Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:A Startup Offers Fundsters Real-Time Control Over Sub-Advisors Not Rated 5.0 Email Routing List Email & Route  Print Print
Wednesday, May 20, 2009

A Startup Offers Fundsters Real-Time Control Over Sub-Advisors

Reported by Neil Anderson, Managing Editor

Investment managers are responsible for monitoring the behavior of their sub-advisors, to keep down costs, prevent fiduciary or legal violations, maintain overall portfolio goals and so forth, but how do they do that in the electronic trading world of the 21st century? That's the problem Allan Chiulli and Tom Warren address with UAT's new product, Unified Compliance and Control System, which they just launched this month and are currently beta-testing with one client. In UAT's own words, UCCS offers "a centralized, real-time, pre-trade compliance platform" for advisors to guide their sub-advisors.

"It's a substantial market and it's a growing market," explained Chiulli, UAT's CEO and chairman, in an interview with MFWire. "We realized we could really improve process."

Chiulli, a Jackson National vet who created Curian Capital (an SMA platform with fractional shares) in 2003, sees three important benefits to a system like UCCS: giving advisors the ability to prevent violations (of SEC regs, etc.) before they happen, keeping track of overall portfolios in real time and triaging trades between high-cost, high-touch trades and low-cost, low-touch ones.

"There's never been a technology that enabled the advisor to supervise a sub-advisor's actions in real-time," Chiulli claimed.

On the cost side, Chiulli sees mutual fund firms and other utilizers of sub-advisors savings millions each year in trading costs by differentiating between those sub-advisor trades that need a trader involved and those that can be done cheaply instead. Englewood, Colorado-based UAT tapped Capital Markets Consultants to power a "HiLo Engine" that allows managers to customize the flags that trigger either high-touch or low-touch trading.

"It really is the last source of low-hanging fruit," Chiulli said, claiming a manager with $20 billion would save roughly $15 million in annual trading costs thanks to UCCS. "These savings can be shared between the investors, as enhanced performance, and the advisor."

"This product is a natural progression in the development of the sub-advised industry," Chiulli added, noting that UCCS "was a very difficult nugget to crack." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use