Charles River Development

PRODUCTS

SERVICES

Performance

Manager

Compliance

Trader

Post-Trade

Network

Managed

Client

Charles River Investment Management System

Overview
Charles River Development is a front- and middle-office investment management software solutions provider for hundreds of buy-side firms worldwide.
The Charles River Investment Management System (Charles River IMS) is a multiasset class, multi-currency software solution that provides complete straight-through processing on a single, consolidated platform. Offered individually or part of a tightlyintegrated suite, Charles River IMS modules automate: decision support and portfolio management; pre-trade, in-trade (at any stage of the trade cycle), post-execution, and end-of-day compliance; order management, electronic trading, and execution management; post-trade matching and settlement; and performance measurement, attribution, and performance risk. Additional components include the Charles River Anywhere browser-based workstation, the fully-integrated Charles River Network for global electronic trading via FIX (Financial Information eXchange) and Charles River TBA for complete automation of TBA processing. Charles River IMS open, standards-based, service-oriented architecture (SOA) and modern technology support very high trade volumes and throughput. The system is highly configurable and easily integrates with external systems. Its customizable user-interface improves efficiency and streamlines exception-based workflows. Charles River commits one-third of annual operating expenses to research and development delivering flexible solutions to support requirements such as high volumes for large firms and scalability for smaller firms. Hosted Application Management and Application Management solutions offer infrastructure and application management for Charles River IMS. Additional Client Services range from initial implementation through ongoing 24 x7x 365 support.

MULTI-ASSET CLASS SUPPORT

Equities Fixed Income Rate and Credit Derivatives Foreign Exchange Options Commodities Futures

Charles River Investment CHARLES RIVER INVESTMENT MANAGEMENT SYSTEM Charles River Performance
Performance Measurement Attribution Performance Risk

Management System Charles River Trader

Order Management Execution Management Electronic Trading

Charles River Manager

Decision Support Portfolio Management Model Management

Charles River Compliance

Real-Time Compliance Monitoring

Charles River Post-Trade

Trade Operations Trade Communication Settlement

Charles River Anywhere Charles River Network

Real-time Web access to monitor and manage Charles River IMS information

Connectivity to broker/dealers and other trading venues for electronic trading via FIX

Charles River Managed Services

Fully managed services for data and hosting and application management

Markets
Charles River IMS meets the unique and shared requirements of both large and small organizations. Diverse institutions can use the system across multiple markets, while addressing specific demands of individual market segments.
Institutional Asset and Fund Management

Alternative Investment Management

Support derivatives, including: IRS, CDS, swaptions, CLNs and TRS Baskets Identify market movements and trends; track strategies and sub-strategies Assess potential trade risk exposure and impact in real-time Calculate P&L in real-time throughout the trading day

Seamless integration with

third-party systems: customer relationship management, accounting, market data, pricing, counterparties and others

Import or create indices, benchmarks and single- or multi-tier models for fund characteristics and analytic comparison Calculate and monitor pre-/post-trade exposure to any asset class, including derivatives Ensure enterprise-wide, real-time pre-trade, in-trade (at any stage of the trade cycle) and post-trade compliance Support GIPS composites for performance reporting Construct and implement investment models across one or many investment teams Monitor and comply with a wide variety of country-specific regulatory guidelines Automatically rebalance index tracker funds and thousands of accounts to ensure they are within fund parameters

Insurance

Handle generic or characteristic-based orders Monitor and comply with select country and US state-specific insurance guidelines Calculate and import real-time fixed income analytics from a variety of sources for comprehensive portfolio analysis Generate end-to-end audit trails and comprehensive trend analyses

Pension Funds

Consolidate holdings and security data into a single decision support tool Monitor compliance across groups, accounts, sub-accounts and sub-advisors Quickly view trade status via real-time data changes View investment in Fund of Funds and Manager of Managers structures

Access hundreds of global liquidity venues, trading strategies,

broker/dealers, algorithmic offerings, block trading desks, equity, fixed income and FX trading destinations via the integrated Charles River Network

