Penson Worldwide Settlements (PWSL) has struck an agreement with Business Architects International as part of a programme to provide front office portfolio management services to the UK investment industry.
Under the agreement, Dallas-based Penson will provide Business Architects portfolio measurement, modelling, order management and client reporting as additional services to its current execution, clearing, settlement and global custody services. The aim is to provide an outsourced front to back office, full service capability for both retail and institutional investment managers.
PWSL currently offers a Model A service which ranges from full back office outsourcing down to individual Crest sponsored membership. This "New Generation" delivery Model B (Fully Disclosed) service is the culmination of a two-year development programme, entailing the integration of inhouse settlement systems with best of breed European vendors of front office solutions, direct market execution links and specialist Capital Gains Tax providers.
The PWSL offering is seen as a competitor to typical retail and private banking back office systems such as Consort, Exact, JHC and Globus. Whilst in the front office Pulse, Wealth Management Software and Advent and Triple A are competitors. The outsource competitors are Pershing's G2 and Nucleus and the recently announced BNY/Tilney offering.
Dan Son, president of Penson Worldwide, comments: "We decided to look at the UK market with a fresh approach and asked fund managers what they really wanted. Clearly, the feedback indicated more sophisticated portfolio measurement and execution at the front."
The new service will be officially launched in January 2003, he adds.