Trading and Business Solutions. For Asset Managers

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1 Trading and Business Solutions For Asset Managers

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3 Saxo Bank s Trading Solution for Asset Managers Table of content 1 SOLUTION OVERVIEW PLATFORMS and products Client administration MANAGEMENT & TRADING SUPPORT News, Analysis and Tools Back office and risk management Reporting and monitoring FUND SERVICES PROCESS FOR IMPLEMENTING AN ASSET MANAGER SET-up WHY SAXO BANK...26 ASSET MANAGEMENT SERVICES 1

4 1 Solution Overview Introduction Over the last decade Saxo Bank has successfully partnered with hundreds of financial institutions who have leveraged the Bank s leading market presence, top tier liquidity sources and industry know-how. Saxo Bank enables Institutional Clients and their end customers to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three award-winning trading platforms or a FIX API connection. With our aggregated liquidity from Tier-1 banks and access to over 80 trading venues across the globe, our clients benefit from real-time prices, precision execution and competitive commissions and fees. Saxo Bank s trading and administrative solution for Asset Managers is developed to support Asset Managers, Funds, and Hedge Funds in managing investments on behalf of clients. Asset Managers know their market place and clients, and Saxo Bank provides them with the technology and market access to execute their investment strategies. Saxo Bank offers Asset Managers: Tool for managing your business T rouble-free and smooth client on-boarding within 24 hours, including AML checks Comprehensive reporting to the Asset Manager and their clients Back-office administrative services with risk management and comprehensive reporting, allowing Asset Managers to monitor exposure in real-time Flexible Asset Manager fee schedules Flexible sources of credit (Prime Brokerage services) Easy integration with 3rd party portfolio accounting systems Streaming, real-time data and market updates Flexible account structure Supporting your clients View only online access for clients to follow the investments of the Asset Manager on their behalf Transparent and flexible fee structures Monthly client reports Security and trust from working with a regulated bank Tools for trading Cost effective trading solution A full suite of capital market products including FX (spot, forwards, vanilla and binary touch options), CFDs (single stock, index-tracking and commodities), Stocks, Futures, ETFs and Contract Options (exchange traded type) Cross Product Margining use stocks and bonds as collateral for leveraged trading in several assets classes Cross Account Margining: use your cash positions in one account as collateral for trading in another Access to +14,000 Stocks from 33 exchanges Access to +8,700 CFDs on 29 exchanges Access to +250 Futures Flexible trade allocation tool that allows the Asset Manager to efficiently distribute its trades to its clients or fund structure Algo trading and smart order routing Extensive equity research and analysis tools to help Asset Managers plan and implement their investment strategy Focus on trading - we ll do the rest - Saxo Bank 2 ASSET MANAGEMENT SERVICES

5 SAXO BANK S HEADQUARTERS, COPENHAGEN, DENMARK ASSET MANAGEMENT SERVICES 3

6 A Holistic Approach TRADING PLATFORMS Saxo Bank s trading solution for Asset Managers is based on a holistic approach that supports clients needs across the entire business value chain. The award-winning platforms forms the foundation for the offering, and is supplemented by a wide range of value-adding tools and services. CLIENT ADMINISTRATION MANAGEMENT & TRADING SUPPORT Client Onboarding Client Classification (MIFID) Risk profiling and disclosures Due Diligence and AML checks POA documentation Fee schedule assignment EXCELLENCE IN TRADE EXECUTION ALLOCATION TOOL Execution of block trades on behalf of clients MARGINING ACROSS ASSETS AND ACCOUNTS Use stocks and bonds as collateral for trading several asset classes Use cash positions in one account as collateral for trading in another BEST EXECUTION Algo Trading Smart Order Routing NEWS, ANALYSIS AND TOOLS Free access to Saxo Bank's information tools to help your decision making Newswires, economic research and information tools Equity Research: Access to fundamental data, general company information and key financial ratios Stock Screener: Discover global trading opportunities with personalized screening preferences DEDICATED SUPPORT Dedicated teams manage the implementation and training on platform, products, back-office tools and processes. 4 ASSET MANAGEMENT SERVICES

