Peridrome Issues 2011 Managed Accounts Industry Survey Results - Technology To Play a Vital Role

New York, NY, USA - 9 March 2011

Technology To Play a Vital Role as Assets Shift from Traditional SMA to Models/UMA

Managed accounts software provider Peridrome has just completed an industry survey of more than 120 investment managers, sponsors and outsourcers for its 2011 Managed Accounts Executive Outlook. Following are report highlights:

• Responses indicated an expected increase in the adoption of models-based distribution and newer products, including ETF advisory accounts. The shift will present challenges to traditional SMA managers and a windfall of opportunity for outsourcers, emerging sponsors and TAMPS that successfully navigate the new business landscape.

• Traditional SMA will continue to play a significant role in the managed solutions industry. While sponsors do not expect to increase their traditional SMA assets, only 27% expect their use of these products to decline.

• Increased traction of UMA programs may be driven by large sponsors expanding platforms by adding managers new to managed accounts. Investment managers (IMs) with established SMA products are less likely to see UMA as a growth opportunity than smaller IMs who now can expand into UMA through model delivery without the operational barriers associated with traditional SMA.

• Participants continue to cite servicing client requests as the least scalable aspect of their operations. Technology will continue to play a vital role as assets shift from traditional SMAs toward models delivery, UMAs and innovative investment vehicles. Existing workflow technologies may not provide enough of an advantage to change this perception.

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