Tag Archive: Axys


If you saw $500 on the ground, would you pick it up?

In late 2008, most investment firms were focused on getting lean and surviving a heretofore unprecedented economic downturn. Because we specialize in working with these firms, we wanted to use our core expertise to help create efficiencies and save them money. We ran an ad in the Advent User Group (AUG) newsletter offering two free hours of consulting. It wasn’t a completely altruistic idea; we figured we would gain some long-term clients for the effort.

The ad was run, and I honestly thought we’d get some calls. Surely there were investment firms that would want FREE consulting, right?  We typically receive calls from investment professionals across the nation inquiring about our products and services, but not one person called to inquire about the two hours of free consulting.

It is possible that users were so busy that they weren’t reading the newsletter.  Perhaps the ad, which was kind of ugly, didn’t inspire firms to call us.  In all likelihood, this ad failed to generate interest because of its target market: investment advisors and their trusted professionals.

I have worked with these folks for over twenty years and understand who they are, so perhaps I should have known better. The typical investment advisor is a conservative skeptic who believes you get what you pay for. In their view, our offer of free consulting must have appeared hollow or even insincere. Investment firms are stereotypically risk-averse regarding their back office operations. For these reasons, many investment advisors are victims of a negative feedback loop. 

Software companies are able to continually increase fees without making dramatic technology improvements because, by and large, investment advisors are resistant to change and afraid to try anything else. This inertia obstructs new firms from competing with the established firms since the market share they need to capture is engaged in agreements that investment advisors may not think entirely reasonable, but acceptable for now.

Advent Software, for example, consistently raises the cost of Axys support and focuses on compatibility and bug fixes without implementing large-scale feature additions to further merit such sustained cost increases. Advent could change this with a little effort, but historically it hasn’t been part of their agenda. Nevertheless, I still believe that Axys is the most cost-efficient and feature-rich portfolio management system available to investment advisors today.

Axys users need to remember that the name of the company is Advent Software, not Axys Software. They are a for-profit business, and that is a good thing for their customers in the long-term. From my limited knowledge and perspective, it does seem like a grossly disproportionate amount of Advent’s research and development efforts go into things that are not related to Axys. For an Axys user paying annual maintenance fees which hypothetically go to support, research and development of their product, this is problematic – especially if they rarely call Advent for support.

Advent has invested significant resources in APX, an enterprise product offering which is a possible upgrade for Axys users. In reality, APX currently doesn’t make sense for the vast majority of non-enterprise Axys users. In May, Advent finalized a deal to buy Black Diamond for $73M. Three months later, just how or whether Black Diamond will be integrated into Advent’s other product offerings remains to be seen.

Advent is not alone. Earlier this year I had a call from a prospective customer that was frustrated by Satuit’s pricing plan. After paying roughly $2K per year to use Packman to package their reports and host statements on their portal, they were told that pricing would increase 300% over the next three years. If I made that announcement, I know what would happen to my clients.

To be fair to Satuit, they gave their client a year’s notice of the increase – enough time for them to find and implement a suitable alternative. We have experience selling competing products, and we feel that Satuit’s product, originally from Lync Consulting, had been underpriced at $2K per year.  Unfortunately, their client got used to paying $2K a year and didn’t feel like they could stomach more than $6K per year, even though the cost was scheduled to increase gradually.  Regardless, my advice to this prospective client was to stick with Satuit for now, because the cost of switching from their solution to our solution would outweigh any benefit in terms of cost over three years.

Rational product pricing takes competition, expectations, value, ongoing support and profitability into account, but don’t expect to make any sense of pricing in the industry where “greed is good.” Investment advisors that really want to change the status quo should follow Gandhi’s advice: “Be the change you want to see in the world.” In order to make it happen, they need to be willing to take on a certain level of risk. If the last twenty years is any indication of what we can expect, don’t hold your breath on this one.

Most investment advisors will continue to get what they pay for in the foreseeable future.

About the Author:
Kevin Shea is President of InfoSystems Integrated, Inc. (ISI); ISI provides a wide variety of outsourced IT solutions to investment advisors nationwide. For details, please visit isitc.com or contact Kevin Shea via phone at 617-720-3400 x202 or e-mail atkshea@isitc.com.