7 Saxo Bank offers a comprehensive multi-asset offering. Through this offering, Saxo Bank gives Asset Managers access to global financial markets including major and emerging stock exchanges and OTC. Trade commodities, indices, currencies, CFDs and other derivatives and equities. ASSET CLASSES Forex Forex Options CFDs Contract Options Futures Stocks & EFTs Bonds FLEXIBLE ACCOUNT STRUCTURES Set up sub-accounts for different trading purposes and strategies. Saxo Bank's trading platform allows you to easily switch between sub-accounts. BACK-OFFICE RISK MANAGEMENT REPORTING & MONITORING EOD (End of Day) processing reconciling positions in all asset classes Interest commission processing Corporate actions and security transfers Margin and risk management handling Flexible Asset Manager fee structures ONLINE WEBCONNECT: Monitor exposure and positions using online WebConnect Flexible Account Structures Monthly/quarterly/yearly Client Statement Extensive client reporting Activity log for trading and regulatory purposes Trade Event Notifications Saxo Bank supports post launch services including technical support, sharing industry trends and best practices. ASSET MANAGEMENT SERVICES 5

8 2 Platforms and Products The SaxoTrader Trading Platforms and Features SaxoTrader is a comprehensive online trading solution that enables trading on a broad range of financial instruments and asset classes. Asset Managers can easily get a full overview of their clients positions and place and/or modify trades and orders on behalf of clients. Apart from trading and order functionality, the application provides reports for monitoring client accounts, streaming market data, graphs, research and analysis reports and a chat function. External web content can also be integrated into the platform. The SaxoTrader platform also includes a two-factor authentication system which ensures a high level of security. SaxoTrader for Desktop Saxo Bank s flagship platform offers optimal performance and speed along with high levels of customisation of workspaces. SaxoTrader is a thick client-application based on Microsoft technology, which you download and install on your desktop. SaxoTrader for Web a web-based trading platform not requiring download or installation SaxoTrader for Mobile mobile access from tablets and smartphones (requires Apple devices with ios 5.0 and Android 2.3 and higher). Trade at your convenience You can access your trading account with the same login from multiple devices, enabling you to trade the financial markets at your convenience: Trading Features Trade Board Integrate all trading products from all asset classes in a single trade module for monitoring prices and fast execution of trades. Trade Ticket All products offered by Saxo Bank are traded through the same Trade Ticket. The Trade Ticket adjusts seamlessly to the product making all the tools needed to place trades available using up the minimum of screen space, thus making trading a simple and seamless experience. Charting Functionality New advanced charting functionality allows investors to place and manage orders directly from charts. Multiple Order Types We support multiple order types, including tale profit, stop loss, stop limits, and trailing stop losses. Instrument Explorer Use the search function or browse through the array of trading instruments. Enables fast location of instruments from Saxo Bank s range of investable assets. Flexible Workspaces Offering investors complete control over their online trading environment by enabling them to personalise their workspaces Chat Module Allowing Asset Managers to communicate online with the bank or broker s staff and the staff to broadcast messages out to selected or all customers 6 ASSET MANAGEMENT SERVICES

9 News, Research And Analytical Tools Technical Analysis Benefit from sophisticated charting functionality in a user-friendly design. Manage orders directly in the chart, use annotation tools, amend technical indicators and much more. Trademaker TradeMaker provides Entry, Target and Stop price levels for trading ideas on major and minor currency crosses, index and commodity CFDs. Each idea is linked to a chart image and text explaining the idea and how to manage it, available on all platforms. Financial Calendar Keeping investors up-to-date on major market events in the major global economies. Market Movers displays gainers and losers and most tradable cash stock. Saxo Bank Research Saxo Bank has a well-respected team of strategists who produce daily commentary, analysis and research on macroeconomics, foreign exchange, equities and commodities. Available directly on the trading platform and via Saxo Bank s information portal TradingFloor.com. Financial Newswires The trading platforms contain streaming news in at least 12 languages and news providers including Dow Jones and Market News International. Third Party Idea Providers In addition to the bank s or broker s own ideas, Saxo Bank currently offers the possibility to add FX and CFD trading ideas from Sostratos, PIA Trader, Trading Central and Saxo Bank. Account Features Account Information Modules Provides constantly updated online view of open positions, account overviews, trading conditions and account exposure. Activity Log Provides a complete overview of all account related actions, including trades, back-office activity, trade execution, login and status information, notifcation and much more. Reporting Provides the client and Asset Manager with end of day reports including account statements, financial statements and trades executed. You can also find information on cash transfers, billing history, dividends and voluntary Corporate Action events. ASSET MANAGEMENT SERVICES 7

