Misys FusionInvest Solution overview Bringing your business closer together A connected approach in investment management is critical
More agility, better risk control How do you meet tactical needs and strategic objectives?
Misys FusionInvest aligns technology with business goals 1 2 3 Investment managers are squeezed between the dual pressures of regulatory deadlines and investor demands they need to meet tactical needs and strategic objectives. Technology is a key driver of commercial success but many departmental solutions cannot be expanded easily to meet evolving business needs or market practices. Investment managers who align their technology and business strategies will be able to mitigate risk and become more competitive. FusionInvest not only provides us with broad instrument coverage but the integrated and flexible modules mean we have a full service solution to meet all our specific reporting, portfolio and risk management needs. A question of balance To achieve a balance between risk and reward, fund managers require a true multi-asset portfolio and risk system based on a consistent portfolio construction and risk analysis framework. Celent 2013 buy-side trends Ferry Vos Chief Risk Officer, Anthos Asset Management Misys FusionInvest Solution overview 3
FusionInvest helps bu boost productivity a From the outset, Misys FusionInvest has been designed to promote efficiency throughout the investment process. Users can boost productivity by increasing operational efficiency, reducing error rates and maintaining a centralised database to provide a single version of the truth firm-wide. The modular design to be added as busin 4 Misys FusionInvest Solution overview
There are actually very few choices when it comes to the level of risk management and sophistication that we are involved with. On the asset management side, FusionInvest is the only solution that contains the same tools that are used by investment banks on the sell-side. Vasillios Pappas co-founder, Assénagon With its modular architecture, Misys FusionInvest combines strength and flexibility. It can be configured to complement existing systems to increase agility and improve connectivity to custodians, prime brokers and administrators. New business opportunities can be seized more quickly and operational risk reduced. y-side firms nd agility. allows capabilities ess needs evolve Misys FusionInvest Solution overview 5
Investment managers cannot work in isolation. FusionInvest brings connectivity and efficiency to the entire investment process. We take a multi-function approach to investment management that helps boost productivity and reduce costs. FusionInvest can handle the complete trading lifecycle from portfolio management, to investment operations, to risk management and compliance. More than 90 buy-side customers rely on our investment management solutions, including some of the world s top asset managers, hedge funds and pension funds. Our market leadership position makes Misys the right partner now and for the future. 6 Misys FusionInvest Solution overview
The Misys approach to investment management The greater comfort that we received through FusionInvest has provided us with opportunities to do things that we wouldn t have attempted before. The high level of customization it offers will be very valuable as we expand it across the firm. Ville Helske Head of Ilmarinen Alpha and Allocation at Ilmarinen Mutual Pension Insurance Company Misys FusionInvest Solution overview 7
The Misys FusionInvest advantage Market-leading risk analytics FusionInvest provides cross-asset analytics for the front office, back office, and risk function on a centralized database, using a modular structure to avoid redundancy of functionality. The solution provides a consistent risk methodology across all assets. Chartis 2013 buy-side risk analytics report Integrated portfolio and risk management Improve the quality and speed of trading decisions by having the most accurate risk analytics and pre-trade compliance integrated into awardwinning portfolio management capabilities for the front office. Our approach ensures increased transparency across the trading, risk and compliance teams. Comprehensive cross-asset coverage Choose a flexible platform that supports profitable expansion. We can accommodate virtually all listed securities, over-the-counter (OTC) derivatives and alternative, Delta One and fixed income products with highly sophisticated pricing engines that support an expanding universe of asset class coverage. Modular by design Implement individual solution modules incrementally to meet evolving business needs. All modules can be easily activated for new asset classes, risk analytics, middle and back-office functions. A multi-function solution Tighten control, improve transparency and increase automation by having a single solution for all business processes. You can view all pricing, booking and processing on a single dashboard to reduce risk and enable an Investment Book of Records (IBOR). Reliability and agility Seize new business opportunities as they arise. Our modular approach means that new functionality can be deployed with minimal disruption to existing business processes. In many cases it may be the only product required. 8 Misys FusionInvest Solution overview
