wEALTHmanagement

services

A N I N T R O D U C T I O N T O D T C C ’ S

About The Depository Trust & Clearing Corporation

For more than 30 years, DTCC’s family of subsidiaries has provided

the financial services industry with continuously improving effi-

ciencies, reduced risk and lower costs through streamlined pro-

cessing solutions that are automated, centralized and standardized.

DTCC’s post-trade infrastructure system handles millions of trans-

actions each day and ensures uninterrupted connectivity to thou-

sands of financial firms in the U.S. and overseas.

DTCC’s subsidiaries are leading processors of a broad range of

asset management services, including mutual fund and fund retire-

ment plan programs, as well as managed accounts. Another family

of services in development will help the alternative investment

products sector gain similar efficiencies.

In 2006, DTCC settled more than $1.5 quadrillion in securities trans-

actions. DTCC's depository provides custody and asset servicing for

2.8 million securities issues from the United States and 100 other

countries and territories, valued at $36 trillion. The organization has

operating facilities in multiple locations in the United States and

overseas.

For more information, visit www.dtcc.com.

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AN INTRODUCTION TO WEALTH MANAGEMENT SERVICES

DTCC’s Wealth Management Services can offer you

a suite of services designed for the distributors of

mutual funds, managed accounts and, with approval

from the Securities and Exchange Commission, alternative

investment products. And underpinning all these services is

a centralized infrastructure known throughout the world for

reliability and resiliency.

By using our Wealth Management Services, you

can expand your trading relationships, increase your

processing efficiencies, lower risk and reduce your

market and operational costs. DTCC is industry

owned and operates on an at-cost basis, which

means that as volumes grow, we return profits back

to our customers through rebates, discounts and,

over time, fee reductions.

Our goal is to help you grow your business, achieve

economies of scale and increase your revenues.

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WEALTH MANAGEMENT SERVICES2

Through decades of explosive growth and change, our Mutual

Fund Services have been at the center of operations, helping

the fund industry reach a pinnacle of over $11 trillion in assets

under management. Offering end-to-end connectivity, our automat-

ed and centralized services have allowed fund companies and the

distributors of their products to expand the breadth of their offer-

ings and the network of their strategic partnerships, while continu-

ously decreasing operational costs and risks.

We can demonstrate to you the power of Fund/SERV,®

our flagship transaction service and the industry standard.

On an average day, it’s capable of handling and settling

money obligations for close to 700,000 mutual fund trans-

actions worth trillions of dollars. And it has the built-in

capacity to process many more than that, so it’s always

ahead of market growth.

Other mutual fund solutions reconcile account information

between you and your business partners, and allow you to

streamline the exchange of vital data on your clients’ accounts,

as well as your firm. Our newest service was created to give

you a state-of-the art information repository for all the

rules-based information contained in a fund prospectus.

MUTUAL FUND SERVICES

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With competition increasing, margins decreasing and compliance requirements

becoming more complex, our Mutual Fund Services can transform your fund busi-

ness into a highly efficient operation.

Mutual Fund Services include:

ACATS-Fund/SERV Transfers fund shares from one firm toanother.

Commission Settlement Simplifies payment reconciliation betweenfunds and third-party distribution firms.

Daily Price & Rate File Provides daily net asset values and rates for daily accrual funds.

Defined Contribution Clearance & Settlement Facilitates the processing and information-exchange of retirement and other benefitprograms.

Fund/SERV®

Centralizes order entry, confirmation, registration and money settlement.

Fund/SPEED SM

Exchanges orders and account informa-tion, in real time, between funds and bro-ker/dealers, financial advisers and planners.

Global Update Transmits updated information to funds onfirms’ branches and account executives.

Mutual Fund Profile Service Provides a central source for funds’ prospec-tus information.

Networking Exchanges and reconciles account-level information between funds and firms.

Networking for Standardized Data ReportingAllows fund companies to request informa-tion on omnibus and super-omnibusaccounts to better monitor trading activity.

Transfer of Retirement Assets Transfers the value of fund shares held infund-sponsored IRAs from one fund toanother.

Mutual Fund Services are offered by National Securities

Clearing Corporation, a DTCC subsidiary. For more

information, visit www.dtcc.com/mutualfunds

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WEALTH MANAGEMENT SERVICES4

Our Managed Accounts Service offers a centralized communica-

tions platform for the seamless exchange of information

required to initiate and maintain a client’s portfolio.

strengthen your core client service and

client-update capabilities. We built this

service with an open architecture designed

for easy access and using XML-based

standard messaging developed by the

MMI, so errors, delays and operational

costs are greatly minimized.

