Backward valuation and analysis to the extend of stored transactions
	Valuation and analysis in each portfolio reference currency
	Allow change of the reference currency at any time
	Differentiation at transaction level between Market appreciation or depreciation and currency appreciation or depreciation
	Ability to define at security level an exposure currency (different than the quotation or trade currency)
	Investment cost accounting may optionally include / exclude transaction costs
	Ability to define investment strategies per client

Investment management reporting (main features)

	Profit and loss statements
	Portfolio Balance sheet
	Cash flow
	Comparison of assets
	Internal rate of return and time-weighted rate of return
	Currency-industry matrix
	Bond maturity matrix
	Various valuations

Multi-currency Investment Management System (MIMS)

The MIMS Multi-currency Investment Management System is a transaction-oriented system allowing back valuation of the stored data. An inquiry or report does not modify the transaction database. But for any inquiry or report the system recalculates all balances. This is particularly useful in the case of late information affecting transactions after a closing or reporting date or for historical analysis.

Multi-currency system enabling valuation of assets (in any currency) in a selected base currency.

Differentiation at transaction level between:

	Capital appreciation/depreciation in reference currency and currency exchange profit or loss
	Realized and unrealized profit and loss (occurring at valuation)

A MIMS portfolio can be valued in several base currencies at any time.

Option to differentiate between, at transaction level, income, costs, additions, withdrawals, etc. for the print of balance sheets, profit and loss statements and performance calculations (internal rate of return, etc.) by client.

Option of investment cost accounting with or without transaction cost (fee, commissions, and taxes).

Option to select at securities level a cost accounting currency corresponding either to the stock price list currency, to the trading currency or to an exposure currency.

Option to recognize the realized exchange gain or loss on accrued interest (paid or received) on purchase/sale of bonds and coupons payment at the date of transaction or to handle accrued interest and income payment also as security transactions (profit and loss only shown in case of sale of bonds or coupons payment, "book value method").

Option to print periodically reports in accordance with the data stored at portfolio level.

The exposure currency is normally defined as either the trading currency or the price list currency. An example would be where Swiss certificates of US shares listed and traded in Swiss Francs are nevertheless tied to the U.S. stock price in US $.

Conditions

In order to make available the above mentioned information to MIMS the following preconditions must be fulfilled:

	Storage of all amounts (cost/proceeds, fee, commissions, taxes, etc.) of all investment transactions on the transaction level.
	Storage of all amounts in the currencies used by the transaction (e.g. trading of original currency, cash account currency). When creating, adding to or withdrawing from a portfolio, the system has the ability to store an individual book value as defined by the client, which generally corresponds to the market value at the transaction date.
	The maintenance of history price and currency exchange rate files.
	File structure allowing integration and consolidation of all customer asset data (cash, securities, trustee transactions, precious metals, etc.) on several levels:
	Portfolio (with related accounts)
	Customers
	Portfolio managers
	Types of portfolio (high risk, low risk, high growth, etc.)

Accounting Principles and Calculation Methods

The following are the major accounting principles and calculation methods incorporated within the MIMS module:

1) All amounts used for portfolio analysis purposes (e.g. market value, costs, commissions, taxes, fees, accrued interest) are stored in the trade (or original) currency of the investment and in the cash or account currency used for the purchase/sale.

Transfers between different cash accounts are stored in the account and counter-account currencies as well as in reference currency.

2) All investments are recorded at cost in the exposure currency (which corresponds in most cases to the trading or original currency) in the case of purchase of an investment. Costs may or may not include all associated expenses such as commission and taxes. When units of the same investment are acquired at different prices, the system stores the number of units and the total cost so that the investment is carried at average cost.

3) All investments are valued in reference currency either on the basis of the actual amount used or on the basis of the average FX rate stored in the historic FX rate file.

4) All investments including cash may be expressed, and realized/unrealized foreign exchange gains and losses calculated in respect of any base currency (i.e. base currency can be changed).

5) Cash additions and withdrawals to non reference currency accounts are stated at the exchange rate of the day from the FX/history file.

6) The realized exchange profit/loss is calculated on the basis of the average costs whenever the balance crosses the zero line (produced by a debit transaction if balance is in credit, or by a credit transaction if balance is in debit).

7) Securities additions or withdrawals are valued either on value specified by the client or as a default value calculated at market price and rates of the day.

8) Capital gains or losses on the disposal of an investment are determined using the average cost of units sold. Gains or losses in non reference currency investments are first determined in the non reference currency and then converted into reference at the rate of exchange in effect on the transaction day.

9) The foreign exchange reference currency gain or loss arising from the disposal of a non reference currency investment is calculated as the difference between the overall gain or loss in reference currency and the gain/loss in reference currency converted at the rate of exchange in effect on the transaction day.

10) If an investment in a non reference currency is carried over (e.g. bond to fixed time deposit with the same exposure currency) the transaction is treated as a sale and reinvestment i.e. the new investment is valued in reference currency (and the currency profit realizedd) at the daily rate of the transfer.

11) Accrued interest paid is calculated in exposure currency. Cost can include commission and withholding tax or not.

12) Interest gains or losses on the disposal of a bond are determined using the average cost of accrued interest paid. Gains or losses in non reference currency are then converted into reference currency at the rate of exchange in effect on the transaction day.

13) The foreign exchange gain or loss arising on the accrued interest received is calculated as the difference between the overall gain or loss in reference currency and the gain/loss in non reference currency converted at the rate of exchange in effect on the date of the transaction.

14) In the case of a coupons payment therealizedd gain is calculated in the same way as in the case of accrued interest received.

11)-14) are only valid in the case of application of the book value method for accrued interest.

15) Interest can be automatically accrued on fixed income investments using six basic methods (12 x 30, over 360 days, number of days over 365 days, etc.). The method is defined for each security at the security master file level.

16) Yield to maturity may be calculated for fixed income investments and displayed on specific reports using a stand alone module.

17) RIBS can round up each currency to a specific number of decimal places. The rounding parameter is determined in the currency table by currency.

The above mentioned principles satisfy the "United States" financial accounting standards board statement number 8 which establishes accounting standards for financial accounting and reporting of foreign currency transactions. It also establishes standards of financial accounting and reporting for converting foreign currency financial statements.

The objective of the translation is to measure and express (a) in Dollars and (b) in conformity with U.S. generally accepted accounting principles the assets, liabilities, revenues or expenses that are measured or denominated in foreign currency. Aside from forward exchange contracts, this standard requires that for each foreign currency transaction:

	At the transaction date, each asset, liability, revenue or expense arising from a transaction shall be converted into dollars by use of an exchange rate in effect at that date and shall be recorded at that dollar amount.
	At each balance sheet date, recorded dollar balances representing cash that are denominated in foreign currency shall be adjusted to reflect the current rate.
	At each balance sheet date, assets carried at market whose current market price is stated in foreign currency shall be adjusted to the equivalent dollar market price at the balance sheet date (that is, the foreign currency market price at the balance sheet date multiplied by the current rate).

Foreign statements require that the assets, liabilities, revenues and expenses be converted and accounted for in the same manner expressed in foreign currency transactions. In preparing foreign statements, balances representing cash and accounts receivable or payable that are denominated in local currency shall be converted into dollars at the current rate.

A change in the rate between the dollar and the foreign currency in which assets and liabilities are measured or denominated can result in an exchange gain or loss, if the converting method uses the dollar as the reference currency. Exchange gains or losses are a consequence of conversion, that is, of remeasuring in U.S. dollars. Exchange gains or losses also result from the conversion of foreign currency or the settlement of a receivable denominated in foreign currency at a rate different from that at which the item is recorded.