our visionFALL 2012

Fund Accounting & Administration

Alternative Investment Administration

Transfer Agent & Shareholder Services

Custody & Lending

Distribution & Marketing

Compliance

Sharing clear solutions on topics affecting our clients and their shareholders through innovative insights, sophisticated technology, and a solid tradition.

www.usbfs.com | 1.800.300.3863

WE’RE GROWING TO NEW GLOBAL HEIGHTS

AIS Fund Administration Joins U.S. Bancorp Fund ServicesAlternative Investment Administration

We are pleased to announce that we recently acquired AIS Fund Administration, a leading provider of fund administration and related services to alternative investment managers.

With this transaction, U.S. Bancorp Fund Services will service $50 billion in alternative investment assets and create a best-of-breed middle-office and back-office services platform to provide a wide range of support services to fund managers and investors across the alternative asset spectrum.

Since its inception in 2002, AIS had earned a strong global reputation as a leader in the administration of fixed income assets, mortgage- and asset-backed instruments, derivatives, equities, and other assets through its proven ability to provide solutions for complex fund structures and strategies.

“This is an important acquisition for us as it demonstrates our long term commitment to becoming an alternative investment services leader,” said Joe Redwine, president of U.S. Bancorp Fund Services. “We are pleased that the AIS organization will become part of our team and continue the tradition of innovation and superior service that both organizations are known for in the industry.”

We will be welcoming all of AIS’ 176 employees in New Jersey, the United Kingdom, and the Cayman Islands. The entire AIS team, including the founding partners, will become part of the U.S. Bancorp Fund Services.

“We are excited to become a part of the U.S. Bancorp team, an organization that shares AIS’ mission, values and approach to customer service,” said Boris Tiomkin, CEO of AIS Fund Administration. “We believe the addition of U.S. Bancorp’s highly regarded suite of services, such as custody, trust, and other banking services, will provide significant benefits to our clients.”

Current clients of both organizations will continue to work with the same teams, while also benefiting from an enhanced suite of operational capabilities and services to help meet their business objectives. For more information on how this will impact your services, please contact your fund administrator or relationship manager.

our vision

2

FALL 2012

INTRODUCING...The Transfer Agent Call Review and Resolution TeamTransfer Agent & Shareholder Services

In Investor Services and Process Solutions, we strive to meet the core values of the Transfer Agent on a daily basis. Our clients’ shareholders are our number one priority and continuous operational improvement is everyone’s responsibility. To provide service exceeding callers’ expectations, the Call Review and Resolution team was introduced.

The focus of the Call Review and Resolution team is two-fold. First, it acts as support to Contact Center representatives by assisting with situations that are complex and time-intensive. For example, if a shareholder is having difficulty with online access because they have forgotten their password and need it reset, Resolution representatives will remain on the line as long as it takes to ensure the shareholder is able to log back in. Also, if a shareholder has passed away and their assets need to be transferred or liquidated to a beneficiary or estate, Resolution representatives will walk a caller through the process of submitting the instructions with all necessary paperwork.

The second focus of the Call Review and Resolution team is to ensure that the overall shareholder experience is of the highest quality. The goal is to not only meet the callers’ expectations, but to exceed them by offering additional services of which they may not be aware. For example, if a management company offers e-delivery of statements or regulatory material, but the particular caller is not using this service, we highlight the benefits of e-delivery and then take care of establishing the service if the caller is agreeable. Many shareholders express appreciation when representatives point out service options they do not currently have and which will allow them greater ease of doing business in the future.

As a tool to ensure the highest quality of service, call tips created by the Resolution team are emailed to representatives several times each week. These call tips are simple reminders of best practices as well as ways to improve “soft skills,” such as active listening. All tips are retained and are easily accessible so that they can be referred to at any time, by any representative.

One-on-one coaching from this team ensures that representatives have the best understanding of call servicing expectations. During these sessions a representative and manager simultaneously listen to calls taken by other associates to generate ideas on how to handle various situations and how to positively impact call quality. These sessions allow for open communication between representatives and managers about strengths and challenges, as well as opportunities to generate and discuss new ideas on how we can continuously improve service delivery to our clients’ shareholders.

