U.S. Bank Selects Smartleaf’s Overlay Portfolio Management Solution as Common Platform for Discretionary Wealth Management Investment Offerings
Smartleaf Will Help Manage More Than 40,000 Portfolios for America’s Fifth Largest Commercial Bank
CAMBRIDGE, Mass., Jan. 10, 2011 – Smartleaf, Inc., a leading provider of overlay portfolio management solutions to banks and financial services companies, announced that U.S. Bank has chosen it to provide a unified overlay platform for its non-brokerage wealth management investment relationships managed through The Private Client Reserve and Private Client Group. Smartleaf, which has provided overlay solutions for U.S. Bank’s non-brokerage Unified Managed Account (UMA) program since 2007, was selected due to that program’s success and the desire to extend Smartleaf’s efficiency, tax management and client customization features. U.S. Bank’s portfolio managers now have the Smartleaf tool to help them in the management of over 40,000 client portfolios.
“We analyzed Smartleaf’s performance as the foundation for our UMA program, and were impressed by its ability to simultaneously provide client investment preference customization, a high degree of tax efficiency, consistency, and the ability to view and respond to each account’s needs daily” said Tim Leach, Chief Investment Officer for the U.S. Bank Wealth Management Group. “Portfolio managers using the Smartleaf system are excited to take further advantage of Smartleaf by making it the common platform for our non-brokerage investment management portfolios.”
U.S. Bank, the country’s fifth largest commercial bank and a subsidiary of U.S. Bancorp (NYSE: USB), first offered a Unified Managed Account with overlay in early 2007, using Smartleaf’s overlay solution. With the expanded use of the Smartleaf system, U.S. Bank will manage portfolios that combine individual equities, individual fixed income securities, mutual funds, ETFs, structured notes and other securities in a single portfolio that benefits from both proprietary and third-party research/models.
“U.S. Bank has observed the efficiency benefits and client service improvements that overlay management delivers,” said Jerry Michael, President of Smartleaf. “Expanding this program will enable U.S. Bank to offer a highly differentiated service. It represents the logical next step in how banks and financial services companies can better manage their clients’ wealth.”
Smartleaf’s overlay portfolio management solution enables financial institutions to easily implement their best investment thinking and customization preferences across all client accounts, combining proprietary and third-party manager models to deliver a seamless open-architecture Unified Managed Account offering. By integrating a client’s assets into a single, customized portfolio, wealth managers using Smartleaf have achieved significant benefits in tax and expense management, asset allocation and increased returns. The company has a 100% success rate with implementations and deliverables. Founded in 1999, Smartleaf has $35 billion in assets under management, is privately held and based in Cambridge, Mass.
About U.S. Bank Wealth Management Group
U.S. Bank’s Wealth Management Group offers investment management services, brokerage, financial planning, private banking, personal trust, and insurance services to a broad range of clients. The Wealth Management Group serves ultra high net worth clients with more than $25 million in investable assets through a differentiated client service approach; high net worth clients with more than $1 million and less than $25 million in investable assets through The Private Client Reserve; and affluent clients with more than $100,000 and less than $1 million in investable assets through The Private Client Group. Brokerage services are offered through U.S. Bancorp Investments, Inc. and insurance services are offered through U.S. Bancorp Insurance, LLC.
About U.S. Bancorp
U.S. Bancorp (NYSE: USB), with $291 billion in assets as of Sept. 30, 2010, is the parent company of U.S. Bank, the fifth largest commercial bank in the United States. The company operates 3,013 banking offices in 24 states and 5,323 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, and trust and payment services products to consumers, businesses and institutions. For more information visit U.S. Bancorp on the web at www.usbank.com.
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