INTEGRATED  INVESTMENT  MANAGEMENT

Computrol's Integrated Investment Management (IIM) is a fully integrated system which does all accounting, processing, reporting and Federal regulatory reporting for investment products:

Term deposits and savings accounts

Mutual funds

Third party investments

IIM provides retirement account and non-pension processing for IRA, SEPP, SIMPLE, ROTH, 401(k), 403(b) and other qualified retirement plans.

IIM lets the product development department add new products quickly in response to market or regulatory conditions - no programming is required. Rates, prices, fees and penalties are under product development control.

Comprehensive Customer Accounting

IIM processes all of a bank customer’s investment products. It supports   non-retirement and individual retirement plan accounts such as IRA, SEPP, SIMPLE, Keogh, 401(k), 403(b) and Roth accounts. IIM  calculates and reports withholding, minimum distribution requirements, contribution limits and other processing unique to retirement plans.

IIM includes records for the account, beneficiaries of the account and alternate mailing addresses. The account summarizes the current position for all customer investments on one display with easy transfer to investment detail for customer service.

Beneficiary records record the legal beneficiary of the account in case of death. Alternate name and address records are used to send information to alternate addresses or to pay checks to different names or addresses.

Monetary Entry

Monetary entry screens are tailored to walk the operator through the required and optional information for a transaction.  Purchase screens allow you to select from valid investments for the plan type, specify the amount of purchase and set the purchase date. Redemption screens allow you to select from instruments which the plan owns, specify the amount to redeem or close, enter withholding, penalty and hold options, and specify the method of payment.

Transaction types include:

	Purchase
	Redemption
	Exchange
	Fee payment
	Adjustment transactions

Investment Features

IIM has many product features which apply to any investment type: term deposits, savings accounts and mutual funds. These features include:

Autoclose
IIM can close an investment automatically when the balance falls below the minimum for the investment type for a time longer than a ‘right to cure' control period. At the end of the control period, the system pays the monies out to the customer or reinvests in another investment type.  

Systematic Withdrawal
You can schedule a recurring withdrawal from an investment which continues until it closes the instrument.

Holds
You can assign holds or restraints to the plan or to individual assets. The hold can block all transactions or  a specific sum of money. IIM monitors the hold status during user entered and system generated activity, aging and removing holds which have expired.  

Fees
IIM supports several types of fee processing, including scheduled fees for maintenance, fees based on an event such as excess deposits for the period or special assessments for extraordinary services. You control the type of fee, timing, fee amount or percent, minimums or maximums, conditions for waiving the fee and billing/collection.

Sweeps
Sweeps move monies from an investment when the investment balance reaches a specified amount. IIM provides three types of sweep transfers: incremental, principal and balance. The sweep can deposit to another investment in the account or be paid externally to a broker.  

Withholding
IIM calculates backup withholding for non-pension plans, elected withholding for IRA plans, wage base withholding for 401K and other qualified plans and non-resident withholding for customers who receive monies while not a legal resident of the US.

Market Value Inquiry
Market value inquiry displays the value of a plan or investment for the selected date. This is useful for customer service such as establishing values at date of death.

Distribution Scheduling

IIM has a number of options for pension plans where the customer elects scheduled distributions. The required minimum distribution is based on the customer choices for life expectancy and beneficiary.

Distribution controls include the start date, the payment frequency, the method of payment and the order in which to select instruments to fund the payment. This order includes any sequence selected by the plan holder, interest rate order, FIFO, LIFO and interest before principal. The plan holder can restrict the funding to specific instruments or allow IIM to select from all instruments owned.

IIM calculates the RMD at year end and recalculates on request.  Each time IIM creates a scheduled distribution, it calculates the amount based on the remaining number of payments in the year and the remaining amount to distribute.

Term deposit processing allows IIM to offer fixed value investments as an alternative to mutual funds. These instruments can have various terms with fixed or variable rates.

Interest Term
You can define the interest term in days, in months or pay at maturity. Interest can be reinvested, paid out by check, ACH, credit to bank account, redirected to another investment, paid to a broker or other bank payment methods.

Rate Assignment
You can enter the rate for a new term deposit or let the system assign based or combinations of issue date, balance, maturity term, pricing region and other factors. Rate tables store the index rates by effective date so that IIM chooses the correct rate for the transaction date. You may also specify a rate increment to add to or subtract from the table rate with a ceiling and floor rate.

Interest Accruals
Investments may accrue interest on a daily compound or a simple interest basis. Interest may either be reinvested or paid out. Interest which is paid out may be prepaid. Payment options include check to account holder, check to third party, ACH or transfer to another investment.

