leading solutions for investment services
TRANSCRIPT
Leading Solutionsfor Investment Services
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver is a trusted provider of enterprise-class business and technology solutions for investment services companies – Silver Solutions.
Accurate Data Easy to Operate Seamless Integration Ultra Scalable
COST BASIS FEE BILLING PORTFOLIO DATA
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
We are Silver
We deliver seamless, scalable business and technology solutions for investment
services companies – Silver Solutions.
Our employees apply decades of securities industry and software development experience
along with their passion for solving real-world problems.
Our strategic partners provide complementary services, software, and market data to
enhance our solutions.
Our clients trust our deep knowledge of brokerage operations, cost basis reporting,
and wealth management.
They value our understanding of their internal processes, systems, and environments.
And, they appreciate our adaptable software that integrates seamlessly with their technical
infrastructure and scales to meet their specific business needs.
This is why clients choose Silver.
Why Silver Solutions are processing tens of millions of investment accounts and
more than $1 trillion in assets.
And why, after 25 years in business, Silver continues to deliver superior value for our clients.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
2007 — deployed
ultra-scalable portfolio
accounting and
account/grouping
management solutions
as part of client's
enterprise-wide SOA
initiative
2004 — expanded wealth
management and
brokerage operations
consulting practices
2002 — integrated software
components as part of
client’s multi-vendor
financial advisor platform
2000 — launched full suite
of retail securities
brokerage software in
client's multi-tenant online
service bureau
1998 — focused
consulting practice within
investment services
industry and commenced
proprietary software
development initiatives
1991 — founded
company to provide
multi-disciplinary, multi-
industry management
and technology
consulting services
2016 — expanded
outsourced business
processing operations
services for cost basis,
fee billing, and
performance reporting
2015 — deployed fully
automated fee-based
billing solution as part of
client’s wealth
management platform
2014 — integrated
centralized portfolio data
solution in support of
clients’ multi-vendor
wealth management and
robo-advisor platforms
2013 — released adjunct
fixed income engine for
integration with clients'
existing portfolio
accounting systems
2011 — launched EESA-
compliant cost basis
solution in support of
brokers’ regulatory
transfer reporting and
year-end tax reporting
2009 — released adjunct
wash sales engine for
integration with clients'
existing portfolio
accounting systems
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
The Silver team applies decades of securities industry
and software development experience along with a passion
for solving real-world problems to deliver cost-effective
brokerage operations, cost basis reporting, and wealth
management solutions for our clients.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Executive Team
Blake Henry Managing Partner, Business
Blake is responsible for establishing and enriching
client relationships, identifying opportunities for
partnerships and growth, and leading all aspects
of Silver’s business operations. Since he founded
the company in 1991, Blake has overseen
development and deployment of several
enterprise-scale brokerage processing
applications – primarily for large investment
services organizations – and has personally
managed numerous consulting engagements. Prior
to founding Silver, he was a Computer
Programmer for IBM Corporation and CACI Field
Services. Blake earned his B.S. in Economics at
the Wharton School of the University of
Pennsylvania with concentrations in Marketing
and Decision Science.
Neal Ruskin Managing Partner, Product
Neal is responsible for Silver’s suite of brokerage
processing software and serves as strategic
business and technology advisor for Silver’s
investment services clients. An acknowledged
expert in cost basis portfolio accounting and
investment tax reporting, he serves as an
industry thought leader and guides Silver’s
interpretation of IRS regulations and related
statues. Prior to joining Silver, he served as
Chief Enterprise Architect at TD Ameritrade and
Technical Director at CheckFree Investment
Services (now Fiserv). Neal earned his M.A. in
Industrial Design and Human Factors from The
Pratt Institute and his B.A. in Political Economics
from Princeton University.
Robert BenkovitzManaging Partner, Technology
Rob is responsible for all technical aspects of
Silver’s suite of brokerage processing software
and hosting services. He heads a team of highly-
skilled and experienced software development
professionals in technical design, application
architecture, research and development,
quality assurance, software deployment, and
technical operations. Prior to joining Silver in
1999, Robert served in various technology
positions with CheckFree Investment Services
(now Fiserv), Prudential Investments, ILX
Trading Systems (now Thompson Reuters), and
Brown Brothers Harriman. Robert earned his
B.S. in Computer Science from the State
University of New York at Stony Brook.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Cost Basis Solutions
Fully compliant with the cost basis reporting provisions of the Emergency Economic
Stabilization Act of 2008 (EESA) and related regulations and designed for configurability and
customizability, Silver’s cost basis platform may be licensed and deployed with any mix of
available features to satisfy specific business requirements.
