Banking & financial services: the trends, the issues, the solutions

Latin Trade,  Sept, 2005  

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By offering more investment choices--including programs once reserved exclusively for ultra-high-net-worth individuals --Latin banks and investment advisors can reach out to a larger market and potentially expand their customer base.

"Latin American investors are increasingly seeking greater transparency, objective professional advice and access to a global array of investment options," says Mark DeSario, CEO, Overture Financial Services, in New York.

Overture Financial assembles global asset management platforms that financial institutions can use to invest their own capital, or that of their clients. "We empower these institutions to provide their clients with cost-effective, conflict-free, performance-driven solutions on a global basis," says DeSario. "Our intelligent, open-architecture platform offers managers access to an industry-leading portfolio management system."

Led by an experienced team of investment professionals, Overture Financial Services, and its investment advisor subsidiary Overture Investments, have developed a sophisticated technology platform that will allow individual clients to access separately managed accounts (SMAs).

According to investment analysts, over the next five years, SMAs are projected to outpace the growth of recently more publicized hedge funds. "The significant growth potential of SMAs is a result of their ability to overcome many of the intrinsic limitations of mutual funds, given the higher degree of transparency that characterizes Separately Managed Accounts," says Mohammad Baki, Overture Financial's President.

"Historically, only wealthy individuals with more than $500,000 in investable assets could utilize SMAs to achieve better portfolio diversification," says Baki. "Today, our platform enables investors with as little as US$50,000 to $100,000 access to SMAs to achieve a comparable level of diversification."

Rather than being limited to a relatively small selection of proprietary mutual funds, Overture Financial's open architecture provides ready access to a global network of investment professionals. It also allows access to different asset classes in all currencies rather than solely dollar-based investments--a clear benefit for many Latin clients. "Although individuals may have US dollar-based portfolios, there can be strategic advantages to adding foreign currency denominated investments to their asset allocation," says Peter Stanyer, Chief Investment Officer, Overture Investments.

Overture Financial's intensive manager search and selection process also allows financial institutions to pick the best money managers for their clients. "The goal of our research team is to provide an ensemble of managers who excel in different asset classes and geographic locations," says Paul Polries, Managing Director, Overture Investments.

Headquartered in New York, with offices opening in Miami and Philadelphia, Overture Financial Services and Overture Investments utilize some of the finest talent and expertise in the industry. They offer clients turnkey and state-of-the-art investment platforms that allow for risk-based portfolio construction, using top-performing institutional money managers. Overture Financial's plans of expansion also include future locations in London, Dubai and Geneva.