10 Access to Global Markets and Multiple Assets Saxo Bank s multi-asset platform provides access to trade more than 20,000 financial products, including FX, Stocks, CFDs, Futures and Bonds. For more details visit institutional.saxobank.com Contract Options Forex Trade Contract Options on multiple assets Spot Currencies: Trade more than 160 FX crosses on live streaming prices with dedicated liquidity up to EUR 25m. Stock Indices: DAX, EUROSTOXX, FTSE, CAC, SMI, AEX, S&P500, NASDAQ, Dow Jones, ASX, HSI Spot Metals: 15 FX crosses in precious metals available. Gold, Silver, Platinum and Palladium are available as spot traded commodities. Commodities: Agricultural, Metals and Energies Forwards: Most Forex Spot crosses are available as Forward Outrights with live tradable prices. Currencies: EURUSD, GBPUSD, other majors Interest Rates: STIRs, Gilt, Bund, Bobl, Schatz Trade through the industry standard option chain. No carrying costs, no minimum ticket fees. Stocks can be used as collateral. Forex Options FX Binary Touch Options are available on six of the most traded currency crosses. FX Vanilla Options are available for more than 40 currency crosses including Gold and Silver. Futures Trade more than 250 contracts on agriculture, energy, metals, currencies, interest rates and stock indices to live market prices from over 22 Futures exchanges. All FX Options trade on the innovative FX Options Board. Commodities: Trade CFDs on oil, grains, softs, energies, gold and other precious metals. Stock Indices: 22 leading stock indices available. Single Stocks: 9,400 Single Stock CFDs available with live streaming prices from 29 exchanges. Can also be traded on a DMA setup. Forex: Trade currencies commission free with low collateral requirements. ETFs: 450+ ETFs traded as a CFD. Bond CFDs on several Government Bonds available: French OAT, Italian BTP, German Bund, German Bobl and German Schatz. 8 Stocks & ETFs CFDs (Contract for Difference) ASSET MANAGEMENT SERVICES Trade over 18,400 stocks from 33 major exchanges. Use your Stocks as collateral for margin trading. To analyse and plan your trading strategy use Saxo Bank s Equity Research and Stock Screener tools. Trade more than 1,500 ETFs and ETCs. Full range of market, limit and stop orders. Bonds Offline trading available in a wide selection of Bonds including sovereign, government and corporate bond. Can be used as collateral for margin trading.

11 3 Client Administration On-boarding and Due Diligence Saxo Bank supports Asset Managers by streamlining the onboarding process for end-clients: 1. The Asset Manager takes their client through the Saxo Bank account application and power of attorney forms. The documents cover the following areas: Client Details Client Classification (MiFID) Account Currency Purpose of the account AML information Corporate information (if applicable) Risk disclosures Power of Attorney Asset Manager Fee Schedule Contributions and Withdrawals Clients may contribute money to their managed accounts at any time. For efficiency and planning purposes, withdrawals are effective by the end of each month. This gives the Asset Manager time to liquidate positions and facilitates fee calculations. Revoking of POA Revoking of Power of Attorney may be done at any time, but account proceeds will only be handed back to the client once fees have been calculated and paid to the Asset Manager. This process generally takes 24 hours. 2. The signed documents are either ed or faxed to Saxo Bank s contracts department along with valid ID and proof of residency. 3. Saxo Bank performs a due diligence review of the client by validating the documentation, identification, proof of residency and conducts an AML check. 4. Saxo Bank informs the Asset Manager by that the client s account is opened. The Asset Manager informs the end-client and the appropriate Asset Manager Fee schedule is assigned. ASSET MANAGEMENT SERVICES 9

12 4 Management & Trading support Allocation Tool to manage and execute trades easily The Allocation Tool is an automated service that enables Asset Managers to do block trading on behalf of multiple clients with one click. Trades as well as orders are instantly reflected on client accounts. The Allocation Tool is applicable across all products and managed by the Asset Manager. Using the WebConnect tool the Asset Manager can handle the full allocation process without manual involvement from Saxo Bank. The Trade Allocation Tool offers the following key benefits and features: Risk Management Efficient risk management is attained through real time margin checks on each client account at execution. The Asset Manager can choose to have the block trade size automatically reduced or alternatively the entire order cancelled in case of insufficient money on clients accounts. Furthermore, a margin pre-check functionality shows the impact on each client account before execution. This minimises risk and ensures that no trades are left unallocated. Automated Allocation via Rules Asset Managers can save pre-defined rules to make allocation fully automated. The system selects the allocation key and allocates the trade based on the defined rules. 10 ASSET MANAGEMENT SERVICES

