The Pershing Advantage

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1 The Pershing Advantage Comprehensive business solutions for investment professionals Your Business Without Limits TM

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3 A Partnership That Works For You Pershing s exclusive focus on serving investment professionals and their financial organizations ensures an unparalleled level of expertise and commitment to you and your business. 1 Pershing brings a consultative, collaborative approach to everything we do by listening closely to understand what you need to be successful. We offer far more than just products and services we work hands-on with our customers as strategic business partners. Our commitment to you is strengthened by the resources of The Bank of New York Mellon Corporation, our parent company, which has served the financial community for more than 220 years, and is a leader in the financial services industry. With nearly 70 years of experience, 13 U.S. locations, 6 international locations, and more than 5,000 fulltime employees worldwide, Pershing is a market leader with the depth and breadth of experience to bring value to you and any size broker-dealer, in any market segment, or any country. Pershing offers: > Stability and Experience > innovative Product and Technology Solutions 1,150+ Financial Organizations 100,000+ Investment Professionals 5,000,000+ Individual Investors $940,000,000,000+ Platform Assets Note: Data as of March 2008 Benefits of Working With a Pershing-Affiliated Broker-Dealer Pershing works behind the scenes with our brokerdealer customers to support you with proactive, exceptional service, allowing you to exceed your clients expectations. When you work with a Pershing-affiliated firm, you have access to everything you need to bring your business to a new level. Our professionals provide some of the best technology, product, and practice management solutions in the industry. Consider it your business without limits. > Practice Management Programs > Access to Industry-Leading Experts 1 The term financial organizations refers to institutional and retail introducing broker-dealers and independent registered investment advisors. Your business without limits 3

4 Flexible Technology Today s fiercely competitive environment requires powerful, flexible technology and information to optimize your productivity and performance. At the core of Pershing s technology offering is an open architecture foundation that gives you the freedom to follow your own plan for growth. Empower Your Business With Pershing s Online Brokerage Platform NetExchange Pro, our online brokerage platform, is the cornerstone of Pershing s flexible technology offering and the reason so many of our customers choose Pershing as a partner. NetExchange Pro can be accessed virtually anytime, anywhere via Windows, the web, as well as wireless devices including the iphone. Pershing continues to invest significantly in innovation and development to meet your current and future needs. NetExchange Pro is designed to help you manage your business more efficiently, be highly responsive to your clients, and effectively develop new sales and revenue opportunities. It integrates client information with market data, news, research, and tools from many of the most respected content providers in the industry into a customizable platform to help you maximize productivity. NetExchange Pro provides you with features and content virtually unsurpassed in the industry. Join the more than 100,000 investment professionals today who are leveraging the power of NetExchange Pro to grow their businesses. Pershing s NetExchange Pro was ranked number one by Aite Group in functionality, service, technology, and usability based on over 265 questions, functional demonstrations, and client references. 2 > Superior Experience Log on to NetExchange Pro from the Internet, with software, or via a wireless device, to efficiently perform the tasks necessary to build your business. > Integration Access research, financial planning tools, financial and headline news, market data, and trading information all from a single platform. > Personalization Tailor screens, navigation, and data display to suit your personal work style. > Increased Productivity Learn about events and regulations that affect clients accounts, and utilize a variety of online tools to improve the speed of completing operational tasks. To learn more about NetExchange Pro, take a tour at 2 The Evolution of Correspondent Clearing: Major Players Are Finding Their Niche, Aite Group, the pershing advantage

5 Business Continuity Pershing maintains a business continuity plan, including redundant data centers and alternate processing facilities, to address interruptions to its normal course of business. These plans are reviewed annually and updated, as necessary, to ensure uninterrupted service to your clients. All Pershing 3 operational facilities are equipped for resumption of business and are tested several times per year. Pershing s recovery time objective for business resumption, including those involving a relocation of personnel or technology, is four hours.3 This recovery objective may be negatively affected by the unavailability of external resources and circumstances beyond our control. y o ur b us i n e s s w i t h o u t l i m i t s 5

6 Product and Service Solutions Pershing offers a wide range of sophisticated product and service solutions to support the unique needs of your client base. Investment Solutions Cash Management Pershing s comprehensive asset management account, ProCash Plus, combines all brokerage, checking, money market fund, and MasterCard debit card activity into a cohesive package, and consolidates the assets and transactions onto a monthly brokerage account statement. ProCash Plus is available in Platinum, Gold, or Silver packages, each offering optional services such as a rewards program and online bill payment and presentment. Offer your clients domiciled in Latin America or the Caribbean a charge card with admirable benefits. The American Express International Dollar Card, available in Green, Gold, and Platinum levels, provides your clients with privileges including 24-hour customer service, travel accident insurance, emergency check cashing, and more. 4 Award-Winning Statements Account statements are your most frequent client touch point and provide a concrete way to reinforce a high level of service. Pershing s brokerage account statements are among the most clear and concise in the industry and are one of only four to receive DALBAR s highest rating of excellent the highest of any clearing firm. 5 Our statements offer: > Customization (firm logo, investment professional name, and contact information) > Consolidation for household accounts > e-delivery alternative > Year-end account reports and quarterly performance reports > multilingual options (English and Spanish) 4 All privileges are not available to all plan levels. 5 Pershing s brokerage account statement received a rating of excellent by DALBAR in 2004, 2005, 2006, and the pershing advantage

