Euroclear FundsPlace. Your specialist global market infrastructure and innovative fund solution providers

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1 Euroclear FundsPlace Your specialist global market infrastructure and innovative fund solution providers

2 About Euroclear Euroclear is the financial industry s trusted provider of post-trade services. We provide settlement, safekeeping and servicing of domestic and cross-border securities transactions, from bonds, equities and derivatives to investment funds. We connect over 2,000 financial market participants across the globe and ensure securities transactions are processed safely and efficiently. As an open and resilient infrastructure, we help clients cut through complexity, lower costs, and mitigate risks.

3 Why FundsPlace? The global funds industry is enjoying strong and sustained growth. More challenges, low returns on cash and the proliferation of defined benefit pension plans are boosting inflows into mutual funds, alternative funds and ETFs. Increased growth in the developing world and demand for international diversification are opening up new markets. The challenges of cost, complexity and regulatory scrutiny With new opportunities come new challenges. Cost and complexity in the post-trade environment remain a deterrent for big investors. Institutions that turn to mutual funds to gain the exposures they need encounter higher processing costs than with other asset classes. There is also little standardisation in the hedge fund industry and there s a growing range of funds with (increasingly more) specific requirements. Increased regulatory scrutiny raises compliance issues for fund managers and wealth managers alike. Mistakes can be costly. The know your customer rules make transparent information flows between distributors, transfer agents and fund managers essential. The requirements of UCITS V and the AIFMD, together with demands for transparency in the movement of cash and stock reconciliations, all intensify the pressure. Increasingly, firms must be able to demonstrate that they have the necessary systems in place to protect client assets. Automation is key Only automation can: deliver the transparency and control now being demanded by regulators, and in a cost-effective manner provide the ease and efficiency institutional investors look for drive out the risk of errors that comes from operational complexity and manual intervention open the door to greater flexibility help to standardise processes and improve productivity and efficiency All of this means lower cost and the ability to re-focus precious resources, and ultimately helps to improve growth through greater scalability. Custodians need to streamline their processes and protect their margins, while simultaneously improving client service. 1 Euroclear FundsPlace

4 Euroclear FundsPlace the straight-through path to efficiency FundsPlace, Euroclear s fully automated investment funds service, is a comprehensive and efficient solution to deal with the challenges in fund transaction processing and servicing. A dedicated platform for order management, settlement and asset servicing, that connects wealth managers, institutional investors, platforms, transfer agents, custodians and fund managers in a single global infrastructure. The meeting place for the global fund industry Euroclear FundsPlace was created to bring together our existing trade and post-trade services for funds to form the leading meeting place for all involved in the global fund industry. We offer participants access to funds in 26 countries, delivering both domestic and international settlement. We also process hedge funds managed by more than 400 hedge fund administrators, and provide a full order execution to settlement service for ETFs. Transforming efficiency, reducing risk By automating every aspect of the fund transaction process, we can: remove the complexity of fund processing reduce cost and risks facilitate cross-border fund distribution deliver full transparency to ensure control and meet the requirements of regulators create efficient cash payments A segregated account structure from beginning to end of the transaction facilitates the attribution of underlying client assets. Maximum flexibility You can choose to use our full service from dealing, confirmation, settlement and reconciliation to cash movements and asset servicing or simply one of its component solutions. And, with our plug and play approach, you can communicate with us through whatever channel suits you best. Scale and security We provide order routing for more than 11 million fund orders a year and have over 2 trillion of funds under custody. This ensures significant scale benefits for the users of our services all within the secure environment of one of the world s largest providers of securities settlement and related services, with 28 trillion assets under custody. 2 Euroclear FundsPlace

5 Your specialist global market infrastructure and innovative fund solution provider Connecting global investment funds participants, providing tailored solutions for international and domestic markets, both trade and post-trade. Order routing and management Benefit from real-time placing, order confirmation and status updates, multi-currency dealing across a large range of products and asset classes in an efficient and automated straight-through process (STP). Settlement Simplify your payments, asset and cash netting through automated payments. View your orders online and benefit from standardised reporting throughout their entire lifecycle. Asset servicing Receive notification of corporate events, from annual general meetings to the declaration of entitlements. Access to our centralised fund database for details of, net asset values (NAVs), cut-off times, subscription amounts, settlement currencies, support for account opening and administration forms, and more, provides you with a comprehensive single source of conditions and fund agents. Order routing and management Euroclear FundsPlace Settlement Asset servicing 3 Euroclear FundsPlace