• Automated “Zero-Break” Corporate Actions
• Inline Fixed Income Processing (Simple & Complex Debt)
• Comprehensive Wash Sales (Full Traceability)
• Low Cost Operations & Support
• Adjunct Capability
• Flexible & Rapid Integration
• Ultra-Scalability
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Cost Basis Solutions
• Automated “Zero-Break” Corporate Actions
Provide accurate cost basis through corporate actions via automated zero-break processing
vastly reducing operations workload.
• Inline Fixed Income Processing (Simple & Complex Debt)
Meet regulatory requirements for fully conformed tax, transfer, and client reporting for all
simple and complex debt instruments.
• Comprehensive Wash Sales (Full Traceability)
Rely on the industry’s most accurate and complete wash sale processing while maintaining
independent lot and sublot views. Also maintain full traceability for lot-level operations
and client support and configurable sublot granularity for reduced volume reporting to
serve very active accounts.
• Low Cost Operations & Support
Reduce operational workload via comprehensive exception reporting and a full-featured
operations portal, as-of capability, bulk operations and automatic re-processing. Reduce
client support workload via lot and sublot explainer tools.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Cost Basis Solutions (cont’d)
• Adjunct Capability
Supplement existing tax lot systems with fixed income and/or wash sale processing via
reconciliation-free integration that avoids precision, rounding, fractional share, lot
disposal sequence, and other pitfalls.
• Flexible & Rapid Integration
Integrate with multiple back-office, trading and other data sources via rapidly
configurable rule-driven interfaces; maintain synchronization with other lot accounting
systems; chose to maintain critical security and account master data including asset
classifications, specified as of dates, average basis elections, fixed income elections,
Sec 475 status directly within the system or via existing systems and business processes.
• Ultra-Scalability
Scale to millions of accounts and accounts with millions of transactions within tight SLAs
via event-driven parallel processing and a hybrid persisted/dynamic data model with
snapshotting capability.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Cost Basis Solutions
Case Study — Retail Broker
A leading online broker with a large mix of active
traders and buy-and-hold investors needed help after
the cost basis solution offered by their back office
provider failed to meet their needs. In only four
months, Silver integrated its cost basis platform and
processed a year’s worth of activity in time to meet
the initial reporting deadline. Silver’s Cost Basis
solution continues as the broker’s cost basis “book of
record”, processing over 1 million daily transactions
and supporting year-end 1099 reporting for over 5
million accounts with more than 80 million open lots
and 500 million closed lots to date.
Client Platform
Silver Cost Basis
Flexible Integration
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Cost Basis Solutions
Case Study — Prime Broker
Silver helped a major prime brokerage services
provider add wash sales and fixed income processing
capabilities to an existing portfolio accounting
system. We did this without disrupting their current
business and technical processes. Where other
providers were unable to handle the extremely high-
volume typical of prime accounts, Silver’s solution
scaled to meet their needs, processing over 200,000
debt lots and more than 500 million wash sale
sublots in just 2,500 accounts (some with millions of
transactions). All was accomplished without
requiring any ongoing stock record reconciliation
thereby minimizing operational overhead.
Wash Sales
Client Cost Basis
Ultra-Scalability
Fixed Income
Processing
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Fee Billing Solutions
Silver’s Fee Billing solutions help firms to streamline their billing processes, guard against
potential fee leakage, and reduce operational risks by employing a fully customizable billing
platform available as an in house or cloud based solution.
• Flexible Billing Methodologies
• Robust Fee Schedule Support
• Exclusions and Discounts
• Advanced Account Grouping
• UMA and Asset Class Billing Support
• Configurable Workflow
• Seamless Integrations
• Streamlined Operations
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
• Flexible Billing Methodologies
Bill quarterly, monthly, or on demand, in advance or in arrears, using end of period or daily average
values, for multiple payees, configurable down to the individual product level.
• Robust Fee Schedule Support
Create multi-tier fee schedules that work for your business. Assign fee schedules at the firm or
product level, or down to the advisor, group, and individual account levels for “exception to the
rule” clients. Create fee splits for advisors that share accounts.
• Exclusions and Discounts
Set up total portfolio, UMA sleeve, asset class, or security exclusions and discounts for your entire
firm, specific products or advisors, or individual groups and accounts.
