The rapid influx, or outflow, of new business has lead to a revolution in the technology used within Money Management firms and Wrap Sponsor Firms. There are a few main areas which are influencing this shift. These are the accounts that don't match their peer group for a number of given characteristics such as performance measurement or volatility.
Managers can use screening tools to monitor and view outliers.
The trade creation process offers unique opportunities for the managers and traders to effect outliers. The key is to have the trading system tied into the restriction or compliance module. This way, when a block is created, the accounts that can not participate in the trade due to a restriction and not part of the trade block. Periodic rebalancing can help a manager bring their accounts back to the norm and thus reduce the number of outliers. This issue is in its formative stages but is sure to have a major effect on the technology used to manage and report on wrap accounts.