13 Easy set-up and administration of Allocation Keys The Asset Manager handles the set-up and administration of keys in WebConnect. Multiple keys can be saved for different trading strategies or client groups. Overview of Allocated Trades The Allocation Summary gives a quick overview of trades and a breakdown of the allocation distribution. Via the Close function, Asset Managers can easily close positions across multiple clients. Position Build-up Asset Managers can build up larger positions by aggregating several smaller trades. The trades are automatically merged into one trade by the system. ASSET MANAGEMENT SERVICES 11

14 Best Execution With our aggregated liquidity from Tier-1-banks and access to over 80 trading venues across the globe, you benefit from realtime prices and precision execution. Our direct access to the markets you wish to trade in results in lower commissions and fees, and allows us to offer fast, reliable and fair execution with low slippage. Saxo Bank offers precise execution, so you can rely on trades being filled with optimal accuracy and low slippage rates. Algo Trading Algorithmic orders allow traders to execute large orders on one or many exchanges including access to dark pools through our SmartDark order type while minimizing market impact. Saxo Bank s Algo Trading covers the major stock exchanges in Europe and the US. Algorithmic orders offer a range of strategies that achieve this, each strategy having a different goal and set of specific parameters. Saxo Bank offers algo order types such as Iceberg, Reload, VWAP, Implementation Shortfall and US Pre-market limit. Smart Order Routing Saxo Bank gives you access to Multilateral Trading Facilities (MTFs) for added liquidity, such as Chi-X Europe, Turquoise and other dark pools. 12 ASSET MANAGEMENT SERVICES

15 5 News, Analysis and Tools TradingFloor.com news, analysis, commentary and tools in one free open community All of Saxo Bank s trading platforms include free, real-time market news from a variety of leading global and regional newswires as well as from our own showcase online community, TradingFloor.com. Through this rapidly growing channel, which currently has 15,000 members, Saxo Bank strives to help traders at all levels of expertise in their decision-making. TradingFloor.com features news, analysis and views of Saxo Bank analysts, external bloggers and traders. The community is free to join and all members can openly ask questions and share ideas. notifications of relevant content are sent to members based on their personal settings. TradingFloor.com has regular updates on forex, commodities, equities, bonds and macro-economics. Coverage of these topics is available through blogs, squawks (user commentary), videos via Saxo TV, Trading Ideas and Trade Navigator, which includes technical tools and insight into nearly 200 instruments. Other key features include a real-time Financial Calendar, FX Open Positions, FX Open Orders and Forex Correlations, plus educational content. In addition to contributing to TradingFloor.com, Saxo Bank s analysts are frequent guest contributors on CNBC, Bloomberg and other leading financial news outlets. They also participate in events such as Saxo #FXDebates and produce content for the following key publications: TradingFloor.com Insights - An analysis of events that have unfolded in the previous quarter and an outlook of how they might evolve in the forthcoming quarter. TradingFloor. com Insights is published four times a year. Outrageous Predictions These are not predictions in the true sense, but major events and risks that seem out of the box and outrageous. These scenarios are actually far more probable than appreciated and could have significant (mostly very negative) consequences on investment returns in the New Year. Saxo Bank s 10 Outrageous Predictions are published once a year. ASSET MANAGEMENT SERVICES 13

16 Stock Screener and Equity Research Saxo Bank s equity offering assists Asset Managers in analysing, designing and implementing their equity investment strategies. This enables Asset Managers to manage their global investments exposure across a wide selection of companies and their risk. Stock Screener The Stock Screener module provides investors with historic data, consensus forward-looking estimates and analysis of 11,000+ stocks from 29 major exchanges and 7,800 single-stock CFDs. The screening results can be used to identify trading opportunities, trade, view research and more. View Stock Screener on view of stock screener 14 ASSET MANAGEMENT SERVICES

17 views of equity research - summary Equity Research The Equity Research module offers 5 years of historical information, consensus estimates for 3 years forward, in-depth peer comparison, financial analysis, FX and commodity sensitivity analysis for single stocks. All this equips the trader to estimate and manage risk exposure. View sample company report on ASSET MANAGEMENT SERVICES 15

