from aggregation and accounting to portfolio management and client reporting
A Single System to Manage Complex Wealth
Account Aggregation
Data Operations
Investment Accounting
Performance Calculation
Portfolio Management
Client Reporting
How Does it Work?
Private Wealth Systems consolidated investment reporting and financial intelligence platform is comprised of a set of integrated proprietary modules that were each built to solve the structural problems that continue to plague legacy software systems and the global investment management industry; data, scale, security.
Proven: Better Data
A multi-billion, multi-national family office hired KPMG to perform a transaction level audit of their data on Private Wealth Systems. The audit proved that our platform systematically matched back to each original source system of record across custodians, managers, currencies and asset classes. Let us prove what our difference means to you.
Account Aggregation
While other systems are limited by the data they support, generating errors and omissions, Private Wealth Systems’ proprietary electronic data interfaces to major custodian banks around the world support 3x more data elements than other leading systems, delivering more data, that is more accurate, faster, at a lower total cost so your analysis, advice and decision making is based on the best data, regardless of custodian, asset class or global jurisdiction.
we maintain direct data interfaces into custodians and banks across the americas and europe to control data quality and security
We build our own direct data feeds so that we can customize the mapping and normalization to each custodial data source to support the most comprehensive set of data. Other aggregators with single classification rules will omit important data leading to errors in analytics and performance. For example, one of the largest aggregators only supports 18 transaction codes to major global custodians – our system supports over 190 codes – data matters.
total aggregation supporting every asset class and currency
We capture every transaction in its native asset class and currency for greater accuracy and faster processing for better decision making. From tax lot purchases and sales, capital calls, redistribution of capital, and accrued interest purchased to drawn downs, fees, interest pay down, and principal payments on loans, among 190 transaction codes, our system is the most comprehensive multi-asset, multi-bank, multi-currency aggregation platform.
true multi-currency aggregation to support the most complex global wealth.
As a transaction-based aggregation engine, our platform captures the trade, settlement, and base currency on every event to ensure the highest level of accuracy. Our multi-currency module supports 16 decimal points to eliminate the rounding errors that other systems produce. Users can select a reporting currency at run-time to analyze currency effect on their investments and balance sheet.
integrating your full balance sheet - we support private investments and non-financial assets.
In order to integrate the full balance sheet our system supports private investments including; private equity, hedge funds, venture capital, direct investment, real estate, private debt, loans, art, and collectibles. Our logic based transaction codes process every component of a capital statement to correctly adjust cost, cash, value, income, expense, and performance with a single entry, ensuring the highest level of data accuracy and operating efficiency across the industry.
no screen-scraping - direct data connections ensure personal privacy
Our proprietary direct interfaces into major custodial banks delivers the most consistent and secure exchange of data on an automated nightly basis. We receive transaction, position, cash, price, and account files via secure file transport protocols (SFTP) nightly. Since we are not a household-based system like other platforms we do not receive or require personal identifying information (PII) such as name, tax ID or address ensuring a greater level of data privacy.
Other systems only support unitized securities, forcing phantom price and shares for private investments resulting in increased operating costs and data errors.
Private Wealth Systems supports both unitized and non-unitized securities to eliminate phantom price and shares and ensure data accuracy with operational scale.
Data Operations
Because data accuracy is one of the greatest challenges in private finance, and remains an issue for every legacy investment software, we created a technology and service that goes beyond any other system and truly solves the structural issue to provide a consistent level of data that is accurate, comprehensive, and trusted.
beyond cash and shares - we reconcile on 2x - 4x more data elements to ensure the industry's best data
Private Wealth Systems daily reconciliation goes beyond the industry standard as we reconcile on cash, shares, market value, performance, accruals, flows, and cost, to ensure the highest level of trust. Industry Examples: one technology focused reporting system had an end-of-day price that was 18 months old resulting in material errors in market value and performance. Another reporting platform had price swings greater than 100% in a 3 day period generating serious errors in value and investment performance calculations.
custodian bank feeds have error rates up to 18% daily - we capture and correct those errors
Private Wealth Systems maintains a separate investment accounting ledger based on each transaction to match against each custodian and manager system of record on a daily basis. Any discrepancies between our ledger and the bank are researched and resolved so the data you see is the most current and the most accurate. Private Wealth Systems is designed to capture and correct custodian errors before you see them to avoid operational burden, eliminate reporting latency, and support better decision making
Examples –
- a custodian adjusted the cost of a client holding by $22 million in error.
- a global custodian mis-applied the currency exchange rate on a Yen/Dollar trade.