6 Euroclear FundsPlace order routing and management Automating and standardising to reduce costs and risks Euroclear FundsPlace automated order processing solution provides a single entry point for all your fund orders conventional mutual funds, hedge funds or ETFs. There is one format for all orders and all markets domestic and cross-border. Manual processes will become a thing of the past, eliminating errors that can stem from re-keying or telephone dealing. An automatically generated audit trail enhances control and transparency and enables problem resolution. We give wealth managers and institutional investors access to a significant number of mutual funds and over 1,200 fund administrators worldwide. It includes the hedge funds managed by over 400 hedge fund administrators. We are constantly extending the list of eligible funds according to new client demand. Flexibility in connectivity You can choose how you want to communicate with us. Much will depend on your own system needs and your transaction volumes. You may wish to communicate via a browser, by SWIFT messaging or through a hostto-host link for high-volume business. Our solutions are easy to integrate into your back office. You can be assured of the highest levels of security, whichever communications method you choose. A choice of execution models Our order routing operating models can match your needs according to the type of fund investor you are. wealth management omnibus account institutional investor and fund manager standard account a. custodian integrated model; custodian captures the orders from institutional clients in its own system, then sends them to FundsPlace b. custodian delegated model; custodian grants access to FundsPlace to its institutional client for order input Real-time order confirmation and order status The system flags the moment the order has been accepted by the transfer agent. You then receive an acknowledgement, together with a contract note and settlement date information. You also have the option of keeping your hands on the trade in order to monitor when the transfer agent has accepted the order throughout the entire lifecycle (after trade). Simplified management of transfer restrictions Electronic certification at order input and subsequent compliance checks reduce the risk of breaching holding restrictions. Immediate availability of cash for re-investment With quicker confirmations, you get an immediate view of cash available to invest in new funds. Multi-currency dealing We trade in all the permitted currencies of FundsPlace eligible funds. Dedicated client support You will have your own dedicated contacts for client support, connectivity and migration. ETFs With our ETF service you can experience both domestic and international settlement, order routing and management. With FundsPlace you can hold your ETFs in the same account as your other securities holdings. 4 Euroclear FundsPlace

7 Benefits order routing and management Wealth managers Institutional investors Immediate connection to the global fund market provides one format for all orders Automated solution cuts operational costs and reduces the risk of error Speed of processing with same-day service for the majority of transactions improves client service and allows rapid reconciliation or identification of errors Demonstrate compliance with regulatory requirements Efficiency and scalability facilitate future growth Your gateway to the global fund market with one format for all orders, including hedge funds and ETFs. This eliminates the need for separate connections and optimises fund dealing efficiency Automated order placement, receipt of contract notes and generation of settlement instructions cuts costs and reduces the risk of errors Easy integration within your existing custodial arrangements Custodians Fund managers Complements your existing offering, delivering connections to leading transfer agents Automation in order routing improves efficiency and reduces costs Standardisation of processes Extend your network of distributors without having to set up multiple communication links Distribute funds from multiple jurisdictions Flexible account structures accurately identify each distributor Access to one of the largest books of securities 5 Euroclear FundsPlace

8 Euroclear FundsPlace settlement Bringing transparency and simplicity to the settlement process Euroclear FundsPlace automated settlement can be seamlessly integrated with order routing and management to provide a straightthrough execution-to-settlement service. It provides complete transparency together with asset segregation at every stage of the process. We achieve straight-through processing (STP) on approximately 97% of all orders. You can follow the status of your orders online or via standardised, real-time reporting throughout the lifecycle of the transaction. Frequent, up-to-date reconciliations minimise the risk of errors. Fast, efficient payments Automated payments allow you to simplify your payments and cash netting, making it easier for you to manage your cash flows. STP ensures you get the correct redemption payment on time. You enjoy immediate availability to invest in new funds. Making life easier for those holding client funds For wealth managers and others holding client funds, we offer you automated: standardised settlement instructions and confirmations for each of your underlying clients payment and cash netting allowing you to simplify and speed up payments to your clients while reducing your costs re-registration allowing you to transfer and re-register client portfolios involving one single provider by settling their portfolios in our CSD Hedge fund processing Low levels of standardisation in the hedge fund industry can present an operational challenge for investors. We seek to remove this administrative burden using tailor-made procedures to process hedge funds managed by over 400 hedge fund administrators. We complete transfer agent documentation on your behalf and provide hedge fund specific reporting. We can also accommodate funds that apply an equalisation method (e.g. funds with several series of shares), operate side pockets or have no ISIN. Dedicated support A dedicated team of operations and support experts will assist your migration to the FundsPlace system and deliver any training that is required. Our mission is to get to know you and your specific business needs. ETFs With the same automated link between order routing and settlement as for conventional funds, we let you hold your ETFs in the same account and maximise liquidity across different security types. 6 Euroclear FundsPlace

