ASSET MANAGEMENT PERFORMANCE USERS GUIDE

Application Design

Performance management

The Performance measurement calculation provides the rates of return for a portfolio. It is based on
market values at the time of production, net cash flows and/or possibly rates of return.

Investors are always interested in evaluating the performance of their portfolios. Investors,
managing their own portfolios (Non-Discretionary Clients), should evaluate their portfolios, as
should anyone who pays one or several portfolio managers (Discretionary Clients). In the latter
case, it is also imperative to determine whether the investment performance justifies the service
costs.

Basically, performance measurement is the ex-post "quality control" in the investment process. It is
a technique that provides Future Bank clients, portfolio managers or any supervisory body (e.g. risk
management) with the quantitative information needed to assess as precisely as possible what really
happened with the invested money and the qualitative element through performance attribution.

Performance calculations can be provided for single, multiple or all portfolios in the database. The
performance figures displayed are displayed Daily, Monthly, Month-to-Date, Quarterly, Quarter-to-
Date, Annually, Year-to-Date, Last 3 months, Last 12 months, Since Inception, and between any
two dates specified.

Performance Components

There are four applications involved in setting up and recording flows:

TRANSACTION is the table where each transaction type is defined.

TRANS.FUND.FLOW is the table where we identify those transactions that will be treated as flows.

SC.FUND.FLOW this is the old fund flow application that stores against each portfolio the
transactions that generated flows.

SC.CASH.FLOW.FUND this is the new fund flow application that stores the details of each flow
against each portfolio.

Providing transaction types have been set up for booking fees and these have been added to the
TRANS.FUND.FLOW application, then during each EOD the system will check all posted
transactions, and when it encounters a transaction that has been classified as a flow it will add it to
the SC.CASH.FLOW.TRANS file.

After this process has been run another EOD process which calculates the daily performances of
portfolios will look at the entries in this file and if it finds an entry for today it will add this to the
inflows or outflows fields in the SC.PERF.DETAIL table for the portfolio, and then calculate the
performance using the appropriate figures.