Investment Adviser Metropolitan West Simplifies 50+ Custodian Relationships Through Evare

Metropolitan West improves reconciliation time by 35 percent; now receives information from custodians daily instead of monthly

BURLINGTON, MASS., September 6, 2005 – Investment adviser Metropolitan West Capital Management has simplified its communications with more than 50 custodians through the use of Evare’s connectivity managed service offering. Evare’s service is unique in that it enables direct proprietary communication amongst financial institutions without requiring any changes to the internal systems and processes used by each respective counterparty.

By simplifying its communications with custodians through Evare, Metropolitan West now receives electronic updates on client account activity on a daily basis, instead of the monthly paper statements it received previously. Metropolitan West can now invest positive account balances quickly, improving client returns. Conversely, they now have a better view of withdrawals, saving their client’s money in overdraft costs. Overall reconciliation time has improved by 35 percent since the firm began using Evare.

Metropolitan West recognized the need to automate its communications with its client’s custodians but found the process impossible. In order to automate communications, the operations team would have to identify the appropriate technical contact at each of the 50+ custodians, attain the domain expertise for each custodian’s data format and platform and then collaborate with the custodian’s in-house technical staff to upload the data. The operations team simply did not have the bandwidth to cost-effectively create links to every custodian.

"I don’t understand why the custodians can’t standardize on a single data platform," said Roberta J. Kistner, director of operations, Metropolitan West Capital Management. "At first I didn’t believe that Evare could deliver what they were saying, but was eventually convinced and have been grateful ever since."

Evare is used to establish a technical contact at each custodian, establish an electronic connection between Metropolitan West and each custodian, collect data, normalize the data into a single format and to then upload the data into Metropolitan West’s accounting system.

In addition to Evare, Metropolitan West explored portfolio accounting systems that included automatic reconciliation as part of its package. Ultimately, Evare was selected because it would integrate with Metropolitan West’s existing accounting platform, saving money from the costs of deploying new hardware and software and in training users on a new accounting system. As a scalable managed service, Evare also enables Metropolitan West to grow its business, without needing to add additional technical staff.

"Despite many successful efforts by the industry to create data standards, enormous gaps still exist in creating effective communications among financial services organizations," said Frederick Stanley, president and COO, Evare. "Metropolitan West has used our service to improve both reconciliation time and accuracy, resulting in costs savings, and more importantly, better service for their clients."

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