WHAT IS THE OPEN FINANCE NETWORK?

The Open Finance Network (OFN) is a financial services and technology holding company based in Charlotte, N.C., one of the nation's leading financial centers.  OFN provides a comprehensive suite of technology products and services for fee only advisors and family offices. These services are enterprise-wide and can conform and scale the most sophisticated and complex wealth management portfolio strategies. 

OFN's enterprise solution is the first to fully automate the advisor's business practice. OFN's solution puts on the advisor's desktop every tool needed to serve clients. And the advisor's desktop is linked seamlessly to OFN's state-of-the art back office processing center. The result: increases in the productivity and profit margins of advisors by reducing administrative and financial friction. 

In addition, OFN's solution is open architecture, providing access to separate account managers and custodians not restricted by the financial interests of a wire house. That allows the independent advisor to remain truly objective and independent. 

By linking front- and back-office functions, and by giving advisors the freedom to serve the clients in ways that are best for the client, OFN allows IFAs to scale their practices into a viable, truly independent business.

Founded in 2002, the Open Finance Network had a staff of approximately 100 people who maintained OFN's technological and market leadership. When the first generation technology came on-line in 2003, OFN immediately attracted clients and investors.

Current Status

PhoenixBay, Inc., doing business as Open Finance Network ("OFN"), has been focused on developing and delivering AGILE, a revolutionary wealth management platform of technology and services for wealth managers who are driven by their commitment to providing unbiased advice to their clients. OFN's value proposition to these advisors is to reduce the burden of administrative "back?office" tasks and expenses so that they can focus on client development and retention while improving profitably by growing assets under management. OFN generated enterprise wide 2008 gross revenue of approximately $16MM, with $3MM in net revenue.

OFN successful released its beta version of AGILE in the Fall of 2008 and put AGILE into production January, 2009. This enabled the Company to begin "on boarding" of assets in excess of $8 billion from twenty five clients. These clients included some of the nation's premier consulting groups, such as Blue Horizon Investment Advisors, True North Advisors, Broad Street Capital Advisors, Cap Trust Advisors, Stanford Financial Group and Stanford Institutional Consulting ("Stanford").

On February 28, 2009, OFN had to abruptly terminate its AGILE launch when it lost its lead investor, Stanford, who received an SEC compliant on February 17 and was immediately put into receivership by the US District Court of Texas.

Stanford was supporting the launch and deployment burn for AGILE at the rate of approximately $350,000 per month. Furthermore, in addition to receiving $16M of its $27M of convertible debt investment from Stanford, OFN lost its largest 2009 new revenue stream, as OFN was on?boarding Stanford for its services.

While maintaining breakeven operations in its subsidiary, its portfolio accounting subsidiary (B?Ready Outsourcing Solutions), OFN has had to cease the deployment, operations, sales and ongoing enhancements to AGILE, hastily laying off 50 of 82 FTEs.

Open Finance Network "OFN" (Legal name PhoenixBay, Inc.)
OFN provides a comprehensive suite of technology products and services for fee-only advisors and family offices.  These services are enterprise-wide and can conform and scale the most sophisticated and complex wealth management portfolio strategies.

Enterprise Solutions
OFN's enterprise solution is the first to fully automate the advisor's business practice. OFN's solution puts on the advisor's desktop (via AGILE platform) every tool needed to serve clients. The advisor's desktop is linked seamlessly to OFN's state-of-the-art back office processing center (via B-Ready Outsourcing Solutions). The result: increases in the productivity and profit margins of advisors by reducing administrative and financial friction.

In addition, OFN's solution is open architecture, providing access to separate account managers and custodians (via American Securities Group, not for sale) not restricted by the financial interests of a warehouse. That allows the independent advisor to remain truly objective and independent.

By linking front and back-office functions, and by giving advisors the freedom to serve the clients in ways that are best for the client, OFN allows IFAs to scale their practices into a viable, truly independent business.

