THE MONEY MANAGEMENT INSTITUTETechnology Spotlight

The Yale Club of New YorkMarch 1, 2006

Solutions to stay out front.sm

PFPC Managed Account Services

Money Manager Solutions

Presented by

Steve DeAngelis, SVP & Managing Director

Rick Erickson, Operations Manager

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PNC Advisors, PNC Investments,

Hilliard LyonsDistribution

BlackRock

Asset Management

Why PFPC?

PNC Financial Services Group

PNC Bank

Regional Community and Wholesale Banking

PFPC

Technology, Processing and Business Solutions

A leading provider of technology & processing solutions for the global investment industry, building on strengths of:

Differentiated proprietary technology

Consistent high quality service, expertise

Strong relationships with both distributor and manufacturer customers

Stability of a large organization with over 4700 employees

3

PFPC Industry Leadership

Transfer Agency Servicing

Subaccounting

Marketing and Distribution Services

Fund Accounting/Administration

Custody/Securities Lending

Print Mail

Blue Sky

Banking Transaction Services

Alternative Investment Services

Managed Account Services

Offshore Services

PFPC

Services offered Market leader Not active

19 mm accounts

43 mm accounts

$218 bn in assets

$830 bn in assets

$476 bn in assets/$62 bn lendable assets

240 mm annual printed images

281 k full-svc./110 k remote permits

2.6 mm chk trans accts/723 k debit card

accts

Over $77 bn in assets

$51 bn in assets; 182,000 accounts

$76 bn in assets; 389 funds

130,000 shareholders; 914 share classes

Service Statistics

Data as of 12/31/05

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PFPC Managed Account Services

Regional B/Ds

Bank B/Ds

Independent B/Ds

Trust Companies

RIAs

Program Sponsors

Mutual Fund Companies

Institutional Managers

Niche or Wrap Managers

Money Managers

ADVISORport Platform

Custom Enterprise Solutions

Product Solutions: Mutual Fund Wrap, SMAs, MSAs, UMAs

Money Manager Solutions

5

PFPC Managed Account Services Facts

$51 Billion in assets serviced including:

30,000 money manager accounts

140+ employees dedicated to managed accounts

Member of the MMI Technology & Operations Standards Committee

Combined over 6 decades of managed account experience

Over 50 managed account client firms

Asset Managers

Broker-Dealers

Banks/Trust Companies

Insurance Companies

RIAs

6

PFPC Money Manager Solutions

People… Staff experts leading the industry in all areas of operations,

products, technology

Aggregation of best practices

Depth of resources

Technology… Market leading platforms, integrated with proprietary

solutions

Expertise in all investment management and distribution segments leveraging next generation solutions

Processes… Fully integrated best practices with controls and compliance

oversight

Conversion expertise

Custom enterprise and large scale solutions

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Money Manager Solutions Team

A ccou n tsS e rv icesM a na g er

R e co nc ilia tionS e rv icesM a na g er

R e co nc ilia tionS e rv ice

S u p erv isor

T ra d ingM a na g er

C u s to m erS e rv ice

S u p erv isor

R ick E rickso nO p e ra tio ns

M a na g er

H e a the r S u llivanC o n ve rs ion

& P ro jec t Le ad

K u rt H e id in g erP ro du ct

M a na ge m e nt

S a les M a rke ting S a les

G u y Fra g leH e a d o f S a les

P h il M cL au g h linB u s in e ss

In fo rm a tion O ffice r

S te ve D e A n g e lisB u s in e ss

O w n er

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A.G. Edwards

Advisorport

Alex Brown

Bank of America

Bank of New York

Bank One

Bear Stearns

Brinker

Charles Schwab

Comerica

Eaton Vance

Envestnet

Fidelity

Hilliard Lyons

HSBC

Janney Montgomery Scott

Lehman Brothers

Lockwood

LPL

McDonald Investments

Merrill Lynch

Morgan Stanley

Oppenheimer

Piper Jaffray

Placemark

Raymond James

RBC Dain Rauscher

Robert Baird

Smith Barney Institutional

UBS

Wachovia

Wells Fargo

Operational Experience With Top Sponsors & Custodians

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Technology - PFPC Money Manager Solutions

PFPCImaging &Workflow

CustodialAdapters

Accounting

Performance

PortfolioAccounting

System

Account information

Account Set UpMaintenance

MoneyManager

30+ Custodians

Transaction FilePositions File

ModelsTrades

Quality Control& Data

Verification

Query ResultsAccount Outliers

ReconciliationEngine

CustodianDiscrepancies

Identify, sort and prioritizerecon items

Trading BlockAllocations

ReportingDatabase

Used for:Accounting

PricingPerformance

Accountmanagement

& administration

OperationsMetrics,

Account paperwork,Communications

to PFPC

Programdata

Managementand operations

reporting

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Customized Management ReportingTrack your business, see the trends

11

Customized Management ReportingTrack your business, see the trends

Top Ten Financial Advisors by Assets

Financial Advisor # of Accts Total Assets YTD New Accts YTD New Assets YTD Closed Accts YTD Closed Assets

JBurton Investments 1 $1,987,289 2 $2,987,832 0 $0

Richmond Financial 2 $1,676,282 2 $2,876,530 0 $0

Jarrett Investments 2 $1,578,292 3 $5,828,773 0 $0

Watkins Glen Advisors 1 $876,292 1 $2,098,782 0 $0

Top Ten Financial Advisors by Accounts

Financial Advisor # of Accts Total Assets YTD New Accts YTD New Assets YTD Closed Accts YTD Closed Assets

