INDEX & ETF ASSET MANAGEMENT Contact: (925) 594-5001 george.madrigal@penserra.com (916) 730-2065 dustin.lewellyn@penserra.com (925) 594-5026 ernesto.tong@penserra.com The investment professionals at Penserra have been managing index funds since 1998. Our team previously managed index funds and exchange traded funds at firm like BlackRock, Barclays Global Investors, Northern Trust, and Schwab. We understand that our customers buy index funds because they want investment performance that closely tracks their specified benchmark. Whether the portfolio engineering approach is to fully replicate the benchmark or use optimization techniques to closely track the benchmark our team of portfolio managers and traders are well versed in every developed and emerging equity market around the globe.
TRUST PRECISION INNOVATION Overview of Penserra Focused on institutional financial services Our vision: Provide high quality services leveraging technology, data, and market knowledge Build strong client relationships based on trust and an understanding of client needs Beta Management Specializing in indexing and transitions, we combine portfolio management, trading and operational expertise to meet a client s asset management needs. RESEARCH Cost-effective and scalable, our research platform allows asset managers and corporations to collect survey data that is not readily accessible elsewhere. TRADING Blending personal service with sophisticated technology, we work with clients to navigate the complexity of today s markets, implementing your trading objectives. Product Each year we have expanded the breadth and sophistication of institutional products and services to better serve our customers. Each of our offerings is a direct compliment of our ability to evaluate data, scale technology, and acquire intellectual capital. People We believe that to improve our competitive advantage we must focus on effective recruiting of talent, maintain a strong corporate culture, and a greater intensity of commitment. We believe the caliber of our people and continued growth reflects our success in implementing these key tenets. Corporate Diversity Highlights Our firm competes purely on merit by relying on the quality of our service and the experience of our people. With this in mind, the firm embraces diversity in its ownership structure and hiring practices. Penserra is certified as a Minority Business Enterprise by the National Minority Supplier Diversity Council and other similar organizations. 1
Penserra s complimentary offerings TRUST PRECISION INNOVATION Penserra was founded with a long-term business strategy that incorporates complimentary services that support Index Fund Management. The firm has three key vertical business each of which provides key contributors to a successful index fund offering. With strong trading capabilities you can reduce transaction costs which improve portfolio performance. In addition, traders are engaged in the local markets everyday and may have a strong sense of how the markets are behaving in real time. Our traders work around the clock to execute in the Americas, EMEA, and Asia. Similarly, research analysts allow us to better understand how to react to a corporate action, index change, or potential M&A activity. All of these factors help us to better track a benchmark. Last, when you are moving securities into our index portfolios our Transition Management Team stand ready to help with a seamless contribution of securities. Our staff has worked on thousands of transitions and works for you to organize your security contribution and preserve capital Index Fund Management Transition Management Research Global Equity Trading 2
Equity Index Products Overview Penserra has a history of providing institutional clients a wide array of specialized products and services. In addition to supporting hundreds of other asset managers with our trading service across the developed and emerging markets, the firm manages approximately ten specialized beta strategies. Our success is measured by our ability to deliver precision and innovation in everything we do. As such we understand that an index strategy faces similar challenges to any other investment strategy, whether fundamental or quantitative in nature. An indexing strategy must be executed while considering portfolio management decisions, operations issues, and performance impact. Consequently, even the most well-known firms have index funds that do not track their benchmark indices perfectly. However, Penserra places an exceptional amount of focus on creating an investment process that systematically addresses factors the impact tracking error. Our investment process was derived from years of experience and are not only precise, but use technology and data as the foundation. Penserra can provide a wide array of products to service your index fund needs: TRUST PRECISION INNOVATION 1. Traditional index strategies. We can mange the full spectrum of traditional equity index funds including S&P 600, S&P 500, S&P 400, S&P 100, Russell Top 200, Russell 1000, Russell Mid Cap, Russell 2000, MSCI EAFE, MSCI ACWI, FTSE Global Equity, and many other indexes. In addition, where available by and index provider we offer growth and value style-based strategies. Highlights 2. Specialized Index Strategies. For those investors that are looking for a targeted form of beta exposure we can work with you to identify the Penserra strategy Capital that Management fits your needs. entered Some into examples beta asset include management factor-based business indexes officially in November 2014 with $0 AUM. As of March 2015, the firm has grown (such as value, size, momentum, volatility, etc.), thematic indexes (such as AUM to $1 Billion across 10 ETF infrastructure focused, commodity producers, etc.) and ESG Transition (environmental, Management social, exceeded governance) prior year Indexes. revenue in Q1 2015 alone. 3. Interim asset management assignments. In some cases you may be looking Tailor Research exceeded prior year revenue in Q1 2015 alone and is now starting for an asset manager to oversee an existing portfolio from a terminated to be used by sell-side research analysts as part of their process. manager. We can work with you to re-calibrate the investment strategy while you find a new asset manager. 3
TRUST PRECISION INNOVATION We are available to answer your questions and inquiries. PENSERRA (800) 456-8850 Penserra.com REGULATORY DISCLOSURE All materials are provided for informational purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Penserra Securities LLC is not responsible for gains/losses that may result in the trading of these securities. All information is believed to be obtained from reliable sources, but there is no guarantee that the information supplied is accurate, complete, or timely. There is no guarantee or warranty with regard to the results obtained from the use of Penserra s research. There is no guarantee of suitability or potential value of any particular investment or information source. You acknowledge that your requests for this information are unsolicited and shall neither constitute nor be considered investment advice. Penserra has not received or is not entitled to receive compensation from any covered company in any of our reports over the last 12 months. Past performance is not an indication of future performance. Investors are encouraged to consult a registered broker or investment adviser before making any investment decisions. The interpretations and opinions expressed herein are solely those of the author and not of Penserra Securities LLC as an organization. Penserra Securities LLC 2014. Member: SIPC, MSRB, FINRA. 4