7 Unlimited Account Asset Protection Your clients automatically receive account protection for the net equity of their securities positions and cash in their accounts. Of that total, the Securities Investor Protection Corporation (SIPC) provides $500,000 of net equity protection, including $100,000 for claims for cash awaiting reinvestment (SIPC protection). Working on behalf of your clients financial organizations, Pershing provides the additional protection (Excess SIPC) on terms similar to SIPC for account net equity in excess of $500,000 to an unlimited amount through a commercial insurer. Visit for more information about SIPC. Account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities clients, but it does not protect against losses from the rise and fall in the market value of investments. Mutual Funds You can offer your clients an opportunity to invest in one of the largest and most diverse selections of mutual funds in the industry by accessing more than 16,400 mutual funds from more than 500 fund families through our mutual fund supermarket. Utilize our mutual fund trading desk, take advantage of our no-transaction-fee mutual fund program, FundVest, one of the largest selections of participating funds in the industry, and more. ETF Center By combining the investment research of Morningstar with sophisticated analytical tools, Exchange-Traded Funds (ETF) Center, accessible through NetExchange Pro, arms you with valuable investment resources and detailed news and information on one of the industry s fastest-growing products. ETF Center allows you to view detailed information on nearly 700 ETFs, compare ETFs versus individual stocks or mutual funds and against other screening criteria, and search for ETFs based on market performance. Retirement Planning Promote a full line of flexible, investor-focused accounts, featuring a broad range of self-directed investment choices. Your clients can take advantage of such products as Individual Retirement Accounts (IRAs), Roth IRAs, Mutual Fund-Only IRAs, and Rollover IRAs, as well as Education and Health Savings Accounts, and 403(b)(7) custodial accounts. Additionally, you can tap into a comprehensive range of employer-sponsored plans, such as simplified employee pension (SEP) plans, salary reduction SEP (SARSEP) plans, savings incentive match plan for employers (SIMPLE) plans, and qualified retirement plans, including 401(k), Individual(k), profit sharing, and money purchase pension plans. Annuity Processing Streamline the way you process, service, and maintain fixed and variable annuity products on behalf of your clients through Subscribe. Subscribe enables you to conveniently consolidate existing annuity contracts in your clients brokerage accounts giving you a comprehensive view of their portfolios. Available through NetExchange Pro, our online broker workstation, you can submit annuity transactions electronically and interface with many leading insurance companies. Lending Solutions Enhance your ability to meet your clients credit and financing needs by leveraging our selection of lending products, including LoanAdvance, a securities-based consumer lending product; CreditAdvance, a margin lending product; and RealAdvance, a mortgage origination solution provided by EverBank. In addition, our fully paid securities lending offering can provide your high-networth clients with fully paid positions in their cash accounts the ability to loan those securities to Pershing to generate an additional revenue stream for their portfolios. your business without limits 7

8 Wealth Management Services Being able to offer your clients a full complement of wealth management solutions is critical to solidifying long-term relationships. Leveraging the extensive experience and knowledge of our professionals, you can maximize the opportunities that wealthy clients present. Our Corporate Executive Services include a turnkey Rule 10b5-1 Trading Plan solution and hightouch support for specialized transactions, including corporate stock option exercises and restricted stock sales and transfers. You may also access an extensive array of trust services through our open architecture Trust Network platform and high-net-worth client solutions through our partnership with The Bank of New York Mellon, including structured products, asset management, and alternative investments. Managed Account Solutions Pershing offers a full suite of turnkey and privatelabel solutions to provide your high-net-worth clients with access to separately managed accounts, unified managed accounts, mutual fund and exchange-traded fund wrap accounts, and advisor-directed accounts. Managed Account Advisor lets you benefit from a turnkey advisory solution, provided by Lockwood Advisors, Inc., that your broker-dealer can brand as its own. Managed Account Command is a flexible way for your broker-dealer to build its own customized managed account program by leveraging our technology and infrastructure. Managed Account Network gives you access to a network of best-ofbreed, third-party asset management providers enabling you to consolidate managed account assets and satisfy a range of client needs. Our affiliates, Lockwood Advisors, Inc. and Lockwood Capital Management, Inc., provide the following proprietary solutions: > Lockwood Advisors, Inc. provides: 6 Traditional Separately Managed Accounts Separately managed accounts from 75 third-party separate account managers on its research coverage list Lockwood AdvisorFlex Portfolios TM Advisor-directed unified managed accounts > Lockwood Capital Management, Inc. provides: 6 Lockwood Investment Strategies Discretionary unified managed accounts Lockwood Investment Strategies Longevity Income Solutions (LIS 2 ) Retirement income strategy that offers a lifetime income guarantee option on an investor s managed account assets Lockwood Asset Allocation Portfolios Discretionary mutual fund/exchange-traded fund wrap accounts 6 lockwood Advisors, Inc. and Lockwood Capital Management, Inc. are SEC Registered Investment Advisors and affiliates of Pershing LLC, all subsidiaries of The Bank of New York Mellon Corporation. Pershing LLC, member FINRA, NYSE, SIPC. 8 the pershing advantage

