Barclays Says, "Wrap It Up, I'll Take It"

Barclays Stockbrokers, the largest U.K.-based retail brokerage, is automating its Barclays Managed Account Program (BMAP) by employing CheckFree's APL WRAP system.

Wrap connectivity connects plan sponsors; such as Barclays, and investment managers; such as Brandes Investment Partners, with retail clients who are looking to have their money actively managed, as opposed to investing in traditional vehicles like mutual funds. Previously, retail investors under the $200,000 mark would not have access to the institutional money managers that Wrap now offers--the technology of connectivity makes it possible.

The system is UNIX-based (IBM RS/6000) and serves as the conduit between Barclays and their selected asset management firms, using private lines and Cisco routers. The system's server is housed with CheckFree and a thin client sits on the asset manager's desktop.

Barclays is the first U.K. firm to offer Wrap services through its BMAP offering. The company will initially offer its customers access to two investment management firms--Brandes Investment Partners and Lazard Assert Management--though Nick May, Barclays Stockbrokers product development manger, says more asset managers will be added imminently.

"We have to do due diligence on a number of managers before we enter relationships for them to be managers in our program, we utilize APL (CheckFree's system) as our piece of software for the mangers to participate within the program," he explains.

Specifically, May says the system offers Barclays a middle-office trading platform and reporting platform, which enable investment mangers in the program to access client data as well as providing Barclays connectivity to its custodians in "a seamless, sophisticated manner."

In addition to the fact that investors can get a level of money-management previously reserved for institutional investors, May says clients can now select mangers that speak best to their investment goals and risk tolerance.

"We looked at the trends that had taken place in the industry in the U.S. and believed that there obviously was a market out there for clients who would be interested in receiving--through one relationship--access to a number of different styles and disciplines of asset management," he says.

Though he would not be specific, May says Barclays will go live on CheckFree, "very shortly."

Though he refused to name any other vendors in the space, May adds that Barclays looked at a number of other providers before partnering with CheckFree. He explains, "We believe that it's (WRAP business) a great opportunity to attract assets to our business."

To read about how AIM Private Asset Management entered the WRAP fee business earlier this year, visit: https://www.wallstreetandtech.com/story/WST20010207S0002