CheckFree Investment Services today announced that its recently launched reconciliation tool, DL-Recon, will extend beyond traditional, institutional money managers to include separate account sponsors. The company also announced it has re-named the product APL-DLR, to underscore the tool’s complete integration within the CheckFree APL platform. "We want to convey to the industry that APL-DLR is a very specialized application for CheckFree APL
clients," said CheckFree Investment Services Vice President, Hilary Fiorella.

Embedded in the CheckFree APL platform, APL-DLR permits users to streamline and automate reconciliation of position and transaction data with selected custodians. APL-DLR eliminates the manual, time-consuming and oftentimes error-prone outcome of comparing printed reports with hardcopy custodian statements. Clients electing to utilize APL-DLR download account information from the APL platform and respective custodial databases; match positions and transactions to reconcile with custodian records; review any uncovered variances; edit APL records with a GUI-based point-and-click tool; and transmits corrections back to APL automatically. There are approximately 46 custodial links, with more interfaces planned.

Use of APL-DLR by separate account sponsors will center on special situations, since the system they use already reconciles accounts on the CheckFree APL platform daily. Each night, CheckFree Investment Services overlays daily pricing feeds on its database, and matches positions, trades, allocation, cash and holdings. Any variances automatically produce an exception report that gets sent to the respective back-office of a CheckFree APL client for correction.

Steve Boyle, director of operations and administration for Bear Stearns’ Strategic Investment Services (STRATIS), recognized how APL-DLR could address an automation and workflow problem his business was experiencing. STRATIS, a part of Bear Stearns Asset Management Inc., is a multi-manager separate account program designed to provide high net worth individuals and small to medium institutional clients access to top-tier money management. The company uses CheckFree APL for trading, portfolio accounting, reporting and billing.

"We have about 50 accounts in our program that custody away. It became apparent that APL-DLR could help us tremendously in automating the reconciliation of those accounts that do not settle with Bear Stearns,"
said Mr. Boyle. He explained that for those accounts, APL-DLR electronically downloads custodial positions and transactions, corporate actions and any other activity that would affect the general ledger and portfolio. The Bear Stearns back-office addresses any breaks spotted by APL-DLR. "Prior to APL-DLR, we would have to wait for monthly reports from each of the 8 custodians involved, and reconcile using paper and open. This tool cuts down that time by ninety percent."

Institutional money managers use CheckFree APL to enter and maintain account data, manage trades and measure portfolio performance. CheckFree APL also serves as the leading separately managed accounts platform, providing remote processing services to sponsor firms, money managers and financial advisors for the automation of investment management, trading, portfolio performance and investor reporting. CheckFree APL’s open platform enables 38 of the top 50 Wall Street (sponsor) firms and 36 of the top 40 managers to interface with each other. M-Search, the leading database of institutional money managers,
provides industry professionals with the most comprehensive source of manager performance. M-Watch, another CheckFree Investment Services product, offers tools for performance reporting and evaluation.

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