Since the Call Review and Resolution team was introduced, we have had an 11 percent increase to already high internal quality scores. We understand the Contact Center is the front line for our clients. Our Call Review and Resolution team ensures that shareholder interactions are conducted with a focus on superior quality that exceeds callers’ expectations.

www.usbfs.com | 1.800.300.3863 3

QuasarACCESS™: Automated Compliance Capabilities and Electronic Service SolutionDistribution & Marketing

Quasar Distributors, LLC is rolling out a new and exciting service solution which combines our knowledgeable compliance and marketing teams with a web-based product to create a comprehensive electronic compliance processing solution. This application, QuasarACCESS™, features a portal that helps clients manage their advertising compliance review process by allowing the online submission of materials for review and approval.

Automated Compliance Capabilities and Electronic Service Solution (ACCESS)QuasarACCESS™ Ad Review is an automated web-based workflow tool that provides the following key features:

  Secure, permission-based access provides clients the ability to control user interactions.

  Automatic status updates with email notifications sent when the status of a review has changed.

  Capability to link content and run reports regarding advertising review submissions to increase consistency and efficiency.

  Review history, easily identify the final piece, and access FINRA review letters.

  Convenient access to Quasar’s reference materials such as advertising guidelines and compliance updates.

  Robust search feature provides the ability to locate prior submissions and questions easily and efficiently based on a variety of parameters.

  Job numbers are automatically attached to each submission to help identify and track material through the process.

Compliance with FINRA RequirementsQuasar’s advertising review staff of registered principals will apply FINRA and SEC rules to provide feedback on submissions and questions. The final version of a marketing piece is submitted to FINRA via its web-based Advertising Regulation Electronic Filing System (“AREF”). With QuasarACCESS™, you have the ability to review a complete project history from the initial submission all the way through the FINRA review letter.

We are currently rolling out QuasarACCESS™ to all clients and hope to complete the conversion by the end of the year. Additional web-based demonstrations and training presentations are scheduled in the coming weeks.

Please contact your Quasar representative for more information.

ACCESSTM

Convenient Communication with Quasar

Submit questions to Quasar’s Advertising Review team with the convenience of retaining conversation records for future reference.

4

FALL 2012

BookMark Electronic Board Book PortalFund Administration

Wouldn’t it be great to access your board materials at the touch of a button from your smart phone, laptop, or tablet? With BookMark from U.S. Bancorp Fund Services, now you can. Our secure, web-based system lets you access board books, contracts, agreements, policies, and procedures without lugging around stacks of paper.

BookMark adds significant value to the board book information sharing process through key features such as:

  Controlled access to information, including specific board committees.

  Concurrent access by multiple users with the capability to make personal comments and notes on board papers.

  Password-protected, encrypted servers with automatic failover and triple redundancy.

  Training and system support.

Directors are able to manage, distribute, and view critical Board meeting, regulatory, performance, and financial documents online as they are compiled. The system also features real-time status and an online archive to house core operational materials.

As an additional value, our internal Legal Administration team prepares and posts quarterly updates of industry trends, legislation pending, legislation passed, and the impact of regulatory changes on mutual fund products and services to the portal. Auditors can also utilize the portal to review workpapers during your fund’s annual audit.

BookMark is accessible from any web-enabled device, so wherever you are in the world, you can experience its benefits immediately.

our visionTransfer Agent Receives Best-In-Class Second-Quarter National Quality Review RatingsTransfer Agent & Shareholder Services

NQR’s recently released second quarter ratings reflect our ongoing commitment to consistently delivering quality services to clients. NQR awarded our Transfer Agent division with “5-Star” performance and “Best” ratings in timeliness and accuracy.

“This quarter, our Transfer Agent division employees have shown their collective dedication to our clients by meeting and exceeding already strong NQR ratings. I am proud that our team of professionals continuously surpasses industry benchmarks and client expectations by delivering an exceptional operations experience.” said Ian Martin, executive vice president of the Transfer Agent at U.S. Bancorp Fund Services.

