About a year ago, Tamarac Inc. launched Advisor 9. The platform included the Tamarac Advisor Rebalancing & Trading application, a proprietary performance reporting system, and a customized version of Microsoft CRM. While Advisor 9 was a very impressive initial effort, there were some rough spots, which is not unusual for the initial release of such an ambitious undertaking. Early indications are that Advisor X (Advisor 10) is a significant upgrade. This new, im proved Tamarac offering has added numerous enhancements and refinements. The result in a more integrated, intuitive platform that is truly impressive.

An Introduction To Advisor X
Advisor X is comprised of five components: a customized version of Microsoft CRM, the Tamarac Rebalancing System, the Trade Order Management System, AdvisorView, and a hosted version of Schwab's PortfolioCenter. All components are Web-based. AdvisorView consists of four components: a dynamic reporting engine, a PDF reporting engine, a client portal and a branded document vault.

AdvisorView requires that you use a version of PortfolioCenter that is hosted in a Tamarac data center. Tamarac offers two hosted PortfolioCenter options. Under both versions, your data resides in a RackSpace data center. Under the first scenario, your firm is responsible for maintaining your data (daily downloads, reconciliations, etc.). Under the second option, you outsource your back office processes to Tamarac AdvisorServices (TAS). This latter option entails a higher fee, but for many, it could turn out to be the more economical choice in the long run.

TAS offers much more than daily downloads and reconciliation. In addition, they will monitor your portfolios based upon criteria of your choosing. For example, they can make sure that you do not violate restrictions on any portfolios; they can make sure accounts do not violate any asset allocation bands, that portfolios hold a specified amount of cash at all times, etc. TAS can perform the rebalancing process for you and submit suggested trades for your approval. They can perform post-trade reconciliation and perform the client billing process. You can even outsource model portfolio construction and maintenance to TAS. Prices for TAS services are quoted on an individual basis according to the services desired, the number of accounts and the complexity of the case.

Tamarac's rebalancing application has been covered elsewhere, so we'll defer today. It's worth noting, however, a few rebalancing enhancements of note. Previously, the application allowed for a maximum of three rebalancing tiers. Now, advisors can create unlimited tiers. This is important for those who construct portfolios using a "model of models" approach. Other enhancements include advanced cash management features and automatic post-trade reconciliation.

The trade order management system offers straight-through processing of ETFs and equities directly from the rebalancing system. For those who deal primarily in ETFs and equities, the trade-order management system can significantly streamline workflows. In the case of most other trades, the system will create an electronic trade blotter that can be uploaded to the custodian's trading system for execution.
The remainder of our discussion today will concern AdvisorView, and to a lesser extent Tamarac's version of Microsoft CRM.

AdvisorView
AdvisorView offers a great deal of functionality. The dynamic reporting features are perhaps the most attention grabbing, but the PDF reporting functionality, the client portal and the document vault are also noteworthy.

When you log on to the site, you arrive at the Custom Dashboard. The dashboard can be populated with multiple widgets. Each widget functions as a miniature, summary version of a full report page. For example, you can create an allocation chart by asset classes across all of your firm's accounts and view it on the dashboard. You can create a similar chart for allocation by industry sector. Other dynamic reports you might display on your dashboard include top holdings and a bond (and or CD) maturity schedule. There is a drop-down menu at the top of the page that allows you to control what account or set of accounts the widgets apply to. If you are a principal, your default view could encompass firmwide information. With a mouse click, however, you can apply the existing reports to a group of accounts, a household or an individual client's accounts. You can change views on the fly, and the results are presented rapidly.

Another nice dashboard feature is the ability to customize by user. Investment managers within the firm can look at performance reports across the firm. They might also want to look at asset allocation reports. Back office staff might be more concerned with cash flows and transactions. Tax experts would concern themselves with realized and unrealized gain/loss reports. 

Widgets can be moved around the dashboard by dragging and dropping them, so two employees can have a dashboard containing the same reports, but each can have them arranged differently. Each widget has four control icons in the upper right corner. One allows you to access a more detailed version of the same report. You would use this function to significantly alter the report view.

In many cases, changes can be made using the change setting icon without leaving the dashboard. For example, if your Transaction widget displays all transactions, and you just want to view buy and sells, you can click the change settings icon, uncheck all boxes except buys and sells, and the widget will update with the requested information only. The other icons are the minimize icon (minimize the widget) and the "remove report" widget, which removes the report from the dashboard.

