This is an overview of the new Thomson Reuters Fixed Income Derived Analytics powered by BlackRock Solutions. For more information visit www.prdcommunity.com

1. Thomson Reuters Fixed Income Derived Analytics
powered by BlackRock Solutions®

2. Leveraging Market-Leading Capabilities
New strategic partnership brings together global leaders in their respective fields
Thomson Reuters BlackRock, Inc. BlackRock Solutions
• World’s leading source of • Assets Under Management • Combines sophisticated risk
intelligent information for (AUM) of $3.560 trillion (as of analytics and investment
businesses and professionals June 30, 2012) systems with capital markets
• Reputation for providing the • Renowned for its disciplined and business process expertise
best, most accurate pricing in investment process and • Provides risk and advisory
the market rigorous bottom-up approach to services to 160+ clients
• Support financial and risk, legal, risk management • BlackRock Solutions Aladdin®
tax and accounting, intellectual • Employs approximately 9,900 platform utilized to trade over
property and science and media people in 27 countries $12 trillion in assets, liabilities
markets • Major presence in key global and derivatives each day
• Employs approximately 60,000 markets, including North and
people South America, Europe, Asia,
• Operates in over 100 countries Australia and the Middle East
and Africa

3. About BlackRock
CLIENT TYPE CLIENT REGION
Dollars in billions AUM
• Worlds largest Asset Manager Dollars in billions
• At June 30, 2012, BlackRock’s
AUM was $3.560 trillion
• BlackRock serves institutional,
retail and high net worth investors
in more than 100 countries
• Products span the risk spectrum to
meet clients’ needs, including
active, enhanced and index
strategies across markets and
asset classes

4. About BlackRock Solutions
• The BlackRock Solutions platform is currently used to analyze and
process approximately $12 trillion in assets, liabilities and derivatives
as of June 30, 2012
• Uniquely positioned to address the risk management needs of
financial institutions and institutional investors
• Combination of proprietary risk analytics and investment systems with
the financial markets and business process expertise that comes from
being a part of one of the largest capital markets participants

5. About BlackRock Solutions
• Two primary lines of business: Aladdin Investment Platform
• Aladdin Risk and Investment • Aladdin Investment Platform
Platform – highly scalable • Green Package® Risk Analysis
• Middle and Back Office Outsourcing Services
investment management • Investment Accounting
platform combining portfolio
analysis and risk management Financial Markets Advisory
tools with a complete trade
• Valuation/Risk Assessment
processing platform • Financial/Balance Sheet Strategy
• Dispositions and Workouts of Distressed Assets
• Financial Markets Advisory -
solves complex problems for
financial institutions through Customized Solutions
unbiased financial markets • Proprietary analytics + highly scalable investment
platform + capital markets expertise
advice and integrated project
• Services tailored to best address each client’s
execution challenges
• Client requirements treated as though they are our
own – act as an extension of the in-house team

6. Industry Challenges
Globalization of Investing is driving participants farther
and farther from home in search of yield
They are investing in Fixed Income Securities that may not
be simply vanilla, rather more exotic securities
Opens participants up to the scrutiny of their investors, boards and regulators
Building proprietary systems is costly, time
consuming and a drain on resources
Deep domain expertise is needed to build battle-tested
models and systems to properly mitigate risk

7. Wide Spread Relevance
Challenges of regulatory compliance and delivering yield
have widened the relevance for usage of analytics
Institutional
Family
Asset
Offices
Managers
Corporate Hedge
Treasuries Funds
Insurance
Banks
Companies
Fixed
Pension Income Sovereign
Management Wealth
Derived
Firms Funds
Analytics

8. Solutions Overview
Turn-Key solution to help validate and manage the risk of fixed income
portfolios
• New analytics are battled-tested by
BlackRock and are used to help
manage over $3.5 trillion in AUM
• Analytics are sourced from BlackRock
Solutions’ premier investment
management system Aladdin
• Distributed via Thomson Reuters
DataScope Select and Thomson
Reuters DataScope Onsite platforms
• New analytics utilize Thomson Reuters
Fixed Income Terms and Conditions,
and Evaluated Pricing and leverage
BlackRock Solutions’ proprietary fixed
income models

9. Solutions Overview Continued
Use best-in-class interest rate, credit, mortgage and risk models
• Utilize the same models and
methodology BlackRock and their
clients use every day
• Benefit from unmatched accuracy
and data quality that is created
from the “virtual feedback loop” of
analysis and control to
continuously enhance the quality of
the fixed income derived analytics
• Utilize analytics to measure and
assess security risks with the
confidence that these are the same
analytics used by BlackRock and
its clients

10. Additional Client Advantages
• Clients can reduce overhead
and lower operating costs,
as they no longer need to
undertake these complex “Taking these new derived
and costly calculations analytics could save an
• Ability for clients to increase enormous amount of work
staff/ personnel capacity and expense compared to the
by refocusing them on investment and on-going costs
core competencies associated with building and
managing an analytic process
in-house.”
Virginie O’Shea, Post-trade
Technology Analyst, Aite Group

