Fiserv (FISV) Revamps Unified Managed Account Potential
Fiserv, Inc. FISV has upgraded its unified managed account (UMA) services to help financial institutions and advisors operate more efficiently.
UMA comes with a flexible overlay technology, which enables advisors to easily switch between managed account programs, asset allocations and strategist selections without any administrative or operational hindrance. It comprises packaged managed account programs, including mutual fund, separate account and ETF wrap products.
Enhancements to the account include a new interface and streamlined workflow that optimize portfolio management and trading of UMA accounts. It is also equipped with additional services such as decision making, order generation, management and routing of proposed orders and cash management now.
Also, trading, investing, switching between overlay managers account opening and transactions on the same day have become more flexible and less time-taking. This, in turn, increases advisor efficiency and reduces account ownership costs, thereby making the entire investment procedure smooth. The hybrid UMA structure places both active and passive investments alongside multiple overlay managers within a single account.
So far this year, shares of Fiserv have gained 21.4%, significantly outperforming the 19.6% rise of the industry it belongs to.
The ongoing consolidation in UMA’s portfolio and the increasing demand for better investment options raises optimism about its future growth opportunities.
Boosts Payments Segment
UMA can be accessed by financial institutions and advisors through Fiserv’s Unified Wealth Platform, the primary Investment Services product offered by Fiserv. Investment Services are part of Fiserv’s Payments segment.
Enhancement of UMA is thus expected to complement Fiserv’s growing Payments segment. In the first half of 2018, the segment contributed around 59% to the company’s total revenues and grew 6.7% year over year to $1.67 billion. Internal revenue growth was 5% in the segment.
Zacks Rank & Stocks to Consider
Currently, Fiserv carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Business Services sector include Genpact Limited G, WEX Inc. WEX and Total System Services, Inc. TSS. All the stocks carry a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Genpact, WEX and Total System Services is 10%, 15% and 14.6%, respectively.
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