ASSET AND INVESTMENT MANAGER (AIM) A Bloomberg Trading Solutions Offering AIM OPERATIONS AUTOMATE THE POST-TRADE PROCESS

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1 A Bloomberg Trading Solutions Offering ASSET AND INVESTMENT MANAGER (AIM) AIM OPERATIONS AUTOMATE THE POST-TRADE PROCESS

2 Investment managers frequently operate dispa rate and costly solutions outside of their order management systems to maintain control over the quality and accuracy of cash and stock po sitions. External software solutions require com plex technology to gather and process data on stock and cash positions, and also require more functionality to address the causes of inaccu rate position data. In addition, the portfolio ac countants need to aggregate, value, and report on a firm s investments in an integrated way. Bloomberg provides a global solution to meet those needs. BLOOMBERG AIM For buy-side institutions, hedge funds and proprietary trading desks, Bloomberg Asset and Investment Manager (AIM) delivers global, multi-asset solutions for front-end portfolio, trading, and middle and back office operations. AIM CORE AIM Core includes portfolio, trading, and middle and back office operations features. For portfolios, you gain portfolio management tools, rebalancing, and P&L features. For trading, you gain cash management, trading risk, strategies, multi-asset order, and execution management, pre-, post- and end-of- day compliance, and audit trail. For operations, you gain trade matching features to manage connectivity to a range of electronic matching solution providers, including settlement notification, real-time settlement messaging, and settlement instructions support. AIM Workflow AIM OPERATIONS AIM Operations delivers middle and back office solutions to automate the post-trade process and support the flow of information throughout the portfolio, trading, and operations workflow. With AIM Operations, you can manage stock, cash positions, and transaction reconciliations that take advantage of SWIFT through the Bloomberg infrastructure. AIM Operations also provides the ability to bring back data directly from custodians and counterparties to compare against AIM data. This includes a rich set of solutions for complex operational problems revolving around corporate actions management, price discrepancy control, FX, matching, and commission tracking. Finally, because of the full integration of AIM Operations into the Bloomberg Professional service and AIM, changes and updates made in AIM flow real time to the reconciliation, portfolio accounting, performance measurement, and data aggregation and reporting tools. Updates to the security master are also reflected in real time, helping to minimize errors and delays. BLOOMBERG AIM OPERATIONS // 02

3 BLOOMBERG AIM OPERATIONS OFFERS THE FOLLOWING PACKAGES: STRAIGHT-THROUGH-PROCESSING (STP) PACKAGE The Straight-Through-Processing Package offers a post-trade connectivity solution to optimize your workflow. Settlement agencies and STP vendors require a variety of data items and configurations such as Standard Settlement Instructions (SSI) for custodians and counterparties or Broker Matching Groups. The STP package assists customers with the on-boarding and maintenance of these data items and configurations. SWIFT* through Bloomberg, providing hosted connectivity and outbound settlement messages to the major settlement agencies Managed implementation and ongoing support of OMGEO/CTM and SWIFT solutions Coordination of RMA key exchanges with custodians Assistance with completion of ETD questionnaires Entry of SSI for 50 custodians or counterparties Maintenance of SSI for an unlimited number of destinations Testing of each facility Requirement of client sign-off prior to go-live * Client has responsibility for SWIFT fees. RECONCILIATION PACKAGE The Reconciliation Package provides an automated and fully hosted workflow to compare position and transaction data from multiple sources, identify exceptions, and manage their resolution. Automatically collect and process position and transaction data Reconcile security and cash positions between any two sources Supports position breaks with transaction detail Fully integrates cash handling Supports all AIM asset classes Integrates with Bloomberg s security master; can map OTCs and custom identifiers Flags specific transaction types/asset classes for prioritization Supports complex and granular reconciliation needs with flexible chart of accounts Supports market value and accrual reconciliation Advanced exception management ownership, audit tools, and workflows including aging, severity, ownership, and audit Adapts to client workflow supports simple structures or can be set up to route positions based on asset classes or teams Integrates with AIM for break remediation from within REC Supports files in SWIFT, XML, and CSV formats Seamlessly integrates data with SWIFT* and AIM * Client has responsibility for fees paid directly to SWIFT. Outbound messages carry a charge from SWIFT that Bloomberg has no participation in. Inbound messages do not carry a charge from SWIFT or Bloomberg. PORTFOLIO ACCOUNTING PACKAGE The Portfolio Accounting Package produces GAAP and IFRS-consistent accounting results in real time based on activity booked in AIM and the Bloomberg Professional service reference data. It ensures all real-time and consistent data throughout a client s workflow. Fully integrates with the Bloomberg Professional service, Bloomberg Data License, and AIM Delivers a real-time and customizable general ledger, including a pre-defined chart of accounts, posting rules, general and subsidiary ledgers, and drill-through reporting capabilities Books activity on trade date and accounting date basis Provides comprehensive tax-lot accounting (including optional treatment for amortization) Delivers separate accounting for market and FX components with transaction and position P&L Provides full-entitlement processing (e.g.: accruals, earnings) Identify, research, and correct exceptions with exception and inquiry management Facilitate month-end close data integrity with account date locking capability Income Statement BLOOMBERG AIM OPERATIONS // 03

