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Dreyfus Joins DTCC Managed Accounts Service
New York, October 24, 2007 – Dreyfus Investments, the industry’s 14th largest provider of managed accounts, has joined DTCC’s Managed Accounts Service (MAS), a centralized platform for the industry, designed to streamline communications associated with opening and maintaining managed accounts. Dreyfus Investments is a division of MBSC Securities Corporation, which is a subsidiary of The Dreyfus Corporation.
The latest statistics put managed account assets under management at $790 billion at the end of the second quarter of 2007, according to The Money Management Institute; this includes separately managed accounts, unified managed accounts, and dual contract and multi-disciplined portfolios. Industry forecasts suggest this figure could reach $1.9 trillion by 2011.
DTCC’s MAS service will, for the first time, provide a single communications network and standard set of messages for a now-fragmented industry. Dreyfus is the latest in a growing list of firms actively working in DTCC’s participant test environment in advance of the launch of the service, which is scheduled for later this year.
“Automating and standardizing the data flow for these transactions will help our clients, reducing trade-related costs and risk and stimulating growth,” said Kevin Miller, senior vice president of Dreyfus Investments. “We are pleased to partner with DTCC on this important initiative.”
At present, seven investment manager firms are working in the DTCC’s test environment, along with four outsourcers and nine vendors. Interest in the new service has accelerated following a June conference on managed account solutions sponsored by DTCC and the Money Management Institute.
DTCC’s Managed Accounts Service will create a more efficient and secure process for sharing data required to open and support managed accounts. Currently, most messages are transmitted from the managed account sponsor to asset managers that are hand-picked by the sponsor to invest and manage an investor’s funds. Depending on the size and complexity of an investor’s account, many asset managers can be involved and communicating back and forth with the sponsor on a single account.
“Multiply that by thousands of accounts, and the complexities of the communication between managers and sponsors can be a real burden,” said Ann Bergin, DTCC managing director and general manager, Wealth Management Services. “That’s the value of one central communications platform. We transform a complex web of communications into one streamlined process through a single gateway. The resulting efficiencies reduce operational costs and risk, and allow managers to better serve the investor client.”
About Dreyfus
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one of the nation's leading asset management and distribution companies, currently managing $200 billion in mutual funds, separately managed accounts, and institutional portfolios. Dreyfus is part of BNY Mellon Asset Management, a leading global provider of investment management products and services that offers a broad range of equity, fixed-income, hedge and liquidity management products through individual asset management companies and multiple distribution channels.
About Bank of New York Mellon Corporation
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 37 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com.
About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC’s depository provides custody and asset servicing for more than 2.5 million securities issues from the United States and 100 other countries and territories, valued at $31.2 trillion. In 2006, DTCC settled more than $1.5 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.
DTCC’s MAS service is provided by DTCC Solutions LLC., a subsidiary of The Depository Trust & Clearing Corporation.