Discover NAVInvest

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Table of contents:

Introduction 3

Purpose of this document 3

Targeted market 3

System architecture and design 3

What is Microsoft Dynamics NAV 4

NAVInvest Introduction 4

NAVInvest System features 5

Investment ledger 5

Data entry 5

Exchange rate 6

Viewing information 7

Revaluations 7

Previews & Reports 8

Term deposits and loan 9

Fixed interest securities 9

Reporting 10

Liquidity management 10

Compliance and Workflow 11

Client Relationship Management 11

Security 11

Return on investment 11

Distribution 12

3

Introduction

Elysys has for more than ten years served

its clients internationally as an implementer of

Business Applications with particular emphasis in

the Financial Management, Treasury Management

and Business Intelligence areas.

For the last four years Elysys has been de-

veloping and delivering its NAVInvest solution

which is targeted to vertical and horizontal busi-

ness application software users who handle trans-

actions in the investment management sector. The

software is an add-on to Microsoft Dynamics

NAV, fully integrated with all the relevant mod-

ules, in order to respond to the diverse require-

ments of the industry.

Purpose of this document

The purpose of this document is to give an

introduction to the software capabilities of NAVIn-

vest and to explain the main features of the prod-

uct.

Targeted markets

Elysys is targeting the NAVInvest solution

to two different markets:

1. Business entities who manage portfolios of in-

vestments in securities - shares, bonds, private

equities, etc. - as well as term deposits, loans -

intercompany or external - and who have an in-

terest in tracking movements of funds and follow-

ing up estimates of future cash positions. They can

in principle have any mainstream line of business

that uses Microsoft Dynamics NAV or use as a

minimum the Finance Module of the software for

their financial management and reporting. An ex-

ample of such a business entity is a Family Office

set up to look after the wealth of families.

2. Business entities who specialise in managing

investment portfolios for third parties and who re-

quire to track and monitor these, as well as their

internal market positions and who are looking for a

total Financial/Investment management solution

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System architecture and design

NAVInvest has been designed and devel-

oped as an add-on to Microsoft Dynamics NAV.

It is compatible with the latest version of

NAV available on the date of writing of this docu-

ment - version 2009 Service Pack 1. In addition,

the implementation has been built exclusively on

the SQL version of NAV and has been tested and

implemented on MS SQL Server 2005 and 2008.

Currently the only language version available is

English, but Elysys is willing to add on other lan-

guages, depending on user demand. Microsoft Dy-

namics NAV provides a fast and easy platform for

multi-language delivery.

The advantage of developing the solution as

an add-on to NAV is that the module is totally inte-

grated to the Finance CRM and other Module and

is built on proven technology using the Develop-

ment environment of this software.

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NAVInvest Introduction

The philosophy of Microsoft Dynamics and

NAVInvest is to remain unrestricted of local con-

straints such as Taxation, specific Exchanges or

Markets. Through localized versions of the soft-

ware, Taxation and other regulatory requirements

are already taken care of by the core system. Be-

ing a totally open system, our strategy is to give

you the capability to interact with market data

sources to import transactions, product prices or

exchange rates in accordance with your specific

requirements.

Our development of NAVInvest as a module

within Microsoft Dynamics is aimed to provide an

Enterprise wide solution, including Investment

Management, management and client Reporting,

Intranet and Extranet solutions, Client Relationship

Management, Business Intelligence and Fund Man-

agement. Coupled to that there are more than

40,000 other add-ons available to Microsoft Dy-

namics NAV that allow you to add rich functionality

to your solution. On the other hand the philosophy

of Microsoft Dynamics is to be modular so you pick

and choose what modules you need and how/when

you want to scale upwards your environment to

meet future challenges.

The software is not intended to substitute

front end systems that link and interact to Markets

directly (executing real time transactions with mar-

kets) or products that perform Portfolio simula-

tions, analysis based on Portfolio Theory or other

similar activities carried out by Front Office staff.

Being a very open system however, NAVInvest has

the capability to integrate with Front End systems

and import traded transactions from external

sources into an enterprise environment which re-

quires to account, report and trace its investment

trading activities as well as to mark to market,

book revenue transactions etc. for either its share-

holders, family office, clients, third part investors,

etc.

