1 1 Domestic Funds Platform “Enabling the funds industry for the future” Cancún 21 May 2015

2 Market size* (Q ; in EUR trillion) CAGR** Net of FX fluctuations +% Source: Investment Company Institution (ICI), EFAMA * Market size of mutual fund market in Assets under Management ** Compounded Annual Growth Rate % % % % % % Strong global growth in funds 10 +8% 12 +7% +8%

3 Growth slowdown / impediments Reduced investor appetite (domestic and foreign) Regulatory concerns on investor protection Capital invested elsewhere, possibly overseas instead of domestically Market inefficiencies Heavy administration Duplication Complexity Increased risk Increased cost Lack of standardisation Lack of transparency Ad-hoc « infrastructure » Supporting infrastructure developed ad-hoc Driven by Fund Managers, Distributors and Administrators No central nor neutral market utility Fast-growing funds market Driven by emerging or fast- growing middle- class Fast growing markets have similar characteristics… …and are at a stage where a central infrastructure can bring substantial benefits to market participants!

4 Emerging case for change Source: Quotes from workshops with fund market participants “Difficult and long validation and reconciliation processes” “No end-to-end process” “Long periods of exposures until confirmation is obtained on unit balances holdings” “Need for structural improvement of the market" “Cash settlement decoupled from unit settlement” “Need for more scale and efficiency" “Open up to international investors"

5 A partnership of complementary strengths… Local CSD Euroclear  Funds expertise and know-how  Dedicated platform “instance” which can be customized to the local fund market’s needs  Hosting in Euroclear’s datacenter  Funds expertise and know-how  Dedicated platform “instance” which can be customized to the local fund market’s needs  Hosting in Euroclear’s datacenter  Local operations  Local client relationship management  Integration into the local cash payment and regulatory systems  Local operations  Local client relationship management  Integration into the local cash payment and regulatory systems

6 …to provide a comprehensive service offering…  Order routing  Settlement  Distributor authorization  Register keeping  Reconciliation  Transfers  Corporate actions  Regulatory reporting  International access  Order routing  Settlement  Distributor authorization  Register keeping  Reconciliation  Transfers  Corporate actions  Regulatory reporting  International access  Local language and terminology  Multiple communication protocols (channels and formats)  Business continuity on three aligned data centers  Local language and terminology  Multiple communication protocols (channels and formats)  Business continuity on three aligned data centers BUSINESSFUNCTIONALITIESTECHNICALFUNCTIONALITIES

7 Fund Distributors Fund Distributors Investors Local cash payment system Fund Managers …integrated into the local funds market (Third Party Administrators) Local CSD