1. Introduction to FigaroWealth
30th September 2009
John Blackman

2. Agenda Background Why are we here? History of Figaro
Introduction to Figaro
Market Trends
The role of the relationship manager
Figaro Desktop
FigaroWealth
Becoming a Figaro User

3. Background John Blackman Computing Science degree
Joined John Hemming in 1985
One of the original authors
MD since 1999
Target of sustained organic growth with continued investment into Figaro

4. Background Steve D’Souza Ex Odyssey
Employed specifically to give JHC product advice on wealth management systems
Launch Figaro Wealth

5. Background JHC History of steady growth
Expansion through new clients and the success of our existing clients
Investment in people is part of our business plan
Future growth from relationships with outsourcers, particularly with TDWCSE, as well as direct clients

6. History of Figaro
Figaro is driven forward by a core group of experts who have worked together for many years

7. Why are we here?
Figaro has been the market leading fully integrated, comprehensive solution for stockbrokers for many years
Following recent developments Figaro now has an integrated wealth management module that can compete in its own right with recognised wealth packages
Modelling, re-balancing, switching, performance monitoring and risk analysis
This is based around a proven back-office system
We believe that, particularly in the present market conditions, a fully functional real-time integrated solution offers considerable benefits both to our users and particularly their clients

8. Introduction to Figaro
Fully integrated
Back office/Front office/Web
True STP – one database, not just messaging
Real-time trading and settlement processing
Wrap platform
Multi –product management
Full asset coverage
International processing
Global settlement
Global custody
True multi-currency
STP
Scalable
<100 – 50,000+ transactions per day
15 – 1,500+ users
FIGARO has been developed for over two decades by adding client-led functionality and embracing new technologies and is the leading platform in the UK broking market

9. Introduction to Figaro
FIGARO utilises a single database to support a huge array of services for financial institutions
Client database
KYC, Relationship management, wrap platform support
CRM
Contact History, Event workflow, Document management, Outlook Integration ( )
Wealth Management
Portfolios & accounts
Tax wrappers (ISA)
Modelling, Re-balancing, Risk
CGT, GIP compliant performance
Figaro Web
Clients and Advisors
Enquiry & trading
Order Management System
Linked to UK RSPs and Order Books (SETS)
Collective dealing and International dealing systems
Workflow & MI
Integrated STP Settlement links
CREST/Euroclear, Cofunds, EMX, Fidessa, BBH, BoNY)
Nominee
Pooled or designated
Auto reconciliation
US tax support
Corporate Actions
Fully configurable with election support
Automatic Euroclear integration
Client Payments
Ad hoc, standing orders, income distribution
BACS, CHAPS & cheques
Auto bank reconciliation
Fees
Invoice system with pre-list
Custody, management, ad hoc

10. Figaro – Why is it unique?
Real time integrated system – Means that there are no interfaces to write or maintain, no reconciliations between systems.
Single licence agreement for entire solution simplifies the transition process and also the long term relationship, since the support for regulatory changes is included.
All original authors still support the system allowing major enhancements (such as Euroclear Single Platform) to be integrated without detriment to the system
Figaro provides full unit trust support
Integrated Order management and bulk dealing
Direct access to RSPs via Best Execution servers
SETS integration (ProQuote & Thomson)
Fidessa (Executed trades)

11. Market Trends
Change in profile of Figaro users
2005
2009

12. Market Trends Figaro clients changing their service models
Broker was friend, stock-picker and commission based
Mrs Miggins
Stockbroker

13. Market Trends Figaro clients changing their service models
Now firms offer a more integrated solution to wealth management
Miggins Family
Sales Team
Relationship Manager
Investment Committee

14. Market Trends Stock market perfomance Pressure from FSA
Equities  funds and financial products
Pressure from FSA
Conformance to mandate and risk analysis
Relationship with IFAs especially now due to RDR
No trail!
Trend towards annual management charge or wrap charge
Convergence of service requirements
Family Miggins gets same service as UNW clients
However following funds (with baskets of stock in them) in the good times keeps the client happy and is easy – who knows whether that will work in the next few years?

15. The Role of the Relationship Manager
Making Mrs Miggins feel special
Just like the good old days!
Checking that her assets are in line with her wishes
Performance & risk
Clear & concise reporting, annual reviews
Proposing new products
Transparent fee structure
Figaro clients are offering a private banking style service
 Figaro desktop

16. A day in the life of the wealth manager
CRM
Check all client communications
Send letters &
Actions & workflow
Chase up outstanding tasks
Risk
Check that portfolio is still within accepted risk boundaries
Monitor asset allocation to model
Make changes to model strategy
Portfolio Management
Respond to changes from the Investment Committee
Modelling & Switching

17. Figaro Desktop “Home page” for relationship manager CRM
Actions and workflow
Relationships
Marketing tool
Integrated with MS Word and

18. Figaro Desktop Integrated with Figaro front office for
Detailed client enquiries
Real time valuations and cash statements
Modelling comparisons
Order entry and management
CGT
Cash & client payments

19. Figaro Wealth- Toolset
Asset allocation framework to contain the strategy required
Model creation within the framework and application to a number of clients
Monitor for exceptions
Bring clients back in line allowing for special considerations such as CGT or stock preferences
The firm’s advice might change and the relationship manager needs to be able to quickly and simply switch between stocks
Provide performance analysis
GIPs compliant reporting e.g. time-weighted returns
Risk weighted
Execute the resulting trades in real time
Bulk trading
Pre-trade checks

20. Figaro Wealth - Framework
Multiple frameworks allowed
Decided by wealth manager or investment committee
Asymmetric allocation
Can be used for a number of models

21. Figaro Wealth - Modelling
Create model within framework
Allocate actual assets within the hierarchy
and show when assets satisfy the framework

22. Figaro Wealth – Linking clients to the model
Multiple work sets , may be shared between relationship managers
Select by product, relationship manager
Multiple product support
Quantity or £ value

23. Figaro Wealth – Re-balancing
Detail for each client Client or product level
Ticks and crosses to show degree of imbalance
Model view shows actual and target % at each level of the hierarchy
Validated candidate orders displayed using Figaro pre-trade checks
Released as bulks to Figaro Order Management system

24. Figaro Wealth – Switching
Multiple worksets
Choose by relationship manager
Select stock to switch out of
Multiple stocks to switch into
Take previous holdings into consideration
Generate bulks depending on assets class
Minimum order size
Generates candidate orders in real-time with pre-trade checking ready for release in to Figaro OMS

25. Making it easier to become a Figaro user!
Consultancy
JHC have many years of experience in planning and managing clients onto the Figaro platform
Training
JHC have a dedicated training department who show users how to perform their roles on the new system
Migration
Standard processes and routines used many times each year
Client data, transaction history and open positions

26. And now the slide you have all been waiting for..
Figaro is a proven solution that is being developed continually to ensure that our clients can provide a market leading service
Figaro Wealth will provide innovative wealth management tools integrated to a market leading platform
The integrated, comprehensive solution reduces the cost and complexity of the IT required and it may be outsourced
Simple commercial and contractual arrangements lead to long lasting partnerships
JHC supports the entire migration process and has a proven track record of delivering client service

27. Introduction to FigaroWealth
30th September 2009
John Blackman