What is Microsoft Dynamics NAV

Microsoft Dynamics NAV is a business man-

agement solution for small and mid-sized organiza-

tions that helps you simplify and streamline your

highly specialized business processes, rapidly

adapting to the unique way you do business. Mi-

crosoft Dynamics NAV provides you and your peo-

ple with industry specific functionality that’s rele-

vant to the local needs of your regions of opera-

tion, even for the most highly specialized indus-

tries and organizations. Through the rapid adapta-

bility, simplified customization, and ease of use

offered by Microsoft Dynamics NAV, you can easily

add functionality, custom applications, and online

business capabilities. Microsoft Dynamics NAV

enables your people to be effective and your

business to be competitive.

Microsoft Dynamics NAV provides account-

ing and finance solutions to help you track and

analyze your business information. With end-to-

end integration, you can efficiently manage your

general ledger, payables, receivables, inventory,

analytical accounting, fixed assets, and cash flow,

as well as perform bank reconciliations and collec-

tions. You can also manage your financial proc-

esses across multiple currencies, locations, or

companies. Comprehensive, up-to-date financial

information makes it easier to spot trends and gain

insight into your business activities, so you can

capitalize on your knowledge and identify new op-

portunities.

The integration of Microsoft Dynamics NAV

and NAVInvest to Microsoft Office enables users

with one click to export data to Word or Excel, for

further processing. In addition the ability through-

out the system to attach documents means that

the system can be used in a “paperless” environ-

ment where every item registered can have one or

more documents attached to it, making the audit

and regulatory compliance much easier.

A detailed description of Microsoft Dynamics NAVTM is

outside the purpose of this document. For an in depth

introduction to Dynamics NAVTM please refer to:

http://www.microsoft.com/dynamics/nav/default.mspx

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NAVInvest System features

Investment Ledger

The core of the system is the Investment

Ledger designed exclusively for NAVInvest.

This includes a number of subsidiary ledger

tables to record Header, Line and Detail transac-

tions and is the central repository of all Investment

entries made in the module. The development is

based on the sound principles of NAV and includes

similar validation and control procedures, proven

by the fact that Microsoft Dynamics NAV has today

more than 1,000,000 users all over the world.

NAVInvest can handle the following types

of investments, in an unlimited number of portfo-

lios: Equities, Fixed Interest Securities, Hedge

Funds, Warrants, Options, Private Equity Funds,

Bonds, CFDs, Currency Forwards and Futures. The

transaction rules are defined on the basis of the

type of Investment and the underlying business

logic defined by the users.

Data Entry

We have created a flexible and easy proc-

ess to enter all investment transactions in the sys-

tem. Wherever appropriate, drop down menus

guide the user to selections which are filtered in

accordance with the criteria of the data, thus mak-

ing the system very user friendly.

Wherever necessary the data are picked up

from the Financial module. Calculations are exe-

cuted interactively and shown on the screen so

that the user gets a “feel” of the transactions that

he enters. The user has the capability at any point

in time to navigate from the Investment Ledger

transaction to the equivalent Finance Ledger entry

and vice versa.

Frequently your organization may need to

import traded transactions form external sources

or third party trading applications. As our platform

is capable of interaction via Web Service, XML, etc.

we can easily import these safely into our system,

including the ability to have an intermediate man-

ual validation and further processing step.

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. Exchange Rates

Wherever necessary and applicable, the Fi-

nancial module exchange rates are used to

convert amounts in foreign currency to the

company’s base currency.

Based on the principles of NAV design, we

have therefore added further multi-currency

capability to handle cross rates, specified to

the detail of the portfolio. The user can

specify currency exchange rates of Invest-

ment versus Portfolio, always using the ex-

isting Currency definitions in the Financial

Management module.

The rates can be imported directly from

data provided by Fund Managers or other

source (e.g. Bloomberg) using the NAV data

port capabilities.

Our system can handle the automated cal-

culation of Portfolio rates versus Investment

rates, Bank rates and Company base rate.

Thus we can have a scenario where the cur-

rencies are all different.

Bank and General Ledger entries are gener-

ated automatically and posted without user

intervention. Rounding differences are also

posted automatically in accounts specified

by the user in the NAVInvest module. The

system will also calculate Forex and Market

entries automatically, in accordance with

GAAP.

