Bisys enhances WealthSolutions SMA platform

Source: BISYS

BISYS, a leading provider of outsourcing solutions for the financial services sector, today introduced an enhanced version of its WealthSolutions SMA platform with robust fixed income processing technology.

A traditionally restricted offering in SMA portfolios because of their inherent processing complexities, direct investments in fixed income securities now represent over 75% of the approximately 5,000 accounts and $2 billion in assets serviced by BISYS Fund Services on its WealthSolutions platform.

The added fixed income capabilities within BISYS' WealthSolutions offering help SMA managers to:

  • Manage the differentiating features of complex securities such as mortgage- and asset-backed securities, "To Be Announced" mortgage-backed instruments, and collateralized mortgage obligations, giving managers a wider universe of securities from which to structure their models
  • Model and rebalance portfolio allocations according to bond characteristics such as duration, credit rating, maturity coupon, and yield
  • Increase speed and improve accuracy by reducing the manual data management effort, which exists in fixed-income processing today. For example, an automated security master file set up facilitates instantaneous trading.

Christian Bolanos, vice president of business development for BISYS Fund Services, said, "The market is responding enthusiastically, because WealthSolutions now allows asset managers to model, rebalance and trade fixed income securities much more efficiently and cost-effectively." Given the former technology constraints and complex operational procedures related to fixed income investments, SMA managers often resorted to implementing their clients' fixed income allocations with Treasuries or fixed income mutual funds.

Financial Research Corporation (FRC), a BISYS company, reports that as of the first quarter, only 14.5% of SMA assets are currently allocated to a fixed income strategy. But as baby boomers age and start shifting their assets toward a more conservative strategy, more complex fixed-income instruments will be required within an SMA program. In addition, FRC estimates that over the next five years, more than $200 billion in assets from IRA rollovers will be directed into SMAs.

Christopher Bell, chief operating officer of Fifth Third Asset Management, a BISYS client, commented, "One of the many reasons we selected BISYS as our SMA outsourcing partner was its innovative approach to the SMA marketplace. As we increase and enhance our SMA product offerings, certainly fixed income securities will be an area of future growth, and we can feel confident that BISYS is there with the capabilities to support our progress and forward-thinking initiatives."

According to Jim Nolan, executive vice president for BISYS Fund Services, BISYS' fixed income capabilities have been in development for the past six months, transitioned into production in early May, and are now being considered by several additional asset managers. Mr. Nolan said, "BISYS is clearly committed to finding practical, scalable solutions for SMA asset managers in light of the inevitable trend toward fixed income securities. BISYS is helping our clients to anticipate the needs of their investors and participate in the growth opportunities they present."

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