4 Balance Sheet BP40 Test Account Run Date: Sep 14, 2011 Assets Cost Market Unrealized G/L Cash & FX $144, $164, $19, Cash Equivalents $223, $223, $0.00 Receivables $12, $11, ($565.77) Investment Holdings Equities $18,472, $19,800, $1,327, Fixed Income $82,054, $83,657, $1,602, Derivatives $68, $64, ($3,489.18) Total Assets $100,976, $103,922, $2,945, Liabilities Short Cash & FX ($14,838.00) ($15,225.85) ($387.85) Payables ($452,787.60) ($404,800.13) $47, Cash Equivalents - Short ($3,204,555.78) ($3,408,922.89) ($204,367.11) Short Investment Holdings Equities ($21,650,785.60) ($16,250,314.76) $5,400, Fixed Income $0.00 $0.00 $0.00 Derivatives ($309,836.00) ($315,899.90) ($6,063.90) Total Liabilities ($25,632,802.98) ($20,395,163.53) $5,237, Equity Balance Sheet Paid-in Capital ($70,687,809.04) ($78,870,984.78) ($8,183,175.74) Retained Earnings ($4,656,095.48) ($4,656,095.48) $0.00 Total Equity ($75,343,904.52) ($83,527,080.26) ($8,183,175.74) Total Liabilities and Equity ($100,976,707.50) ($103,922,243.79) ($2,945,536.29) PERFORMANCE MEASUREMENT PACKAGE The Performance Measurement Package calculates returns based on Bloomberg or non-bloomberg data. Returns can be calculated over a number of different horizons and compared to benchmarks. Support multiple methodologies: Modified Dietz Daily, security level time-weighted returns, and periodic account level money weighted returns NAV Overlay Periodic at the account level Full asset class coverage for any instrument traded on Bloomberg AIM Full complement of performance reporting capabilities (drill through to performance returns relative to composites or benchmarks), extensive graphing, and time series analysis Extensive performance risk calculations (e.g.: Sharpe Ratio, Info Ratio, etc.) Automatic recalculation of historical returns as a result of backdated activity and pricing Brinson attribution (Q1 2013) at sector level relative to client benchmarks with Carino smoothing Performance Report TBA MORTGAGE PROCESSING PACKAGE The TBA Mortgage Processing Package delivers a fully integrated solution through a service bureau model that integrates an EPN (Electronic Pool Notification) connection directly into AIM. The direct connection between Bloomberg and the FICC network is an off-the-shelf solution that limits points of failure and reduces the need for manual entry. This ensures an STP process from TBA trading to delivering pools against open positions and settling allocations with banks and custodians. EPN automated turnaround message processing Automated pool Cancel and Correction processing Quick auto trade linking of all TBAs, including odd lot TBAs Automated TBA pair-off Message alerts on unprocessed EPN messages Exportable pair-off net-wire report (Excel and PDF) formats Pool optimizer Single or block level stipulation check on EPN message Electronic trading links with Bloomberg BBTM and Tradeweb platforms Real-time tracking of TBA positions and pool inventory Ticketing capability of TBA dollar-rolls, pair-offs, and trade assignments Trade blotter screen which shows TBA exposure by Broker or Account Reporting tool for TBA and pool exposure Service Level and Development Process Audit trail on EPN messages Fully dedicated trade desk for production support BLOOMBERG AIM OPERATIONS // 04

5 DATA AGGREGATION AND REPORTING PACKAGE The Data Aggregation and Reporting Package allows clients to flexibly load and report on data from both Bloomberg and non-bloomberg sources. It includes functionality which enables clients to customize the output and distribution of data themselves in real time. Bloomberg, client, and third-party data aggregated in one data model Multiple data types supported, including accounting, performance, analytic, and reference data Full-time series of all data is maintained Data available in both graphical and text formats via the Bloomberg Professional service, , and print Adobe PDF, Microsoft Excel, text, and HTML supported Multi-language reporting supported Report customizations made directly via the user interface and shared with other users Reports can be scheduled when data is available or at specific times, with schedules defined in the new wizard interface Extensive packaging of reports for delivery to clients of clients Fund Fact Sheet BLOOMBERG AIM OPERATIONS // 05

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