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Viewing information

The software provides to NAV users all the

historical information in a very user friendly and

precise manner. Drilldown enables the viewing of

detailed investment transactions in the traditional

simple and efficient NAV fashion, without the need

to open a new screen. Through the navigation

tools that are used throughout NAV and NAVIn-

vest, the user can circulate throughout the sys-

tem and trace transactions and documents without

any effort.

To provide advanced user definable visuali-

sation (chart based or graphical) we have devel-

oped a standard MS SQL Analysis server cube

which can be easily manipulated using drag and

drop action for example, through the use of our

Targit® partner business intelligence front end or

any other compliant software. Targit® enables in

addition the user to carry out advanced what-if

analysis, thus having an instant snapshot of sce-

narios.

Revaluations

The system enables users to carry out peri-

odic revaluations. Market values supplied by Fund

Managers can be entered manually by the user or

imported from data provided by Fund Managers.

Revaluations can be executed as required, in ac-

cordance with user defined criteria. Selected Port-

folios, types of Investments, specific investments

or any mixture of these can be revaluated at any

point in time. The capability also exists to exclude

in the set-up screens specific portfolios or invest-

ments from being revaluated.

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Reports

Previews and reports are also provided to

assist the user to validate transactions prior to

posting. Detailed reports provide line by line de-

tails of the values of the calculations, in case the

user needs to verify any transactions.

The timing of transaction entry obviously

affects the calculations of the Realised Forex and

Market Gain/Loss. If for example we account for a

sale of a transaction and have recognised these

values, a subsequent entry of a purchase prior to

the sale would render the scenario incorrect. How-

ever, by simply executing a revaluation at any

time, the situation is corrected and adjusting en-

tries are created by the system to pass to the

Ledger.

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Once the user has validated the “pre-flight”,

he can proceed to post the Unrealised Forex and

Market revaluations and both the Investment and

General Ledgers will be updated automatically. All

the information relating to the set up of the ac-

counts for Unrealised and Realised Gains and

Losses is specified in set up menus in the NAVIn-

vest module by the authorised user. The accounts

can be set up not only at the Investment Type

Level but also at the Portfolio level as well as at a

“Client” level in the event that the system is used

to account for third party clients. This capability

allows the unrestricted set-up of a Chart Account

that can satisfy any possible accounting or regula-

tory requirement.

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Term Deposits and Loans

The system provides the capability to manage

Term Deposits and Loans, with automated inter-

est calculations, etc. Deposits once created can

then be closed or renewed under new terms.

Bank charges can also be included. Once the data

is validated the relevant Bank and General Ledger

entries are generated.

Fixed Interest Securities

Concerning securities where a fixed coupon rate is

defined in the investment, the system has the ca-

pability to calculate accrued income, depending

on the dates of payment of the income.

The Financial module’s accrual journal is used to

post the accrued income to user defined accounts

in the Financial module. The users therefore save

time avoiding the repetitive manual tasks of ac-

counting for these items.

A History of all the transactions is available so

that the user can trace at any time the entries

generated in the system.

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Reporting

An integral part of any system is the ability

to extract information required for daily control or

for management purposes.

Microsoft Dynamics NAV uses SQL Server

Report Services functionality as a standard report-

ing tool. This is provided as standard in MS SQL

Server 2005 and higher versions and there is

therefore no need to purchase any other reporting

products.

The extensive functionality of this product

enables the extraction of sophisticated reports

from other SQL compliant databases that the user

may have in place. It is thus possible to mix data

from NAV, NAVInvest and external sources to pro-

duce highly sophisticated reports. These can be

extracted in Excel at the click of a button, pub-

lished in PDF format, or made available on real

time basis through any portal such as Microsoft

Office SharePoint Service/SharePoint Server or

other web site.

Having this in mind we have developed in

NAV Financials and NAVInvest a solution that pro-

vides future estimates of the cash position across

the entire organization, which can include as many

separate business entities as required. As inter-

company loans are investment opportunities them-

selves, the investor will need to take a global view

of his organization. This cash position will take into

consideration any supplier invoices due for pay-

ment as well as any sales receivables that are col-

lectible within the defined timeframe, as well as

any budgeted cash transactions. In combination

with the Reporting system described above, the

users can generate customized reports of their fu-

ture forecasted positions.