Yesterday, I fielded a call from one of our clients that generates reports for several thousand accounts using our reporting engine.  As part of their reporting process, they extract data from Axys and import it into a database that facilitates data quality reviews and enhanced PDF reporting via Crystal Reports.

My primary contact at the site phoned me to let me know that part of our process, which took 20 minutes last quarter, was still running after two hours.  We immediately established a remote session to review the issue.   In the past, we have experienced some issues with individual PCs processing at slower speeds due to poor network infrastructure, but more recently this firm invested in better network hardware to support their rapidly growing business.

We play a limited role for this client and focus on their quarterly reporting and billing systems.  Though we are IT experts, it is not our responsibility to oversee and manage their IT infrastructure; however, at quarter end, a processing issue where systems are operating at a fraction of their normal speed rapidly becomes our problem.

I am very familiar with the bottlenecks that can slow Axys performance.   The most critical of these is network speed.  100MB Ethernet (full-duplex) is an older standard, and we still find it in limited use at many offices.  Gigabit Ethernet (full-duplex) is the current standard that should be in use by nearly all investment firms.  Theoretically, gigabit is ten times faster, but you won’t see that in practice.  You actually get six to seven times the performance of 100MB Ethernet with gigabit Ethernet over decent cabling.

Our system is normally connected to the file server that hosts Axys via gigabit network connections.  A quick check of the system revealed that it was connected to a gigabit switch.  We reviewed a few other things to make sure that there wasn’t a performance issue specific to our system.  Everything we looked at pointed to a problem with their environment.  I was fairly certain that, somewhere between our system and the file server hosting Axys, we were not connected at gigabit speed.  We still needed to identify where the breakdown was occurring.

My technical contact at the firm first assured me that all of the systems were connected to gigabit switches, and nothing had changed since last quarter.  We discussed the wiring of the network in detail and I was eventually able to find out that they had added a new Dell switch in the server room, but assured again that it was a gigabit switch.  I asked them to double-check the switch and let me know the model.

Though most of our own experiences purchasing equipment from Dell are good, Dell isn’t perfect.  Perhaps the Dell sales rep didn’t know one gigabit switch from another.  Our client thought they had purchased a managed gigabit switch where all ports were gigabit.  They had, in fact, bought and installed a 100MB managed switch with two gigabit uplink ports.   Further discussion revealed that the gigabit uplink ports were not being used either.

For those not familiar with network nomenclature, the primary switch to which all of your other switches, routers and servers are connected is considered your network backbone.  It is a best practice to implement a backbone that has throughput greater than or equal to that of the devices connected to it. 

When two network devices auto-negotiate to communicate with each other the maximum speed is usually the highest speed commonly supported by both devices.  Other environment specific issues, such as the quality of cabling between two devices, can further degrade the speed at which two network devices communicate.

In this particular case, our client had unknowingly installed a switch that was forcing all of their servers with gigabit Ethernet to communicate with the rest of the network using 100MB Ethernet instead of gigabit.  Users that were not connected directly to the backbone had a gigabit connection though another switch, and assumed that everything was fine.

The short-term fix for this client was to connect their file server hosting Axys to one gigabit uplink switch and use the other uplink to connect to their larger gigabit switches.  They also called Dell and had them send the right switch overnight, which they installed today.

Having an up-to-date network diagram is a best practice.  If you don’t have one, have your technical staff or IT provider create and maintain a network diagram documenting your systems, so you can proactively manage problems with network performance and reliability.

About the Author:
Kevin Shea is President of InfoSystems Integrated, Inc. (ISI); ISI provides a wide variety of outsourced IT solutions to investment advisors nationwide. For details, please visit isitc.com or contact Kevin Shea via phone at 617-720-3400 x202 or e-mail at kshea@isitc.com.

In an earlier blog I emphasized the importance of mainstream client reporting.  As investment professionals once again turn to the dreaded task of busily cranking out their quarterly reports, it is relevant to share the process we have established to help many of them transition from tired, stale reports to a new generation of client reports. 