9 Trading Services Best Execution Today, when milliseconds count, you need reliable resources to help you achieve best execution in a dynamic and competitive marketplace. Our Best Execution Steering Committee provides overall leadership and guidance on execution quality and best execution monitoring, focusing on equities, options, and fixed income. We help you satisfy regulatory reporting requirements while providing expert assistance in identifying and reconciling trade breaks, reducing comparison risk and exposure. Equities and Options Trading Our dedicated desks and electronic trading tools enable you to quickly respond in today s complex equities and options markets. Our Agency Sales Trading Desk, Options Trading Desk, Foreign Equity Desk, and network of NYSE floor brokers provide best execution for all of your equity and option orders. Our combination of institutional proprietary system trading tools and relationships with order management, execution management system, and direct market access platform providers enable you to choose from a range of liquidity management solutions. Fixed Income Pershing s full service fixed income trading desks provide personal support and access to a comprehensive array of fixed income securities. Our seasoned professionals leverage their extensive knowledge of fixed income markets and strategic alliances with bulge-bracket firms to offer you a wide array of products, including new issues, on one platform at very competitive prices. Pershing s interactive, fixed income trading tool, BondCentral, enables you to search online fixed income offerings from more than 90 participating dealers. In addition, leverage our Fixed Income Portfolio Solutions including proactive alerts, detailed reports, comprehensive proposals, and extensive tax swap analytics to efficiently provide your clients with sophisticated and targeted portfolio analysis to meet their changing needs. Global Capabilities Access markets worldwide through our global capabilities. Our Foreign Equity Desk provides multicurrency execution capabilities in more than 65 exchanges through Pershing s own exchange memberships, local relationships, and third-party electronic access. Our foreign exchange capabilities facilitate the trading and conversion of nearly 50 of the world s most widely held currencies, including spot and forward transactions. Our experienced fixed income professionals offer expertise in non-u.s. dollar-denominated bonds and can help you trade a wide array of global debt instruments. With real-time pricing, execution, and streamlined processing, you can provide your clients with an efficient means of sending and receiving funds globally and financing international transactions in their brokerage accounts. Strength Behind Our Numbers As of March 2008 > Delivers expertise of senior managers with an average of 25 years of experience > Acts as market maker in over 5,000 equity and preferred securities > Provides non-u.s. dollar execution capabilities on more than 65 exchanges > executes an average of 132,000 trades daily, representing 136 million shares your business without limits 9

10 Practice Management Turn to Pershing for a comprehensive array of practice management tools and resources to help drive growth, optimize human capital, and maximize operational efficiency. Our practice management programs are designed to help meet your business challenges head on and continue to grow your business without limits. They represent Pershing s unique approach to practice management support going beyond high-level guidance to offer actionable information, personalized consulting, and ready-to-execute programs. Education > Independent Studies and White Papers provide unique insights into client characteristics, peer business models, transition issues, and more > Guidebooks offer hands-on ideas on a variety of topics > Newsletters keep you informed of industry developments and new Pershing solutions > On-Demand Presentations, Podcasts, and Webcasts allow for an easy-to-use, interactive way to uncover new ideas Events Participate in our conferences and events including INSITE, our annual financial products and services conference, and our Professional Seminar Program. Marketing Services A wide selection of customizable materials are available online or via hard copy at no charge, such as brochures, fact sheets, sales kits, and statement inserts, as well as access to our marketing team to help you find solutions to your marketing challenges. Training Services Easy access to training resources and support is available through a variety of media to meet your learning needs and preferences. Training on Pershing s technologies, products, services, policies, and procedures is available through Participant Guides, Task Reference Sheets, computer- and Internet-based training, as well as personal instruction. ValueAlliance Leverage our network of service providers to achieve a wide range of objectives and give your business a competitive edge. ValueAlliance provides you with access to many of the industry s most powerful resources including business services, coaching, and marketing solutions at beneficial terms. The Pershing Advantage From our robust product and service solutions, to our innovative technology and practice management support, Pershing offers the tools and resources you need to continue to grow your business without limits. To learn more, visit us online at Pershing LLC, member FINRA, NYSE, SIPC. Trademark(s) belong to their respective owners. For professional use only. 10 the pershing advantage

11 Your Business Without Limits TM This is a partnership focused on your success. To learn more visit us online at

12 About Us Pershing LLC (member FINRA, NYSE, SIPC) is a leading global provider of financial business solutions to more than 1,150 institutional and retail financial organizations and independent registered investment advisors who collectively represent over five million active investors. Financial organizations, investment professionals, and independent registered investment advisors depend on Pershing s depth of experience and consultative approach to provide them with forward-thinking solutions that help them to grow their businesses. Located in 19 offices worldwide, Pershing is committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support, and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Börse, the Irish Stock Exchange, and the London Stock Exchange. Pershing LLC is a subsidiary of The Bank of New York Mellon Corporation. Additional information is available at CAPB-PER-ADV-5-08