- Leading UMA solution from Fiserv is awarded patents for drift determination and withdrawal collection in multi-style managed client investment accounts -
Fiserv, Inc (NASDAQ: FISV), the leading global provider of financial services technology solutions, today announced that it has been granted two additional patents for its Unified Managed Account (UMA) solution by the United States Patent and Trademark Office. The patents refer to technology from Fiserv for multi-style managed client investment accounts. One patent was received for drift determination, and the other for technology that enables withdrawal collection from multiple sleeves. This honor marks the second and third U.S. patents for the UMA solution from Fiserv; the company received its first ever patent on its UMA solution this June.
The new drift determination patent technology automatically alerts users when any of the sleeve weights within a UMA drifts above or below its tolerance range, and enables users to transfer shares and cash among the sleeves during the rebalancing process without affecting the custodian account. This capability prevents unnecessary trading, eliminating avoidable and burdensome tax consequences and transaction costs.
The withdrawal collection patent allows clients to automatically allocate cash deposits or withdrawals, amongst a UMA’s sleeves, according to a set of allocation rules. The rules let users allocate funds pro-rata based on target sleeve allocations or based on sleeve drift. This functionality significantly benefits clients as it facilitates the allocation of cash deposits and withdrawals without necessitating the manual intervention of the overlay manager. The technology also permits Fiserv to support both active and passive overlay programs.
“These patents reflect our continued commitment to providing industry-leading products and solutions for the managed account industry,” said Cheryl Nash, senior vice president of strategic marketing and business development at Fiserv. “As the industry leading UMA platform, we are committed to providing our clients the innovative tools they need to manage their UMA accounts easily and effectively.”
Fiserv received the first patent on its UMA solution in June 2010. The patent was awarded as a result of the solution’s post cash-drift determination technology that resolves cash drift within a multi-strategy portfolio account. Investment Services from Fiserv is the most relied upon platform in managed accounts with 70 percent of the UMA industry using its solution. Fiserv has more than 3.4 million accounts on its platform and more than 1 million UMA sleeves.