In this article, I’ll take you through our process for overhauling client reporting drawing upon specific references to a recent project. Whether you opt to utilize a third-party service provider like us, request Report Writing services from Advent, or produce your next generation client reports internally, you should find the following information useful.  Those that want to implement new reports for Q3 or Q4 of 2011 need to start the process now.

Our Process for Improving Client Reporting

Our fundamental approach addresses the most difficult reporting issues first, identifying any show-stopping problems as early in the process as possible.  We are able to create reports using a number of techniques.  If one way doesn’t work, we can always fall back on another, but our goal is to select the right method from the get-go.

1. Review

In the review stage, advisors need to appraise their current client reporting packages with a critical eye in order to identify what is good and bad about them.  In a nutshell, investors must preserve what is highly valued by clients and remove what is superfluous. The ultimate goal should be to create concise, comprehensive reports that are easily understood, allowing clients to view as little or as much detail as they desire.  Many advisors want to create visually crisp and professional reporting packages.  We understand the importance of this;  however, in the area of client reporting, meaningful content should trump form.

Though we are available and qualified to review client reports and make recommendations for new ones, most firms prefer to do this internally. 

2. Mock-up

A new report always starts with an idea.  Oftentimes, this is shown with a mock-up expressing the look of the desired end product.  In some cases, our customers produce mockups in Excel, but others cut and paste pictures together, or simply sketch them freehand.  Any of these options are fine.  As they say, a picture says a thousand words:  the more detailed the pictures, the less you will have to explain to those writing the reports. 

Most clients have a strong preference as to whether reports appear in landscape or portrait. This aspect of your reports will be more expensive to change as you progress further into the project.  We understand that this decision may have more to do with aesthetic presentation issues, but some report layouts simply require more vertical space or horizontal space than others.  If you are dead-set on a certain orientation, you may need to be more flexible about report content.

Over the years, we have created a wide variety of quarterly reporting packages for clients. Some samples of our work that may help you with your mockup appear on our website under the menu titled “Custom Reports for Axys/APX.”  They fall into three categories:

1 – samples of reports produced by extracting data from Axys/APX and generating reports through traditional report writers like Crystal Reports and SSRS

2 – samples generated directly from Axys/APX through the use of compound report macros

3 – older samples of reports that were generated through a variety of methods

While browsing these above samples, click on any report to view it in larger size.

After viewing all of our online samples and PDF documents, our client produced the following mock-ups for us:

3. Draft

The draft process, as we define it, is one where the reports’ framework is established in the chosen environment.  Roughing out the reports helps determine their feasibility. In the attached example, we started by spending a day onsite, drafting the four account summary-type reports that were requested.   We used a combination of REPLANG, Report Writer Pro, and compound report macros. During this phase of the process, we are not overly concerned about individual details. Instead, we focus on the big picture. Is it possible to create the reports requested? What type of challenges will we face? What tools will be required? What resources, including time, will be required?

There are two possible outcomes to this stage:

  • Validation that the reports can be produced in the selected environment, as well as a better understanding of what they will look like and how much time they will take
  • A recommendation for another methodology, such as SSRS or Crystal Reports, based on the difficulties encountered in attempts to draft the basic report framework

After drafting the four requested summary reports, we were in a better position to estimate the amount of time necessary for development, knew what features would be difficult to implement, and were confident that we could deliver the reports on time.  Our client was also included in the process.  As we drafted each report, we sought their feedback to determine whether things were taking shape as intended.

4. Design

A significant amount of time needs to be spent in the design phase, selecting fonts, styles, colors, chart details, and other elements of presentation related to the reports.   Our client preferred to use the traditional Times New Roman font, but this font choice is one of the reasons most Axys and APX reports look so similar. We selected title bars rather than title boxes to give added flexibility regarding the placement and size of report elements.  Colors are very important. In the past, I have seen clients struggle to pick a palette of colors for charts and graphs. Our client picked vibrant colors that complemented their logo. If you are not already familiar with it, Adobe has a very useful and free resource that you can use to select a color scheme for your reports:

 http://kuler.adobe.com

As a general rule, one should complete design of the master page or default style for all reports before moving on to the next phase.  Report writers and developers are not necessarily graphic designers.  You can save your staff or vendor a lot of grief by having your color schemes selected and logos produced by professional designers.  In particular, your designer should produce images of the proper size, format and quality required.