18 6 Back Office and Risk Management Operational Services As part of our Asset Manager solution, Saxo Bank runs a number of operational services on behalf of the Asset Manager. These services are integrated into the trading applications, and end-of-day files can be extracted into the Asset Manager s own back-office system to fulfil specific regulatory or management reporting requirements. Saxo Bank back-office departments support the following operations: End-Of-Day Processing Saxo Bank will handle all end-of-day processes and will, by New York close, reconcile all positions in all asset classes. After completion of the reconciliation, the Asset Manager will have the possibility to receive a set of end-of-day files. The end-of-day files are flat raw data files of all activities on all accounts under the Omnibus account structure for the previous trading day. These files are received for import into back office systems, management reporting systems or CRM systems. As part of the end-of-day processing, Saxo Bank produces client reports that can be viewed online for both the Asset Manager and their clients. FX Rollovers When Asset Managers are trading foreign exchange and keeping spot positions open overnight, Saxo Bank will automatically rollover the spot positions to the next day. Saxo Bank uses Tom-Next rollovers based on the LIBOR/LIBID interest rate. Financing Interest on CFDs When the Asset Manager holds a CFD overnight, the CFD position will be subject to a credit or debit. The credit/debit is calculated on the total nominal value of the underlying stock at the time the CFD contract is bought/sold (whether long or short). The credit or debit is calculated and charged automatically by our systems. Corporate Actions Saxo Bank handles corporate actions on supported exchanges and these will be processed and booked on accounts automatically. The trading platform handles voluntary elections of Corporate Actions online. Saxo Bank s systems send information whenever a corporate action has been booked, and perform the relevant bookings. The election of voluntary corporate actions events appears as a pop up alerting the Asset Manager that there is a new voluntary event that needs attention. Transfer of securities free of payment Saxo Bank handles the transfer of securities from the end- client s existing depositary to Saxo Bank free of charge. Flexible sources of credit With Saxo Bank you can work with your choice with prime broker. Keep your cash and collateral with your own bank while benefitting from Saxo Bank s sophisticated trading functionality, liquidity and access to a broad range of markets and products. Our prime brokerage service establishes a credit document certifying that a prime brokerage is in place and allocating an agreed-to trading line, enabling you to trade on Saxo Bank s multi-asset platform. At the end of each day, your positions are netted out between your primary bank and Saxo Bank. Our operational tools save you time and money - Saxo Bank 16 ASSET MANAGEMENT SERVICES

19 Asset Management Fee Structures Saxo Bank provides Asset Managers with the entire trading infrastructure as well as back-office systems that automatically calculate the agreed fees on the end-clients accounts. Fees are calculated and charged on a monthly, quarterly or yearly basis. On the first business day of the month, the Asset Manager will receive an overview of the fees that will be charged in respect of the previous month. Asset Managers can select from four types of fees to apply to its clients. These fees will be directly paid from the account which the Asset Manager s clients have with Saxo Bank to your designated account. Funding Fee Asset Managers have the option of charging a funding fee, which is calculated as a percentage of the funded amount. The fee is charged as soon as the amount is transferred to the account that will be managed. Management Fee The management fee is calculated as a percentage of the assets under management on a daily basis and charged monthly, quarterly or yearly to the Asset Manager s clients accounts. Flat Fee A flat fee can be charged against an account. This is an amount specified in a specific currency that can be charged on a monthly, quarterly or yearly basis. Performance Fee The performance fee is calculated on the basis of the total trading profit/loss generated during a month as well as all other bookings which impact the value of an account. Asset Managers can choose between a monthly, quarterly or yearly performance fee. The calculation is made after close of business on the last day of the chosen period. Any performance fee payment is subject to a high water mark calculation. The high water mark is set automatically when the performance fee is calculated. The high water mark is also adjusted based upon contributions and withdrawals. If the Asset Manager and the client agree to reset the high watermark, then Saxo Bank s back office department can set it to the agreed amount and perform any necessary adjustments to the fees. ASSET MANAGEMENT SERVICES 17

20 7 Reporting and Monitoring Effective, integrated Back-Office and Risk Management Tools through Online WebConnect The Asset Manager solution makes it easy to trade, monitor margin and manage accounts. WEBCONNECT client selector tree view The omnibus account structure gives the Asset Manager a comprehensive, searchable overview of their accounts, trade activity and service issues. The Asset Manager gains access to a sophisticated, full-service, back-office suite of tools that is easy to use and manage. Block trading, account management, activity logs and margin management are fully embedded in the platform. The SaxoTrader s administrative functions are entirely integrated in the platform, eliminating the need to switch between different applications, windows or packages to manage a business. This means scalability, flexibility and easier integration into a backoffice system to make your business processes easier, faster and more efficient. All of this allows the Asset Manager to concentrate on what really matters: growing a client base and revenues. Flexible Account Structures The account structure offers maximum flexibility including: Different configurations for traders including access to funds and tradable products. Main accounts and sub account structures for each client. Accounts can be segregated between different traders. Full multi-currency account set ups. Trade seamlessly, even when aggregating accounts that are denominated in different currencies. Managed Funds Solution Our back office team can provide you with a net asset value per share based upon your trading activity at Saxo Bank. Comprehensive Monthly Client Statements The client statement is a comprehensive static PDF report that gives your client a comprehensive overview of their account activities over the previous month/quarter/year. Every month your client will receive an notification informing them that they have a client statement available to them in WebConnect. This statement will be stored as a PDF for review in WebConnect. The statement includes: Account overview Performance information Holdings Account transactions (trades, cash movements, corporate actions, etc.) Management and Performance Fees Commissions 18 ASSET MANAGEMENT SERVICES

