C O M P R E H E N S I V E R E P O R T I N G A N D M O N I T O R I N G

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1 COMMISSION MANAGEMENT Report Guide

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3 C O M P R E H E N S I V E R E P O R T I N G A N D M O N I T O R I N G With Northern Trust Securities, Inc. s Commission Management Program, you can monitor your managers participation rate in the program, view related rebates and quantify the program s effect on manager commission rates. By using your exclusive commission management consolidation code (first four letters of sponsor area + CM ) you will receive analytics for each of your investment managers enrolled in the program. This guide presents a sample page from each report, highlights its functionality and references each data element for clarity. If you have any questions regarding this guide or would like more information about commission management in general, please contact your Northern Trust representative.

4 C O N T E N T S C O M M I S S I O N M A N A G E M E N T P E R F O R M A N C E S C O R E C A R D E F F E C T I V E C O M M I S S I O N R AT E S N O R T H E R N T R U S T

5 COMMISSION MANAGEMENT PERFORMANCE SCOREC A R D MANAGEMENT Management A B C D E F G Northern =ust *Generated by Northern Trust Securities, Inc. (SIPC, FINRA) and a subsidiary of the Northern Trust Corporation from periodic data on XX Apr XX C2109 The Commission Management Performance Scorecard provides information on the percentage of total commissions that are directed to the program as well as the rebates received on this trading. To run the report, use a From Date that is equal to the first day of a month and a To Date that is equal to the last calendar day of a month. The report can be run dating back to the start date in the program. Rebates are posted in USD and reflected in the client s base currency on the report. A B C D Total Trades is the number of trades executed by each investment manager. Total Custody Account Commissions is the total com mis sions paid by each investment manager. Total Trades NTSI/Network is the number of trades executed with Northern Trust s Commission Management broker network. Manager Directed Commissions is the total gross commissions paid to Northern Trust s Commission Management broker network. E F G Total Rebate Basis is the amount of commissions paid to Northern Trust s Commission Management broker network eligible for payment. % of Trading NTSI/Network is the Total Manager Directed Commissions divided by Total Commissions, or E/B. Client Rebate Amount is the sum of all rebates received during the time period selected. N O R T H E R N T R U S T 3

6 E F F E C T I V E C O M M I S S I O N R A T E S A B C D E F G H I Northern =ust *Generated by Northern Trust Securities, Inc. (SIPC, FINRA) and a subsidiary of the Northern Trust Corporation from periodic data on XX APR XX C2045 *Commission rate calculations are based on agency trades, or trades where a commission was paid. The Effective Commission Rates report provides information on the percentage of total commissions that are directed to the program as well as the rebates received on this trading which is similar to the Performance Scorecard. In addition, the report provides information on the manager s actual commission rate before the rebate, and the effective commission rate after the rebate. Note that only agency trades, or trades where a commission was paid, are included in the above calculation. To run the report, use a From Date that is equal to the first day of a month and a To Date that is equal to the last calendar day of a month. The report can be run dating back to the start date in the program. Rebates are posted in USD and reflected in the client s base currency on the report. A B C D E Total Custody Account Commissions is the total commissions paid by each investment manager. Manager Directed Commissions is the total gross commissions paid to Northern Trust s Commission Management broker network. Total Rebate Basis is the amount of commissions paid to Northern Trust s Commission Management broker network. % of Trading NTSI/Network is the total Manager Directed Commissions divided by Total Commissions, or B/A. Client Rebate Amount is the sum of all rebates received during the time period selected. F G H I Per Share commission rate before rebate is calculated as A / (Number of shares traded in the period for trades in which a commission was paid) (i.e., agency trades). Basis Point Cost before rebate is calculated as (A / (Principal Amount Traded)) * 10,000. Per Share commission rate after rebate is calculated as (A-Rebate Amount) / (Number of shares traded in the period for trades in which a commission was paid). Basis Point Cost after rebate is calculated as ((A-Rebate Amount)/ (Principal Amount Traded)) * 10, N O R T H E R N T R U S T

7 2014 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to institutional investors, expert investors and professional investors only and should not be relied upon by retail investors. For legal and regulatory information about our offices and legal entities, visit northerntrust.com/disclosures. The following information is provided to comply with local disclosure requirements: The Northern Trust Company, London Branch; Northern Trust Global Services Limited; Northern Trust Global Investments Limited. The following information is provided to comply with Article 9(a) of The Central Bank of the UAE s Board of Directors Resolution No 57/3/1996 Regarding the Regulation for Representative Offices: Northern Trust Global Services Limited, Abu Dhabi Representative Office. Northern Trust Global Services Limited Luxembourg Branch, 2 rue Albert Borschette, L-1246, Luxembourg, Succursale d une société de droit étranger RCS B Northern Trust Luxembourg Management Company S.A., 2 rue Albert Borschette, L-1246, Luxembourg, Société anonyme RCS B Northern Trust (Guernsey) Limited (2651)/Northern Trust Fiduciary Services (Guernsey) Limited (29806)/Northern Trust International Fund Administration Services (Guernsey) Limited (15532) Registered Office: Trafalgar Court Les Banques, St Peter Port, Guernsey GY1 3DA. NOT FDIC INSURED May lose value No bank guarantee Securities products and services are offered by Northern Trust Securities, Inc., member FINRA, SIPC, and a wholly owned subsidiary of Northern Trust Corporation, Chicago.

8 northerntrust.com/ntsi Q3858 (4/14)