5. Build & Test

We minimize formatting and style changes by beginning work in this phase only when a client has committed to a design specification.  Ideally, we wouldn’t make any changes to design once we have begun the build phase, but some customers change their minds between the design and build phases.  We also occasionally run into difficulties with pieces of the implementation process or come up with a better way to design something in the process of its implementation.

No matter how a report is created, the formatting of the first in a series of client reports to match the design layout is the most difficult.  However, once the initial report is completed, the rest of the reports come together much faster. The bulk of the time on your project will likely be spent on implementation.  This time depends on the number and complexity of reports you plan to produce, and the resources available.  It will likely take days, if not weeks.

In initial testing, we run reports for a small control group that represents the client’s various types of accounts. We also do a number of report runs for the full group of reports that will be run at quarter end. We find that doing full-scale tests is the best way to identify exceptions and deal with them proactively. As we find issues with individual reports, we apply fixes to address them, and must test again to validate the fixes.

In the example below, our client did a great job illustrating exactly what they wanted and let us focus on producing the report.

Account Summary Mock-up

The final report that we created based on our client’s mock-up shown above follows:

To see other samples of the final reports click here.

It took roughly 30 days to produce the final versions of our customer’s four account summary reports.  The customer was very engaged in the process and highly motivated, facilitating progress by providing quick responses to our questions.   Similar projects take 4-6 weeks, but could take significantly less time if you are working from established reports that just need modification.  You may remember that our initial draft took a day; we spent the rest of the time working on the more difficult aspects of the project.  Our summary reports brought data that needed verification into focus.  Based on exception testing and other issues, we made our final modifications to the reports’ appearance.

The project referenced in this article included new custom reports, quarterly packaging automation, integration of new custom reports, and conversion of legacy packaging to our new report packaging environment.  The project’s total cost was about 20k, nearly double what it would have been with our preexisting custom reports, but the only recurring cost is maintenance.  Many of today’s alternatives feature a sizable implementation cost and significant monthly fees.

Improving your client reporting is one of the most important things you can do to communicate more effectively.  Your next generation of quarterly statements should make it clear to your clients that you are investing in a process that directly benefits them.  If you do it right, you are bound to receive positive feedback from your clients once they have your new reports in hand.

There is no time like the present to start working on your next generation of client reports.

About the Author:
Kevin Shea is President of InfoSystems Integrated, Inc. (ISI); ISI provides a wide variety of outsourced IT solutions to investment advisors nationwide. For details, please visit isitc.com or contact Kevin Shea via phone at 617-720-3400 x202 or e-mail at kshea@isitc.com.

Earlier in the quarter, Advent Software announced that they would make all 62 catalog reports available free of charge to existing Axys users.  The reports are available from Advent’s connection website, and can be downloaded en masse.  Many of these reports will be useful to advisors, but the really good stuff – high-end custom reports – will still come at a cost, whether you get them from Advent or another vendor like ISITC.

Long-time Axys clients have been known to occasionally complain about a lack of recent and significant improvements to the Axys platform, so this move buys Advent relationship points at a very low relative cost.  Hopefully, this is a sign of more progressive client relationship building on Advent’s part, not a reaction to Axys clients saying, “What about us?”

Advent’s announcement also indicates that they will remove the ongoing maintenance fees associated with the catalog reports from their clients’ next invoice at the time of their renewal.  In speaking with one of my clients who renewed last week, we discovered that they had been charged for these reports.  Apparently, the onus is on Axys clients to double-check and make sure that any catalog report fees come off of their invoice.

In any event, Advent’s decision regarding their catalog reports is admirable, and bound to make Axys users smile.

About the Author:
Kevin Shea is President of InfoSystems Integrated, Inc. (ISI); ISI provides a wide variety of outsourced IT solutions to investment advisors nationwide. For details, please visit isitc.com or contact Kevin Shea via phone at 617-720-3400 x202 or e-mail at kshea@isitc.com.