2. Wealth Management Services Update
Karin Billias
September 25, 2013
DTCC Non-Confidential

3. Wealth Management Services
Alternative Investment Products (AIP)
DTCC Non-Confidential

4. AIP Overview
AIP is a platform that links global market participants — including broker/dealers, product sponsors, fund managers, administrators and custodians — to provide straight through processing of alternative investment products, including
Hedge funds
Funds of funds
Private equity
Real estate investment trusts
Limited partnerships
AIP standardizes the way the alternative investment industry communicates pre- and post-trade information about the security and the associated value of the fund.
By effectively addressing the operational challenges related to capital investments and investor activity, AIP provides the alternative investment community scalability through improved efficiencies, reduced operational risk and lowered costs.
DTCC Non-Confidential

5. AIP Industry Adoption – 2013
Currently 90 members live on AIP representing 225+ entities
Over 50 companies are currently in the membership application queue
600+ fund profiles on AIP Security Master
Significant new members
Both Executive Advisory Boards (EAB) of global hedge fund administrators and Fund of Funds continues to provide direction and leadership
Guggenheim Investment Advisors
UBS
Huntington Asset Services – Central Park Group Funds
Goldman Sachs – (pending membership)
Bank of New York Mellon - AIS
Permal – (pending membership)
Citi Fund Services – (pending membership)
BlackRock – (pending membership)
DTCC Non-Confidential

6. Wealth Management Services
Mutual Funds

7. US Mutual Fund AUM vs. Fund/SERV Volume & Fees
*August 2013 YTD

8. Collective Investment Trust Annual Transactions
and Settlement

9. Collective Investment Trust Statistics
As of Sept 2013
83 Collective Trust Sponsor Members with 5698 CUSIPs (trading with 146 firms)
14 Stable Value Sponsor Members with 427 CUSIPs (trading with 51 firms)

10. Completed Initiatives
Wealth Management Services
Completed Initiatives

11. Wealth Management Services
Omni Invoicing Phase I:
Reporting and Settlement of Omnibus Invoices for:
12b-1
Finders Fee
Underwriter Fees
CDSC
Short Term Redemption Fees
Rule Filing / Name Change for Commission Settlement –
DTCC Payment aXis
Implemented on February 13, 2013
Phase II – TBD
Sub – TA Fees (Omnibus; Retirement and Networking)
Requirements in progress

12. Retirement Plan Reporting
Wealth Management Services
Retirement Plan Reporting
Goal:
To create a set of standard formats that can accommodate multi-directional retirement information flow between business partners.
To complete the data exchange using an existing transmission channel to minimize the expense of establishing and maintaining point-to-point connectivity.
Phase I (Implemented in March 2013) :
Retirement Plan Reporting files from Record Keepers/Retirement Platforms to Firms (via Networking)
408(b)(2) Reporting (Profile II enhancements)
Phase II (TBD):
Retirement Plan Reporting files from Record keepers/Retirement Platforms to Fund Families (via Networking)

13. Profile II Security Database – Comparison Tool
Wealth Management Services
Profile II Security Database – Comparison Tool

14. Wealth Management Services
Profile II Comparison Tool
Web-based feature to automatically source and populate data points in Profile II, allowing Funds to compare data against public source documents filed with the SEC
Data points will be mined from source document filings (Prospectus, SAI, Stickers) in the SEC’s EDGAR database (nightly) and compared along side the existing data points.
Variances between Profile data points and the source document would be systematically identified and displayed to Funds. Funds will edit and approve the data while alerting Firms to exceptions.

15. Wealth Management Services
Features of Comparison Tool
Fund dashboard identifying data variances
Daily variance alerts to Funds
Annotations on variances
Messaging from Firms to Funds
Fund scorecard – (implementation TBD)
Firm view - daily report
Fund view - real-time updates
Variance Charting
Additional data points to accommodate Department of Labor regulatory requirements under ERISA 408(b)(2) and 404(a)(5)

16. Wealth Management Services
2013 Enhancements

17. Wealth Management Services
2013 Release – Target Date – November 18, 2013
Will incorporate enhancements to Wealth Management Products for:
Social Codes
Add Blue Sky State for Exchanges
Networking Control Number – alpha numeric versus numeric
Dividend Rate and Entitlement Shares
Additional Enhancements to Networking – transparency for cost basis
Add Retirement Plan Account information to Fund/SERV, Networking and DTCC Payment aXis
Support Foreign Account Tax Compliance Act (FATCA)