multi manager mandate Discretionary Portfolio Management

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1 multi manager mandate Discretionary Portfolio Management

2 the multi manager mandate: the expertise of external portfolio managers and the best-positioned investment funds of worldrenowned fund houses investing is more challenging and time-consuming than ever If you are not willing, able or permitted to manage your own assets, but still want to be absolutely sure your assets are in good hands, then Discretionary Portfolio Management is the solution for you. Simply leave the management of your assets to the professionals at ABN AMRO. One of our Discretionary Portfolio Management services is the Multi Manager Mandate. a selection of top investment funds and portfolio managers The Multi Manager Mandate enables you to take optimum advantage of the expertise of ABN AMRO as well as other top fund houses and portfolio managers from around the world. After all, ABN AMRO selects for you the best-positioned funds from a universe of world-renowned fund houses, including BlackRock, JP Morgan, Fidelity, Robeco, Morgan Stanley and UBS. The selection process is driven by the quality of the portfolio manager and the track record, investment style and transparency of the investment funds, in combination with macro-economic expectations. The Funds of Mandates provides an extra dimension to the Multi Manager Mandate. Through these investment funds a portion of the capital to be invested is placed directly with external portfolio managers. They then manage part of your equity portfolio within the Multi Manager Mandate on the basis of guidelines issued by ABN AMRO. The services of these portfolio managers are not normally available to private investors due, for instance, to their high minimum investment thresholds. But thanks to the Funds of Mandates, you can benefit from their services within the Multi Manager Mandate. The Multi Manager Mandate allows you the option of selecting individual bonds for your portfolio instead of investment funds. In that case, ABN AMRO s views on bond yields and debtors will be directly applied in your portfolio.

3 a portfolio that suits you The Multi Manager Mandate allows you to instruct the portfolio managers of ABN AMRO to manage your assets in line with agreed principles and aims. The composition of your portfolio is tailored to your personal circumstances and objectives, with a specific focus on such questions as: what are your financial aims, what are your available financial reserves and what is your attitude towards risk and what is your investment experience? The answers to these questions determine your risk profile, which is the key guideline in compiling your investment portfolio. The table indicates which risk profile suits a specific portfolio return target, investment horizon and risk appetite. It also shows the bandwidth for investing in variable income securities for each risk profile. risk profile conservative balanced bonds balanced equities growth equities return target 5% 6% 7% 8% 9% investment horizon 4 years 6 years 8 years 10 years 12 years risk appetite Low average average high High variable income bandwidth* 10-40% 25-55% 35-75% 50-90% % * Variable income: all securities that cannot be classified as liquidities or fixed income securities, such as equities, hedge funds, indirect property, options and futures.

4 aggressive or defensive The rule with investing is: the more risk, the greater the expected return. A large percentage of equities in the portfolio raises the expected return as well as the risk of sharp price fluctuations. We call this an aggressive portfolio. Aggressive portfolios can show sharp upward and downward price fluctuations in the short term. If you prefer to avoid such severe fluctuations, a defensive portfolio is more suitable for you. In this case, a larger component will be invested in bonds and liquidities. This usually offers more certainty, but the expected long-term return is lower. costs Our annual fee for managing your assets under the Multi Manager Mandate is EUR 1,000 plus 0,20%* of the value of the assets under management (excluding VAT). This fee is charged quarterly. In addition to the annual management fee, we will charge the customary amounts for investment services, such as buying and selling costs. The buying and selling costs for investment funds amount to 0,20% per transaction.* We do not charge a custody fee for the investments in investment funds. Fund houses also charge fees for managing their investment funds, which are deducted from the investment results. And finally, if applicable, we will withhold dividend tax. The Multi Manager Mandate is available for portfolios worth at least EUR 500,000. You can cancel your Multi Manager Mandate at any time free of charge. * If you opt for individual bond investments, we will charge the usual securities commission, which is EUR 1,000 plus 0,30%. risks The Multi Manager Mandate invests in investment funds, cash and, if you wish, individual bonds. The participants in this mandate run the risks associated with investments in these asset classes. Investments in investment funds carry the same risks as investments in individual securities, since their portfolios are ultimately composed of individual securities. For equities, this implies a share price risk. For bonds, there is a debtor risk as well as an interest rate risk, both of which may affect the price of a bond. However, certain investment funds may carry different risks, for instance if the fund is a guarantee fund (in which case the risk will be lower) or if the fund also invests in derivatives or credit (in which case the risk will be higher). With regard to cash, the participants run a debtor risk on the bank where the cash is deposited. The value of your investment may fluctuate. Past performance is no guarantee of future results.

