GlobalBridge, Inc. Introduces the GlobalBridge Open-Custody SMA, the Only Separately Managed Account Program that Enables Banks to Retain Custody of Client Assets.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 20, 2004

Now banks can offer clients an SMA alternative or complement

to mutual funds without compromising client relationships

or relinquishing control

GlobalBridge, Inc., a leader in innovative institutional separate account asset management (SMA) programs for individual investors, announced today that it has developed the only SMA program that enables bank trust departments to retain custody of client assets and total control of client relationships without significant capital outlay.

Through its new GlobalBridge Open-Custody SMA(SM), GlobalBridge conducts model portfolio processing and trading. And unlike other SMA providers, GlobalBridge provides a seamless link to bank sub-accounting systems such as Sungard(R) or Trust/Rite that enables bank trust departments to retain full control of client assets and control of the client relationship including reporting and statementing. In effect, the GlobalBridge Open-Custody SMA provides banks with their own private label SMA program and a competitive edge with clients who may be seeking an investment alternative or an adjunct to their mutual fund holdings. The GlobalBridge Open-Custody SMA offers bank trust clients a unique selection of more than 70 institutional asset managers with over 140 portfolios, largely unavailable through other sources.

Investor demand spurs rapid SMA growth

According to Kelly Coughlin, GlobalBridge Chairman and CEO, "Separately managed accounts are becoming essential to meeting the needs of affluent trust and banking clients, and to maintaining a bank's competitive position against other wealth management sources. More and more individual clients are seeking a complement to their mutual fund holdings in which they have direct ownership and greater control, and are able to realize the tax, risk mitigation and pricing benefits enjoyed by institutional investors."

Coughlin continued, "Even during the most recent economic downturn, the separate account asset management segment displayed phenomenal growth. In fact, assets held in separately managed accounts are reached over $450 billion in 2003 and are expected to rise to over $2 trillion by 2011. "

More and more bank trust departments are adding SMAs to their mix of services for their affluent clients who seek greater control, diversification, risk mitigation, and potential tax and cost benefits from their investments. The requirements of this investor group often exceed the limitations of most mutual funds. According to the Conference Board in a recent news release (10/23/03), affluent households with annual earnings of at least $100,000 are expected to climb from 15 million to 20 million by the end of the decade.

GlobalBridge, Inc., based in Minneapolis, Minn., with an office in Austin, Texas, offers institutional separate account asset management (SMA) programs for individual investors through independent brokerages, financial advisors, bankers, and CPA firms nationwide. GlobalBridge provides clients of these organizations with the same benefits enjoyed by large institutional clients. These include portfolio management by institutional portfolio managers not available in other SMA programs, risk monitoring, investment style analysis, and tax liability management. For more information about GlobalBridge, go to www.globalbridge.com.