Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. Institutional & Investment Management Webinar Series March 31, 2015 | 1:00 pm ET Simplify Asset Diversification through Component Outsourcing Services

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 2 Introductions DAVE ORSZULAK Vice President – Institutional Outsourcing 30+ years experience in investment accounting, operations and technology for insurance and asset management MIKE SHIELDS Director – Institutional Solutions 20+ years experience in investment systems implementation and consulting DAVE REID Senior Vice President – Global Institutional Outsourcing 30+ years experience in investment accounting, operations and technology for insurance and asset management

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 3 SS&C Institutional Outsourcing Leading Provider of Independent Outsourcing Solutions Highly Scalable with support in all major regions (U.S., Europe, Asia) Leading Mobility Options including Web Portal and iPhone/iPad Apps Sector focus (e.g. Insurance, Wealth, Pensions, Asset Management) Utilise SS&C’s best of breed software Breadth of service options including investment accounting, performance & attribution, reconciliations, risk etc Specialized Outsourcing Provider since 1997

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 4 Today’s Fixed Income Investment Environment A decade of low interest rates and investment yields Seeking higher returns with ‘non-traditional’ investments The complex road ahead for operations and accounting 10-Year UST

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 5 Agenda Operational and Accounting Issues Driven by Asset Diversification The Component Outsourcing Model Advantages of Component Outsourcing

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. Operational and Accounting Issues Driven by Asset Diversification Dave Orszulak, Vice President Operations & Business Controls – Institutional Outsourcing

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 7 Business & Economic Drivers Portfolio management drives optimization Optimization drives diversification Diversification drives specialization Change is Constant… Low yields and compression of spreads Seeking higher returns The Shift to ‘Non-Traditional’ Asset Classes

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 8 Alternatives to ‘Traditional’ Investments Syndicated Bank Loans Private Equity – Joint Ventures and Partnerships Derivatives Hedge Funds and Fund of Funds REITs / Real Estate Commercial and Mortgage Loans Collateralized Debt

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 9 Unique Characteristics Are Not widely traded and held Are Not uniform in terms or structure and attributes  Coupon/accrual conventions  Trade vs. settlement date accounting  Payment and cash flow variations Do Not have readily available market and reference data  Security masters  Market value/pricing

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 10 Back-Office Implications People – deep subject matter expertise and hands-on experience Process – new and unique business operations and processes Technology – automation and systems considerations Requirements and Demands – PP&T…

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 11 Unique Challenges Capacity constraints Specialized business processing  Manual processing and intervention  Controls and automation challenges Systems integration issues Accounting and reporting requirements  General – GAAP accounting, management reporting and disclosures  Insurance – STAT accounting, Annual Schedules (A, B, BA & D)  Risk, Compliance and Performance Measurement

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. The Component Outsourcing Model Mike Shields, Director Institutional Solutions

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. Advantages of Component Outsourcing Dave Reid, Senior Vice President Global Institutional Outsourcing

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 15 Advantages of Component Outsourcing Rapid deployment and onboarding of complex asset classes Complete operational and accounting solution Scalable solution model Variable cost structure Provided via private cloud-based, Software-as-a-Service (SaaS) model

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 16 Conclusion A logical, incremental approach to developing an outsourcing relationship Leverages a provider’s specialized expertise and infrastructure Ability to enter new asset classes quickly with no up-front infrastructure costs Component Outsourcing:

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Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you are applying this template to an existing presentation, please ensure that you apply one of the new master layouts to each slide. 18 Thank You for Joining Us!