Yesterday’s Showcase featured the following speakers, and a summary of each session is included below:

• Day Two Recap
• With FOX’s Kent Lawson, Director, Technology Integration Services

• Cybersecurity for Family Offices: Today's Threats and Mitigations
  With Jessica Dore, CISA, Principal, Technology Solutions, Rehmann
  • Threat Vectors – How the bad guys get in
    • Phishing and ransomware
    • Compromised credentials
    • Weak passwords
    • Trust relationships and propagation
    • Poor encryption
    • Unpatched vulnerabilities
    • Misconfigurations
    • Malicious Insiders
    • Zero Day and Unknown Methods
  • COVID Phishing Emails
  • COVID Malicious Sites
    • Infection kits
    • Ransomware-as-a-Service
  • Deepfakes will be the next frontier for enterprise fraud
  • Home offices and other remote setups will redefine supply chain attacks
  • Employees are the weakest link
  • The four cost centers of a breach
    • Detection and escalation, lost business, notification, ex-post response
  • Where should you focus?
    • Data management, perimeter management, governance, vendor management, mobile device management, training for employees, business continuity plan/disaster recovery plan
  • Define your goal and scope
  • Be Proactive – Behavior monitoring, endpoint security, managed network detection, threat prevention, complete visibility
  • Password best practices – Length, complexity, uniqueness, safe keeping, sharing, use passphrases
  • Top Recommendations – Establish policies and procedures, security awareness training, limit VPN access, MFA, vendor and patch management
  • Are there certain businesses that are more at risk? Yes, businesses that are storing a lot of information like healthcare and financial institutions
  • Is texting a big risk? Yes, there is always a risk with sensitive information. Use encrypted email.
  • Password tools? LastPass is most widely used

• The Evolving Role of Family Office CFOs - Leveraging Technology to Power Decision-Making
  With Ben Collins, Senior Director, Financial Services Industry Marketing, Sage Intacct, Inc
  • CFO Role Increasing in Scope, and Complexity
  • Role of the CFO is Evolving – The Historian, The Real Time Analyst, The Visionary (Will require support from technology tools)
  • Macro Industry Trends
    • Keeping up with rapidly changing family expectations, getting back to business as “usual”
  • CFOs Seeking a data-driven approach
    • 77% of senior finance leaders recognize the need for a data-driven finance function to achieve strategic goals
    • 64% also admit they are not proactive enough in using data and analytics to identify and address critical issues
  • Traditional Tools Often Fall Short
    • Reliance on spreadsheets
    • Overwhelmed by too much information
    • Data not current
    • Divergent opinions and needs on KPIs
  • How CFOs Can Adapt
    • Analyze greater volumes of data
    • Embrace the power of social media and cloud computing
    • Tap into unlimited connectivity
    • Capitalize on sophisticated databases and analytics
    • Adopt new metrics for operations and valuations
  • Tactical Steps for Leveraging Technology
    • Embrace automation, go to the cloud with security, be agile, foster collaboration, real-time visibility
  • New Tools to Enhance Visibility and Drive Decisions – Flexibility is Key
  • CFOs have more data than ever before and yet….having data by itself isn’t enough.  Needs to be turned into consumable information. Leverage technology to create family-centric business models.

Technology Demonstration Summaries:

• Demo 1 – Masttro

             Padman Perumal, Lucy Millard

• • Masttro’s Core Principles:
    • Ultimate transparency
    • Unmatched operational efficiency
    • Powerful, timely consolidated wealth reporting
    • Superior user experience
    • Protects privacy and confidentiality
    • Simplifies family communication and wealth transition
    • Provides access anytime, anywhere
  • Masttro is an industry pioneer and innovator across several dimensions
  • How does data enter the system?
    • Automated, secure direct data feeds, automated AI-powered data extraction for alternatives, fast bulk data uploads, APIs, manual input, delegate input tasks
  • Masttro is intuitive and user friendly, easy to use and implement, enjoyable to use by families, clients and employees
  • Masttro protects client data with its world-class military-grade security performance
  • You can map out the estate structure inside the system – global wealth map
  • They can support investment accounts, credit cards, crypto, commitments, LOCs, Loans, concentrated stock, all alternative investments, collectibles, real estate, insurance, commodities, intellectual property, and many more.
  • Can capture legal entities, all the way down to investable assets, and can show the ownership structure
  • Supports multi-currency and nested entity structures
  • The search function is very broad
  • Filtering capability allows the user to carve out specific data sets
  • On-screen consolidated portfolio analysis that is easily customizable
  • Ability to easily view snapshots and customize your landing page
  • Easily able to generate a report from the information on screen
  • When a report is saved, all users that have permission will have access to it
  • Tear sheets for individual funds are easy to generate by clicking on the fund name – includes general information as well as performance returns and calculations
  • Easy to click down into the positions and see how performance was calculated
  • Masttro is an investment subledger and creates double sided entries that can create GL reports
  • They work with other accounting software by setting up the same COA as your accounting platform so that they can speak the same language
  • General ledger and journal entry reports are accessible
  • Most reports also live on the mobile app
  • Cash management registry lists deposits and asks the user how these transactions should be classified
  • You can attach capital calls or distribution notices; the system can read it with AI and pulls out the key values for extraction into Masttro
  • What GL platforms do you typically see clients using with Masttro?  QuickBooks, Sage Intacct, Zero, Dynamics
  • Do you partner with a middleware firm to translate the COA, or is it done internally? They do define it within the system, and they work with Knowledger very closely

• Demo 2 – RockIT Solutions

             Alan Perl

• • Key Services – Outsourced family office
    • Data aggregation and reconciliation
    • Securities processing
    • Investment book of records
    • GIPS compliance
    • Alternative asset servicing
    • Robust reporting
    • Trust accounting and reporting
    • Integrated GL
    • Partnership accounting and tax services
    • Bookkeeping and cash facilitation
  • Differentiators
    • Customization without complexity
    • Alternative asset services
    • Full-service solution
    • Focus on data integrity
  • Fi-Tek Private Wealth Management Technology Suite integrates and works together
    • Global WealthES
    • Rockit Command
    • HedgeTek
  • Offer nested/look-through accounting and reporting
  • Search function is global
  • On screen flexibility with filtering options
  • Large library of benchmarks as well as blended benchmarks
  • Extremely robust performance reporting
  • Business intelligence tool available – Microsoft Power BI
  • Their team can create the reports based on parameters you give them
  • Mobile app was developed and has now been released, including a 2-factor authentication
  • Fi-Tek has functions within operations, fiduciary duties, account admin, wealth management, account enrollment, investment planning and reporting
  • Is the system able to track cost basis? Even after a step up? Yes.  Also depends on which custodians provide it.
  • Do you use any screen scraping vendors or are data feeds mostly direct?  Screen scraping is not allowed, 50+ data feeds, and if they don’t have it, they will create it.  If it’s a small bank, By All Accounts can facilitate.

• Demo 3 – RSM

             Lauren Demas, John Ihne, Michael Johnson

• • The system has pivot table capabilities, which is very attractive to users because it’s a familiar tool
  • PartnerSight is the RSM tool used for reporting
  • K1s can be stored in the system for a single source of truth
  • You can easily clone a dataset, creating a carbon copy for estimates or scenario planning
  • The system can handle PE, hedge funds, and passthrough allocations
  • Power BI is leveraged for reporting
  • They can use the Power BI tool to call in multiple data sets for comparisons, like budget to actual
  • Data is made completely usable and easy to access
  • They have partnered with PCR for the aggregation of illiquid investment data
  • Transactions can be translated to accounting platforms
  • Data can be brought in digitally so that you can see your information in one place
  • No manual entering of data – it all comes through the data feeds
  • Illiquid investments can be imported and aggregated as often as the investment manager releases new data
  • This data is brought in through computer learning
  • The Digital Hub allows you to see family members individually or comprehensively
  • Permissioning can be given based on who is able to see specific data
  • Loans, homes, boats, planes can also be captured in the system
  • Filtering is a very easy and useful aspect of the system
  • How do they make things more efficient? How are the technologies integrated? Two main technologies which is a bill pay solution (bill.com), and then a financial accounting outsourcing practice.  They use Sage Intacct for this, as well as QuickBooks online.
  • Dashboards are very powerful, and you can create your own customizable dashboard
  • The dashboards also give your RSM consultants the same view so they can pull data and have useful conversations
  • Do they work with international assets? Yes, and this is partially through PCR, can be translated back into the base currency
  • What about benchmarking?  PCR does have benchmarking capabilities, 208 different benchmarks
  • What one or two things should we remember from this presentation? You can get timely and valuable data out of the system, and gives you a leg up on the market, following the trends that are out there.
  • What if my client is not currently an RSM client? How can they get access to the platform?  RSM does not have to be doing any compliance work for the family, they can just work on financial aggregation if that is all you need.