Sara Kelly 3 $2,037,563 12 $11,987,626 0 $0

Mary Joe Maple 3 $1,982,723 8 $2,198,762 0 $0

Kara Jones 2 $765,234 3 $387,623 0 $0

Tom Watkins 1 $676,523 2 $287,134 0 $0

Account Openings

Product # of Accts Asset Value +/- Accts Prior Wk +/- Assets Prior Wk +/- Accts YTD +/- Assets YTD

Aggressive Grow th 47 $12,898,723 -14 $-5,701,433 -7 $-2,648,476

Conservative 77 $18,767,139 12 $2,834,758 6 $2,559,098

Special Select 7 $2,987,342 4 $1,942,968 4 $1,248,658

Tactical Fixed Income 3 $987,634 -1 $-765,382 -2 $-209,987

(This report is for demonstration purposes only)

Financial Advisor Breakdown

Period: 02/13/2006 to 02/21/2006

Total Accts: 134 Total Assets: $35,640,838

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Process - IMPRESSProcess - IMPRESS Imaging and Workflow Control & access to your business documents

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Process - IMPRESSProcess - IMPRESS Workflow Management System Control & access to your business documents

14

Implementation Process / Operations Manual

Complete operations manual customized for each client

Most detailed aggregation of best practices in the industry

Online web access via MyPFPC.com

One document for each

procedure

High level general workflow

One document for each program

OPERATIONS PROCEDURES

OPERATIONSFLOWS

SPONSORPROCEDURES

Mo

re D

etai

led

Level 1:

Level 2:

Level 3:

Les

s D

etai

led

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Sample Project Plan

PFPC Managed Account ServicesMoney Manager Outsourcing

Project Kick-Off1 Weekly Project Meetings2 Establish dates and participants Complete3 Conference Call In Complete45 Sponsor Review (By Sponsor)6 Create sponsor communications matrix Complete7 Populate sponsor communications matrix Complete8 Create Sponsor Logon ID Matrix Complete9 Document special processing by sponsor Complete

10 Define new account timelines Complete11 Confirm all data needed for new account set up Complete

1213 IMPRESS Imaging and Workflow14 Submit operations procedures to Impress technical team Complete15 Fax Server/Image Set up Complete16 Mgmt Co/Departments Complete17 Mgmt Co/Optical Family Complete18 Add Location(s) (scan Ids) Complete19 Add Funds Complete20 List of Transaction Types Complete21 List of Activities Complete22 ID set up Complete23 QC/QA Complete24 Custom Indices Complete25 Bar Codes Complete26 Accuracy Codes (optional) Complete27 ADR Set up Complete

28 AIR Set up Complete

29 Scanner Ranges Complete

30 Non-business days Complete

31 Set up PO Box Complete

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Neuberger Berman Case Study

Client Profile 22,000 accounts and $10.9 billion in assets*

Top 10 SMA Manager**

18 Fixed Income & Equity Products

30 Sponsors

PFPC’s Action Plan Reviewed & evaluated firm internal operations

Compiled a list of services required by firm

Created a solutions plan to implement along with responsibility assignments

Created a customized Project Plan with four phase account conversion schedule

Successfully implementing the conversion*As of 12/2005** FundFire May 19, 2005

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Neuberger Berman Case Study

Client Success Summary

Grew by 10,000 accounts since converting to PFPC

Reduced cost of technology and operations and locked in a strategic cost advantage

Aligned expense with volume

Received a customized operation tailored specifically for their shop, utilizing industry best practices

Enabled expanded distribution opportunities including dual contract and tier 2/tier 3 distribution relationships

Can now focus on growing assets while operational infrastructure can support volume fluctuations

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We Are a Proven Managed Account Solution

Specific in-house expertise includes:

Daily reconciliation

Fee creation and maintenance

DTC matching

Security set up

Security maintenance

Data integrity

Imaging and workflow (multiple systems)

Account processing

Ownership of portfolio accounting system

Trading

Project Management

Employees are experienced managed account professionals

Average industry tenure of 6.5 years

Culled from a variety of top tier firms

Member of the MMI Technology & Operations Standards Committee

Third party consultative approach

Business capabilities

Extract data into SQL for flexible reporting

Perform variety of data validations

Account conversions

Fixed income processing (TBA, MBS)

Trading

Project Management

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Service Offered

Account Opening, Closing & Administration

Review new account paperwork for completeness

Do suitability review

Process the account opening

Provide ongoing account administration such as contribution & withdrawal processing

Support ad-hoc client requests, tax trading & restrictions

Account Reconciliation

Reconcile positions to the custodian books and records on a daily basis (assuming data feeds are available)

Process & review all corporate actions

Ensure accurate data through security pricing

Billing Services

Calculate receivables from sponsors

Provide management reports

Generate client invoices when appropriate

Management Reports

Provide on demand management reports (e.g., sales tracking, 13f, etc.)

Provide risk monitoring reports such as high cash, restriction violation, commonality, etc.

Performance Calculation & Reporting

Maintain accounts in the appropriate AIMR composite

Review composites as determined by the money manager & research outliers

Trading Access & Support

Provide access to post, maintain & trade model accounts

Custom trading management technology with tax efficient overlay

Daily review of DTC report & follow up with custodians on any issues

Manually post any trades not executed (e.g., fixed income)

Post maintain & trade model accounts for separate accounts

Trade settlement

Advanced Output Solutions

Billing & fees

ADV mailings

Welcome packages

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PFPC Competitive Strengths

182,000+ accounts

$51 billion in assets

140+ employees

Scalable platform

Largest outsourcing provider

Experienced

Employees

Reconciliation

Imaging and workflow

Overlay management

Billing

Reporting

Innovative management team

Decades of experience from money manager shops

Member of MMI Standards Committee

Providing services since 1999

Complete

Technology

Suite

Proven

outsourcing

provider