- Naaz Scheik founded SoftPak to revolutionize financial technology software by providing intuitive and effective tools for portfolio managers.
- Initially focused on custom software, SoftPak has shifted towards full-scale software development to better meet client needs.
- Their flagship product, UREBAL is an award-winning portfolio rebalancing tool that utilizes a unique linear programming method to optimize accounts and enhance investment advisors’ performance.
In 1994, Naaz Scheik, Founder and CEO of SoftPak Financial Systems, launched the company with a clear vision: to transform financial technology software and empower portfolio managers with more intuitive and effective tools. As a former Quantitative Analyst at Wellington Management in Boston, Naaz saw firsthand the inefficiencies in portfolio management, risk analytics, and rebalancing.
Naaz holds a Master’s in Mathematics and Physics and studied at Tufts University and the University of Karachi. Using his strong background in mathematics and quantitative modeling, he built SoftPak to address these issues.
Under his leadership, SoftPak has grown to over 150 employees globally, evolving from custom software solutions to a range of products and consultancy services addressing complex portfolio management and risk analytics.
In a conversation with Mirror Review, Naaz shared, “During my master’s, I performed many intricate simulations in the field of computer sciences. Most of my knowledge comes from firsthand experiences using my strong foundation in mathematics and passion for quantitative modeling.”
MR: What inspired you to launch SoftPak Financial Systems, Inc.? Can you share the story behind its founding?
Naaz: Early in my career, I worked as a Quantitative Analyst at Wellington Management in Boston. During that time, I applied my knowledge of the financial industry to convert complex statistical models into computer programs. This experience sparked the idea for SoftPak, which I founded in 1994.
While at Wellington Management, I worked on several key projects, such as creating bond yield curves and ranking equities based on various fundamentals. After spending about five years in this field, I recognized a significant market demand for this type of work.
This realization motivated me to develop general-purpose financial software, which I started from my home office. Once I was satisfied with the software’s capabilities, I had it professionally designed. That draft became SoftPak’s first fintech product.
MR: What sets your portfolio rebalancing tool, UREBAL, apart from others in the market? How does it enhance investment advisors’ performance?
Naaz: Portfolio rebalancing is one of the most crucial tools for investment advisors today. While some Registered Investment Advisors (RIAs) rely on simple macros and models to rebalance their portfolios and manage assets, our Universal Rebalancer (UREBAL) operates on a much larger scale. UREBAL is designed to be more tax-aware and cost-effective than other solutions in the market.
What makes our approach unique is the use of a linear programming method, also known as the method of gradient descent. This technique optimizes accounts by continually swapping securities and evaluating the portfolio’s optimality, ensuring that we reach the most efficient and effective version possible.
MR: How did SoftPak evolve into full-scale software development, and how do you meet the unique needs of your clients?
Naaz: In the early days, whenever we installed newly designed software for a company, we quickly noticed that each client had unique setups and requirements. A key takeaway was their consistent request: “Can your software integrate seamlessly with our existing systems?” Whether it was performance management, training, or historical transaction systems, the need for seamless integration was always a priority.
This demand naturally led SoftPak to move more into full-scale software development. Over time, we also expanded our project management solutions. We started augmenting our staff with additional tools or even bringing in client-provided staff to meet their specific needs and help develop the software they require.
MR: How do you balance your passion for technology with overseeing various departments at SoftPak? Could you share how you manage these responsibilities?
Naaz: Personally, I consider myself a tech enthusiast. At SoftPak, we currently have four technology teams, and I make it a point to divide my time among all of them. Whether I’m brainstorming with the product development team, overseeing project management, or focusing on quality assurance, testing automation, and process management, I’m deeply involved in the technical side of our operations.
At the same time, the other departments, like business development and accounts, have their own dedicated managers who report directly to me. This structure allows me to stay closely connected to the technology while ensuring that all aspects of the business run smoothly.
MR: What challenges did you face early in your career, and how did you overcome them to ensure SoftPak’s success?
Naaz: One of the biggest challenges I faced early on was maintaining a consistent level of standards and coordination in everything SoftPak delivered. Since most of our clients are international, it has always been a priority to work effectively with their teams while staying productive, cost-effective, and ensuring high-quality assurance.
I’m proud to say that SoftPak has exceeded all expectations in this regard, as seen by our strong base of returning clients.
MR: How do you approach building and nurturing talent at SoftPak, particularly in supporting diversity and gender equality?
Naaz: I’ve been fortunate in this area. At SoftPak, I’ve always emphasized building a strong team from within by promoting talented individuals, both men and women. I make it a point to recognize and reward talent wherever it’s necessary.
In addition, I place a strong focus on training and development, especially for our female engineers. I believe that everyone, regardless of gender, should have equal opportunities to grow and succeed at SoftPak.
MR: What recent innovations have you introduced at SoftPak, and how do they reflect your company’s goals?
Naaz: One of our latest innovations is fully integrated software that works seamlessly with the Axioma optimizer. It’s similar to our managed accounts rebalancing software (MARS), which works with the Northfield optimizer. We believe this new product will be a major game changer in the fintech industry.
We’ve also recently launched Advisor Sketchbook in collaboration with Parti Pris. Our main goal now is to make a strong impact in the software development market and to clearly define our focus and vision with each new product we introduce.
MR: How do you maintain a healthy work-life balance, and what activities do you enjoy in your downtime?
Naaz: Maintaining work-life balance is all about focus. In my free time, I enjoy working out, playing golf, traveling, and indulging in my biggest hobby: hiking. Living in the US provides me with many great hiking opportunities. Of course, I also prioritize my day-to-day responsibilities as a father and a loving husband.
MR: What advice would you give to readers who are looking to build a successful brand or business?
Naaz: My key advice is to never cut corners. Building a successful brand or business requires hard work and dedication. Always be patient with your deliverables and ensure that everything you produce meets your high standards.
Ask yourself what value you are adding. Are you simply following the crowd, or are you creating something unique? And remember, never stop innovating. At SoftPak, we are constantly pushing the boundaries of innovation. For instance, as of 2024, we are exploring ways to integrate AI and neural networks into our existing solutions.
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