Because of SSG’s strong ties to Pershing, SSG can release customized versions of NetX360 that are designed specifically for the needs of SSG advisors. “We may want to move around fields, display different screens or alter the workflows that our advisors have access to. We can do that with Pershing,” says Skiles.

In addition, SSG supplies all of the training and support relating to NetX360 and other Pershing technologies. “Advisors get the best of both worlds: world class, industrial-strength technology plus personalized support from a staff that knows the advisor by name and is familiar with the advisor’s business model.” Skiles goes on to point out that his staff uses the same Pershing technologies that his advisors use, so they are intimately familiar with the software. According to Skiles, that’s unique to SSG.

According to Skiles, another advantage of the Pershing relationship relates to cyber-security. “I am very happy that our firm is associated with the largest custodian in the world [BNY Mellon, the parent of Pershing, had $27.4 trillion in assets under custody and/or administration and $1.5 trillion in AUM as of September 30, 2013.] Their expertise in the area of cyber-security is world class.”

Despite SSG’s close relationship with Pershing, SSG conducts reviews on a regular basis. “We are an open-architecture shop,” he says. “We use Pershing because we believe that they offer the best platform for our clients. We then supplement that platform with additional tools to improve the user experience.” If at some point there were a better solution, Skiles indicated that SSG would adopt it. “We are incredibly flexible. There is a lot of innovation going on in the marketplace, and we want to be in a position to deliver a great experience for our clients.”

In addition to Pershing, SSG partners with a number of third-party technology partners to deliver technology solutions to their advisors. Partners include: Advent, Advisors Assistant, Albridge, Black Diamond, eMoney, Envestnet, fi360, Junxure, LaserApp, MoneyGuidePro, Morningstar, Orion, Redtail, TRX and many more.

Although SSG does not impose a minimum AUM requirement, Skiles indicated that his firm serves a wide range of advisory firms with a broad spectrum of needs. “We take pride in our ability to deliver outstanding service,” he says.

Folio Institutional
All custodians try to differentiate themselves from the competition, and they all have some unique aspects to their offering, but Folio Institutional really is different. “We continue to make technology the foundation of our offering,” says Greg Vigrass, president, Folio Institutional. The firm’s patented Folio platform functions in a manner similar to UMA accounts, but it is even more flexible because you can separate functions related to a Folio.

For example, you can have an investment model in a Folio, where you manage the individual securities within the Folio (much like a mutual fund) and you control tax decisions, like when to realize portfolio gains and losses. You can also have a scenario where a third-party manager makes all decisions related to stock selection and tax treatment. In addition, you can split the functions; you choose a tax strategy while the manager is in charge of investment selection.

Folios can contain fractional shares, so it is easy to allocate individual securities to an account, even if the account has a modest value. Since pricing is asset based, you can trade and rebalance as often as you wish for a fixed price.

While the platform is already quite impressive, new features are being added over the next several months. One is an upgrade to the rebalancing functionality. Today, you can rebalance at the Folio level, the account level and at the client level. Soon, you will be able to rebalance at the household level as well. This new version will allow for asset location and some degree of tax intelligence.

The platform currently includes basic performance reporting. Folio Institutional plans to offer, for a fee, a much more robust performance reporting option. This new offering will be multi-custodial, and it will be competitive with other third-party offerings on the market. Why develop their own portfolio management and reporting system? Vigrass says that some third-party systems handle each Folio as a separate account. This can be problematic when accounting for the cash flows among Folios.

Yet another innovation, already in production, is the Private Placement Platform. This new marketplace leverages Folio Institutional’s independent brokerage platform, providing the ease and convenience of an online brokerage account, along with a full complement of sophisticated features such as applicable IRS reporting, tax tracking, SPIC and FDIC protections, independent record-keeping, online access to statements, confirmations, tax documents and transaction history.

Perhaps the most interesting addition to Folio Institutional’s offering is the new Advisor Connexion. This is a new platform that allows the advisor to engage with prospective clients virtually. It essentially allows advisors to compete with online “Robo-advisors” by providing client onboarding and a totally automated investment management platform.