21 Effective monitoring of client accounts through WebConnect Online WebConnect is an advanced back-office system that facilitates the continuous, real-time monitoring and management of end-clients trading accounts. It is a web-based tool that provides view-only access. The tool facilitates risk management by allowing Asset Managers to monitor the overall exposure on the omnibus account or on individual client accounts. In WebConnect the Asset Manager can also monitor all activities such as trading, connection activity or dealer chat on client accounts and generate reports required for regulatory purposes or for reporting to clients. Additionally, end-clients get access to reports through WebConnect thereby allowing them to directly monitor their investment portfolios managed by the Asset Manager. This saves the Asset Manager time spent on administrative tasks and ensures openness and transparency in the trading relationship with end-clients. Online WebConnect comes with the following features: Openness and transparency though complete Activity Log The activity log provides the Asset Manager with a complete overview of all account related actions. The activity log is a depository of information including trades, back office activity, trade execution, login and status information, notification, chat activity, non trading client action and much more. Trade Event Notifications for integration into your infrastructure Our real-time trading feed, Trade Event Notifications, provides constant updates into your own position keeping and/or accounting system. Manage your clients risk Saxo Bank provides the Asset Manager with a total list of its clients and a comprehensive overview of their risk and margin utilization. Search Tools Quick client search Broker journal Risk management search on client, instrument or margin profile Risk management overview on client value, margin utilisation and available funds for trading Order search Position exposure search Extensive Reporting Reporting for your end clients through WebConnect includes: o Financial Statement o Cash Transfers o Fees report o Trades Executed o Instrument specific reports (Dividends, Coupons, Forex specific) It records every activity that happens on the account and provides valuable information for regulatory and auditing purposes. WEBCONNECT MONEY MANAGER account view ASSET MANAGEMENT SERVICES 19

22 8 Fund Services If you are a Fund or a Hedge Fund and you require incorporation and administration of your Fund, Saxo Bank can assist you by referring you to a network of fund administrators, auditors and lawyers. In addition, we can put you in contact with 3rd party software vendors who have incorporated Saxo Banks EOD files into their own proprietary systems for portfolio management and accounting. Contact your account representative to find out more. Fund Administrators and Auditors Saxo Bank has an extensive network of fund administrators and auditors who are familiar with our trading platform and EOD files. Fund administrators can help you with: Setting up complex fund structures Fund accounting and reporting Client on-boarding, AML checks, fee processing and reporting Net Asset Value Calculations Fund auditors familiar with Saxo Bank s trading platform can extract the necessary information from the back-office and reporting tools. Knowing the systems benefits and optimizes the audit process and validation of your company. Lawyers Saxo Bank s network of lawyers can help you with: Fund structuring Regulatory issues Trading and brokerage documentation, including prime brokerage, custody and derivative agreements Ownership and seeding arrangements Third Party Software Vendors Saxo Bank has partnered with a number of 3rd party portfolio management software providers to supplement our offering. We provide them with data feeds from our platform and these software vendors can provide you with custom portfolio and risk management tools. 20 ASSET MANAGEMENT SERVICES

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24 9 Process for implementing an Asset Manager Set-Up Saxo Bank has designed a straightforward process that gets the Asset Manager up and running with the least amount of disruption possible. The process is as follows: NEGOTIATION AND APPROVAL Asset Managers are evaluated on a case-by-case basis and should meet the following approval criteria to qualify for the Asset Manager program: a. Must be a limited company b. Must hold relevant licenses c. Must document solid experience and a proven track record within the asset management industry d. Must manage a minimum of EUR 5 million e. Must adhere to GIPS (Global Investment Performance Standards) Standards. AGREEMENT AND CONTRACT The Asset Manager enters into a contract with Saxo Bank where all conditions are agreed upon. SETTING UP THE INFRASTRUCTURE Saxo Bank then sets up the trading infrastructure. TRAINING As a part of Saxo Bank s on-boarding process, Saxo Bank introduces the Asset Manager to the relevant functions within the Bank s internal systems, as well as the relevant processes for bringing the Asset Manager s clients to the Bank. ON-BOARDING PROCESS FOR THE ASSET MANAGER S CLIENTS 22 ASSET MANAGEMENT SERVICES The Asset Manager can begin on-boarding the clients who will open an account with Saxo Bank through our client due diligence process, which includes anti-money laundering procedures put in place to protect the Asset Manager and Saxo Bank.