5 discretionary portfolio management The Multi Manager Mandate is one of the Discretionary Portfolio Management services offered by ABN AMRO. Other options you can choose from are: the Classic Mandate, with an emphasis on investments in individual equities and/or bonds; the Sustainable Investment Mandate, which invests in companies that adhere to strict environmental, social and corporate governance criteria; the Dynamic Asset Allocation Mandate, allowing you to optimally benefit from the market vision of ABN AMRO via flexible and dynamic diversification across the various asset classes; the Customised Mandate, offering customised solutions for your specific investment wishes. your benefits maximum profit from market developments The key characteristic of the Multi Manager Mandate is that investments are made on your behalf in regional and global investment funds. This differs from ABN AMRO s standard investment policy, which takes a sector-based approach. The selection process of the investment funds is a continuous, independent and active process. In particular, the opportunity to choose from the different investment styles of global fund houses and from different external portfolio managers enables investors to take maximum profit from market movements. convenience At ABN AMRO, Portfolio Management takes the responsibility for your assets out of your hands. We naturally have regular contact with you to discuss the progress and performance of your investments. In addition, you receive a written report each quarter on your portfolio performance and composition. professional approach The portfolio managers of ABN AMRO rank among the best in their field. They have the expertise and up-to-date knowledge of international markets, and their approach is systematic and clearly structured. interested? Would you like to know more about the Multi Manager Mandate or any of ABN AMRO s other Discretionary Portfolio Management services? Your private banker would be happy to inform you further. You can also visit our internet site:

6 General Disclaimer The information provided in this document has been drafted by ABN AMRO Bank N.V. and is intended as general information and is not oriented to your personal situation. The information may therefore not expressly be regarded as a recommendation or as a proposal or offer to 1) buy or trade financial instruments and/or 2) procure investment services nor as investment advice. Decisions made on the basis of the information in this document are your own responsibility and at your own risk. The information on and conditions applicable to ABN AMRO-offered financial instruments and ABN AMRO investment services can be found in the ABN AMRO Investment Services Condition (Voorwaarden Effectendienstverlening ABN AMRO) and the Information Sheet Investment Services ABN AMRO (Informatieblad Effectendienstverlening), which are available on Although ABN AMRO attempts to provide accurate, complete and up-to-date information, which has been obtained from sources that are considered reliable, ABN AMRO makes no representations or warranties, express or implied, as to whether the information provided is accurate, complete or up-to-date. ABN AMRO assumes no liability for printing and typographical errors. The information included in this document may be amended without prior notice. ABN AMRO is not obliged to update or amend the information included herein. Neither ABN AMRO nor any of its agents or subcontractors shall be liable for any damages (including lost profits) arising in any way from the information provided in this document or for the use thereof. ABN AMRO, or the relevant owner, retains all rights (including copyright, trademarks, patents and any other intellectual property right) in relation to all the information provided in this document (including all texts, graphic material and logos). The information in this document may not be copied or in published, distributed or reproduced in any form without the prior written consent of ABN AMRO or the appropriate consent of the owner. The information in this document may be printed for your personal use. US Securities Law Disclaimer ABN AMRO Bank N.V. ( ABN AMRO ) is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the 1934 Act ) and under applicable state laws in the United States. In addition, ABN AMRO is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the Advisers Act and together with the 1934 Act, the Acts ), and under applicable state laws in the United States. Accordingly, absent specific exemption under the Acts, any brokerage and investment advisory services provided by ABN AMRO, including (without limitation) the products and services described herein are not intended for U.S. persons. Neither this document, nor any copy thereof may be sent to or taken into the United States or distributed in the United States or to a US person. Without limiting the generality of the foregoing, the offering, sale and/or distribution of the products or services described herein is not intended in any jurisdiction to any person to whom it is unlawful to make such an offer, sale and/or distribution. Persons into whose possession this document or any copy thereof may come, must inform themselves about, and observe, any legal restrictions on the distribution of this document and the offering, sale and/or distribution of the products and services described herein. ABN AMRO can not be held responsible for any damages or losses that occur from transactions and/or services in defiance with the restrictions aforementioned. ABN AMRO is registered in the Trade Register of the Amsterdam Chamber of Commerce, no , with VAT identification number: NL B01. May 2010