A fully integrated multi-function solution FusionInvest Front office Risk management Cross-asset processing Investment accounting Portfolio views and dashboards Cross-asset order management Modeling and rebalancing Pre-trade risk and simulation Performance measurement Pre-trade limits and compliance Credit risk Intraday risk Stress test, VaR and tracking error Limits and compliance Liquidity risk End of day risk OTC STP Contract lifecycle Collateral management EMIR/Dodd-Frank Cash and security inventory management Back office and payments Corporate actions Position keeping Market value and cash management Shadow funds administration Sub ledger Reconciliation FusionFabric Connect FusionRisk Trading venues Data sources Non-Misys systems Pricing libraries, data control, data feeds Deals, positions, products, market data repository Workflows, reporting, audit FusionInvest is a flexible solution that delivers a core system with additional modules which can be deployed incrementally, depending on your immediate and evolving needs. Our consultants can ensure that you leverage your existing IT investments to ensure that costs are aligned with business success. The principle strength of FusionInvest is its R&D team, which differentiates them from any other software company. It helps us to benefit from a collective intelligence and developments that are made in line with the direction of the market. Pascale Gabriel Head of IT at OFI Asset Management Misys FusionInvest Solution overview 9
Comprehensive cross-asset coverage Fixed income Global equities Treasury Alternative investments Government and sovereign bonds Listed futures and options Inflation bonds G8 and Emerging Markets coverage Corporate and high-yield bonds Municipal bonds Agency and non-agency asset-backed securities (ABS) Bank and non-bank loans Structured fixed income: step-up, PiK, amortizing Common stocks Listed futures and options Convertible bonds and preferred stocks ETFs, ADRs, GDRs Participatory notes 144a stocks Mutual funds Synthetic stocks: Contracts for Difference (CFD), Total Return Swaps (TRS) Multi-underlying certificates Commercial papers Certificate of deposit Treasury Bills Term deposit Repos & reverse-repos: term, open, evergreen Swap OIS Money Market fund Money Market account Fund of hedge funds Hedge fund strategies Separately managed accounts Private equity structures Real-estate and REITs Commodities (base metals, precious metals, energy, power and softs) : futures, swaps and options Overlay and hedging Listed Derivatives Futures and options on rates and equity Vanilla FX Derivatives Swaps, Forwards and NDF FX Options OTC Derivatives (including cleared OTC) Vanilla IRS, CDS and asset swaps Swaptions Inflation derivatives Credit derivatives FX flow and exotic derivatives Structured products and hybrids Benchmarks Benchmarks for all asset classes Listed, custom, blended Synthetic and composite Multi-currency fully and partially hedged Carve-out and constrained Liability-driven investment (LDI) 10 Misys FusionInvest Solution overview
Misys FusionInvest FusionInvest is a flexible and modular solution that can be installed as a complete front-to-back system or standalone component depending on your requirements. Modules include: Portfolio management FusionInvest is a comprehensive solution to accommodate the most sophisticated business strategy. The system adopts a real-time lookthrough approach, and real-time P&L and exposure management across flexible portfolio hierarchies. Risk management and compliance FusionInvest provides a holistic view over market risk, liquidity risk and collateral management. This enables users to manage risk and pre- and posttrade compliance at the fund level but also firm-wide. Performance measurement FusionInvest provides P&L calculation for any cross-asset portfolio, sub portfolio or group of portfolios. Returns and attributions can be easily calculated across any criteria, including strategy, asset class and risk type. Investment accounting FusionInvest promotes efficient position keeping that includes corporate actions, positions lifecycle management, cash management and data quality management. The system also provides fund administration and Net Asset Value (NAV) calculation for master/feeder or multi-share class structure, as well as comprehensive cross-asset pricing and valuations. Automated trade processing FusionInvest enables front-to-back STP from trade entry to payments and confirmations according to flexible rule-based workflows. This increases operational efficiency, reduces trading errors and streamlines settlement. Misys FusionInvest Solution overview 11
Success stories Smart alternative business built on a single platform FusionInvest drives growth at innovative investment management firm. One of Europe s most innovative and fastest growing asset managers, this firm grew to over 6 billion in assets under management (AuM) within three years of launching. It has over 90 active institutional clients and acts as investment manager for a further 50 funds. How has it achieved this level of success? A partnership with Misys means that the firm can move quickly into new business areas, such as cross-asset trading and maintain multiple positions against a full range of exchange-traded funds (ETFs). All while remaining confident about meeting current and evolving compliance requirements. The business has been built entirely on FusionInvest, chosen for its reliability, breadth of coverage, and integrated design. New modules have been deployed to meet evolving business needs, aligning costs with success. Our front-office personnel has more time to better analyse the market and make better decisions this has an impact on revenue. 12 Misys FusionInvest Solution overview