25 Saxo Bank then sets up the trading infrastructure. TRAINING As a part of Saxo Bank s on-boarding process, Saxo Bank introduces the Asset Manager to the relevant functions within the Bank s internal systems, as well as the relevant processes for bringing the Asset Manager s clients to the Bank. ON-BOARDING PROCESS FOR THE ASSET MANAGER S CLIENTS The Asset Manager can begin on-boarding the clients who will open an account with Saxo Bank through our client due diligence process, which includes anti-money laundering procedures put in place to protect the Asset Manager and Saxo Bank. CLIENTS BEGIN TRADING In order for the Asset Manager to trade on client s behalf, the clients sign a Power of Attorney agreement that authorises the Asset Manager to trade on their account. Once this agreement is signed, the Asset Manager s clients accounts will be set up under the trading structure. REPORTING Once trading is underway, Saxo Bank generates comprehensive reports for the Asset Manager and their clients. ON-GOING SUPPORT After the initial set-up process, Saxo Bank continues to work with the Asset Manager and provide technical support, marketing and sales training, as well as help to identify business development opportunities. Through strong and continuous cooperation Saxo Bank supports the Asset Manager in growing their business to mutual benefit. ASSET MANAGEMENT SERVICES 23

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28 10 Why Saxo Bank Saxo Bank s mission is simple: to be the world s most profitable and professional facilitator in the global financial markets. We enable Institutional Clients and their end customers to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three award-winning trading platforms or an API connection. With our aggregated liquidity from Tier-1 banks and access to over 80 trading venues across the globe, our clients benefit from real-time prices, precision execution and competitive commissions and fees. The Trust and Security of Working with a Licensed Bank Saxo Bank A/S is a fully licensed Danish bank under the supervision of Finanstilsynet (the Danish FSA). This means you get the confidence from knowing you re becoming a counterparty with a reliable and established provider in an officially regulated environment. Saxo Bank A/S is the parent company of Saxo Bank Group and it holds the majority of the activities of the Group. Saxo Bank Group is audited by KPMG. Saxo Bank s Owner Structure The founders maintain majority ownership of the Bank. Fournais Holding A/S and Lars Seier Christensen Holding A/S own 29.95% of Saxo Bank each. TPG Capital own 30% and the remaining shares are mainly held by a number of current and former employees of the Bank. Financial Summary In 2012 Saxo Bank Group recorded a net profit of DKK 81 million and reached an operating income of DKK 2.97 billion. Client collateral deposits grew by 14% to DKK 40.2 Billion. As of 31 December 2012, the solvency ratio for Saxo Bank Group was 13.5%. To balance credit risk posed by liquidity providers and financial brokers, Saxo Bank operates only with regulated counterparties who have the highest credit ratings. Visit institutional.saxobank.com/why-saxo-bank for more information. SAXO BANK GROUP (DKK millions) Operating income 2, , , , ,518.2 Profit before tax Net profit Total equity 3, , , , ,416.7 Total assets 26, , , , ,456.1 Clients collateral deposits 40, , , , ,717.1 Assets under management 48, , , , Solvency ratio (Pillar I) 13.5% 14.5% 16.5% 19.0% 17.5% Return before tax an Total equity 4.6% 27.7% 35.0% 14.4% 37.3% Average number of employees 1,522 1, , ASSET MANAGEMENT SERVICES

29 Operating Income (DKK millions) Net Profit (DKK millions) Client collateral deposits and Assets under Management Consolidated key figures...(dkk Millions) Client collateral deposit, Saxo Bank Client collateral deposit, Saxo E-Bank Assets under Management, SAM ASSET MANAGEMENT SERVICES 27

