Mar 12

Written by: Matt Abar
3/12/2008 1:22 PM

The Financial Advisor Magazine article that was written about FinFolio implied that we have a $500M minimum AUM (assets under management) requirement. That's not true, and I explained it poorly to Andy, which is how it got into the article.

We're developing a much richer feature set with FinFolio than what we had for Techfi. Examples of this functionality include more lot allocation options, current tax law that automatically detects and handles washes, qualified dividends, and constructive sales, as well as two-tier account tracking so you can store your system of record information and a client-facing data heirarchy for easy reporting and model management. And the biggest high-end "feature" is the open-source, open-architecture design of the software itself, which will allow sophisticated firms to use their own developers to build extensions and custom modules.

I think this type of rich functionality is desperately needed at the "large firm" level, which I defined for the article as >$500M AUM, but also could be set much lower. These are the firms that are trying to differentiate themselves from the competition with custom modeling strategies, branded reports, and proprietary interfaces with specalized custodians and products. These large firms typically have in-house technology people (or the resources to hire them) and will make use of the open-architecture nature of the software.

So when the $500M AUM level was bandied about, I was talking about our anticipated "sweet spot" in the market, not laying down a minimum assets under management level for future users.

Just wanted to clear that up.

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