR compliance should be considered an absolute requirement.
l
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Third Party Vendors (TPVs) offer single connectivity to multiple sponsors allowing
for single system for account maintenance.
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Outsourcing of some operational functions is an option.
Potential Operational Models
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Maintain middle- and back-office internally
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Outsource back-office while maintaining middleoffice internally
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Outsource middle- and back-office functionality
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Participate in third-party direct distribution
networks
Servicing Options – Advantages of Internal
and Outsourcing Options
Internal Servicing
Outsourcing
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Get to know your client
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Potential cost savings
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Ability to employ talent
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Timely problem
resolution
Eliminate training costs
and concerns
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Financial risks due to
operational errors are
outsourced to third party
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Can develop metrics to
prepare for growth
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Ability to design
customized workflow
Servicing Options – Disadvantages of
Internal and Outsourcing Options
Internal Servicing
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Could be costly:
people, technology,
infrastructure
Outsourcing
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Potential to lose control of
effective client servicing
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Can lose ability to
implement value added
technology as needed
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Place all operational
matters in the hands of a
third party provider –
reputation at stake
Potential Solution: Industry Utility
¡
In a November 2002 white paper, The Money Management
Institute (MMI) called for the creation of an industry utility to
transmit critical communications between industry
participants.
Model A
Portfolio
Manager
Operations
Team
Model C
Industry Standards
Model B
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Program #2
Program #3
Program #4
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Program #5
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Program #6
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Program #7
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Program #8
Model D
Program #1
The Reality: We Are Not There Yet
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The Money Management Institute is working
to bring standards to the industry.
DTCC is working to bring standards to new
account openings process.
New market participants offer expanded
solutions along with pressure to standardize
communications.
The Future…
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Service and technology offerings are
continually evolving.
The emergence of industry and technology
standards provide the opportunity for gains in
operational efficiencies.
Seeing a move towards bundling of services
(e.g., SEI/Hyland/APL, Upstream/Lava
Trading, Thomson/Vestmark).
Standards will allow managers to apply best of
breed solutions.
Managed Asset Market Place
The Players, The Core Functions, The Tools
Roger Gregory
Product Manager
DST International
Boston, MA
Managed Assets: The Players
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
Old-line large brokerage firms.
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
Wirehouses, firms distributing SMA’s
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
Asset managers, proprietary or outsourced
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
Overlay managers, brand
aggregators/consolidators
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
Originally mutual fund distribution, now
expanding product offerings.
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Wirehouse
Sponsor
Product Provider
Hybrid
Supermarket
TAMP
Turnkey asset management program
Managed Assets: Core Functions
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Distribution Channel
Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
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Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
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Banking
Insurance
Wirehouse
Regional Brokers
Mutual Fund Complex
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Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
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Risk Profiling
Asset Allocation
Product Selection
On-going Monitoring
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Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
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Mutual Funds/MF SMA
Annuities
SMAs
Self Directed Brokerage
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Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
• Mutual Fund
• Equity
• Fixed Income
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Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
• Fully Disclosed/Omnibus
• Self Clearing
• Trust
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Financial Planning
Product Offerings
Trade Execution
Custody
Product Provider
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Mutual Funds
Pensions/Institutional
Fund Wraps
SMAs
Hedge Funds
Managed Assets: The Tools
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Back Office Processing
Recon / Synchronization
Performance Measurement
Reporting
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
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Client questionnaire
Risk assessment
Monetary milestones
Asset allocation
Product selection
Proposal generation
Imaging / workflow
System interfaces
Reporting
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Advisor Tool Kit
• Account activity
• New account
Interfaces
• Account funding
Decision Support
• Legal changes
Order Management
• Style changes
Compliance
• Manager changes
Trading Links
• Terminations
Back Office Processing • Reconciliation
• Posted trades
• Off-market
Performance
• Positions and cash
Measurement
Reporting
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
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Targets/models
Dispersion
Rebalancing
Tax efficiency
Gain / loss harvesting
Client restrictions
Raising / investing
cash
• Portfolio monitoring
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
• Centralized review
• Aggregation by
sponsor
• Sponsor rotation
• Non-sponsor
execution
• GTC / carryover
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
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Restrictions
Cash limits
Wash sales
Securities changing
holding periods
• Firm wide thresholds
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
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Order routing
Execution reports
Allocations
Confirmations
DTC affirmations
Settlement advice
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Advisor Tool Kit
• Does manager report
to client?