Our Transfer Agent division extends their long tradition of excellence by receiving competitive NQR benchmark ratings. In addition to scoring above the NQR average in each month of 2012, including best-in-class designations three of the seven reviewed months for Shareholder Servicing, we have performed among the top tier of firms in multiple categories including:

  22 consecutive quarters as a “5-Star” performer in transaction processing;

  15 consecutive quarters above the NQR average in correspondence;

  7 consecutive quarters rated as a “5-Star” performer for Shareholder Servicing.

www.usbfs.com | 1.800.300.3863 5

Contacting Your Lost ShareholdersCompliance

As recent changes to state and federal laws have emphasized the importance of maintinaing contact with your shareholders, U.S. Bancorp Fund Services has the tools and relationships in place to assist you in reaching out to your lost shareholders.

We comply with Federal Rule 17Ad-17 under the Securities Exchange Act of 1934 regarding searching for lost shareholders, and also with each state’s abandoned property law. In accordance with these regulations, we turn over property when shareholders cannot be located or fail to cash checks in a timely manner.

State laws provide for the reporting and remittance of assets attributable to abandoned mutual fund property (shares and uncashed checks) to the states’ unclaimed property divisions if the property owner becomes “lost.” Many states now also have “inactivity” provisions that allow them to exercise jurisdiction over shareholders’ property if shareholders fail to make contact with the mutual fund or its agent for a period of time, generally three to five years, depending upon the state.

For example, California law now requires that shareholders establishing new accounts after January 1, 2011 receive notice that their account(s) may be considered “unclaimed” if the shareholder does not transact in, correspond with, or otherwise indicate an interest in their mutual fund account for more than three years. Many U.S. Bancorp Fund Services clients have placed a notice in their prospectuses or on their applications

alerting California residents (as well as residents of other states) of this rule and their obligations to stay in contact with their fund company.

The industry, through the ICI and other working groups, has been lobbying for states to follow the federal rule (17Ad-17), which outlines the obligations of transfer agents to search for lost shareholders, and not have property automatically revert to the various states if a shareholder does not affirmatively contact their fund family. Industry participants are working to identify how to interpret what suffices as “contact” and how to record such contact that may originate in numerous ways (financial transactions, correspondence, etc.) including web-based applications. Since the states have varying definitions of what constitutes “inactivity” or “contact,” developing a universal solution is a challenge.

We have been working with other mutual fund service providers to find a solution for tracking “contact.” Until a solution is available, you may wish to conduct a campaign to reach out to your direct shareholders who can reasonably be identified as not having had any contact with your fund, or the fund’s agent, within the last three years.

U.S. Bancorp Fund Services partners with Keane, an industry-recognized provider of unclaimed property compliance, to conduct the federally mandated searches under Rule 17Ad-17 and to assist with state escheatment filings. They also have the ability to assist funds with affirmative contact campaigns. If you are contemplating such a campaign, Keane may be a potential partner. Please let your relationship manager know if we can provide any assistance in engaging Keane.

6

FALL 2012

The Alternative Investment Product Suite Expanded to Provide Form PF FilingAlternative Investment Administration

U.S. Bancorp Fund Services is empowering your company to meet the demands of an evolving regulatory environment. Our responsive professionals have integrated Form Private Fund (Form PF) filing into our suite of support services to streamline our clients’ complex reporting processes. With the technology and expertise to seamlessly coordinate the completion of hundreds of intricate data points, we are positioned to reduce your reporting risks and minimize operational burdens.

What is Form PF? Form PF is a new rule and new form required under the Investment Advisers Act of 1940 as amended to implement provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Form PF filing must be completed on private funds, defined as hedge funds, liquidity funds, and private equity funds. The information provided within Form PF will be used by the Financial Stability Oversight Council (“FSOC”) to monitor systemic risk within the nation’s financial system. This additional obligation stands to substantially increase reporting requisites for hedge funds and private equity funds.

