Update on Rebalancing Software: Tamarac
Transcript of Update on Rebalancing Software: Tamarac
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Tamarac Overview T3 Conference: Update on Rebalance SoftwareFebruary 27, 2009
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Who we are
Leader in Portfolio Rebalancing Software and Services
• More RIA clients / assets than any other rebalancing system
• 265 client firms, increasing monthly
• Firms of all sizes ($25 million to $10 billion in AUM)
• Supports virtually all securities types and investment approaches
• Web based, SaaS business model
• Renewal rate exceeds 95%
Tamarac Overview2
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What we do
Tamarac enables advisory firms to increase profitability by automating critical operational functions
1. Portfolio monitoring
2. Rebalancing and cash management
3. Tactical trading
4. Tax management / loss harvesting
5. Trade order reconciliation and archiving
Tamarac Overview3
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Firms want to increase firm productivity and profit margin (especially today)
• Average Tamarac client sees 50% - 75% productivity increase
• Makes firm more scalable, more profitable and more competitive
• Increases compliance, minimizes human error
• Centrally stores important data and processes (models, rules, trade history)
Advisors want to serve their clients more effectively
• Apply a consistent portfolio management methodology to each client
• Manage more accounts with fewer resources
• Execute trades (incl. block) at the same time and price across accounts
• Focus on higher-value-added activities (client meetings, research, etc.)
Tamarac Overview
Why automate rebalancing?
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Tamarac serves advisory firms of all sizes and types
• Average Tamarac firm manages $300 million AUM (median $200 million)
• ~50 Tamarac firms manage over $500 million AUM
• Passive and active investment styles (equities, funds, bonds, alternatives)
• Advent, PortfolioCenter, Etelligent, dbCAMs+, Thomson, Black Diamond
Tamarac Overview
Tamarac clients
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Tamarac is committed to the SaaS business model
• High-value-added software must be continually supported and enhanced
• This is why SaaS firms charge recurring annual fees
• Tamarac re-invests ~50% of revenue into Development and Support
• Majority of Tamarac staff is in Development (12) and Support (10)
Tamarac clients benefit from these ongoing investments
• Formalized implementation process supported 18 new firms this month
• Tamarac University, Consulting Services, Help Center, User Conference
• Monthly feature enhancements (incl. webinars and online tutorials)
• 97% renewal rate, average contract term exceeds 3 years
Tamarac Overview
Software as a Service (SaaS)
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1. Compliance functionality
• Filtering capability for continuous compliance monitoring
• Multi-level trade approvals and customized roles/permissions
• Trade order reconciliation and archiving
2. Implementation process
• Process can support over 15 implementations per month
• Tamarac University for new and existing clients
• Consultative onsite implementation option
3. Tax-Managed Indexing (TMI) to run passive SMAs in-house
• Attract high net worth clients
• Run internally rather than outsource to subadvisors
• Significantly lower cost
Tamarac Overview
Facts you may not know
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Tamarac’s advantages are the result of a sound business approach
• Web-based, zero IT / hardware footprint, scales to multiple locations
• SaaS business model (monthly feature enhancements, ongoing service)
• Largest client community (100 advisors at 2008 User Conference)
• More established integrations (PMS, service bureaus and custodians)
• Professionally managed company, scalable business practices
• Tamarac team comes from industry leading firms (below)
Tamarac Overview
Why Tamarac is Different
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Tamarac Overview
Tamarac User Interface
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Booth #9 in the Exhibit Hall Please visit us for a product demonstration
www.tamaracinc.com