FundQuest is one of the first firms to offer advisors fully customizable Advisor Directed UMAs

January 11, 2010 08:00 AM Eastern Standard Time

BOSTON—( BUSINESS WIRE )—Natixis Global Associates (NGA) announced today that Managed Portfolio Advisors (MPA) has been selected by FundQuest to provide overlay management services for its Advisor Directed Unified Managed Account (UMA) program. Managed Portfolio Advisors is a division of Natixis Asset Management Advisors, L.P. FundQuest is one of the industrys leading managed account platform providers for fee-based advisors.

UMA programs provide advisors and clients with a single integrated portfolio view across multiple types of investments. Our agreement with MPA will allow us to enhance the flexibility of our UMA offerings, said Bob Peatman, managing director, National Sales, of FundQuest. We have offered FundQuests managed model-based UMAs since 2005; now with MPAs overlay management capabilities we will be able to offer completely customizable advisor-directed portfolio solutions. This gives advisors who want to do hands-on portfolio management the flexibility to build tailored UMA portfolios for individual clients, he said. In addition, our clients will have access to sophisticated strategies for tax management as part of the overlay process.

Curt Overway, president and portfolio manager of MPA, noted that unified managed account programs have greatly evolved since they first appeared on the market. MPA is pleased to be working with a premier managed account services provider that recognizes the many benefits of moving to a sophisticated advisor-directed overlay management program, said Overway. FundQuest is now positioned among a few select firms that can provide clients with a more efficient operational environment that can maintain the integrity of manager models, offer timely trading and modify client portfolios in a manner that reflects the investment profile of the asset manager.

Features of MPAs overlay management capabilities that will be incorporated into FundQuests Advisor Directed UMA program include:

Account customization capabilities offering financial advisors the ability to create asset allocation and investment strategy combinations that can be fully customized for each client. Flexible approach to working with managers preserving the integrity of managers underlying strategies. Trading is a critical component of UMA programs and a flexible, coordinated approach to trading can vastly expand the range of investment strategies that can be included in the UMA program. Enhanced tax management capabilities coordinating the investment activity of the underlying investment strategies and implementing a systematic and risk-managed approach to tax loss harvesting to help manage the potential tax liability generated across the clients entire portfolio.

After surveying options available in the industry to further differentiate our program, we were attracted by MPAs unique and flexible approach to working with investment management firms, said Tim Clift, FundQuests chief investment officer. This will be a great help as we expand the roster of managers in our Advisor Directed UMA program.

Analysts from Cerulli Associates, a recognized research firm in the financial services industry, expect that as more sponsor firms develop programs, UMAs will experience growth rates totaling over $374 billion by the year 2013. 1

MPAs overlay management services provide a flexible open-architecture framework that allows clients to create UMA programs customized to meet their needs. Initially launched as a solution for the mass affluent investor market, UMAs have evolved into sophisticated investment solutions, making them attractive to many higher-end financial professionals. UMAs are increasingly used with small- and mid-sized institutional clients, trust companies, family offices, and wealth advisors in general.

About FundQuest

FundQuest is a partner to RIAs, independent advisors, broker-dealers, banks, and trust organizations to help them grow, control expenses, improve profitability, and expand their fee-based product and services offerings. The companys advanced technology, objective investment research, high quality back-office operations, and sales support services enable financial advisors to deliver highly competitive personal wealth management services. FundQuests services are employed by more than 180 financial advisory firms.

Financial advisors leverage FundQuests flexible wealth management solutions to deliver: unified managed accounts, mutual fund advisory, hybrid active and passive portfolios, separately managed accounts, income portfolios, trust services, annuities, exchange-traded funds, and alternative investments. FundQuest provides well-established connectivity to the major custody and clearing firms.

The combined U.S. and European operations of FundQuest have $40 billion in assets under management and administration. FundQuests services are offered in the U.S. through FundQuest Incorporated, a registered investment advisor based in Boston, MA. FundQuest is part of one of the worlds largest financial services firms, BNP Paribas, which has been named one of the most stable global financial institutions by Global Finance magazine. www.fundquest.com/usa

About Natixis Global Associates

Natixis Global Associates provides market-driven investment solutions to institutions, intermediaries and individuals worldwide. It is part of Natixis Global Asset Management. 2 In the U.S. Natixis Global Associates includes Natixis Distributors, L.P. (member FINRA) and Natixis Asset Management Advisors, L.P. (a registered investment advisor). Both are located at 399 Boylston Street, Boston, MA 02116. www.ga.natixis.com

About Managed Portfolio Advisors

Managed Portfolio Advisors (MPA) is a division of Natixis Asset Management Advisors, L.P. With $8.5 billion in assets under management, 3 MPA ranks among the industrys largest overlay management firms and provides a comprehensive service that encompasses product development, portfolio construction, investment management and client service.

1 Source: The Cerulli Report. State of Managed Accounts: Industry Outlook, 2009.

2 Headquartered in Boston and Paris, Natixis Global Asset Managements assets under management totaled $723 billion (495 billion) as of September 30, 2009.

3 MPAs assets under management include those assets subadvised by both affiliated and unaffiliated managers of Natixis Asset Management Advisors, L.P.