Fidelity Investments today announced that it has established a unique strategic relationship with New York-based Integrated Decision Systems (IDS) to offer registered investment advisors an institutional-level portfolio management and order generation system. As an integrated component of Fidelity’s custody services, Fidelity will provide a single point of contact for service and support.
The Fidelity-IDS multi-custody offering will be built on an Application Service Provider (ASP) model, allowing advisors to access fully-reconciled client data via the Internet, while also providing the ability to replicate it on their desktops. The portfolio management and order generation system will offer advisors a high level of advanced functionality typically available only to large financial institutions, including customized client reporting, AIMR/GIPS-compliant performance measurement, trust separation of principal and income cash, and the ability to support a wide range of investment vehicles wealth managers increasingly demand. It also will automate tax aware order generation, from 'what if' analysis to multi-tiered modeling and rebalancing, with no re-keying of data. Fidelity expects the offering to be available to advisors later this year.
"Combining a leading portfolio management and order generation system with our brokerage platform and commitment to service makes this a unique and compelling offering in the independent advisory marketplace," said Jay Lanigan, president, Fidelity Registered Investment Advisor Group. "Now advisors will have additional choice in their technology options and access to the sophisticated portfolio management capabilities they need to effectively service their high-net-worth clients."
"We are delighted that Fidelity has selected us to offer institutional portfolio management capabilities to independent advisors," said Donald Totter, CEO of IDS. "Our proven experience providing enterprise solutions to institutional clients combined with Fidelity’s commitment to the independent advisor marketplace enables us to deliver a unique offering, one that allows advisors complete flexibility in how they do business."
Through an ASP model, the offering can help advisors reduce the amount of time and effort spent on operations, including local technology management, data management and reconciliation. It will be tightly integrated with Fidelity’s brokerage platform, allowing online workflows to span Fidelity’s and IDS’ technology without re-keying. The portfolio management functionality and client data are hosted in web servers away from Fidelity to reinforce the independence of the advisor. The ASP model also offers advisors the flexibility to access their data virtually anytime, anywhere.
"Having the flexibility to access, manage and act on their information in a way that is consistent with how they do business is critical to independent advisors," said Pat Jancsy, senior vice president, Fidelity Registered Investment Advisor Group. "Combining the convenience and flexibility offered through the ASP model with the control of the desktop clearly is going to change the way advisors experience portfolio management by enabling them to spend less time managing technology and more time strengthening client relationships."