FolioDynamix Joining DTCC’s Managed Accounts Service

NEW YORK--(BUSINESS WIRE)--The Depository Trust & Clearing Corporation (DTCC) announced today that FolioDynamix, a leader in technology platforms and services to the managed accounts industry, has joined DTCC’s Managed Accounts Service. According to Cerulli Associates, FolioDynamix has a six percent 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.

“We’re very pleased to have FolioDynamix join our network of participants”

DTCC’s service provides a single gateway for the managed account industry to exchange information on account initiations, as well as ongoing customer profile updates and account maintenance. Most of this information is transmitted through disparate technology platforms or manually, resulting in errors, delays and high operational costs. By automating and centralizing this information, the Managed Accounts Service will reduce those risks. It is provided by DTCC Solutions LLC, a subsidiary of DTCC.

“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. “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.”

“We’re very pleased to have FolioDynamix join our network of participants,” said Ann Bergin, managing director and general manager of DTCC Wealth Management Services. “To have the support of the service-provider and vendor communities is extremely important, as they provide their sponsor broker/dealer and investment manager customers with a direct link to the service. This makes adoption easier and, therefore, the benefits of the service can be spread across the industry more quickly.”

FolioDynamix offers technology and investment service solutions to major sponsors, registered investment advisors, asset management firms and banks. The company processes more than 3.8 million accounts daily, with a growing segment of the account base attributed to the managed accounts industry.

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. These include JPMorgan, UBS Financial Services Inc, Dreyfus Investments, SunGard Transaction Network and Peridrome Corporation.

The Managed Accounts Service is supported by DTCC’s post-trade infrastructure, which offers an unparalleled level of security protection and data recovery compared to any other infrastructure organization in the world.

About DTCC

DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with financial firms and third parties who market these products. DTCC's depository provides custody and asset servicing for 3.5 million securities issues from the United States and 110 other countries and territories, valued at $40 trillion. Last year, DTCC settled more than $1.86 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.

About Wealth Management Services

Wealth Management Services is a business unit of DTCC that provides transactional and information services to the mutual fund, managed accounts and alternative investment products industries. These services automate, standardize and streamline the processing of transactions and data exchange between asset managers and their networks of distribution partners.

About FolioDynamix

Headquartered in New York, NY, with offices in Sacramento, CA and Philadelphia, PA, privately held FolioDynamix is changing the way sponsors, managers and advisors conduct business, efficiently and productively, in wealth management. With its FDx and FDx Advisors value proposition -- a wealth servicing platform and registered investment advisor, respectively -- FolioDynamix offers a seamless, scalable solution for any fee-based product. Providing daily oversight of more than 3.8 million accounts, FolioDynamix is also recognized as the industry's leader for wealth servicing innovation, platform technology modernization, as well as the singular provider of a bundled or unbundled turnkey asset management program (TAMP). For more information on FolioDynamix, please visit www.foliodynamix.com.