- a custodian in EMEA mis-priced 3 out of 5 currency forward contracts for a single account.
we have a multi-tiered entry and reconciliation process for private investments
Private Wealth Systems captures, reconciles, and calculates all transactions that occur in private investments, from commitments, contributions, and redistribution of capital to assigned market values, principal draw downs, and recalled capital to ensure all changes in cash, cost, value and performance are the most current and the most accurate. Any adjustments can be made and recalculated in real time, including estimated values with date and time stamps. Example, custodians will receive intra-month cash flows for private investments but won’t update market value until after month-end, providing several weeks of inaccurate value and performance. We eliminate this lag and error.
we built a proprietary accrual calculator because custodial feeds don’t support accruals
Private Wealth Systems is the only reporting platform with a proprietary accrual calculator that systematically supports all 13 day count basis, ensuring the most accurate total market value and performance calculation for all fixed income, equities, and loans across all global jurisdictions on a daily basis. Because accruals are part of total market value and changes in total market value is how you calculate daily time weighted returns, if your system doesn’t calculate accruals, correctly, daily then you will have errors in value/exposure and performance returns.
we combine cash movement with the underlying transaction to drive meaningful operating efficiency
Our system automatically associates the cash with the security under a single transaction ID to eliminate orphan cash or securities. For example with a cancel – correct order our system allows you to make the correction using a single entry as opposed to searching for the security separately from searching for the cash transaction, generating meaningful efficiencies and scale.
Investment Accounting
Private Wealth Systems unique data model, which won an innovation award in 2019, offers the advantage of having the data integrity of a general ledger accounting system with the flexibility and control of a reporting system so you can structure, group, classify, and format your data any way you want for better and faster analysis and reporting for improved decision making regardless of instrument type, global jurisdiction or complex ownership structure.
view wash sales across managers, entities, and accounts, eliminating the risk of substantial IRS penalties
Private Wealth Systems captures every transaction for every security allowing you to see tax-lot level realized and unrealized gains and losses across all of your accounts, entities, and managers to see any potential wash sale violations before they happen. We also support dual listed securities for transparency across global stock exchanges.
our logic-based transaction codes drive hyper efficiency and operating scale for private investments
Private Wealth Systems’ logic-based transaction codes allow you to easily adjust cost, cash, market value, and recalculate performance for private investments with a single transaction code, driving meaningful operating scale.
we apply corporate actions globally on the effective date to eliminate errors in exposure, performance, and accounting gain / loss.
Unlike other systems that rely on single custodian application of corporate action events, Private Wealth Systems applies corporate action adjustments globally on their effective date. For example if you own 1,000 shares of U.S. based IBM across 4 custodians and IBM spins off NewCo in the U.K. effective today Private Wealth Systems will adjust your cost, quantity, and market value for IBM, NewCo, U.S. Dollars, and Pound Sterling so you have immediate understanding of your exposure, performance and investment gains across all custodians, countries, and currencies.
our partnership accounting automatically adjusts partner level ownership based on flows
Private Wealth Systems automatically adjusts cost, market value, and ownership percentages based on contributions and distributions from the partnership or nested ownership structure. You can analyze and report at the partnership, partner or holding level.
as a true multi currency platform we support multiple base currencies for the same portfolio
Private Wealth Systems supports multiple base currencies and normalize all cost, value, flows, and performance across reporting currencies. As a global investment accounting system that supports every component of every transaction in every asset class and currency we capture the exchange rates for trade/local, settlement, and base currencies for each transaction supporting all 16 decimal points to avoid generating rounding errors.
we support tax lot relief methods at the account and transaction level to provide accurate realized gain / loss analysis
Private Wealth Systems supports multiple tax lot relief methods including; FIFO, LIFO, High Cost, Average Cost, Pro Rata, Specific Lot, and other methods. Our system supports the tax lot relief method for the account as well as for each individual transaction to ensure the most accurate realized gain / loss reporting.
Perfomance Calculation
Private Wealth Systems ensures the most accurate performance calculation our platform provides true daily time weighted returns (DTW), not modified dietz, and internal rate of returns (IRR) across; tax-lots, contributions, securities, accounts, managers, asset classes, sectors, currencies, countries, and custom groupings. Our proprietary accrual calculator ensures accruals are calculated correctly each day based on instrument and jurisdiction for the most accurate total market value and thus the most accurate performance. Our IRR calculation takes fewer iterations than Microsoft Excel and has proven to be more accurate.
