Why a disconnect between reporting software and advisors to UHNW assets persists -- and what makes the problem so thorny
Many big-time wealth managers are plagued by their own foibles, their clients' peculiar challenges and third-parties who haven't quite gotten a handle on the challenges
A correction is needed. You stated that WealthSite “uses Advent Software as its chassis”. That is not the case. WealthSite is a unique partnership accounting, performance reporting and alternatives management platform that can take direct custodial feeds and/or operate in parallel with legacy systems like Advent Axys, APX and Black Diamond, Schwab PortfolioCenter et. al.
I’d like to add a few things that were glossed over. Many of the legacy systems in question cannot:
1) manage and report on complex family hierarchies that are made up of Family->Household->Legal_Entity->Account->Sub_Account / Holding
2) manage alternatives management and reporting across item #1
3) provide metrics such as daily TWR at the holding level across item #1
WealthSite is as unique as RockIT and provides services to MFO/SFOs, Fund Mgrs and HNW/UHNW wealth managers.
email@example.com | VP Bus Dev | WealthSite Inc | www.wealthsite.com
While I concur with many of the author’s points, it is important to note that there are actionable steps firms can take today that may not be quite as daunting as those depicted in this article. Delivering innovative, elegant and intuitive reports to family members across a wide array of devices and platforms does not necessarily require a firm do a complete “removal and replacement” of their existing systems. My firm, Purveu offers a platform that provides interactive, data-driven reports specifically tailored for Family Offices and their members, while at the same time affording these firms the option to maintain much of what they like about their current systems. And as noted in the article and clarified in this very comment section, Wealthsite can offer a similar approach.
firstname.lastname@example.org / www.purveu.com / email@example.com
Along the same lines as Trent, for Advent Axys® users, our data warehouse and reporting solutions have enabled our clients to have elegant, custom external and internal reports driven by not only Axys data but also data from many sources. We should also mention the addition of Business Intelligence data mining of all that data as well which many RIA’s do not have access to. Ours do. Our warehouse sits along-side Axys and does not force any changes to Operations in any way. They think that is very important!
firstname.lastname@example.org — www.viabinary.com
I think an issue that has not been discussed is the data that is available. UNHW clients tend to work with lots of alternative investments. It has been a few years since I have worked with it, so things may have changed, but the transactional data that was available was horrible. Beyond an easy way to get in electronically, even if you manually entered the data a lot of firms just didn’t provide enough information to do performance reporting. You could get enough to show what assets were held, but not enough to calculate returns. I remember seeing distributions that were partial principal returns (which should have adjusted the price but didn’t), partial short term gains, partial long term gains and partial income. You could call the firms and they couldn’t break it down. Ultimately they were suppose to report it, but might not do that for months. In the interim you have cash or additional share you have to account for, but no way to do it until you get the info. Until you do, you can run any performance reports without them being really wrong. Once you get the info, you might need to manually correct months of price files and recalculate all returns for the period. There needs to be a data standard for alternative investments, but there isn’t.
Until you get adequate data, not even good data, no technology solution can really solve this issue.
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Pete Giza and Damon Deru go for Holy Grail of portfolio rebalancing with software that shuffles stocks, bonds... and asset classes; Believe it?
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June 11, 2019 at 9:49 PM
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Addepar hires Advent genius then launches 'Advent Converter' to court the RIAs still on Axys and APX ; PortfolioCenter 'easy button' comes next
The tactic by the Mountain View, Calif. firm and Advent co-founder and code avatar Steve Strand comes a decade after Orion, Black Diamond and Tamarac began feasting on the legacy corpses, but Addepar insists meat remains on the bone.
March 3, 2020 at 5:05 PM
Family Wealth Alliance
Top Executive: Thomas R. Livergood