Navigation hotlinks appear at the top of all pages. These are: Home (dashboard), Accounts, Reports, PDF Templates, Clients, Documents and Setup. When you click on a widget's "detailed report" icon, it takes you to the corresponding report in the Report section. These tend to be visually richer and contain more information than the ones on the dashboard. For example, on a performance report I was able to view the account value for three time periods plus returns (and returns vs. the benchmark) for five periods on the dynamic report. On the corresponding widget I could only fit values for three periods plus one performance period (with performance vs. the benchmark). The detailed report included two graphs, one representing the primary reporting period selected; the other displayed historical performance. My default was to apply this report to all accounts, but I could change the data set this report drew from with a couple of mouse clicks.

New reports can be created using this report as a template. By accessing the "create new" choice from a drop-down list, you can change the periods for the values and the performance, change the column headings, include one or more benchmarks, and, by clicking a checkbox, make the new report available to the dashboard. Furthermore, once you create a new report, it becomes available to other users. Your firm does not have to create and store a report template multiple times. Of course, in order to access a report template and apply it to a set of accounts, the user must be granted access to both the template and the relevant data by the administrator.

Advisors can print reports on the fly for their own purposes using the browser print function, but for client-facing reports, they will use the PDF template section. Here, using drop-down menus and other intuitive controls, you can fully customize PDF reports for your clients. You can control the margins, page orientation, font size, headers, footers and much more. The very first time you create a template it could prove a bit challenging, but with some training, it becomes much easier. Also, once you have created some default templates, modifying them as needed is easier than creating new ones from scratch.

When you've created a default template, you can apply it to all of your accounts, or you can create multiple templates and apply them to the appropriate accounts. You can also instruct the program what to do when you run a batch report. You can either have the PDF report uploaded to the vault for a client, or have it delivered as part of a zip file to be printed and mailed. If you fail to apply default report instructions for a client, don't worry. The application is smart enough to know that if it does not send it to a client vault, it has to include the report in the zip file.

Advisors can set up client portals for all of their clients. When you set up a client with a portal, they receive an e-mail invitation and they establish their credentials, so the advisor does not need to worry much about lost passwords. The client can reset the password automatically with proper credentialing, or they can call the advisor who can reset it for them.

Advisors have a great deal of discretion over the dynamic reports, if any, the client can see or create on their own. The advisor can also set up portals for third parties with the client's permission. For example, the advisor might set up a portal for the client's CPA that includes reports detailing all realized gains and losses, so the accountant can retrieve their information 24/7 without bothering the advisor.

The document vault allows the advisor to upload documents that the client can then access securely. It also can be used by the client to upload documents for the advisor. While not a full document management system, it does have some useful tools. It allows the advisor to create labels (documents, performance reports, financial plans, etc.) so the advisor can sort by label. You can also sort by who posted the document. In addition, there is a search box, so you can usually find what you want rapidly.

Under the Client link in AdvisorView you can, among other things, view a list of all client portals you've established. The list includes the name of the portal and which Client View template is associated with the portal. In addition, there is a link called "View As Client." Using this link, you view the client portal exactly as the client sees it. This is extremely useful if a client calls you with a question regarding what they are looking at within their portal. You can view it with them and answer any questions.

Advisor CRM
Advisor X includes a number of CRM enhancements. First of all, Tamarac has opened up the program to advisors. Many types of customization that used to require a call to Tamarac, including the customization of fields, can now be performed by the advisor.

A new custom view called All Activities is now included. This view allows the advisors to see all communications with a client or household (activities, notes, documents, etc.) consolidated in a single view. The new version also allows the advisor to take data points that are available in other Tamarac Advisor applications and expose them in Advisor CRM so you don't have to toggle between apps to see the data you need. Data can also be pulled from ByAllAccounts. In addition, Tamarac has deepened their integration with MoneyGuidePro. Previously, you could only send data from CRM to MoneyGuidePro one account at a time. Now, you can perform a batch upload to MoneyGuidePro.

Many other operations that previously required the advisor to switch applications can now be initiated from right within the CRM application. For example, you launch a rebalancing through the CRM or you can run a performance report from within the CRM.

In some cases, the CRM system can create a client record for you automatically. For example, if you upload a new client account from your custodian to the rebalancing program, it will automatically create a client record for you in the CRM if one does not already exist.

Summary
Advisor X is a comprehensive platform, so we cannot discuss every feature in detail, however we do think we've touched upon most of the major ones. If you are a mid- to large-sized firm looking for an integrated solution, Tamarac Advisor X is worth considering.