FolioDynamix offers technology and investment service solutions to sponsors, registered investment advisers, asset management firms, and banks. Citing Cerulli Associates, a press release said 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.
“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,’ said Aaron Schumm, senior vice president in charge of Product for FolioDynamix, in the press release. “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.’
The Managed Accounts Service is supported by DTCC’s post-trade infrastructure. Citi’s Smith Barney and Global Transaction Services are in full production with the Managed Accounts Service, and an additional 15 firms are currently programming or have announced their commitment to use the service, according to DTCC. These include JPMorgan, UBS Financial Services Inc, Dreyfus Investments, SunGard Transaction Network, and Peridrome Corporation.