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by Rich Marulanda

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  • DTCC recently joined more than 120 senior leaders from the advisory solutions and alternative investments communities for an open dialogue on current trends, opportunities and obstacles in the alternatives space. The occasion was the 2012 Money Management Institute (MMI) Alternative Investments Forum held in New York.

    Ann Bergin, DTCC Managing Director and General Manager, Wealth Management Services, gave attendees an overview of the company and discussed how DTCC’s Alternative Investment Product (AIP) is set to bring much-needed relief to the alternatives marketplace.

    Other speakers included John Coyne, President, Brinker Capital; Doug Dumond, Managing Director, Clarion Partners; Graham Fuller, Managing Director, Head of Alternative Investments, SunTrust; and Tim Clift, Chief Investment Strategist, Envestnet Asset Management.

    'Accelerating pace'

    "There has been a significant increase in both interest and activity in the alternatives market as more institutional and retail investment portfolios see alternatives as an attractive investment option," said Bergin, who explained that the AIP service went into hibernation shortly after its 2008 launch because of the economic crisis. "Distribution firms, product sponsors and service providers now recognize AIP as an operations infrastructure that will support the growth of the alternatives market while significantly reducing costs and risk, so we have been bringing new clients onto the platform at an accelerating pace."

    'Single-source solution'

    What’s more, a recent Securities and Exchange Commission rule amendment filed by NSCC enables AIP to facilitate the custody requirements of uncertificated alternative investments for broker/ dealers that process these securities on AIP.

    "DTCC’s expertise in providing solutions that reduce operational risk and costs for market participants has been instrumental in enabling the funds industry to expand over the years, and we expect the same to happen in the alternatives space with AIP," explained Bergin.

    In fact, DTCC modeled the AIP service after its flagship mutual funds processing platform, Fund/SERV, which has streamlined and standardized operational processing for mutual funds, contributing to that market’s explosive growth.

    "We designed AIP as a single-source solution that could handle myriad processing challenges and this latest development is another example of DTCC bringing operational efficiency to the alternatives marketplace," said Bergin. @