9 Benefits settlement Wealth managers Institutional investors Automated settlement and reconciliation reduces complexity, costs and risk Settlement certainty improves cash management and reduces funding costs Simplified accounting for underlying client holdings within a harmonised, transparent account structure and facilitates daily reconciliation with registrars Re-registration of client portfolios is streamlined and simplified Automated settlement drives out manual processing, reduces costs and lowers settlement risk Improve your cash availability and reporting Retain your contractual relationship with your custodian Our neutrality ensures your commercial agreements with fund managers remain undisturbed Custodians Fund managers Incorporate investment funds processing into your service offering and integrate fund settlement and custody into your standard securities settlement process Automated cash settlement in multiple currencies improves efficiency and reduces costs Supports centralised and efficient cash management Distributor-level accounting facilitates the tracking of trailer fee entitlements Centralised cash management reduces payment delays Transparency and standardised order processing and end-to-end STP reduce costs and risks 7 Euroclear FundsPlace

10 Euroclear FundsPlace asset servicing A comprehensive approach Effective asset servicing is a key aspect of asset protection. Our asset servicing for investment funds encompasses reconciliations, dividend payments and other corporate actions. It mirrors the service Euroclear provides for bonds and equities. Asset reconciliation You receive a single consolidated report across all funds and transfer agents. It is a fund-specific and standardised process which allows: a choice of reporting by trade date or settlement date for holdings and transactions Funds database As our client, you can access a centralised and comprehensive funds database spanning: net asset values order cut-off times number of decimals to which shares or units are issued settlement currencies min/max investment restrictions and subscription and redemption amounts The database can be consulted online and information can be downloaded. There are also direct links to fund management company websites for prospectuses and other data. sub-accounting Corporate actions Corporate actions reporting is standardised and fully automated across all products. It encompasses: dividend payments annual general meetings and extraordinary general meetings notification mergers and liquidations updates to essential fund processing conditions We also collect dividend tax information on your behalf. 8 Euroclear FundsPlace

11 Benefits asset servicing Wealth managers Institutional investors Sub-account structure supports client accounting Remove the burden of corporate actions monitoring Access updated fund operational information immediately The same automated servicing for bonds and equities allows you to standardise processes FundsPlace removes the burden of corporate actions monitoring Funds database provides immediate access to updated fund operational information Custodians Fund managers Automation in fund servicing improves efficiency and reduces cost Simplify the process of communicating investor notifications in a timely manner The same automated servicing as for bonds and equities provides the ability to standardise processes 9 Euroclear FundsPlace

12 Our compliance promise We understand the fiduciary responsibilities placed on buy-side organisations and the challenges for all capital markets firms in monitoring and adapting to regulatory change. As a business, we are committed to making the continuous investment in systems and processes that ensures not only compliance with all current regulatory requirements but also readiness to implement changes in a full and timely manner. We also understand how important it is for our clients to demonstrate clearly their ability to maintain full oversight of their transaction flows while doing all in their power to protect client assets. That is why our solutions have been designed to provide complete transparency while simultaneously offering the segregated account structures that are invaluable for investors in mutual funds. 10 Euroclear FundsPlace

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14 Next steps Discover the value of working with Euroclear For more information, please contact Elisabeth Meyers Head of Product Solutions Investment Funds Nigel Cornall Head of Sales and Relationship Management 2017 Euroclear Bank SA/NV, 1 Boulevard du Roi Albert II, 1210 Brussels, Belgium Tel: +32 (0) RPM Brussels number Euroclear is the marketing name for the Euroclear System, Euroclear plc, Euroclear SA/NV and their affiliates. All rights reserved. The information and materials contained in this document are protected by intellectual property or other proprietary rights. All information contained herein is provided for information purposes only and does not constitute any recommendation, offer or invitation to engage in any investment, financial or other activity. We exclude to the fullest extent permitted by law all conditions, guarantees, warranties and/or representations of any kind with regard to your use of any information contained in this document. You may not use, publish, transmit, or otherwise reproduce this document or any information contained herein in whole or in part unless we have given our prior written consent. Your use of any products or services described herein shall be subject to our acceptance in accordance with the eligibility criteria determined by us. euroclear.com Euroclear is a carbon neutral company PAS2060 certified MA3434 MAR-2017