ATLANTA and JERSEY CITY, N.J., March 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- CheckFree Investment Services, a division of CheckFree Corporation
(Nasdaq: CKFR), today announced new data that demonstrates how clients of its
leading separately managed accounts platform, CheckFree APL(TM), can benefit
from the tax-efficiency of managed accounts when their advisors utilize the
latest technology available to the industry. CheckFree Investment Services is
the largest provider of remote processing services -- trading, portfolio
management, accounting, reporting services and data -- to broker/dealers,
money managers and investment consultants.
In 2003, Financial Research Corp. and the Money Management Institute
reported that investment advisors they surveyed apply customization,
restriction or tax treatment to only 10 to 25 percent of accounts they manage.
Yet, tax efficiency is a key advantage of separately managed accounts (SMAs).
Unlike mutual funds, where the pooled structure means that investors often
must pay capital gains on appreciation they didn't enjoy, investors own the
underlying stock in an SMA. Therefore, SMA investors and their advisors can
clearly see what they own and sell their losing stocks to offset other capital
gains -- something that cannot be done with mutual funds -- a key advantage
for SMA clients.
"Tax-efficiency for separately managed accounts is often preached but
rarely practiced. Money managers, who regularly leverage state-of-the-art
investment technologies, are better equipped to successfully offset capital
gains taxes for their clients," said Alex Marasco, CheckFree Investment
Services executive vice president and general manager. "The complexity of
consistently applying tax considerations to many clients in a managed accounts
practice is difficult to accomplish without the right technology tools, which
is why CheckFree APL's Gain/Loss Trade Modeling (GLTM) functionality has
become a critical resource." CheckFree reports a 200 percent increase in usage
of GLTM functionality during the critical year-end timeframe (Oct - Dec), when
tax treatment needs to occur.
"We harvest tax losses and manage for tax efficiency in a significant
proportion of our account base and could not have cost effectively delivered
this benefit without CheckFree Gain/Loss Trade Modeling module," said Curt
Overway, senior vice president, IXIS Asset Management Advisors Group, the U.S.
distribution arm of IXIS Asset Management Group, a $506 billion global money
management firm. "CheckFree's GLTM is critical to that process."
GLTM is a highly specialized tool-set designed to assist CheckFree APL
clients in executing tax trading strategies; identifying opportunities for
harvesting gains or losses; viewing gain/loss data at the tax-lot level;
liquidating large portions of an account; and trimming security positions
across accounts while assessing the tax implications.
"For clients who wish to have their portfolios managed for risk, return
and taxes, GLTM gives managers the resources to identify which tax-lots to buy
or sell based upon user-defined trading criteria such as tax term, roll-over
days from short-term to long-term, wash sale and sell priority," said Marasco.
"In the end, it's all about our clients helping their customers pay less in
capital gains taxes."
Currently, CheckFree APL serves as the leading separately managed accounts
platform, providing remote processing services to sponsor firms, money
managers and financial advisors for the automation of investment management,
trading, portfolio performance and investor reporting. CheckFree APL's open
platform enables approximately 80 of the top Wall Street (sponsor) firms and
125 separate account managers to interface with each other, and operate in a
straight-through processing environment. Institutional money managers also use
CheckFree APL to enter and maintain account data, manage trades and measure
About CheckFree Investment Services ( http://www.checkfreeinvsvcs.com )
Headquartered in Jersey City (NJ), CheckFree Investment Services provides
a broad range of technology and workflow solutions to thousands of financial
institutions in separately managed accounts and institutional money
management. The company's staff of 400 professionals operates from six
offices nationwide, including Durham NC, location of its M-Solutions software
applications. The CheckFree APL platform is leveraged by money managers,
broker/dealer firms and investment advisors on a remote processing basis.
Clients of CheckFree Investment Services manage 1.7 million portfolios
totaling over $1 trillion in assets. Measured by total assets, more than half
of all multiple strategy portfolios are administered on CheckFree APL, making
CheckFree Investment Services a leader in the rapidly growing areas of overlay
portfolio management and MSPs.
About CheckFree (http://www.checkfreecorp.com )
Founded in 1981, CheckFree Corporation (NASDAQ: CKFR) provides financial
electronic commerce services and products to organizations around the world.
CheckFree Electronic Commerce solutions enable thousands of financial services
providers and billers to offer their customers the convenience of receiving
and paying their household bills online or in person through retail outlets.
CheckFree Investment Services provides a broad range of investment management
solutions and outsourced services to thousands of financial services
organizations, which manage more than $1 trillion in assets. CheckFree
Software develops, markets and supports software applications that are used by
financial institutions to process more than two-thirds of the 10 billion
Automated Clearing House transactions in the United States. The division also
provides global trade processing, reconciliation, financial messaging,
compliance and electronic billing and statement software to hundreds of
organizations across the globe.
Certain of CheckFree's statements in this press release are not purely
historical, and as such are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These include statements
regarding management's intentions, plans, beliefs, expectations or projections
of the future. Forward-looking statements involve risks and uncertainties,
including without limitation, the various risks inherent in CheckFree's
business, and other risks and uncertainties detailed from time to time in
CheckFree's periodic reports filed with the Securities and Exchange
Commission, including CheckFree's Annual Report on Form 10-K for the year
ended June 30, 2004 (filed September 3, 2004), Form 10-Q for the quarter ended
September 30, 2004 (filed November 9, 2004) and Form 10-Q for the quarter
ended December 31, 2004 (filed February 8, 2005). One or more of these factors
have affected, and could in the future affect CheckFree's business and
financial results in future periods, and could cause actual results to differ
materially from plans and projections. There can be no assurance that the
forward-looking statements made in this press release will prove to be
accurate, and issuance of such forward-looking statements should not be
regarded as a representation by CheckFree, or any other person, that the
objectives and plans of CheckFree will be achieved. All forward-looking
statements made in this press release are based on information presently
available to management, and CheckFree assumes no obligation to update any
SOURCE CheckFree Corporation
Media relations, Judy DeRango Wicks, +1-678-375-1595, or firstname.lastname@example.org , or
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