IBS Delivers Custom Reporting

Founded in 1987, Amsterdam-based IBS Vermogensbeheer (IBS) is a niche player in the Dutch asset management market. The firm is managed and owned by five partners and manages the Euro equivalent of $400 million for a clientele of charities, foundations, pension funds and individuals.

A key distinction of IBS is its innovative use of exchange traded funds (ETFs) to diversify portfolios among equities, fixed income and alternative instruments.

Background

Prior to December 2007, IBS was managing its portfolios with standard spreadsheet software, which limited the types of reports the firm could produce. IBS partners saw the need to reduce manual labour in report generation and wanted the ability to produce more customised reports, including performance measurement. The firm also needed to streamline the reconciliation process.

Solution

IBS selected Advent Portfolio Exchange® (APX) as its portfolio management platform. Having signed the contract in December 2007, IBS was able to produce all its Q1 2008 client reports with APX in just five days. Along with a broader range of standard reports and greater report customisation capabilities, the latest version of APX also incorporates performance analytic tools, which were attractive to IBS.

Benefits

The benefits included:

• Improved reporting capabilities with a wide range of standard reports plus customisation and automation capabilities
• Improved ability to measure, monitor and analyse performance
• Streamlined operations and account reconciliation
• Intuitive, easy-to-learn system for a fast implementation and smooth transition

IBS Vermogensbeheer (IBS) prides itself on being a firm that capitalises on innovation and employs innovative techniques involving ETFs or index trackers to deliver balanced returns for its clients.

It's no wonder, then, that the IBS partners decided they needed to take advantage of the latest offering in portfolio management technology.

IBS partner Rob Burgers said: Up until 2007, we used a homemade portfolio management system based on common spreadsheet software. We realised we needed a better system with the ability to create client reports with minimal manual labour and to create tailor-made reports. We also wanted to be able to generate extensive performance measurement reports.

In addition, IBS was looking for a way to streamline reconciliation with custodians and wanted the ability to consolidate portfolios.

The firm took the time to define its reporting needs and review its options carefully. Advent Portfolio Exchange (APX), the market's only fully integrated enterprise portfolio management platform incorporating client relationship management (CRM), received very positive references.

It offered the reporting flexibility IBS sought, as well as attractive bonus features like performance analytics. And, because of Advent's longevity and leadership in the business, the firm could be certain of support well into the future.

More detailed reporting, more quickly

IBS was quick to take advantage of APX's enhanced reporting capabilities.

IBS partner Sander Heemskerk said: The report database is quite large. We also modified some reports in the report writer.

IBS generates a wide variety of reports in APX, including allocations by category within different asset classes, geographic allocation, results year to date at the category and security level and performance versus benchmarks.

Not only does APX enable IBS to provide more detailed reporting to its clients, but it also expedites the delivery of reports with its Packager report automation feature. We can now send quarterly reports to our clients on the third day of the new quarter, Mr Heemskerk said. Our clients appreciate that.

Understanding performance

APX includes a number of features that improve a firm's ability to measure, monitor and analyse performance. These features allow managers to measure and report performance by individual security and custom classifications. A built-in performance attribution capability helps pinpoint the factors that have determined performance so managers can clearly understand and explain to clients the sources of performance down to the security level.

Mr Burgers said: APX helps us gain better insight into performance. That's one of the reasons we chose it. There are several standard reports that are very helpful for going deeper in performance measurement. The new analytics features help you see the difference between selection and allocation effects. Our clients appreciate the historic performance overview that APX provides.

Streamlined operations

Since implementing APX, IBS has noticed some significant operational improvements. Prior to the implementation, the firm reconciled accounts manually, which was laborious and time-consuming. APX has helped to automate the process.

We work with two custodians, Mr Heemskerk said. We built our own interfaces between them and APX. Now, importing transactions and doing the reconciliations takes approximately 20 minutes a day.

APX also enables the firm to import direct market data feeds and automatically update its portfolios. We have a Bloomberg interface, Mr Heemskerk said. Each morning at 5am the prices are imported.

APX was the first portfolio management solution to integrate CRM functionality to support client service and prospecting and to ensure consistency of client data throughout a firm's operations. IBS has gradually begun to take advantage of the CRM capabilities.

Mr Heemskerk said: We use CRM to administer our client contacts and prospects. We keep track of all client contact, whether through e-mail, telephone or face-to-face. Invitations for client events are also generated through the CRM system.

The firm anticipates greater use of the CRM capabilities over time.

Off to a fast start

Coming off an in-house system with little to no integration, IBS found the transition to APX remarkably smooth and easy. We had one Advent consultant in our office for one week for the implementation, Mr Burgers said. After that we worked with the system ourselves and had contact with consultants off-site using the Web-Ex application.

APX's browser-based interface is designed to be highly intuitive. IBS found its users were able to learn what they needed largely by using the system and its built-in help features.

We trained ourselves and that worked quite well, Mr Burgers said. The help function and manuals provide a lot of information.

When the firm needs help, however, Advent is there with support. Mr Burgers reports that the relationship was effectively handed off from the implementation consultants to Advent's support team with no problems. He credits Advent's people with building a foundation for a lasting relationship. The Advent consultants and support team are very professional and willing to help, he said. They helped us feel comfortable with the system in a short time.

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