Supporting Growth and Minimizing Risk with

Cloud Deployment

Why firms are choosing Charles River

3 Why Investment Firms are Moving to the Cloud

4 What the Industry is Saying About SaaS

5 What’s Driving Buy-Side Adoption of SaaS?

6-7 Solving Critical Operational Challenges with Charles River SaaS

8 Migrating Charles River IMS to the Cloud

9 The Charles River SaaS Client Experience

10 24/7 Global Support

11 The Evolution of Charles River SaaS

12 Learn More

Table Of Contents

www.crd.com/services/SaaS

Why Investment Firms are Moving to the Cloud

Investment managers are looking to improve operations and better support their front and middle office through the use of Software as a Service (SaaS) deployment.

UP-TO-DATE SOFTWARE

BETTER DATA CYBERSECURITY

API INTEGRATION,

CUSTOMIZATION

DOMAIN EXPERTISE

IMPROVED OPERATIONS

PREDICTABLE COSTS

The Charles River Investment Management Solution (Charles River IMS) is deployed in the cloud via a SaaS model. Clients are managing over USD 9 Trillion AUM* on Charles River SaaS, enabling them to:

• Access the latest investment management capabilities and innovations

• Ensure that investment decisions are based on timely, complete and accurate data

• Minimize operational risk with 24/7 support, high availability and up-to-date cybersecurity

• Support future growth with a scalable solution and predictable cost structure

*As of October 2019

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“Widespread adoption of cloud technology across financial services is increasingly inescapable as the capabilities, resiliency and security of services provided by cloud vendors surpass those of on-premises data centers. Not even the largest multinational companies could cost-efficiently develop and maintain comparable in-house infrastructures.”

– The Tabb Group

“According to NetEnrich’s survey, large enterprises are eagerly adopting cloud infrastructure, applications and services. In fact, 85% of respondents reported either moderate or extensive production use of cloud infrastructure, while 80% said their companies had moved at least a quarter of all their applications and workloads to the public cloud.”

- NetEnrich 2019 Cloud Adoption Survey

“Cloud services are definitely shaking up the industry,” said Sid Nag, research vice president at Gartner. “At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organizations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three time the growth of overall IT services.”

- Gartner Research

What the Industry is Saying About SaaS

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What’s Driving Buy-Side Adoption of SaaS?

MARGIN COMPRESSION & COMPETITIONCompetition from low-fee passive products is squeezing profit margins, prompting firms to reduce internal operating costs and leverage strategic service partners.

MINIMIZING OPERATIONAL RISKOn-premises legacy systems and siloed point solutions are increasingly viewed as operational risks, forcing firms to upgrade to modern, vendor managed cloud-based solutions.

DATA MANAGEMENT CHALLENGESFirms increasingly view data as a competitive differentiator but struggle to ensure that front and middle office systems have timely access to complete and consistent data.

REGULATORY & CLIENT DEMANDSGrowing regulatory requirements demand new capabilities to meet reporting obligations, while asset owners are demanding

timelier insight into exposures and performance.

PRODUCT EVOLUTION & GEOGRAPHIC EXPANSION

Firms require agility and the latest technology to support innovative multi-asset products

and expansion into new markets globally.

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Solving Critical Operational Challenges with Charles River SaaS

CONTINUED →

UP-TO-DATE SOFTWARE

CHALLENGE: Out-of-date software exposes firms to increased risk, including potential trading errors, compliance breaches and unnecessary manual workarounds. Firms need up-to-date technology to keep pace.

SOLUTION: Charles River SaaS is designed to ensure the latest capabilities are always available to the front and middle office.

BENEFIT: Firms have timely access to new capabilities, avoiding manual workarounds, helping ensure responsiveness to regulatory and client requirements, and minimizing risk.

BETTER DATA

CHALLENGE: The breadth and diversity of data required by the front and middle office makes it difficult if not impossible for firms to manage on their own. Incomplete and stale data has far-ranging impacts across the investment process.

SOLUTION: Charles River is well positioned to deliver, monitor and manage data feeds. The Charles River Data Service provides a complete, single source of data, and the Charles River Data Management Service is designed to ensure proactive data quality monitoring and issue remediation 24/7.

