CheckFree Investment Services today said that three new managers added to Merrill Lynch’s Consults Diversified Portfolios (CDP) roster are using CheckFree APL’s multiple strategy portfolio (MSP) functionality.

Merrill Lynch unveiled CDP last year and earlier this month, the firm added three new outside managers to its diversified CDP roster: PIMCO Advisors, CDC IXIS Asset Management Advisors Group and AIM-INVESCO.

“Multiple strategy portfolios continue to evolve, and CheckFree has supported the progression of each MSP generation,” said Alex Marasco, CheckFree Investment Services executive vice president and general manager.

First generation MSP resides with sponsors, while second generation involves a sponsor aligning with a single asset manager that trades the account, and provides all of the strategies. Third generation involves the sponsor partnering with several asset managers. Fourth generation resembles the third, except that the strategy allocation for each client can be changed dynamically.

“Clients who desired this level of diversification within a privately managed account prior to the launch of CDP, would have needed at least four to five individual Consults accounts to match the benefits and style diversification of a single Consults Diversified Portfolio,” said Curt Overway, senior vice president, CDC IXIS Asset Management Advisors Group. 

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