Executing alpha FusionInvest generates a step-change improvement in business efficiency and profitability. Burdened by its own success, an investment company with over $40bn in assets under management had difficulty handling the expanding range of complex instruments that were part of its alpha fund strategy. To succeed, the company needed to find a solution that would meet its immediate needs and strategic ambition. As use of the system increased, its power and simplicity became clear to other potential users managing fixed income and equity funds outside the Misys platform. Now FusionInvest is being rolled out across the rest of the firm to support all asset classes. The firm chose Misys FusionInvest for its pricing engine, cross-asset coverage and integrated risk management capabilities. Since its implementation, the new platform has driven operational efficiency, improved risk management and simplified compliance and reporting. It became clear quite soon that FusionInvest was the right solution for us. It showed particular flexibility when it came to accommodating new instruments. Misys FusionInvest Solution overview 13
Professional services and customer support An industry proven best practice approach that s the guiding principle of our professional services and support model. Misys clients benefit from our long track record of successful implementations. The FusionInvest implementation was achieved in an aggressive three-month time frame - unheard of in this industry for a project of this scale. Javed Alam IT Director, Arqaam Capital Professional services Best-practice delivery The Misys delivery model is incorporated into our entire product lifecycle. We leverage best practice business processes in the design, development and quality assurance of all of our products. While we acknowledge that one size doesn t fit all in financial software, we know that a delivery approach that focuses on industry proven best practice methods helps save our customers time and money. All of our clients benefit from our practical business and technical expertise, which means: Faster implementation: Repeatable delivery means projects are shorter and more predictable. Reduced TCO: Clear focus on project management avoids unnecessary expenditure and a shorter time to business benefits. Lower risk: A standardised, proven approach means many risks have already been mitigated and an implementation can follow a realistic timeframe with clear milestones. Centre of excellence Co-located with our development teams, the 200-strong Misys Service Delivery Centre ensures that we share best practice both internally and with partners. It enables us to refine implementations offsite before taking them back to the client. Customer support Misys clients benefit from the expert knowledge of 1000+ resources worldwide, with FusionInvest expertise available locally. Our aim is to provide professional, software support from pre-sales to ongoing support and maintenance. Deep domain expertise. Our technical and application support people have strong industry and product knowledge with continuous technical and industry training programs to ensure that Misys support teams can meet your evolving business needs. Scalable support model. As a Misys client, you can choose from a standard, professionalised support model or a specialised, premium support package depending on your needs. Because Misys support has a broad, global footprint that operates in all time zones and regions, Misys teams can scale to your requirements. 14 Misys FusionInvest Solution overview
Proven, award-winning solutions Buy-Side Technology Awards 2013 Winner: Best Buy-Side Commodities Trading Platform/Service HFM Week Hedge Fund Services Awards 2013 Winner: Best Risk Management Technology Provider Highly Commended: Best Technology for Small and Start-up Firms HFM Week US Services Awards 2013 Winner: Best Portfolio Management Software Provider Asia Asset Management Awards 2012 Winner: Best Buy-Side Risk Management Initiative Risk 25 firms of the Future Misys - Leading Technology Vendor Structured Products Technology Rankings 2012 Number One Trading System - Credit Number One Trading System - Cross Asset Number One Trading System - Foreign Exchange Number One Trading System - Rates Number One Risk Management - Collateral Management Risk Technology Ranking 2013: Overall Winner: Enterprise Risk Management Winner: Trading Systems Equities Winner: Trading Systems Forex Winner: Trading Systems Rates Winner: Pricing and Analytics Equities Winner: Liquidity Risk Management Winner: Regulatory Compliance Winner: Reporting, and System Support & Implementation.
About Misys Misys is at the forefront of the financial software industry, providing the broadest portfolio of banking, capital markets, investment management and risk solutions available on the market. With more than 2,000 customers in 130 countries our team of domain experts, combined with our partner eco-system, have an unparalleled ability to address industry requirements at both a global and local level. We connect systems, collect data and create intelligent information to drive smarter business decisions. To learn more about how our Fusion software portfolio can deliver a holistic view of your operations, and help you to solve your most complex challenges, please visit misys.com and follow us @MisysFS on Twitter. Corporate headquarters One Kingdom Street Paddington London W2 6B United Kingdom T +44 20 3320 5000 Misys and the Misys globe mark are trade marks of the Misys group companies. 2014 Misys. All rights reserved. 34 / 0514