Maturity and Renewals
Term deposits may renew or pay out at  the maturity date.  For payout, IIM redeems the term deposit and issues a payment or creates a purchase for another investment type. If the investment renews, IIM renews the investment according to customer instructions.

Penalties
On premature withdrawals IIM calculates and applies the higher of the Regulation D or the penalty defined in the investment controls. Penalty methods include loss of accrued since the last renewal date, the amount of interest the investment would earn for a set period of time, percentage of the redemption amount based on the time on deposit or penalty based on market value adjustment.

IIM incorporates all shareholder processing for mutual funds: money market funds with a fixed prices which accrue income daily and equity funds which have a new NAV daily and distribute income periodically.

Transactions
Mutual fund transactions may be entered in shares, dollars or instructions to close the investment. Transactions show pending until the fund manager sets the unit NAV or income factor for the fund. The fund manager can enter prices into IIM fund pricing controls or can interface from any external pricing system. As IIM posts the investment, it calculates the current market value, the cost basis for tax reporting, the aggregate value for asset management fees and the rate of return. IIM accumulates all monetary information and positions for each fund in a fund summary to record the day’s activity as well as the ‘blotter’ which contains information for fund accounting.

Income
IIM supports many types of fund income:

	Ordinary income
	Short term gain
	Long term gain
	Return of capital

When the fund manager declares income, you enter the income per share for each applicable income type and reinvestment price into fund pricing. Then the system calculates the income due, including any withholding which applies, and distributes the income amount according to customer instructions. You may have separate distributions options for income and gains. You may also split distributions, with a percentage to each of the distribution methods. Payment options include:

	Reinvest
	Redirect to another investment
	Pay to broker account
	Pay by check
	Pay via ACH
	Transfer to another bank account

Net Asset Value
Mutual fund investments are denominated in shares rather than dollars. Each day the market is open for business, the fund manager establishes the NAV or price for an equity fund and the income per share for a daily fund. Fund transactions can settle immediately or use the standard settlement process.

IIM can handle third party instruments in multiple ways. IIM can accept the transaction activity directly and forward the transactions by interface to the third party system. IIM can accept and post the activity by receiving it through an interface from the third party. In either case, IIM maintains full shareholder accounting in parallel with the third party system.

IIM can also accept and record a position interface at periodic points.

Canadian Version of IIM

Computrol’s IIM is also available in a Canadian version which includes processing to handle specific Canadian processing requirements such as:

	RRSP processing
	RRIF processing
	Foreign content processing
	RESP processing
	GIC and DISA processing
	Federal and provincial tax reporting
	Resident and non-resident withholding
	GST, PST and HST tax calculations
	Cheque processing and reconcilement
	Multiple language support

Reporting

IIM provides standard reports to record and control all entry and processing.  It includes a parameter defined system to catalog ad hoc reporting and customer correspondence. Marketing letters, maturity notices and transaction confirmations can be totally customized with unique text and data from the application files. You can design your customer statement for a single product, combined products or a consolidation of all products reflecting the customer's complete portfolio of banking products.

System Flexibility

IIM is multi-bank, multi-branch, multi-department: each department can tailor the system to its needs. The processing, calculations, and transaction processing functions are all parameter controlled. This means you can change the way the system performs by changing the controls. The parameters define characteristics such as fund pricing, calculation methods, service charges, new account values, terms, penalties, fees, etc. This flexibility not only meets current needs; it dramatically reduces efforts for future mergers and acquisitions.

Online Access

IIM can easily be Web-enabled or connected to bank networks, PC’s, call centers or other data delivery systems using Computrol’s eBASE® tools.

Online screens are structured to allow quick and efficient data retrieval for research or customer service. You may have search facilities to allow you to look up information using the customer short name or tax ID.

IIM includes Computrol's online screen building and maintenance system to tailor screens to your specific user needs. All information in the IIM database is available for display online.

IIM includes online security options which control what functions a user can access, what navigation they are allowed from a screen and what data they see online.    This can include different views based on the operator language preference.

The online system includes a full help facility where help is available for the screen panel, individual fields, explanation of error messages, explanation of function keys and prompts or picking lists. Picking lists pop up a list of possible values for the field and allow you to mark the value to insert into the field.

Interfaces

IIM can communicate with other applications such as general ledger, marketing, platform workstations, check management, CIF, ACH, teller and call centers.

Computrol can develop optional customized interfaces using the Application Interface Manager system or a COBOL program.

More Information

For additional information regarding Computrol’s Integrated Investment Management system, contact Computrol.

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