Interfaces
• Should manager
Decision Support
augment sponsor
Order Management
back office
Compliance
weaknesses?
Trading Links
• Income accruals
• Amortization / OID
Recon / Synchronization • Value of enterprise
Performance
wide consolidated
Measurement
positions
Reporting
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
• Shadow accounting:
who’s books are
correct?
• Who does lot
accounting?
• Sync overlays data
• Recon finds differences
• Who publishes client
reports?
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
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Client
Sponsor composites
Manager
Manager composites
Advisor
Benchmarks / blends
Attribution
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Advisor Tool Kit
Interfaces
Decision Support
Order Management
Compliance
Trading Links
Performance
Measurement
Reporting
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Client
Management
Sales
Advisor
Servicing Separately Managed Accounts
Jim Prescott
Burridge Group LLC
Burridge Group LLC
AMG Affiliate since 1996
¡
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Burridge Growth Partners – 1996
Sound Capital Partners – 1998
$1.6 billion AUM as of 9/30/03
Portfolio Services Group (PSG) – 1998
Burridge / PSG
¡
34 Employees in LLC
l 14 in sales and marketing including 5
wholesalers and 6 internal sales support
l 12 in research between two firms
l 1 compliance officer
l 7 in operations and trading
¡ 1 manager
¡ 2 in trading and settlements
¡ 4 administrators
Portfolio Services Group
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Provides SMA marketing and administration
services to AMG affiliates
Burridge Growth Partners – Chicago, IL
Essex Investment Management – Boston, MA
Frontier Capital Management – Boston, MA
Renaissance – Cincinnati, OH
Systematic Financial – Teaneck, NJ
Sound Capital Partners – Seattle, WA
SMA Programs
A.G. Edwards
Bank of America
Concord
DB Alex Brown
Legg Mason
Linsco Private
Ledger
Lockwood
Merrill Lynch
Morgan Stanley
Prudential
Smith Barney
UBS
Wachovia
Wells Fargo
Over 7,000
accounts
Multiple Style Portfolios
¡ Wachovia DMA
l6 blends
¡ Wells Fargo
l3 blends
¡ Prudential MACS
l2 bends
¡ 6 AMG managers sub-advising to PSG including
lBurridge, Essex, Systematic, Renaissance,
Davis Hamilton, Rorer
Operational Challenges Facing PSG
¡ Reduced fees and higher expectations
¡ Staying focused and setting rules
¡ Mirroring and not mirroring
¡ Reconciliation
¡ Restrictions
¡ Frozen accounts, terminations, “special
situations”
¡ Tax aware management
¡ Cash flow management
¡ Cross training
Additional Challenges
¡ Communicating with other managers
¡ Identifying outliers
¡ Moving from paper to imaging
¡ Each sponsor working differently but moving
toward standards
¡ Paper, files, websites, dial-ups . . . .
¡ How do we get it all done? We needed help.
