Automates Post-Trade Processes for Investment Managers Using the FIN Global Portfolio System

San Francisco – Union Bank of California and Financial Information Network (FIN) have launched a new, straight-through-processing (STP) solution that automates post-trade processes, including custodian trade notification, trade allocation and settlement. Investment managers using FINGPSTM for portfolio management and Union Bank’s custody services will now be able to eliminate labor intensive, paper-based processes for post execution trade settlement, while increasing accuracy and speed.

Union Bank and FIN developed the advanced reconciliation interface working with industry partners and pilot investment management client RNC Genter Capital Management (RNC) of Los Angeles, CA, an investment advisor with $1.4 billion under management and over 500 custody accounts with Union Bank.
“We initiated a dialogue with both Union Bank and FIN to develop a new piece for STP,” said Daniel Genter, President and CEO of RNC. “The settlement part of the trade process has always been a challenge, particularly since RNC executes block trades that require allocation breakdowns to these individual accounts. This new STP solution has improved our productivity and the efficiency of our accounting, while moving us toward a true ‘real time’ automated trading and settlement process.”

Before, RNC conducted its trades electronically and faxed Union Bank the information necessary to allocate the trades to the appropriate custody accounts. Union Bank needed to reenter that information in its system before it could settle the trades and communicate back to FIN for post-execution accounting. Now, RNC simply enters the custody account information when it executes trades at the front end, Union Bank is notified electronically and can post to the Union Bank custody account for trade settlement, often on the same day.

“Without an industry-wide STP solution that automates every phase of the trading process, we feel it is very important to develop solutions that meet the specific needs of our custody clients, especially our investment advisors” said Piet Westerbeek, executive vice president of Institutional Services & Asset Management at Union Bank, which offers custody and securities lending services to investment managers and other entities. “Our partnership with FIN is an important part of that service commitment.”
According to Rick Grogan, Director of Marketing at FIN, this approach has also been a part of his company’s strategy since its inception. “FIN’s philosophy has always been to enhance our capabilities based on the evolution of industry needs, which includes automation to improve efficiencies and make our customers’ lives easier,” he said.

FIN has been in the portfolio accounting and management business since 1969, providing investment firms with custom solutions that have a high degree of automation. Based in Southern California, FIN delivers a totally integrated Windows-based system over secure Internet connections. Services include portfolio accounting, portfolio management, fee billing, electronic trading and settlement, automated reconciliation and performance measurement in a multi-currency or United States dollar environment. The company Web site is located at www.fingps.com.

Union Bank is the only trust organization that provides comprehensive in-house services for multi-currency custody, securities lending, retirement plan services and investment management with all client account operations based in the West.

Based in San Francisco, UnionBanCal Corporation is a bank holding company with assets of $40.4 billion at March 31, 2003. Its primary subsidiary is Union Bank of California, N.A., the third largest commercial bank in California. Union Bank of California, N.A., has 261 banking offices in California, 6 banking offices in Oregon and Washington and 18 international facilities. The company's Web site is located at www.uboc.com.

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