Model Portfolios licenses FMCSuite

Source: Financial Models Company

Financial Models Company Inc. (FMC), a leading provider of technology solutions and services to the investment world, today announced that Model Portfolios Pty Ltd, a new administration service for managed discretionary accounts (MDA), are poised to launch in April and will base their operations on FMCSuite.

Unveiled last year, FMCSuite (v2.4) is a Web-based, global and scalable investment management platform for driving straight-through processing (STP). FMCSuite provides a wide spectrum of integrated functionality – modelling, trading, portfolio accounting, client communications and other mission critical workflows – in an application service provider (ASP) environment.

"Model Portfolios wanted the new technology found in FMCSuite to match their pioneering business vision," said Enda Mahoney, Managing Director of FMC Software Pty Limited, FMC's Australian subsidiary. "Their desire to leverage FMCSuite's integrated ASP services to keep operational costs down and workflow efficiencies up is a clear indication of the company's streamlined approach to MDA administration."

A new product structure in Australia, MDAs enable an investor to appoint a professional manager to oversee their portfolio, while retaining the benefits of direct ownership. With over $105 billion (AU) currently invested in self-managed superannuation funds, MDAs are an ideal vehicle for this type of account.

"Our style of MDA will allow licensees and advisers wide flexibility in choice of manager and management style, fee structures and reporting," said Toby Potter, CEO, Model Portfolios. "Our expertise lies in the administration and operation of portfolios; FMCSuite provides Web-based technology that enables us to concentrate on these aspects of client support rather than technology development," said Potter.

Model Portfolios pointed to FMCSuite's Web-based functionality as a key benefit, allowing model managers to adjust portfolios in real time and assess the trading impact without compromising compliance requirements. Trade management, along with integration of client reporting, holdings and reconciliations which will make routine administration more efficient, was also cited by Model Portfolios as valuable functionality provided through FMCSuite.

"Integration of strong reporting capability with proven administrative functionality will be essential to helping advisers demonstrate the value of MDAs," said Potter. Client, adviser and licensee reporting will be delivered through the Model Portfolios Web site and based on FMCPages, FMC's best-of-breed client statement and reporting solution. Model managers will also have the ability to adjust models and client portfolios on-line. Customised FMCSuite services for Model Portfolios will address reconciliations, fee calculations and Australian tax reporting. ASX and other exchange data will be sourced from Securities Valuation (SVC), a leading provider of securities data and a division of FMC.

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