Deutsche Bank Global Transaction Banking. Securities Services. Overview

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1 Deutsche Bank Global Transaction Banking Direct Securities Services Securities Services Overview

2 Finding the right custodian with a long-term commitment to supporting its clients business is critical for many institutions. Two essential requirements are strong and reliable support in each market and access to timely, relevant and accurate market information. Deutsche Bank, one of the world s largest banks, offers its clients access to a growing domestic custody network which currently covers over 30 securities markets globally. We are dedicated to providing core custody and related services consistently in all markets to exceptional standards as part of our commitment to support our clients success. Comprehensive Securities Services Custody and Clearing Deutsche Bank provides securities custody and clearing services to institutional crossborder and domestic clients worldwide from a global network covering more than 30 securities markets. Deutsche Bank s commitment to the custody and clearing business is demonstrated by the ongoing expansion of our network and our continuous investment in technology. We leverage our knowledge across multiple markets to provide clients with a nimble and efficient custody and clearing service. Services include Clearing Xetra and Equities Central Counterparty (ECCP) in Germany Euronext (through Deutsche Bank Amsterdam) Netting of transactions Automated stock borrowing Collateral management Cash Management Real-time risk monitoring Settlement Turnaround/back-to-back trades Failed-trade management Domestic Securities Lending (where permitted) Depository borrowing and lending Asset Servicing Pre-advices, ex-date, record date, pay date notifications Proxy voting Tax services Safekeeping Residual certificates in dematerialized markets Registration Special instruments, collateral, loan documentation Client Reporting Settlement, failed-trade, transaction reports Funding report Statistical report card Newsflashes, market reports Asset Servicing notifications and confirmations Proxy Voting and Tax reports SWIFT ISO and formats Web-based front-end system db direct Custody Agency Services (selected markets) Paying agent, fiscal agent Collateral agent Foreign Exchange Money Market Cash Management Domestic Fund Services Domestic Fund Services offers a full range of fund services including fund administration, Registrar & Transfer Agency services, trustee services and depositary bank services to investment managers in more than 20 countries in Asia, Europe, the Middle East and Latin America. Our experienced staff, through understanding of regulations and active participation in market initiatives in each location, combined with the breadth of experience and state-of-the-art technology enables us to offer comprehensive and innovative solutions to our clients. We leverage our expertise and technology to extend our fund services to a wide range of fund structures, asset classes and market practices across the regions. Our commitment to the fund services business is demonstrated by the continuing expansion of our services to new geographies and our consistent investment in technology. 2

3 Services include Fund Administration Investment accounting Corporate action Accounting for cash transactions Accounting for capital transactions Securities pricing Portfolio valuation NAV calculation Performance equalization Expense accounting Client reporting Trustee Services Supervising the functions of an investment manager Supervising the third-party service providers like custodian, transfer agent and fund administrator Cash and security reconciliation Portfolio valuation Post-trade compliance monitoring Protection of investor interest Complying with regulations Complying with fund investment guidelines Regulatory reporting Depositary Bank Services Trade settlement Safe keeping of securities and cash Corporate action Cash and security reconciliation Portfolio valuation Post trade compliance monitoring Protection of investor interest Compliance with regulations Compliance fund investment guidelines Regulatory reporting Registrar and Transfer Agency Services Investor transaction processing Investor service centre Allotment/redemption of units Investor register maintenance KYC and AML verification Fund dividend processing Distributor commission processing Investor communication Transaction reconciliation Client reporting Distributor services Transferable Custody Receipts Transferable Custody Receipts (TCRs) represent ownership in the shares of a foreign company trading on a local, domestic stock exchange. They are a way for domestic investors to purchase the securities of foreign companies without having to deal with foreign currencies, set up foreign custody accounts or trade and settle securities on foreign exchanges. Deutsche Bank developed the first TCR, based on the concept of the American Depositary Receipt, in 1995 and has successfully set up TCRs in Argentina, Mexico and most recently Chile, with additional markets in the pipeline. Deutsche Bank sets up the TCR structure and acts as depositary bank, pays the dividends to the TCR investors and assumes a number of other responsibilities in relation to regulators, the stock exchange and TCR investors. The owner of a TCR has the right to obtain the foreign security the receipt represents which could be a stock, bond or ETF. TCRs offer a number of benefits to investors, brokers and the local market as they allow investors to diversify portfolio risk while retaining the value chain of transactions in the local market. Services include Depositary bank Asset servicing Dividend payments and corporate actions Relevant information to the market Tax reporting 3