Wealth Management/Trust

Manage high volumes of high net worth, SMA, UMA and UMH accounts Construct characteristic-based allocation models and custom benchmark portfolios Ensure tax-efficient portfolios and tax optimization across households Manage portfolio, compliance, trade and post-trade activities via browsers Customize portfolio-, household-, and family-generation-oriented views Centralize maintenance of all underlying performance data in a single system Browser-based delivery to portfolio managers, advisors and assistants

Fund Administration/Custody

Check compliance as of any historical date View historical compliance concentrations for trend analysis Access daily performance measurement, attribution and performance risk data via a single consolidated system Run daily attribution by asset style, such as fixed income duration, convexity, spread Track shareholder disclosure reporting rules Monitor compliance results through browser-based Charles River Anywhere

CHARLES RIVER CLIENTS

300+ clients
in over 35 countries
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Charles River Manager

ADVANCED CAPABILITIES

Charles River Compliance

Charles River Compliance automates the compliance workflow and provides centralized, real-time compliance monitoring and management.
Charles River Compliance provides advanced compliance rule building, testing and maintenance, customizable reporting and a complete audit history. A powerful data administration facility helps monitor and improve data quality. The modules highlyscalable compliance engine supports very high volumes of trades, compliance rules, accounts and groups of accounts. Key Benefits

Cross-Module Integration Strategy Management Investment Switching/Targeting Cash Invest/Divest Scenario What-If Analysis Tax-Loss Harvesting

Charles River Manager consolidates all portfolio management activity into a central workspace with top-down asset allocation, model building tools and visibility of trade execution.
Charles River Manager brings all holdings and order-level information into a single workspace that users can configure and save as their default window. The module allows users to manage groups of portfolios, track orders on the trading desk and monitor and manage cash in a single window eliminating the need to switch between screens. Using extensive tools to monitor real-time exposures, order execution details and performance measurement and attribution, users can create and implement investment strategies across one or many portfolios. Charles River Manager integrates data and analytics, and interfaces seamlessly with third-party systems, data warehouses and pricing feeds. Key Benefits

ADVANCED CAPABILITIES

Historical Trend Analysis As Of Compliance In-Trade Compliance Risk Premium Exposure Calculations Compliance Calculation Builder Compliance on Models

Validate compliance results anytime: pre-trade, in-trade (at any stage of the trade cycle), post-execution and end-of-day Streamline workflows by incorporating compliance rules into what-if analysis Re-run compliance as of any historical date Reduce risk and resolve issues with an end-to-end audit trail Generate compliance trend reports to show the calculated value for certain compliance rules over time Monitor substantial shareholder disclosure regulations Maintain compliance tolerance levels for portfolio rebalancing models Calculate and monitor gross or net exposures to any attribute, such as: country; issuer; currency or counterparty Remotely monitor and manage pre- and post-execution compliance issues, and respond to alerts and warnings with the optional Charles River Anywhere workstation

Support multi-manager or team-managed funds, global asset allocation, and wealth management products (SMA, UMA, UMH) Monitor multiple portfolios simultaneously in user-defined views Rebalance one or more portfolios to models or individual benchmarks to align positions, generate cash instructions for asset allocation, or adjust new cash inflows Create trades using various methods, such as: indices; stock/category level models; cash investing, raising or switching; weight or duration targets Conduct hypothetical what-if analysis and determine risk impact Assess P&L in real-time via market data or pricing feeds

Manage one or more portfolios and related trading activity from a single, easy-to-configure, customized layout. Perform what-if analysis including variance from index/benchmark, and change in weighted average analytics and cash.

1,700+ compliance rules

across 35 regulatory bodies of 20 countries
Configurable, central compliance workspace to monitor and manage all compliance and data issues including alert history and resolution.

