Product Watch: Tool aids compliance with USA Patriot Act

PFPC Inc., a member of Pittsburgh-based PNC Financial Services Group Inc., has unveiled a service designed to help mutual fund clients satisfy customer-identification-program regulations issued under the USA Patriot Act.

The regulations require each mutual fund company to implement and maintain a program to verify the identities of new investors. PFPC’s services include the use of both non-documentary and documentary methods for verification, review of exception-related items, and performance of secondary searches. Clients will receive regular reports covering verification of identities of new investors.

Nasdaq, Merc extend joint agreement

* Chicago Mercantile Exchange Inc. and The Nasdaq Stock Market Inc. in New York have announced an expanded partnership to develop futures and options contracts based on the Nasdaq Composite Index. The Merc and Nasdaq are expanding and extending their exclusive joint agreement to offer Nasdaq-100 futures and options contracts at the Merc through 2011.

Additionally, the partners will launch E-mini Nasdaq Composite Index futures and options on the Merc’s GLOBEX electronic trading platform.

Active management for charitable assets

* The Schwab Fund for Charitable Giving in San Francisco has added a feature called Charitable Asset Management that enables independent financial advisers to manage the assets in a client’s donor-advised fund. The adviser can actively manage charitable assets of $500,000 or more that a client has contributed to a charitable-gift account with the Schwab Fund for Charitable Giving.

Charitable Asset Management is available to donors and advisers working with Schwab Institutional or U.S. Trust Corp. unit advisers.

Vision adds 5 firms to list of content

* DST Vision in Kansas City, Mo., has expanded its mutual fund and variable-annuity content with the addition of five management companies.

Customer account information for United Association Funds, Pimco Fixed Income SHS funds and JPMorgan Fleming Funds, as well as for variable-annuity carriers American United Life Insurance Co. and Jackson National Life Insurance Co., is now available to independent advisers and broker-dealers through Vision.

With Vision, advisers can view the aggregate book-of-business assets; group individual accounts into customized client portfolios and households; and check rates, break-point schedules, transaction histories and all account details. Accessing of shareholder statements and execution of a variety of transactions such as purchases, redemptions and exchanges are also available through Vision.

GE unit licenses Principia System

* Principia Partners LLC in Jersey City, N.J., has announced that GE Asset Management Inc., the investment management arm of the General Electric Co. in Fairfield, Conn., has licensed the Principia System to support its business.

Initially, the GE unit intends to use the Principia System to process and account for derivatives that hedge assets in the extensive portfolio management business that serves both GE and institutional investors worldwide.

GE Asset Management plans to utilize the system’s functional capabilities for managing trades from deal entry to accounting. Users of the system will be able to perform risk analysis and hedge-effectiveness testing, as well as deliver FAS 133 derivatives hedge accounting and reporting.

The Principia System will provide the unit with a fully customizable solution enabling portfolio and risk management of assets, liabilities and derivatives ranging from simple to highly complex instruments.