âWe are advancing the debate about portfolio optimization tools with the release of this new paper. As an industry leader in the managed account space, CheckFree is in an excellent position to understand and articulate the implications of recent technological progress for our clients,â said Cheryl Nash, senior vice president of strategic marketing and business development, CheckFree Investment Services, now part of Fiserv. âTo attain the scale required to oversee many smaller accounts, asset managers have often been forced to make trade-offs. Too often, some of the sophisticated tools deployed by institutional money managers are out of reach. But thatâs changing. Now, for example, portfolio managers can benefit greatly from advances in optimization technology as these solutions will continue to reduce processing time and effort, allowing managers and their staffs to focus on other priorities.â
The CheckFree executive briefing paper begins with a brief discussion of modern portfolio theory and reviews the portfolio optimization process and its application to SMAs. The paper describes how the optimization process for SMAs can be enhanced by utilizing incremental trade algorithms (as opposed to quadratic programming [QP] algorithms), the technology at the core of CheckFreeâs Investment Management Solution.
Nash concluded, âIn our experience, there are many situations in which the portfolio optimization process can benefit both the investor and the manager. We hope the insights shared in this paper with our clients and managed account industry participants will help them optimize value for their investor customers.â