• Advanced Account Grouping
Create multi-tier account groups to allow for break-point qualification at the household level, and
consolidated invoicing and account debiting. interfaces.
Silver Fee Billing Solutions
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
• UMA and Asset Class Billing Support
Calculate fees at any mix of the total portfolio, UMA sleeve, or asset class levels.
• Configurable Workflow
Automate your intra-period billing workflow by configuring events such as account
opening/termination, large flows, advisor changes, and UMA sleeve changes to trigger bill
re-calculations.
• Seamless Integrations
Take advantage of integrations with multiple custodians and data aggregation providers to
seamlessly update portfolio and relationship data, as well as the digital transmission of
debit files. All billing data is also made available through multiple extracts as well as a fully
formed Restful API.
• Streamlined Operations
Take advantage of easy to use exception reporting and remediation tools to identify and fix
reconciliation issues leading to potential fee leakage. View audit trail reports identifying
updates made by operators and data interfaces.
Silver Fee Billing Solutions (cont’d)
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Fee Billing Solutions
Case Study — RIA
Silver’s Fee Billing solution helped an RIA firm with
more than 500 advisors move from a manually intensive
and error prone, outsourced billing process, managed
with spreadsheets to a fully automated and integrated
cloud-based solution. This enabled the firm to move
away from maintaining fee schedules at the individual
account level, and allowed them to set up UMA sleeve
default schedules with account overrides. This resulted
in a dramatic reduction in the number of fee
schedules, reducing errors and risk while alleviating
operational strain. Silver’s Fee Billing implementation
automated the valuation of assets and creation of
account groups through an automated data interface
with one of the largest custodians servicing
independent RIAs including debit file integration.
Automated Data
Interface
Unified Managed
Accounts (UMA)
Streamlined Operations
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Portfolio Data Solutions
Silver’s Portfolio Data solutions provide firms with a complete picture of their entire book of
business by delivering an automated, reconciled source of portfolio and relationship
management data in support of the powerful reporting of performance and risk
measurement, data analytics, and key performance indicators (KPIs) that firms care about.
• Automated Relationship Management
• Flexible Data Entitlements
• Robust Performance Reporting
• Configurable Benchmarks
• Correlated Risk Measurements
• Insightful Data Analytics and KPIs
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Portfolio Data Solutions
• Automated Relationship Management
Automate the creation of multi-tier account householding and grouping, via data
interfaces with customized rule sets.
• Flexible Data Entitlements
Access account and group data from automatically configured entitlements customized
for your firm, from home office, advisor and manager access, to individual investor
permissions and full admin capabilities.
• Robust Performance Reporting
Create powerful performance reports using before and after tax portfolio returns and
asset allocation data created by Silver’s fully GIPS compliant calculation engine.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Silver Portfolio Data Solutions (cont’d)
• Configurable Benchmarks
Compare performance returns and risk measurements to user defined benchmarks including
weighted blends of securities and/or indexes.
• Correlated Risk Measurements
Put performance returns into context by correlating them with risk measures your firm cares
about like alpha, beta, Sharpe ratio, standard deviation, and many more.
• Insightful Data Analytics and KPIs
Fully understand your firm’s practice by leveraging “big data” insights and KPIs that matter to
you. This includes firm metrics such as gross revenues, growth indicators like revenue
increases from existing, new, and retained clients, and distribution measures like average
revenue per client, advisor, branch, and more.
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Case Study — FinTech Provider
Silver’s Portfolio Data solution was implemented for a
cloud based software provider, powering an innovative
advisor workstation and robo-advisor platform which
supports numerous RIA firms. Silver’s Portfolio Data
solution provides the central access point for portfolio
data, relationship management, and data entitlement
information, as well as acting as the source of
aggregated data for performance reporting and fee
billing calculations. Automated portfolio data interfaces
with a large custodian, an external rebalancing provider,
and a third party data aggregation service provide
turnkey access to extremely rich client data which
seamlessly integrates with the advisor workstation
platform through Silver’s RESTful API.
Silver Portfolio Data Solutions
Advisor Workstation
Fee Billing
Central Access Point
Robo
Platform
Portfolio Data
Performance
Reporting
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved
Thank you!
Silver Management Group, Inc.
Phone: 800.319.6865
Fax: 630.214.8793
© Copyright 2017 Silver Management Group, Inc. | All Rights Reserved