Outsourcing at PSG
¡ Spectrum Global Funds Administration
l Outsourced CFO since April of 2002
l Created CRM “Asset Gathering Tool”
¡ Rorer Asset Management
l AMG Affiliate “Big Brother”
l Advantage Outsourcing Services
l Providing administrative support starting October,
2003
l OnBase
Success Through
Partnership
NICSA Midwest Regional Meeting
October 8, 2003
Servicing the Investment Lifecycle…
Issuers
Investment
Decision
l Web-based Reporting
l VaR Reporting
l Trade Order Management
l Electronic Instruction Capture
l Asset Allocation
l Analytics
l Compliance
Analyzing the
Portfolio
l Investment Risk Management
Performance
Measurement/Analytics
l Compliance
l VaR
l Currency Risk Management
l
The Bank of
New York’s
Global
Solutions
Executing the
Investment
Decision
l Trade Execution
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Equities
Fixed Income
Foreign Exchange
Servicing the
Portfolio
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Safekeeping
Short Term Cash
Securities Lending
Securities Clearance
l
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l
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Global Accounting
Strategic Outsourcing
Offshore Services
Collateral Management
…
… Around
Around the
the Globe
Globe
2
l Transfer Agency
l Credit Services
l Funds Transfer
BNY’s Evolution in the Managed Account Business
2003
Managed
Account Group
2002
Lockwood
Acquisition
Focused
Focusedon
onGathering
Gathering
Assets
and
Increasing
Assets and Increasing
Distribution
Distribution
l Front-office Offering
l Front-office Offering
l Proprietary Front-end
l Proprietary Front-end
Tools
Tools
l Entire Management
l Entire Management
Team
TeamRetained
Retained
l
2000
BNY Clearing
••World
WorldAdvisor
AdvisorProgram
Program
l Sponsor Focused
l Sponsor Focused
l Small Platform
l Small Platform
l Back-office Offering
l Back-office Offering
3
l
EMAT
Acquisition
Focused
Focusedon
onSMA
SMABackBackoffice
officeProcessing
Processing
l Highly Customized
l Highly Customized
Technology
TechnologyPlatform
Platform
l Multi-custodian
l Multi-custodian
l Entire Management
l Entire Management
Team
TeamRetained
Retained
l
l
$8
$8Billion
BillionAUA
AUA
40,000
Accounts
40,000 Accounts
••Investment
InvestmentManager
Manager
Focused
Focused
••Lift
LiftOut/BSP
Out/BSP
••Multi-sponsor,
Multi-sponsor,MultiMulticustodian
custodian
$10.2
$10.2Billion
BillionAUA
AUA
31,000
31,000Accounts
Accounts
56
56Sponsors
Sponsors
Pershing
••Sponsor
SponsorFocused
Focused
••Peak
Peak11&&Peak
Peak22
Offerings
Offerings
••Peak
Peak11Separate
SeparateAccts.
Accts.
$3
$3Billion
BillionAUA
AUA
7,500
Accounts
7,500 Accounts
Investment Manager & Sponsor Outsourcing Solutions
BNY Supporting a Multi-product Investment Manager
l Operations – Manager Level
SMA
Nonsponsor
Institution
Mutual
Funds
Defined
Benefit
SMA as
Sponsor
& IM
l
Trade Support & Enrichment Services
l
Account Set-up & Maintenance
l
Accounting, Reconciliation & Performance
Reporting
BNY Supporting an SMA Sponsor
l Operations – Sponsor Level
Investor
IM
IFA
IM
SMA Sponsor
SMA Sponsor
IM
Broker
IM
Custody
SMA Sponsor
SMA Sponsor
4
IM
l
Broker/Dealer Services
l
Account Set-up & Maintenance
l
Reconciliation
l
Relationship Management
l
Performance Reporting
l
Billing
What to Outsource?
Asset Allocation
Investment Mgmt.
Sales
Investment
Manager
Client Servicing.
Tax Harvesting
Marketing
Sponsor Support
SMA
Account Maint.
& Administration
Model Maintenance
Trade Dealing & Execution
Settlement
BNY SmartSource
Rotation Mgmt.