The Foundation
Open Finance Network had a staff of approximately 100 people who maintained OFN's technological and market leadership. When the first generation of technology came on-line in 2003, OFN immediately attracted clients and investors. In 2008, OFN had approximately $14-billion under administration.  .

Investment
OFN has received nearly $30,000,000 in start up financing (and $17,000,000 since November 2007 which was specifically directed toward development of the AGILE desktop advisor platform).

Solution
The Open Finance Network delivers open architecture solutions: open product, open technology, open custody & clearing.

OFN delivers a comprehensive suite of technology and service solutions for fee only advisors and firms that serve them, who require conformity to the individual, complex, wealth management strategies and demand that the solutions scale on an enterprise wide level.  Open architecture thru outsourced technology and back office solution across all functions of the wealth management discipline.

OFN delivers agile, seamless solutions via its proprietary technologies including its ePluribus wealth management repository infrastructure which allows for the implementation of the most complex wealth management and family office approaches by Trusted Advisors and the Institutions and Firms who serve these Trusted Advisors.

AGILE
OFN's enterprise solution, AGILE: The Advisor Control Center by OFN is the first to fully automate the advisor's business practice. AGILE: The Advisor Control Center by OFN links the advisor's desktop seamlessly to OFN's state-of-the-art back office processing center. The results?

• A truly integrated advisor desktop
• A fully aggregated data solution
• Desktop commands that initiate and track back-office execution
• Fewer hassles, fewer errors, less risk, and greater responsiveness to the client

Client relationship management and advisor workflow management tools

• Aggregated account data for a holistic view of client assets
• Grouping of accounts, partial accounts, positions and lots for pre- and post trade functions
• Establishing life goals and tracking probabilities of achieving those goals with Monte Carlo Analysis
• Strategic portfolio creation or uploading, evaluation, forecasting, selection and implementation
• Setup security masters by advisor and by client, with custom asset styles
• Exclusive online community of advisors for idea exchange and networking
• Online system to initiate and track service requests to the back office operations team
• Portfolio accounting and performance reporting in highly customizable views, built from security level performance
• Custom premium reporting, with high end analytics and attribution
• Reports that cut across the advisor's "book of business" for analytics and administration
• Highly flexible billing of client accounts

GPVS
Web based multi-currency portfolio aggregating and accounting application.  The application contains more than 400,000 lines of code, provides advisors with access to all of its client accounts starting with the investment portion of the balance sheet, allows accounts to be organized in a proprietary multi-tiered hierarchy, provides tax lot detail across accounts, and allows target portfolio allocations to be reviewed in light of the actual portfolio allocations for tax sensitive rebalancing.

Principal IP - Functionality - GPVS (i.e. PortfolioScope)

PortfolioScope's development as an on-line web enabler portfolio accounting engine has evolved over the last seven to eight years.  The underlining CAD accounting engine has evolved over the last twenty years; CAD was founded in 1983.  The CAD accounting requirements contained in the software have been refined over many years and are AIMR compliant, audited by the big six accounting firms (now the big 4?).  Much like "Open Finance," PortfolioScope evolution was funded by customers and consulting arrangements that enabled CAD to retain and expand the IP.  From an accounting perspective it is bullet proof!

The firm then turned their attention to develop solutions that support the entire investment process-from recordkeeping to precision performance measurement. CAD was especially known for its ability to automate processing for the most sophisticated assets including derivatives, options and foreign securities.  Clients have included Mellon Bank, Deutsche Bank, Dupont Capital Management, the State of Florida, Merrill Lynch Investment Managers, Bear Stearns & Co. and Citicorp.  At this time it remains the books and records for over $200 Billion in institutional assets for Dupont and Florida.

Wrapping its full-strength institutional engine in a user-friendly interface designed expressly for advisors and their investor clients, PortfolioScope pioneered the next generation of "intelligent" portfolio tracking and reporting solutions. This solution shields users from the complexities of account consolidation and portfolio accounting, empowering users at all levels to leverage professional-grade portfolio management reporting and analysis.