And DTCC’s time-tested infrastruc-

ture provides you with unparalleled data

integrity, security and business continu-

ity capabilities – crucial factors for pro-

tecting your investors’ records.

MANAGED ACCOUNTS SERVICE

We realize it’s been difficult to juggle multiple

connections and manual processes for portfolios

that reside in a multitude of distinct sponsor

programs. It’s a chaotic mix of communications

that’s been squeezing your profit margins and

straining your potential for future growth.

When several industry leaders came to

us for a solution, we swiftly responded,

and worked with them and The Money

Management Institute (MMI) to create

our Managed Accounts Service. It is the

first of its kind and brings a new level of

efficiency, risk reduction and streamlined

communications to an industry poised to

grow to $1.5 trillion by 2011.

With this service, you can set up a

new account at lightning speed and at a

fraction of your current costs, and

WEALTH MANAGEMENT SERVICES 5

As the industry changes, our Managed Accounts

Service will be expanded to support new industry

product innovations, as well, including unified

managed accounts, multiple-style portfolios and

model-only programs.

We plan to further extend the service with addi-

tional account maintenance messages, such as

tax-trading guidelines, investment-manager style

changes, and address, broker and custodian

changes. We will also add functions to transmit

corporate action messages.

The Managed Accounts Service is offered by DTCC

Solutions LLC, a DTCC subsidiary. For more informa-

tion, visit www.dtcc.com/managedaccounts

New Account Set-Up

A complete composite of information and

instructions to initiate and activate a new man-

aged account between a sponsor and an invest-

ment manager.

Account Maintenance

A function that streamlines core activities such

as contributions and distributions to and from

an account, as well as account terminations,

minimizing processing and market risk.

Client Profile Update

A periodic client update that provides informa-

tion on such changes as investment objectives,

client profile modifications and other relevant

investor information.

Our Managed Accounts Service currently offers a complement of messages that support

the account-opening life cycle. These include:

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WEALTH MANAGEMENT SERVICES6

DTCC has proposed a new suite of services to automate the

processing of hedge funds, funds of hedge funds, real estate

investment trusts (REITs), managed futures and commodity pools,

as well as other alternative investment products.

Alternative investments are becoming increasingly popular with investors

looking to grow their wealth in non-traditional products. Global hedge fund

assets alone have grown to $2.4 trillion in 2007 and are projected to reach

$4 trillion by 2010; and REITs, at $438 billion in assets, have almost tripled

in just five years.

It’s an exciting time to be active in these markets, with

new opportunities to build your business. At the same time,

you’re facing some profound operational challenges.

Right now, transactions are processed manually, an envi-

ronment that is error-prone and, therefore, susceptible to

high operational risk. Added to that, spreadsheet-based

record keeping and lengthy subscription documents slow

processing even further.

Our proposed solution will link broker/dealers, fund

managers, administrators and custodians through a central

network that will automate and streamline all the processes related to

trade order, sub-account document exchange and reporting. Money settle-

ment will be reported in multiple currencies, and virtually straight-

through-processing will increase the speed of settlement and eliminate

delays in reconciling transactions.

ALTERNATIVE INVESTMENT PRODUCTS

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New Account Set-Up Exchanges information required to initiatea new account.

Initial SubscriptionsAutomates the process for submitting thetrade and provides a documents inventory.

Subsequent SubscriptionsStandardizes confirmation of subscriptionamount, effective date, account registrationand settlement date.

Redemptions/Tender OffersAutomates the liquidation of assets in a fund.

ExchangesMoves customer shares from one share classto another.

Position/Valuation ReportingProvides detailed, up-to-date reports on the value of your clients’ investments.

Our services for alternative investment products will initiallyoffer these features:

DistributionsDistributes share dividends and fund incomepayments through an automated platform.

Account MaintenanceSimplifies day-to-day activities, includingchanges in account information and other non-financial updates.

CommissionsAllows funds to report and settle detailed commission data, at both an account level and a firm level.

DTCC’s service for alternative investment products will

be offered by its National Securities Clearing Corporation

subsidiary, pending approval by the Securities and

Exchange Commission. For more information, visit

www.dtcc.com/aip

DTCC’s Wealth Management Services

A business unit of The Depository Trust & Clearing Corporation

Providing

Mutual Fund Services

Managed Accounts Service

A Service for Alternative Investment Products (Proposed)

To learn more, please call us at 1-212-855-8877

Or visit our Web site, www.dtcc.com

www.dtcc.com