update on rebalancing software: tamarac

Tamarac Overview T3 Conference: Update on Rebalance SoftwareFebruary 27, 2009

Who we are

Leader in Portfolio Rebalancing Software and Services

• More RIA clients / assets than any other rebalancing system

• 265 client firms, increasing monthly

• Firms of all sizes ($25 million to $10 billion in AUM)

• Supports virtually all securities types and investment approaches

• Web based, SaaS business model

• Renewal rate exceeds 95%

Tamarac Overview2

What we do

Tamarac enables advisory firms to increase profitability by automating critical operational functions

1. Portfolio monitoring

2. Rebalancing and cash management

3. Tactical trading

4. Tax management / loss harvesting

5. Trade order reconciliation and archiving

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Firms want to increase firm productivity and profit margin (especially today)

• Average Tamarac client sees 50% - 75% productivity increase

• Makes firm more scalable, more profitable and more competitive

• Increases compliance, minimizes human error

• Centrally stores important data and processes (models, rules, trade history)

Advisors want to serve their clients more effectively

• Apply a consistent portfolio management methodology to each client

• Manage more accounts with fewer resources

• Execute trades (incl. block) at the same time and price across accounts

• Focus on higher-value-added activities (client meetings, research, etc.)

Tamarac Overview

Why automate rebalancing?

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Tamarac serves advisory firms of all sizes and types

• Average Tamarac firm manages $300 million AUM (median $200 million)

• ~50 Tamarac firms manage over $500 million AUM

• Passive and active investment styles (equities, funds, bonds, alternatives)

• Advent, PortfolioCenter, Etelligent, dbCAMs+, Thomson, Black Diamond

Tamarac Overview

Tamarac clients

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Tamarac is committed to the SaaS business model

• High-value-added software must be continually supported and enhanced

• This is why SaaS firms charge recurring annual fees

• Tamarac re-invests ~50% of revenue into Development and Support

• Majority of Tamarac staff is in Development (12) and Support (10)

Tamarac clients benefit from these ongoing investments

• Formalized implementation process supported 18 new firms this month

• Tamarac University, Consulting Services, Help Center, User Conference

• Monthly feature enhancements (incl. webinars and online tutorials)

• 97% renewal rate, average contract term exceeds 3 years

Tamarac Overview

Software as a Service (SaaS)

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1. Compliance functionality

• Filtering capability for continuous compliance monitoring

• Multi-level trade approvals and customized roles/permissions

• Trade order reconciliation and archiving

2. Implementation process

• Process can support over 15 implementations per month

• Tamarac University for new and existing clients

• Consultative onsite implementation option

3. Tax-Managed Indexing (TMI) to run passive SMAs in-house

• Attract high net worth clients

• Run internally rather than outsource to subadvisors

• Significantly lower cost

Tamarac Overview

Facts you may not know

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Tamarac’s advantages are the result of a sound business approach

• Web-based, zero IT / hardware footprint, scales to multiple locations

• SaaS business model (monthly feature enhancements, ongoing service)

• Largest client community (100 advisors at 2008 User Conference)

• More established integrations (PMS, service bureaus and custodians)

• Professionally managed company, scalable business practices

• Tamarac team comes from industry leading firms (below)

Tamarac Overview

Why Tamarac is Different

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Tamarac Overview

Tamarac User Interface

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Booth #9 in the Exhibit Hall Please visit us for a product demonstration

www.tamaracinc.com