User Group Roundtable Summary:

• Addepar

          Q&A:

• • Which general ledger is best to use with Addepar?  Addepar can work with any general ledger
  • Does Addepar have a report writer? Yes, they do.
  • What is Addepar’s strong suit?  Reporting is definitely the strong suit.
  • How many family office clients do you have? 260
  • QuickBooks and Sage Intacct are the two most common general ledgers that are used with Addepar
  • What are implementation challenges?  Addepar starts with templates for you to use to make implementations easier
  • Can you use Addepar for fiscal accounting? Yes, you can set up a structure for fiscal accounting.
  • Addepar just received more funding, the valuation is currently around $2B
  • What’s on the roadmap for enhancements? Addepar Navigator – This tool looks into the future and allows you to layer on market assumptions, for both public and private investments.  They work with State Street to get capital call predictions/estimates.
  • Dashboards are very customizable for different profiles and users, very intuitive
  • How large is Addepar and how many employees? 425 spread across the US, opening first international office in Scotland
  • How many developers do you have? 70% of the staff is dedicated to the product and client service
  • What system do most of your clients move away from? Excel, Advent products, Tamarac

• Private Wealth Systems

         Q&A:

• • What underlying data feeds and drives the system?
    • Only Family Office clients
    • Feeds capture all data for all asset types
    • Custodian, Brokers, feed all marketables
      • Independent transactions are built to compare against the custodian data for reconciliation
      • Swings in pricing, accrual calculations, multi-currency
  • Statements uploaded through vault
  • Automated manager data – capital calls, etc.
    • Service team brings in the data rather than automated data with manual corrections
  • Built for different asset types and jurisdictions
  • Adaptable and able to create new transaction codes on the fly
  • Will there be any commonality at some point for data in the finance industry
    • Likely, but a long way away.
  • Is there an underlying general ledger system?  Bill pay system?
    • Yes from an accounting standpoint.
    • No on bill pay.
  • What is the Client base?
    • 600 clients
      • US primary
      • Western Europe
      • South America
      • Australia
  • Multi-currency, multiple base currency, trade currency, base currency on transaction
  • Separate currency for G/L
  • Of the overall functional buckets, what is the main selling point?
    • Traditionally the accuracy of data
  • Wealth owners want easy views, transparent data, and a simple ecosystem.
  • What does a PE Transaction look like when initiated through platform?
    • Letter of auth populates data in system
  • Is this principal or family office interacting?
    • Private Wealth is meant for Family Office
  • What is the release schedule, updates, etc.?
    • Cloud based and updates occur automatically
    • Admittance is controlled by user/type
    • Updates occur multi monthly
  • Next things on the roadmap
    • Document management integration end of summer
    • Bringing back office to the front office
  • Any future possibilities of a network effect? Such as merging data sets across the clients?
    • Current security data is centralized and then customizable.
    • Public assets – single change to an asset, such as corporate action.
  • As far as Dashboards and reporting, how easy is it for the users?  Can they go out to PowerBI, etc.?
    • Most use 20% of what is there.
    • Not able to do this today.  But we are moving to the new reporting views/capabilities.
  • Any Dashboards today – geography,
  • Does visualization allow drill-in data views?
    • Yes.
  • Is today’s reporting – push, pull reporting?
    • Today it is push reporting.  But this year, visualization will become the standard.
  • What does the recon look like?  Does the client do this?
    • They can, but Private Wealth does this.
  • Is the recon mostly manual or automated by Private Wealth?
    • Mostly automated.  The exceptions require intervention.
    • Rate of recon is 88% to 92%.  The remainder are exceptions and require intervention.
  • Do you provide the recon exceptions and changes?
    • Yes.  It’s part of the dashboard and notices.