Charles River Trader

EMS CAPABILITIES

Charles River Post-Trade

Charles River Post-Trade centralizes confirmation, trade matching, and settlement instruction workflows and automates the posttrade process.
Charles River Post-Trade automatically routes orders and allocations to appropriate counterparties and ensures central or local matching via rules-based functionality. Exceptions can be centrally managed and trades quickly confirmed/affirmed in most cases by T+0 (same day). The module also has embedded support for settlement instructions and supports standard notification protocols, formats and methods. Key Benefits

Algorithmic Trading Program Trading Real-Time Data Watch Lists Interactive Level I, Level II Display Integrated News Integrated Pre- and Post-Trade TCA Real-Time Implementation Shortfall Trade Analytics Direct Market Access (DMA) Smart Order Routing Extensive Customization Options

Charles River Trader provides order placement, execution, allocation and trade processing.
Charles River Trader offers full order and execution management to help traders generate Alpha by monitoring the market, executing trades and measuring broker effectiveness. Via a single system, traders gain faster and more complete visibility into the market. Charles River has integration with more than 150 trade and liquidity platforms and 440 global Charles River FIX Network Brokers. Interfaces with over 40 algorithmic brokers gives users access to 500 global and regional algorithms. Key Benefits

ADVANCED CAPABILITIES

Omgeo CTM Direct Interface, supporting the latest CTM Broker enhancements FIX 4.2 or 4.4 allocation messaging, integrated with rule-based local tolerance matching Omgeo TradeSuite confirm/affirm workflow, integrated with rule-based pairing and matching Local match/affirm with any destination MarkitSERV interface supporting novated and terminated swap contracts ISO 15022/SWIFT for custodian notification

Manage trade execution strategies Eliminate need to manage multiple systems or re-key critical information Streamline complex workflows into one-click execution Act on an entire program as if acting on a single order Monitor market data and security updates for active orders, in real-time Easily add new brokers and strategies Trade in real-time via FIX through the broker-neutral Charles River Network Synchronize all multi-monitor displays to order touched

Route individual orders and allocations to proper destinations in real-time Ensure consistent, real-time views of post-trade activity and data by all parties Personalize views and alerts to manage by exception Automatically notify venue or counterpaties of a cancel/rebook Maintain all reference data and define/maintain settlement instructions in a single location Setup and manage matching rules and tolerances to automate local trade matching

full order and execution

management

Traders can highly customize their Trader Blotter to display all necessary trade information on one screen, such as watch lists; market depth; time and sales; pre-trade TCA and real-time pricing. This allows traders to quickly move in and out of markets with minimal keystrokes.

Manage exceptions and view order- and allocation-level post-trade matching details in the Trader Blotter.

Charles River Performance

ADVANCED CAPABILITIES

Components
Charles Rivers optional, fully-integrated components offer enhanced functionality and efficiency over maintaining multiple applications.

Methodology configuration at system, account or report levels Daily security level performance roll up for any asset type to any level Performance reporting in any currency Daily attribution by asset style, including fixed income duration, convexity and spread effects Ex-post risk measure calculations and reports

Charles River Performance provides real-time performance measurement, attribution and performance risk analysis and enables GIPS compliance.
Clients can directly access all Charles River Performance return, contribution, attribution and measurement data for each portfolio, for a variety of timeframes and user-defined classification levels. Clients can also perform backward looking performance analyses for any historical time period, on any account and any number of variables including weightings, contributions, returns, attribution effects, and risk. Key Benefits

Charles River Anywhere

Charles River Anywhere is a browser-based workstation that allows Charles River IMS users to securely manage and monitor portfolios, compliance, trades and post-trade information in real-time. While any user can leverage the component, it is designed for financial advisors, executives, compliance officers and others who may need to quickly monitor and manage information from the field. Key Benefits

Easily configure the dashboard to display information in text, chart

and/or graph format

Select different methodologies on the fly and recalculate results in real-time Eliminate the need for data consolidation across the components Combine investment reference data with end-of-day warehouse and accounting data for analysis View results in the Manager Workbench or via Web-enabled reports Define and maintain composites with their underlying portfolios Define footnotes for composite reporting Back-test performance impact of hypothetical trades