Performance &
Analytics
5
Reconciliation
Record-keeping
Commoditized Functions are Candidates for Outsourcing
l
Account
Set-up
& Maintenance
l
l
l
l
Portfolio
Management
System
Daily
Reconciliation
Services
l
l
l
l
l
l
l
l
l
Fee Calculation
& Processing
Services
l
l
l
Performance
Reporting
Services
6
l
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Receive & verify new account information from sponsor & send welcome package
Open account & notify manager account is ready to trade
Process contributions, withdrawals, rebalancing requests
Facilitate tax gain/loss sell requests within account restrictions
Maintain account records, manager/style changes & terminations
Portfolio accounting & record keeping
Portfolio modeling & block trade creation
Trade allocation
Account re-balancing
Perform final reconciliation of new account before releasing to manager
Perform daily reconciliation between portfolio accounting & custodians
Maintain security master database
Process voluntary corporate action on portfolio accounting
Perform fee calculations (including multiple components)
Reconcile investment manager fees from various sponsor programs
Collect (or direct custodian to debit) fees from client accounts & disburse as
appropriate
Provide MIS reporting on fee transactions & billing history
Produce quarterly performance reports for client accounts
Provide composite reporting for managers
Provide Investor Workstation for clients to review account
holdings & performance
Outsourcing Advantages Outweigh the Concerns
Key Advantages
Cost control
l Focus on core
l Scaleability
l Risk transference
l Infrastructure upkeep
l
Manager’s Concerns
Loss of control
l Accountability
l Confidentiality of:
l Data
l Models
l Intellectual property
l Clients
l Loss of customization
l
7
Finding the Right Outsourcing Partner
Selection Criteria Listed in Order of Importance:
Stability of
Outsourcer
2.20
Specific Expertise
in Investment Area
2.44
People/Culture
3.11
Technology Platform
3.33
Cost
3.34
0
1
2
3
Criteria (1=Highest)
Source: Celent Communications Investment Manager Survey – March 2002
8
4
Client Support/Service Model
Investment Manager
Portfolio
Manager
Marketing
& Sales
Finance
& Acct.
Operations
BNY SmartSource
Investment Manager
Operations Coordinator
BNY PMA
Team
9
BNY SmartSource
Client Service
Team
l
Business Manager
l
SMA Operations Manager
l
Account Maintenance Manager
l
Reconciliation Manager
l
Settlements Manager
l
Records Manager
BNY Competitive Advantages as an Outsourcing Partner
l Focused Outsourcing Strategy & Experience
l Proven Track Record with Large Outsourcing Projects
l History of Innovation
l Tenured Pioneers
l Leading Technology
l State-of-the-Art Tools
l Modular Yet Fully Integrated – Highly Customized
l Investment Manager Focus
l Relationship Driven
l Key Business Line
l Dedicated Resources with Investment Management Expertise
l Flexibility
l Consultative View
l Understanding of Sponsor & Investment Manager Needs
l Flexible Service Models & Transition Strategies
l Product Breadth
l Commitment to Securities Processing
l Service Capabilities Across the Investment Lifecycle
l Ability to Work with Investment Managers Across All Product Types
(i.e., Managed Accounts, Fund Vehicles, HNW & Institutional)
10
Some Final Thoughts…
l Managed accounts is a complex business - more styles/programs, MSP &
multi-currency
l Most managers need to reach $2.1B in AUM to achieve profitability
l The average spend on technology alone is between $1 - $3M
l Scale and operational efficiency are the primary keys to success
l Drive to Standards!
l Outsourcing must be a partnership rather than a traditional vendor
relationship
11
Contact Information
Vincent Manning
781-932-7544
[email protected]
Roger Gregory
DST International
617-210-6314
[email protected]
Jim Prescott
The Burridge Group LLC
312-424-1141
[email protected]
Walter Makarucha
212-815-6161
[email protected]
Biographies
VINCENT MANNING
Managing Consultant
Vincent Manning is a Managing Consultant at Venture responsible for providing leadership in the
development and implementation of innovative solutions to solve complex technical and business
issues. Vincent actively works with senior management teams to assess current business and
systems environments and proposes organizational and process reengineering solutions. He is
responsible for directing and managing project teams to ensure timely and effective execution of
management efforts. Mr. Manning’s engagements have covered both front- and back-office initiatives
ranging from conceptual design through final implementation.