Portfolio Management
Private Wealth Systems: our platform supports every asset class, from equities, fixed income, and derivatives to private equity, hedge funds, and currencies, providing instant access and analysis to drivers of risk and return. Our industry-first data model allows each stakeholder to classify and structure their data any way they want for faster and more personalized analysis and decision making.
reduce your technology costs with a single platform that supports the most complex investments portfolios and balance sheets
Private Wealth Systems is a single multi-asset, multi-custodial, multi-currency portfolio management and accounting system that supports every asset class, from equities, fixed income, and derivatives, to private equity, hedge funds, real estate, to give immediate analysis on tax-lot level exposure
increase personalized engagement with custom classifications for each stakeholder
Private Wealth Systems delivers unprecedented control by empowering you to create custom attributes at the individual holding level under any account. This means two members of the same family can have opposing views on a security and our system supports those views for personalized analysis, reporting, and management. Of equal importance this is accomplished with a single security master to ensure the integrity and accuracy of the data. Is Apple socially responsible? Is Amazon retail or technology? Only you can answer what is right for you. Read more (link to my blog post on SRI)
view and analyze your net hedged exposure regardless of asset class or currency
Private Wealth Systems portfolio manager allows you to associate a derivative instrument(s) with its underlying position to see gross and net hedged exposure for better risk management.
manage even the most complex entity structures quickly and easily
You can easily create and view portfolios across complex entity structures. Our platform maintains a complete time series tracking all changes in ownership over time.
Portfolio Hierarchy
Client Reporting
our award-winning reports have been called the most visually engaging and design-forward in the industry. We view design as a way to communicates complex information in the most intuitive way. However design alone does not meet the industry need which is why our proprietary report builder allows each individual to see the information they want, structured, and formatted the way they want for personalized engagement.
our data model empowers you to see the information you want grouped the way you want
Private Wealth Systems is table-based and does not have fixed hierarchies for reporting. This allows you infinite flexibility in creating report groups that consist of any combination of accounts, entities, and holdings so each user can see the information they want, structured the way they want, classified the way they want.
faster reporting - quickly run any report with stored performance, benchmark weightings, and classifications
Private Wealth Systems calculates and stores performance, benchmark weightings, and security classifications each night to ensure the fastest response times in the industry for generating reports. Our system also runs intra-day calculations every ten minutes to ensure any incremental changes or updates are captured and processed to maintain the highest level of data accuracy.
eliminate hard coded report structures with the industry's most flexible data model
Private Wealth Systems award winning report model is unique because it dynamically builds reports based on attributes and levels, not on pre-defined hierarchies and classifications that are fixed and rigid, allowing for real-time personalized configurations for securities, accounts, entities, portfolios, managers or any custom grouping for each individual stakeholder delivering truly personalized engagement at mass-scale. Client configurations are fast saving you time and money.
personalize data for each stakeholder without creating multiple security masters
Private Wealth Systems data model is a true industry-first, allowing for mass personalization with global scale. Users can create custom classifications at the individual holding level under different accounts with associated ownership IDs which allows us to maintain a single security master but with individualized classifications for each stakeholder. Other systems can support custom classifications across a firm or family but not at the individual holding level with a single security master.
access to a full report library or customize any report
Our report library includes templates for allocation, performance, gains / losses, derivatives, balance sheet, and dashboards. You can select from a pre-defined report or customize any report to see the information you want.
Client Portal
our secure, point-click client portal is designed to provide simple, context-based navigation so wealth owners and advisors can easily gain oversight over the most complex global wealth.
personalized configuration for individual experiences
Your portal is designed for you so you can see the information you want, when you want, grouped, structured, and classified for you.
the first personal financial management (PFM) tool for ultra high net worth investors
our portal supports the most complex wealth, from complex entity structures and sophisticated financial instruments to multiple manager analysis and global allocations, you will have the key performance indicators (KPIs) you need to gain control.
data security and privacy is our strength
In our industry data privacy is a matter of life safety. Our cyber and operational security controls have been audited and approved by several financial services companies in the americas and europe. From multi-factor authentication, encryption at rest and transit, and continuous application scanning to data leakage prevention, network scanning, and private network infrastructure we maintain one of the highest levels of investment in data privacy throughout the industry.
our client portal is part of our core platform so all enhancements made to our platform are available in our portal
Our Solution
Private Wealth Systems portal is the same code base as our accounting, portfolio management, and client reporting platform. This allows users to immediately benefit from new features and updates made to other parts of the platform, and supports far more data than other systems that require integration with third party systems.
Ready to get started?
Private Wealth Systems is a global financial technology company that is solving the financial industry’s structural challenges of data, scale, and security in order for those who manage complex investment portfolios to have the information they need to make the most informed decisions. The Company’s private cloud suite of multi-asset, multi-manager investment software includes account aggregation, data reconciliation, performance calculation and client reporting that supports even the most complex global balance sheets.