4 Agency Securities Lending Deutsche Bank operates one of the world s largest non-custodial agency securities lending programs offering institutional clients a comprehensive and efficient service for generating additional return on their fixed income and equity portfolios. The service is operated by one of the most experienced and respected teams in the market; located in London, New York and Frankfurt. Deutsche Bank s program is specifically designed to generate consistent market returns whilst effectively reducing both the administrative burden on clients and minimizing the risks associated with managing repo and lending activity in-house. As the clients agent Deutsche Bank performs all lending and collateral management related functions, provides efficient distribution and settlement of securities and offers full transparency through detailed and easy to use reporting. Clients retain full access to all their securities within the regular settlement periods, ensuring there is no disruption to any of their portfolio management functions. Clients can include assets held with multiple custodians and in different locations, enabling them to receive consistent performance as well as robust risk management across holdings. Risks are effectively managed using a range of proven risk management techniques such as comprehensive borrower indemnifications. As a leading provider of financing and prime brokerage solutions, Deutsche Bank is able to offer integrated financing solutions to clients using a combination of its principal and agency financing services with seamless market coverage and global access. Services include Negotiation and settlement of all lending and collateral transactions Daily reconciliation of positions with custodian Collateral management with daily markto-market Cash collateral investment options Comprehensive indemnities against margin shortfall in case of counterpart insolvency Counterpart and credit risk management Income and revenue payment Transparent and interactive client reporting Benefits Service and Support To ensure we provide effective and comprehensive service support, all our customers are assigned a dedicated client manager. Our client management teams work very closely with local customer service teams to ensure consistency of service and fast turnaround times on all enquiries irrespective of client location. This combination of a dedicated client manager based close to the customer and local service support in each market of appointment ensures that our client managers and local service managers stay in close contact with client requirements and are readily available as escalation points for any issues that may arise. We encourage clients to visit our offices to get a better feel of the local markets, to meet face-to-face with the staff responsible for service delivery and to gain first-hand experience by meeting regulators and market drivers. Global Presence Americas Argentina Brazil Asia China Hong Kong India Indonesia Korea Malaysia Pakistan Philippines Singapore Sri Lanka Taiwan Thailand Vietnam Europe Austria Belgium Czech Republic France Germany Hungary Italy Netherlands Poland Portugal Russia Spain Turkey Middle East United Arab Emirates (Abu Dhabi ADX) (Dubai DFM) (Dubai NASDAQ Dubai) (Saudi Arabia Tadawul) 4

5 Commitment Deutsche Bank has a clear focus on transaction banking products and services worldwide. Domestic Custody Services clients benefit from our continuing program of product and system enhancements coordinated and supported by our regional product development and delivery teams in Frankfurt, London and Singapore. Security and Risk Management The Deutsche Bank name has long been synonymous with security and excellence. The identification, assessment, and mitigation of risk factors are key elements in the Bank s approach to all its businesses, both for clients and internally. This puts Deutsche Bank in a unique position among local and regional custody players we are increasingly seen as a partner of choice for cross-border investors seeking to ensure the safety of their custody assets. Communication Deutsche Bank s Domestic Custody Services is able to communicate in the manner best suited to its clients requirements. SWIFT remains the foremost carrier for transaction and holding information and we have implemented ISO for all messages. In addition, db direct Custody, a web-based front-end system, allows clients to view customized reports across multiple markets. Why Choose Deutsche Bank By using Deutsche Bank, our clients gain access to the experience and expertise of one of the world s leading specialists in financial administration. With a consistent focus on client satisfaction, a worldwide team of dedicated trust and securities experts, a fully integrated global network of offices, and a track record of product innovation, we offer our clients a professional, high quality service. For further information please contact Asia: Americas: Europe: MENA:

6 This brochure is for information purposes only and is designed to serve as a general overview of Deutsche Bank services. The services offered are current as of July 2010 and may be subject to change in the future without notice. This brochure and the general description of the services are in their nature only illustrative and do not therefore contain or cannot result in any obligation or liability (contractual or otherwise) of Deutsche Bank AG or any of its affiliates. The services described in this brochure are provided by Deutsche Bank AG or one of its more appropriately licensed subsidiaries or affiliates in jurisdictions around the world in accordance with appropriate local legislation and regulation. In the United States of America, such services are provided by, amongst others, Deutsche Bank Trust Company Americas. This brochure has been approved and/or communicated by Deutsche Bank AG. In Dubai Deutsche Bank AG Dubai Branch is regulated by the Dubai Financial Services Authority. Financial services are solely directed at professional clients which Deutsche Bank AG Dubai branch is satisfied meet the regulatory criteria as established by the Dubai Financial Services Authority. Copyright July 2010 Deutsche Bank AG. All rights reserved