Liquidity Management

The main purpose of any financial manage-

ment system is to provide historical information

on the past transactions of a business entity.

We appreciate however that any serious investor

will wish to understand what his future cash posi-

tion will be, so that he can estimate:

a) when funds will be released and become avail-

able for investment;

b) when will a shortfall in liquidity arise and what

cover arrangements can be made.

Depending on the response to these ques-

tions (and other external factors of course) the in-

vestor will plan his future strategy and his ap-

proach to the market, minimizing the possibility of

having idle cash.

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The user can therefore plan his activities in advance and take the best

available opportunities in investing.

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Compliance and Workflow

NAVInvest includes an optional highly so-

phisticated Workflow and Compliance module that

enables the Administrator to custom-define enter-

prise wide compliance procedures, which can also

include external manual tasks.

Through a flexible workflow task definition

system, all tasks carried out in the organization

can be evaluated and assessed depending on de-

fined criteria, e.g. amount limits, time constraints,

activity requirements such as document attach-

ment, document review, etc. The module is avail-

able for use not simply from NAVInvest but also

from all other modules of MS Dynamics, thus al-

lowing an enterprise wide application of rules.

Triggered events can include exception re-

ports, graphical screen visualization, and auto-

mated e-mail notification, thus enabling Compli-

ance Officers to review all the operations required

and control the enterprise activities.

Security

Microsoft Business Solutions NAV uses a

very exhaustive and detailed system of defining

security and user rights. NAVInvest uses exactly

the same philosophy, thus ensuring the integrity of

the system and providing the ability to administra-

tors to define user authorities and permission at

every level of the system.

Windows Authentication means that users

need to log in only once on their system to be

granted access and administrators can ensure that

their access can be tracked throughout the organi-

zation. In addition, System administrators can

switch on a feature that enables the tracking of

every entry, addition or modification to any data,

timed as far down as the second at which this ac-

tivity has been registered, modified, etc.

Return on investment

Microsoft Dynamics NAV and NAVInvest are

easily and quickly implemented and the migration

of data from external sources is possible. Bearing

in mind the automation added by the NAVInvest

module, the users can see an immediate improve-

ment in the speed of entering transactions, an im-

provement in the control of their daily activities,

the accuracy of their financial records and the con-

trol of their investment activities.

Client Relationship Management

Microsoft Dynamics NAV can give people in

your organisation access to accurate, up-to-date

information and the tools to efficiently manage

contacts, opportunities and campaigns while build-

ing client relationships that help drive sales and

encourage loyalty. Everyone in your organisation

can get the information they need to interact with

clients in a profitable way and make smart deci-

sions based on accurate information about every

contact. You can also automate marketing, and

customer-service tasks to make your work envi-

ronment simpler and more efficient. Combined

with the automated NAV (Net Asset Value) func-

tionality you can register the subscription and re-

demption of Funds managed by your organisation,

alongside the Client specific information, history,

etc.

Microsoft Dynamics NAV also helps you

manage a broad range of activities based on your

particular needs. Interactions with clients can be

formally registered (including the option to record

voice message) and controlled for compliance rea-

sons.

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Distribution

ELYSYS is currently distributing this solution exclusively alongside its mainstream Microsoft Dynamics

NAV business as an authorised Partner of Microsoft for this product. Through the extensive Partnership

network of Microsoft, the product is available to partners as an add-on to Microsoft Dynamics NAV. For

more information please contact us or your nearest Microsoft Business Solutions Partner.

Elysys SARL

Le Patio Palace

41, avenue Hector Otto

MC 98000

MONACO

Tel: +377 97 97 71 55

Fax: +377 97 97 71 50

http://www.elysys.com

The information contained in this document is a description of the product at the time of publication. Enhancements and changes to

the product are a natural evolution as in all software systems and Elysys cannot guarantee the accuracy of any information pre-

sented after the date of publication.

This document is for informational purposes only. ELYSYS MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY AS TO

THE INFORMATION IN THIS DOCUMENT.

Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of

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