The GPVS portion of PortfolioScope is contained in 400,000 lines of code.  It took 14 developers 3 years to build the web app.  This doesn't include preliminary web development by Telescan and CAD prior to the formation of CADR (i.e. PortfolioScope) nor the underlining CAD accounting engine.  The effort by Telescan and CAD started in 1996, resulted in the first wed app called "Power Portfolio."  With the formation of CADR and subsequently PortfolioScope, the Investors Sources - a private capital equity group - has $8M invested in PortfolioScope.

ePluribus
OFN delivers agile, seamless solutions via its proprietary technologies including its ePluribus wealth management repository infrastructure which allows for the implementation of the most complex wealth management and family office approaches by Trusted Advisors and the Institutions and Firms who serve these Trusted Advisors.  ePluribus contains more than 300,000 lines of JAVA code.

Principal IP - Functionality - Day Trading Platform & Advisor Desk Top

Trading Platform

• Java automated Edgar data collector and parser - XML data files
• Comstock - nobody likes Frank, good cop, bad cop - management issues, data control issues and customer relation/service issues - had clients and blew it. $4000.00 a month couldn't deliver - S&P - technology platform antiqued
• Java front-end for web trading
• Java back-office shadow database of Penson data with real-time accounting for intraday buying power, positions, and balances
• Java real-time quotes ticker plant for real-time and delayed data
• Java streaming data server
• Java real-time quotes and charts client ("Invest.com Power Broker" and its principal register trademark)
• Java quotes parsers for Standard & Poor's and North American Quotations -
• Java virtual branding front-end
• Java basket trading system
• Java account manager / populated PDF account document generation
• Java chart, table, and indicator controls
• Java Sungard/Phase 3 real-time interface
• Java Penson FTP data parsers and related utilities

Advisor Desk Top - LiveAdvisors

• Java Develop data feeds from multiple custodians into an SQL database
• JavaAdvisors Desktop displaying positions, transaction, parsed 180 ways
• Java Asset Allocation on demand
• Java Advisor controlled House holding functionality
• Java developed billing system
• Java developed enrichment tools for security master controls and asset allocation description
• Java front-end for advisor access and framed to the GPVS system

B-Ready Outsourcing Solutions

B-Ready Outsourcing Solutions, Inc. (BROS) provides virtual, back-office outsourcing services to the professional investment advisor community.

Vision

To provide professional investment advisors with the highest quality, back-office outsourcing solutions that enable an increased focus on customer needs and business development.  Toward this vision, OFN is committed to delivering these services by U.S. workers through a virtual office model that allows our employees to work from home.  The virtual office model contributes in fostering a sense of community for our employees, it reduces employee turnover, and controls/minimizes future fee increases to our customers.  OFN is equally committed to the integrity, accuracy, and confidentiality of our customers' client data, and will make every effort to protect and safeguard this data as if it were our own.

Mission

To deliver world-class, virtual back-office outsourcing solutions to the professional investment advisor community which reduce costs, minimize operational complexity, and enhance the quality of the Investment Advisor's service delivery process.

Advisor Services

Investment Data Management and Performance Reporting

B-Ready Outsourcing (BROS) provides a turn-key solution for the data management and performance reporting related to the advisor's investment clients. The typical advisor process involves the daily posting and reconciliation of investment data, a monthly capture of outside asset accounts not covered by electronic downloads, and a quarterly and year-end reporting process for account statements and advisor billing. B-Ready Outsourcing designs our process to fit the advisor's needs.

For Sale
All the assets of OFN and the stock of B-Ready Outsourcing Solutions including but not limited to:

• AGILE advisor desktop platform:  Represents $17,000,000+ invested since November 2007
• ePluribus wealth management repository infrastructure
• GPVS investment accounting platform
• Stock of B-Ready Outsourcing Solutions
• Furniture, hardware, receivables and other assets of OFN

Will be sold as a total package

 If you have any questions after down loading and reviewing Due Diligence Package please call or email: 919-832-8005 or bid007@nc.rr.com.