Construct characteristic-based allocation models and custom benchmark portfolios Customize portfolio-, household- and family-generation-oriented views Capture multi-manager, multi-sleeve or multi-discipline targets for UMA accounts Rebalance portfolios to ensure compliance with model targets Ensure tax-efficient portfolios and tax optimization across households Submit and track trades through execution View top holdings based on the latest trade and valuation data Monitor and manage cash Manage and monitor pre- and post-execution compliance issues Monitor and manage post-trade orders and allocations status

Charles River TBA

Charles River TBA offers complete automation for To Be Announced (TBA) mortgage pool processing. Users can create initial TBA buy or sell orders, including any associated stipulations, without re-keying data. The system automatically updates open TBA positions in real-time, as transactions occur, such as: full and partial pool assignments, pair-offs, turns and forward rolls, including fee rolls.

Receive electronic pool delivery via Electronic Pool Notification (EPN) or EZ Pool

Verification for both standard good delivery rules and STIP overrides Optimization for prioritizing available inventory to fulfill TBA sell transactions using a variety of available data options Automatic processing of pool messages and matching algorithms against open orders Certified interface with FICC with exception handling and failover capability

Customize individual views by selecting columns with desired timeframes and adding dynamic grouping and sorting options.

Services
Hosting and Application Management Services increase efficiencies and reduce operating costs

Charles River offers comprehensive services which complement its products, and ensure successful deployment and ongoing support.

Charles River Data Service

The Charles River Data Service is a fully-managed data source for Charles River IMS clients. The service offers aggregated and scrubbed batch reference data from a variety of data providers and clients receive data updates based on their business requirements. Charles River manages the vendors, interfaces, mappings and formatting and supports new security set up via a highly available 24x7 data center with full Disaster Recovery.

Fully-managed data updates

include security reference, pricing, benchmark and issuer data

Hosted Application Management and Application Management

Charles Rivers Hosting and Application Management offer cost effective options for application and infrastructure management. Hosted Application Management is a fully-outsourced application and infrastructure solution in Charles Rivers highly secure, Tier One hosting center. Alternatively, clients can leverage in-house infrastructure and security with the Application Management solution, while Charles River manages the Charles River IMS application.

Charles River Network

The Charles River Network is a broker-neutral financial network that supports global electronic trading via FIX and provides access to hundreds of global liquidity venues. Full integration between the Charles River Network and Charles River IMS ensures fast and reliable direct access between buy-side clients, sell-side brokers and trading venues to simplify system management and improve trading reliability. Charles River FIX Network Services offer clients complete FIX software administration, connectivity management and support for each sell-side broker and trading destination. These services eliminate FIX network administration and increase network reliability through continuous end-to-end testing, certification and monitoring. Key Benefits

Connect via dedicated telecommunications infrastructure

or Virtual Private Network (VPN)

24x7x365 global support

Application Management Premium Application Management Hosted Application Management Physical, network and system security SAS 70 Type I and II certied Backup services including off-site storage N+1 design hosting centers Encrypted Internet client access Hardware performance tuning, maintenance and support optional optional optional optional optional Charles River software patch support User administration Application and database performance management Change management Software performance tuning, maintenance and support Automated production processing management and support Automated application availability monitoring Proven Disaster Recovery capabilities Network connectivity options optional
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Select and send orders to brokers, ECNs, ATSs, fixed income and FX venues Monitor FIX Indication of Interests (IOIs), fills, real-time pricing, trade and end-to-end connectivity status Leverage over 500 algorithmic trading strategies from over 40 algorithmic brokers

Client Services
Charles River offers a multi-layered services approach from initial implementation through ongoing support of Charles River IMS. In addition, Charles River supports clients through events, communications and an online Client Portal which provides up-to-date information on products, services, news, events, forums, technical support cases and training.