Filing Requirements Form PF must be completed by investment advisors to private funds that meet the following criteria:

  Private funds advisers of hedge funds that collectively have $1.5 billion in gross assets under management.

  Private funds advisers of liquidity funds that collectively have $2 billion in gross assets under management.

  Private funds advisers of private equity funds that collectively have $2 billion in gross assets under management.

Private fund advisers with under $150 million of gross assets under management or funds that invest substantially in other private funds (fund of funds) are not required to file.

Our new Form PF reporting solutions merge industry expertise and leading technology to coordinate and deliver hundreds of critical data points to complete your Form PF requirements. As an established provider of end-to-end Form PF filing services, we are able to scale and customize our services to help meet your unique needs.

our vision

www.usbfs.com | 1.800.300.3863 7

We welcomed our clients, associates, and friends to Lake Geneva to celebrate the silver

anniversary of our Client Conference June 13-15. What began in 1987 as a quiet gathering

to share market insights has evolved into a vital way for us to explore, engage, and

collaborate with our most valuable partners in success.

Attendees reviewed the storied history and exciting future of U.S. Bancorp with distinguished

speakers including Terry Dolan, vice chairman of U.S. Bancorp Wealth Management and

Security Services and Richard Davis, chairman, president and CEO of U.S. Bancorp.

They were educated on new regulations with Tom Pappas, vice president and director of

advertising regulation at FINRA and new strategies with James O’Shaughnessy, president of

O’Shaughnessy Asset Management. Guests took advantage of the opportunity to exchange

knowledge at roundtable sessions, unwind over dinner watching live entertainment, and take

part in a variety of exciting recreational activities.

Thank you to those who joined us at our 2012 Client Conference to reflect on our past and

explore our future together.

WE LOOK FORWARD TO SEEING ALL OF OUR CLIENTS AT OUR 2013 EVENT JUNE 12-14.

BUILDING ON FOUR DECADES OF INVESTMENT EXPERIENCE

With more than 43 years of service distinction, U.S. Bancorp Fund Services combines industry-leading technology with high-quality customer service to provide our clients with customized solutions For more information about our comprehensive suite of mutual fund and alternative investment product services, call 800-300-3863 or visit www.usbfs.com.

U.S. Bancorp Fund Services, LLC 615 East Michigan Street Milwaukee, WI 53202

Please send your comments and suggestions to usbfsinfo@usbank.com. U.S. Bank does not guarantee the products, services, or performance of its affiliates and third-party providers.

110612

our visionFALL 2012

Fund Accounting Goes “Green” to Better Serve YouFund Accounting

The Fund Accounting team at U.S. Bancorp Fund Services is going green. While it’s not about the environment, it’s still about efficiency. As part of the new Lean Six Sigma program that we’ve been implementing over the past year, seven associates from Fund Accounting, Applications Support, Central Ops and Quality Assurance are taking steps to help improve operational efficiency and service to clients. These seven associates received their green belt certifications in August.

For green belt certification, individuals attend 40 hours of classes taught by a Master Black Belt instructor, pass a Lean Six Sigma exam, and complete a project that improves the efficiency of a process, while continuing to focus on exceptional service levels.

Green belts will continue to work on projects to standardize key processes, reduce service cycle time and improve general process efficiency, implementing the tools and methods learned from Lean Six Sigma.

“High-impact, low-effort projects are key,” said Dana Armour, senior vice president of Fund Accounting. “By finding ways to improve processes that will increase our efficiency, while only taking a few hours to implement, we can better serve our clients.”

U.S. Bancorp Fund Services employees can also submit an idea to change a process or procedure. The green belt certified associates will evaluate these requests and prioritize the projects based on the type of impact the project would have and the effort the process would involve.

“We are empowering employees to initiate change and Lean Six Sigma is providing us with an infrastructure to implement that change,” Armour said. The Lean Six Sigma program is aiding our continuous efforts to better service our clients and exceed customer expectations.