11. Securities Covered & Calculated Risk Measures
Six assets classes covered initially with over 1.2 million securities:
US Mortgage Convertible US Commercial
Government
Agency Bonds Corporate Bonds Pools (Not Debt/Preferred Mortgage-Backed
Bonds
Structured) Stock Securities (CMBS)
Fixed Income Derived Analytics –
Security level market risk measures covered:
• Nominal Yield • ZV WAL • Option-Value
• Nominal Spread • ZV Spread • Option-Adjusted Duration
• Nominal WAL • Modified Duration (ZV) • Option-Adjusted Convexity
• Modified Duration (Nominal) • ZV Maturity (Last Cash • Modified Duration to Worst
Flow Date)
• Nominal Maturity • Key Rate Durations
(Last Cash Flow Date) • Spread Duration
• ZV Yield • Option-Adjusted Spread

12. Creating the Analytics

13. Applications for Analytics
Leverage fixed income derived analytics for:
Performance & • As an input into internal performance reporting and
analysis process. Essentially, the analytics enrich
Attribution data as an input into reporting tools
• To support the risk and compliance function, providing
the middle office with:
Risk & • An external secondary source to perform regular valuation and
analysis of portfolios
Compliance • The ability to validate duration tolerances and shocks to the
yield curve and provide insight into the risk and sensitivities of
portfolio to interest rate movements

14. Best-in-Class Analytics
“Customers should feel confident that they
have the most accurate view of the securities
and instruments they hold...since these are the
same derived analytics that BlackRock and
our clients use to manage their portfolios.”
Robert Goldstein
Senior Managing Director, Head of BlackRock’s
Institutional Business and BlackRock Solution

15. Appendix
Additional slides if needed

16. Reference Data–Fixed Income
GLOBAL COVERAGE FULL SUPPORT
Breadth and Depth For the life cycle of the bond
• Access to over 5.6 million active and GLOBAL FIXED BREADTH
retired securities INCOME COVERAGE • Global Government/Corporate and
US Municipal bonds
• Terms and conditions for over 1.3 million • Governments
• Call, Put, Sink, Extended, Coupon
US taxable fixed income securities, • Semi-Governments and Capitalization Schedules data.
(Agencies)
• Government/corporate and CMO/ABS
• 200,000 loan facilities, 2.3 million US • Corporates instruments
municipal securities(1.2m live), non
• Supranationals • Coupon schedules: Retrieve past,
agency
• Certificate of Deposits present and future coupon rates, rate
changes and associated dates for
• CMO’s, Asset Backed securities and • Commercial Paper
450,000 international bonds spanning all
• Eurobonds
asset subtypes
• Convertibles DEPTH
• Over 175 proprietary analytics providing • Asset-Backed • Duration, Spread, Yield,
a full view on each fixed-income Securities (ABS, Discount Margin,
instrument daily – including duration, RMBS) • Prepayment Model,
convexity, OAS analytics and yield Prepayment Speed
calculations
• Bankruptcy flags
• Global ratings data from over 20 top • Call refunding dates, Call final price
agencies including S&P, Moody’s, Fitch, • Amortization Type
ICMA and Dominion Bond Ratings
Service, and key regional agencies in
Asia such as JCR

17. Reference Data–Equities
GLOBAL COVERAGE
Breadth and Depth
• Global terms and conditions
Depth of Content
• Global equities coverage including: Equities (stocks, ADRs,
GDRs), Warrants (equity, index, basket), Funds (exchange-
listed, ETF, NAV), Indices, Options,
Issuer
• Options on Futures, Futures, Money and FX (forwards and Name
swaps)
Description
• More than 3.2m securities worldwide:
Cross Reference Codes
• Equities 300,000 Places of Listing
• Warrants 745,000 Ratings (both long and short)
• Indices 28,000
• Funds 87,000
• Options 880,000
• Options on Futures 865,000
• Futures 250,000
• Money 57,000

18. Thomson Reuters Pricing Service
• Thomson Reuters unbiased & independent global information provider
• Comprehensive coverage of all financial instruments in all markets
• Thomson Reuters Pricing Service staffed by 115+ fixed income professionals
• Vast dealer contribution network
• Direct access to Thomson Reuters evaluation staff for price challenges
• Complete transparency on pricing methodology
• Accurate data measured by stringent quality control metrics
• Flexible and scalable delivery platform – Thomson Reuters DataScope Select
• Constant development and investment in Thomson Reuters Pricing Service

19. Evaluated Pricing Services
• Evaluates over 2.6 million fixed income and derivatives securities on a
daily basis servicing thousands of clients worldwide
• Specializing in “harder to value” securities that other vendors cannot price
• CLO’s, Derivatives and Structured Notes are priced per client requests – we are
currently valuing over 30,000 CLOs and derivatives daily
• Has over 150 evaluators positioned globally plus over 4,500 support staff
• Evaluators have real market experience (e.g. trading, research etc)
• Specialist by asset class
• Access to 21,000 live price contributions and trader contacts in the market
• Evaluators have tools to use these for quality and audit purposes
• Offers the best in class customer service – regional helpdesk, direct access
to evaluators
• Pricing Specialists and Evaluation staff on hand to discuss pricing methodology,
challenges and price discrepancies