CheckFree Assesses Advancements in Portfolio Optimization in New Executive Briefing Paper

Brookfield, WI - 17 March 2008

CheckFree, now part of Fiserv, Inc. (NASDAQ: FISV) and the leading platform provider for Separately Managed Accounts (SMAs) and Unified Managed Accounts (UMAs), today released an executive briefing paper assessing recent advancements in portfolio optimization technology. These advancements are bringing new capabilities to portfolio managers including the ability to reduce decision time and errors while potentially increasing returns to investors in the trade generation process. Once reserved for only the largest portfolios, optimization technology is becoming increasingly accessible for managers of smaller portfolios, including SMAs and UMAs.

“We 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,” said Cheryl Nash, senior vice president of strategic marketing and business development, CheckFree Investment Services, now part of Fiserv. “To 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 that’s 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.”

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 CheckFree’s Investment Management Solution.

Nash concluded, “In 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.”

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