BENEFIT: Helps ensure that investment decisions are based on accurate, complete, consistent and timely data.

CYBERSECURITY

CHALLENGE: Cyber threats and data breaches are growing in frequency and sophistication. Regulatory and reputational risk is forcing firms to expend significant time and resources ensuring data privacy and protection.

SOLUTION: Charles River’s cloud-based solution provides 24/7 threat detection with dedicated specialists who understand the latest cybersecurity threats and protocols.

BENEFIT: Charles River clients are protected by state-of-the-art security without incurring the associated staffing and technology costs.

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API INTEGRATION, CUSTOMIZATION

CHALLENGE: Firms need to incorporate internal and external intellectual property in the Charles River IMS in order to support the unique requirements of their investment process.

SOLUTION: Charles River SaaS supports extensive configurability which minimizes the need for customizations. Open APIs support extensibility and customization when required.

BENEFIT: Firms can configure and extend the Charles River IMS as needed. This eliminates the need for expensive and often problematic customizations and system integrations.

DOMAIN EXPERTISE

CHALLENGE: Increasingly sophisticated front and middle office technology requires deep investment application expertise as well as systems knowledge. Expensive and scarce talent leaves firms vulnerable to “key person” risk.

SOLUTION: Charles River’s global team of investment platform support specialists is always current on the latest capabilities and technology. Only Charles River’s support team can provide this level of global coverage and Charles River IMS expertise on a 24/7 basis.

BENEFIT: Firms can get better platform ROI while minimizing staff recruiting, training and retention costs. This can eliminate “key-person” risk and helps ensure that Charles River IMS is always optimally configured and maintained, which improves end-user satisfaction and productivity.

IMPROVED OPERATIONS

CHALLENGE: Investment firms require a stable operating environment, high system availability and consistent performance. In-house staff often struggle to maintain adequate service levels, especially after hours or during periods of peak demand.

SOLUTION: Charles River’s operations team monitors system performance 24/7, aims to ensure seamless upgrades, and works proactively to prevent instability and availability issues.

BENEFIT: Firms are freed from the staffing and operational overhead required to ensure consistent performance, install upgrades, and perform maintenance of the Charles River IMS. End users benefit from consistently high levels of performance and system availability.

PREDICTABLE COSTS

CHALLENGE: Margin compression and cost pressures are forcing firms to reduce spending on technology and staff.

SOLUTION: Charles River provides predictable subscription-based pricing, reducing capital expenditures, upfront infrastructure costs, and ongoing operational costs.

BENEFIT: Subscription-based pricing can significantly lower upfront and ongoing costs, IT staffing expenses and periodic hardware upgrades. Firms benefit from a lower total cost of ownership and a cost structure that scales with their business growth.

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Migrating Charles River IMS to the Cloud

REVIEW:• Current and anticipated client requirements and preferences• Supported products, asset classes and strategies• Front and middle office workflows and bottlenecks• Operational support requirements• Third-party system interfaces and integration

RETAIN:• Core intellectual property • Accumulated domain expertise• All capabilities required to support firm’s investment process and needed customizations

RETIRE & REPLACE:• Standard APIs and interfaces replace third-party integrations• Automated, exception-based workflows replace manual workarounds• Standard functionality replaces obsolete customizations

GO LIVE

Charles River follows a proven, time-tested migration process to help ensure successful SaaS deployment for clients currently deployed on-premises. A dedicated multi-disciplinary project team leverages deep expertise and a collaborative approach when migrating Charles River IMS to the cloud. Deployed via SaaS, Charles River IMS delivers significant improvement over on-premises capabilities.

CLIENT MIGRATIONGOAL

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“Having Charles River IMS as a hosted service gives us faster access to the latest capabilities and system expertise. Our portfolio managers, traders and compliance teams can be more efficient and derive greater value out of a consolidated system, and the firm benefits from a dedicated team managing the infrastructure and providing 24×7 application support.”

– CBRE Clarion Securities

“Charles River has allowed us to streamline workflows, improve productivity, and reduce risk across asset classes and all portfolios. With Charles River managing the system day-to-day, we can concentrate on delivering long-term results and service to our clients.”