30 Saxo Bank International Presence COPENHAGEN HEADQUARTER SAXO BANK A/S PHILIP HEYMANS ALLÉ HELLERUP DENMARK PHONE: FAX: REG. NO CVR. NO AMSTERDAM SAXO BANK A/S NEDERLAND WTC AMSTERDAM B-TOWER 15TH FLOOR STRAWINSKYLAAN XW AMSTERDAM NETHERLANDS PHONE: FAX: ATHENS SAXO BANK A/S HELLAS 4 VASILISSIS SOFIAS AVENUE ATHENS, GREECE PHONE: FAX: [email protected] TOKYO SAXO BANK FX SECURITIES K.K. KAMIYACHO SANKEI BUILDING 10F AZABUDAI MINATO-KU TOKYO JAPAN OFFICE: [email protected] BELGIUM SAXO BANK BELGIUM REPRESENTATIVE OFFICE AVENUE LOUISE BRUSSELS, BELGIUM PHONE: [email protected] SYDNEY SAXO BANK A/S AUSTRALIA, REPRESENTATIVE OFFICE LEVEL 56 MLC CENTRE MARTIN PLACE SYDNEY NSW 2000 AUSTRALIA PHONE: FAX: WEB: SINGAPORE SAXO CAPITAL MARKETS PTE. LTD. 3 CHURCH STREET LEVEL 30 SAMSUNG HUB SE SINGAPORE SINGAPORE PHONE: FAX: [email protected] 28 ASSET MANAGEMENT SERVICES DUBAI SAXO BANK (DUBAI) LTD. CURRENCY HOUSE, 1ST FLOOR DIFC PO BOX DUBAI, UAE PHONE: FAX: [email protected] GENEVA SAXO BANK (SCHWEIZ) AG representative office Rue du Rhône 14 CH-1204 Geneva SWITZERLAND PHONE: [email protected] HONG KONG SAXO CAPITAL MARKETS HK LIMITED Units , 12th Floor 50 Connaught Road Central CENTRAL HONG KONG PHONE: [email protected] LONDON SAXO BANK A/S LONDON 40 BANK STREET, LEVEL 26 CANARY WHARF LONDON E14 5DA UNITED KINGDOM PHONE: FAX: [email protected] JOHANNESBURG SAXO CAPITAL MARKETS THE PLACE, 1 SANDTON DRIVE SOUTH WING, SANDTON, 2146 JOHANNESBURG, SOUTH AFRICA PHONE: FAX: PRAGUE SAXO BANK A/S PRAGUE BETLÉMSKÝ PALÁC HUSOVA 5 PRAHA 1, CZECH REPUBLIC PHONE: FAX: [email protected] CYPRUS SAXO BANK A/S CYPRUS Agias Fyleaxos 1, Limassol CYPRUS PHONE: [email protected] TURKEY SAXO CAPITAL MARKETS Menkul Degerler A. S Dereboyu Caddesi Meydan Sokak No:1 Beybi Giz Plaza Kat:30 Bölüm Maslak-Istanbul [email protected] MILAN SAXO BANK A/S ITALIA CORSO MONFORTE MILANO ITALY PHONE: [email protected] MOSCOW SAXO BANK A/S MOSCOW REPRESENTATIVE OFFICE Usacheva str. 2 FUSION PARK MOSCOW , RUSSIA PHONE: FAX: [email protected] PANAMA SAXO CAPITAL MARKETS PANAMA SA TORRES DE LAS AMERICAS, PISO 29, TORRE C, SUITE WTC - PUNTA PACIFICA CIUDAD DE PANAMA, PANAMA PHONE: FAX: PARIS SAXO BANQUE FRANCE SARL 10 RUE DE LA PAIX PARIS FRANCE PHONE: FAX: [email protected] POLAND SAXO BANK A/S POLAND Nowy Świat 7 lok WARSAW POLAND PHONE: [email protected] AUSTRALIA Saxo Capital Markets (Australia) Pty Ltd Level 25, 2 Park Street Sydney NSW 2000 AUSTRALIA PHONE: +61 (2) [email protected] MADRID SAXO BANK A/S SUCURSAL EN ESPAÑA SERRANO 32, 2E MADRID PHONE: [email protected] ZURICH SAXO BANK (SCHWEIZ) AG RIETSTRASSE 41 POSTFACH 509 CH-8702 ZOLLIKON SWITZERLAND PHONE: FAX: [email protected]

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32 This material is produced for marketing and/or informational purposes only and Saxo Bank A/S and its owners, subsidiaries and affiliates whether acting directly or through branch offices make no representation or warranty, and assume no liability, for the accuracy or completeness of the information provided herein. Saxo Bank may change its offering and content of this catalogue without notice. The content of this catalogue shall not be relied up for any contractual purposes. This disclaimer is subject to Saxo Bank s Full Disclaimer available at