Over the past five years Vincent has led initiatives in every area of the trading cycle covering issues
ranging from data modeling, business processing, enhancing trading systems, providing web-based
reporting platforms, and the integration of front- and back-office systems to provide real-time
positions, prices, and transactions.
Mr. Manning is currently a member of the National Investment Company Service Association (NICSA)
Technology Committee. Prior to joining Venture, Mr. Manning was with Fidelity Investments as a
Senior Business Analyst. Prior to Fidelity, Mr. Manning was with William M. Mercer, Incorporated for
five years as a Consultant. Mr. Manning holds an MBA with a Strategic Management concentration
from Boston College and a BA degree in Economics from Brown University.
Biographies
ROGER GREGORY
DST International
Product Manager
Mr. Gregory has over 25 years of experience in portfolio management and
accounting systems software development and is currently a product manager for
DST’s Managed Asset Platform.
In this role, Roger is part of team responsible for both the functional and technical
direction of DST’s managed account solutions and their current evolution.
Roger was previously responsible for the original design and development of DST's
HiNet accounting solution, which is a rules-based client-server multi-currency
portfolio accounting system, currently in use by many leading US financial
institutions.
Mr. Gregory holds an M.S. in Computer Science and a B.A. in Political Science from
Boston University.
Biographies
Jim Prescott
Burridge Group LLC
Vice President, Operations
Mr. Prescott has been active in the Chicago investment operations business for over
twenty years.
He oversees the operations and trading area at Burridge and has played an important role
in growing the firm a one product traditional manager to an aggressive SMA manager with
multiple product lines.
Prior to joining Burridge in 1995, Jim spent 14 years with Fiduciary Management
Associates in Chicago as their Vice President of Operations.
Jim holds a B.S. in Business Administration from DePaul University.
Biographies
WALTER J. MAKARUCHA
Vice President – SMA Business Manager and BNY SmartSource Product Manager
Walter Makarucha is a Vice President and Separately Managed Accounts (SMA) Business Manager within
BNY SmartSource, The Bank of New York’s investment manager outsourcing division. He also is responsible
for Product Management within BNY SmartSource and also serves as the group’s SEC Compliance Policy
Manager.
As SMA Business Manager, Mr. Makarucha is responsible for all SMA related middle- and back-office
outsourcing services provided to Investment Managers. Mr. Makarucha leads a management team with an
average of 10 years experience in providing operational support to managers. The team specializes in
dealing in multiple sponsor/custodial/brokerage relationships in a multitude of programs and investment
styles.
In his Product Management capacity, Mr. Makarucha is responsible for the creation, development, and
deployment of new products and services to be offered to existing and new clients of the Bank. In addition to
Product Management, Mr. Makarucha is a recognized subject matter expert in the area of straight through
processing (STP) and has spoken at many industry conferences. In addition, he has authored a number of
articles on this topic.
Mr. Makarucha joined the Bank of New York in May 2002. Prior to joining the Bank of New York, Mr.
Makarucha was employed by Deutsche Bank Asset Management and Private Banking Americas as Director
of Information Technology and Securities Operations. He also was president of an IT subsidiary for Credit
Suisse, a major European investment bank. Under Mr. Makarucha’s direction, this firm grew rapidly and was
ultimately acquired by EDS. Mr. Makarucha was also Chief Operating Office responsible for technology and
operations for Credit Suisse Asset Management Americas, and Swiss Bank Corporation Portfolio
Management International. Mr. Makarucha is a seasoned professional with over 20 years in the financial
services industry.

NICSA MidWest Regional Meeting Vincent Manning

Transcription

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