Our Client Services experts each have at least 10 years of industry

experience

Implementation Services provide the tools, product knowledge and proven methodologies for successful system deployment. Each implementation is customized to the clients unique needs based on the environment, available resources, budget and overall goals. Relationship Management serves as the clients Charles River liaison. Once a client is live on the system, a Charles River Relationship Manager keeps clients informed and solicits regular feedback. Technical Support executes Charles Rivers follow-the-sun approach that provides prompt 24x7x365 support. Certified specialists in Boston, Beijing, London, Melbourne, Singapore and Tokyo help clients accurately identify and resolve issues. Consulting Services offer in-depth project expertise, including: compliance rule set up and optimization; system and performance tuning; and systems integration. Educational Services offer a curriculum of 15 core classes. Instructor-led courses provide extensive hands-on training at clients sites and Charles Rivers facilities.

optional

optional

Charles River software Like-for-Like version upgrade support

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Architecture
Operate 24 x7 across regions and run
multiple, regional imports, exports and end-of-day processes

About Charles River Development

Founded in 1984 and privately held, Charles River Development is a front- and middle-office software solutions provider offering automated decision support, portfolio management, compliance, order and execution management, post-trade processing, and performance measurement, attribution, and performance risk. Charles River serves more than 300 clients in over 35 countries representing the institutional and fund management, wealth management/trust, alternative, insurance, pension fund and fund administration/custody markets.
LOCATIONS

Charles River IMS architecture consists of both Windows and Web portal clients, a Java middle-tier and back-end database.
This open, standards-based, service-oriented architecture provides connectivity, scalability, low latency and speed for real-time order management and execution. Charles River IMS modern technology is easy to manage and maintain and highly compatible with client environments. The system can be deployed as a full desktop application or via the Charles River Anywhere Web portal. The desktop application consists of a Windows graphical user interface that was developed using Microsoft .NET and C# and works with standard automated installers. Charles River Anywhere operates in standard Web browsers and is deployed as a separate portal server. Both the desktop application and Charles River Anywhere make use of Charles Rivers Web services and real-time event notification architecture. Communication to the desktop and Charles River Anywhere is conducted over standard HTTP or HTTPS and can be easily deployed over wide area networks. Charles River IMS Java-based middle-tier can be configured to have multiple instances of each of the three main middle-tier components. Charles Rivers technology platform includes message-based APIs and exposed Web services to create seamless, real-time integration with internal and external systems: back-office, data warehouses, message hubs, settlement facilities and custodians.

Boston (Headquarters) Beijing London Melbourne New York Paris So Paulo Singapore Tokyo Local presence in all other major financial centers worldwide

Clients by Region

Americas 64% EMEA 22% APAC 14%

Clients by Primary Business

Alternative Investment Management 16% Banking 12% Fund Administration/Custody 5% Institutional Asset and Fund Management 34% Insurance 12% Pension Funds 4% Wealth Management/Trust 17%

PRODUCTS
Charles River Performance Charles River Manager Charles River Compliance Charles River Trader Charles River Post-Trade Charles River Anywhere Charles River TBA

Application server the primary middle-tier component that handles communication from the desktop, as well as between the other middle-tier components and the database Reporting server an embedded Crystal Reports edition used as an engine to format reports CameronFIX FIX engine communicates with trading partners for electronic trading and offers the ability to configure multi-threaded FIX engines that supports high trade volumes

Charles River Employees by Function

Research and Development 39% Client Services 39% Sales/Marketing 14% Management/Administration 8%

The back-end database server is the primary data store for all information within Charles River IMS. Charles River uses standard RDBMS and supports Oracle and Microsoft SQL Server.

SERVICES

Hosted Application Management and Application Management Charles River Data Service Charles River Network Client Services Implementation Services Relationship Management Technical Support Consulting Services Educational Services

flexible configuration

Awards

for complex workflows

Best Buy Side Technology Firm

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Charles River Development

www.crd.com

sales@crd.com