- Pyrford International

The Charles River SaaS Client Experience

“With Charles River, we have one system that supports the investment management process from start-to-finish, across all asset classes. This improves productivity significantly for our Portfolio Managers, Centralised Dealing function, and Operations and Compliance teams. With Charles River managing and hosting the solution, we can easily access new capabilities and reduce the time and cost of upgrades.”

- Milford Asset Management

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24/7 Global Support

Functional Support

SaaS Operations

Charles River FIX Network

Data Services & Data Management

Compliance Services

SUBJECT MATTER EXPERTISE

Burlington Indianapolis London Dublin Melbourne Singapore Tokyo

GLOBAL SUPPORT

10

6,000+180+

125+

USD 9+

800 7,000

The Evolution of Charles River SaaS

PERSON GLOBAL SUPPORT TEAM

CLIENTS

USERS GLOBALLY

TRILLION IN AUM ON CHARLES RIVER SaaS

CLIENT INTERFACES FIX BROKER CONNECTIONS

Statistics as of October 201911

Learn MoreTo help ensure high end-user satisfaction and value for clients, Charles River offers a comprehensive set of support services designed to meet each firm’s unique needs based on geography, available resources, budget, and overall goals. Our approach is pragmatic and flexible, encompassing training, end-user support, onsite support, product knowledge and proven methodologies for successful deployment. Visit www.crd.com/services/SaaS

Regional Support Numbers:

AMERICAS +1 781 238 0099

EMEA +44 (0)20 7397 6802

ASIA-PACIFIC +61 3 8628 0100

JAPAN +81 (0)3 4588 8388

Charles River Development - A State Street Company is a wholly owned business of State Street Corporation (incorporated in Massachusetts).

This document and information herein (together, the “Content”) is subject to change without notice based on market and other conditions and may not reflect the views of State Street Corporation and its subsidiaries and affiliates (“State Street”). The Content is provided only for general informational, illustrative, and/or marketing purposes, or in connection with exploratory conversations; it does not take into account any client or prospects particular investment or other financial objectives or strategies, nor any client’s legal, regulatory, tax or accounting status, nor does it purport to be comprehensive or intended to replace the exercise of a client or prospects own careful independent review regarding any corresponding investment or other financial decision. The Content does not constitute investment research or legal, regulatory, investment, tax or accounting advice and is not an offer or solicitation to buy or sell securities or any other product, nor is it intended to constitute any binding contractual arrangement or commitment by State Street of any kind. The Content provided was prepared and obtained from sources believed to be reliable at the time of preparation, however it is provided “as-is” and State Street makes no guarantee, representation, or warranty of any kind including, without limitation, as to its accuracy, suitability, timeliness, merchantability, fitness for a particular purpose, non-infringement of third-party rights, or otherwise. State Street disclaims all liability, whether arising in contract, tort or otherwise, for any claims, losses, liabilities, damages (including direct, indirect, special or consequential), expenses or costs arising from or connected with the Content. The Content is not intended for retail clients or for distribution to, and may not be relied upon by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to applicable law or regulation. The Content provided may contain certain statements that could be deemed forward-looking statements; any such statements or forecasted information are not guarantees or reliable indicators for future performance and actual results or developments may differ materially from those depicted or projected. Past performance is no guarantee of future results. No permission is granted to reprint, sell, copy, distribute, or modify the Content in any form or by any means without the prior written consent of State Street.

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CHARLES RIVER DEVELOPMENT, A STATE STREET COMPANY Investment firms, asset owners, wealth managers, hedge funds and insurers in more than 30 countries rely on Charles River’s front and middle office investment management platform to manage more than US$30 Trillion in assets. Together with State Street’s middle and back office capabilities, Charles River’s software technology forms the foundation of State Street AlphaSM. The Charles River Investment Management Solution (Charles River IMS) is designed to automate and simplify the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. Charles River’s growing partner ecosystem enables clients to seamlessly access external data and analytics, applications and liquidity venues that support the unique demands of their product and asset

class mix. Headquartered in Burlington, Massachusetts, we serve clients globally with more than 975 employees in 11 regional offices. (Statistics as of October 2019) WWW.CRD.COM

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