Capital International Limited - Global Custody Brochure

Capital International

Global Custody International nominee services

Our Vision The Capital International Group exists to improve lifestyles through increased prosperity.

Our Values We seek to achieve this through the enduring values of innovation, integrity and excellence.

Capital International operates highly efficient and tailored nominee custody solutions Capital International

Introduction Capital International Limited operates highly efficient and tailored nominee custody solutions to a wide range of institutions, business partners and investment professionals.

We provide full global custody services via our nominee company, Capital International (Nominees) Limited. This nominee structure ensures that we can efficiently and effectively service specialist investment solutions for the fund industry, as well as investment professionals and institutions looking for administrative and global custody solutions.

This platform of services exists to make your life easier by reducing time hungry activities, increasing process efficiencies whilst still keeping the focus on your needs and ensuring that you receive the customer service you deserve.

At Capital International we provide a unique straight through processing investment and portfolio administration service to institutions and life companies (further information can be obtained from our Investment Administration brochure). Many of the administration provisions required within the Financial Services may include a combination of the following:

Global Custody

••On-line interaction and portfolio monitoring ••On-line dealing and fully integrated trade settlement services ••Corporate action and dividend processing ••Asset and unit linked fund pricing ••Fully white labelled valuation and statement reporting solutions ••Designated and global ‘Profit/Loss’ and ‘Trial Balance’ reporting

The activities undertaken within Global Custody are essential to the successful delivery of investment services and products. None of these can deliver what the client expects if dividends do not arrive on time, deals are not placed correctly, trades do not settle on time, corporate actions are misinterpreted or shares are not correctly transferred when a new account is opened.

Global Custody International nominee services

Custody Functionality Responsibilities For institutions and fund management companies wishing to administer their own or their client’s assets (including equities, bonds and collective investment schemes), Capital International Limited is licensed by the Financial Supervision Commission to act as Custodian for all such assets.

Settlement All assets traded via Capital International will be settled in accordance with the client’s own requirements in-line with our settlement procedures through an interest bearing account via Capital International (Nominees) Limited or Pershing Nominees Limited. This negates the need for our clients to arrange money transfers, thus reducing counterparty risk due to inefficiencies in the marketplace.

Dividend & Income Collection All dividends and income are collected on behalf of our clients and are applied to their accounts on a timely basis. At the end of each financial tax year we can provide our clients with comprehensive income/interest reports.

Corporate Actions Hundreds of corporate actions occur on a daily basis, from simple name changes to more dramatic stock splits and consolidations. This service provides our clients with all the corporate action data relating to their holdings with us ensuring that each client is aware of all events in a timely fashion. We will automatically update the clients holdings to reflect all corporate actions.

Capital International

Trade Clearing & Settlements With the main exception of Unit Trusts and OEICs, most of the Firm’s clearing and settlement activities are outsourced to Pershing Limited in London. Pershing is a part of the Bank of New York Mellon Securities Group, the world’s largest specialist clearing group.

Valuations & Reporting Client assets are live and are therefore changing constantly due to market and economic conditions. We understand the significance of live data and so our systems are updated daily providing current valuations and holding positions; in addition as part of our straight-through processing we also produce contract notes automatically which are sent out in a timely fashion. Through our Investment Services Platform and the internet we are able to provide detailed reporting on a regular or ad-hoc basis.

Full Back-Office Support Our state of the art technology gives you access to a back-office platform that delivers scalability, increased efficiency and a competitive edge. With our Investment Services Platform, you can gain access to automated and improved reporting and service capabilities.

Clients have access to on-line automated & improved reporting and service capabilities Global Custody International nominee services

Custody Agreement Model ‘B’ Clearing Agreement In 1996 Capital International Limited entered into a Model ‘B’ Clearing Services agreement with our Custodian, Pershing Limited, whereby the majority of the Firm’s clearing and settlement activities are outsourced to Pershing. Like Capital International, Pershing is also a Member of the London Stock Exchange.

When making a risk assessment of Capital International, it is important to note the legal implications of the Agreement between Capital International and Pershing. Whilst we remain solely responsible for all aspects of its business, a customer’s risk exposure to the Company is significantly reduced as a direct result of our Model ‘B’ Agreement with Pershing.

Once an equity or bond transaction has been executed by Capital International in the Isle of Man, the settlement and custody function is instantaneously outsourced to Pershing, as if Pershing itself had executed the deal: Capital International has no physical involvement in the handling of such client money or the movement of these securities. These activities and the legal responsibility for them are wholly outsourced to Pershing.

Counterparty Risk Responsibility The Agreement that exists between Capital International Limited and Pershing Limited has been accepted by the Isle of Man Financial Supervision Commission and grants us full legal protection against all counter-party risks. Thus, should any of the bond or equity counterparties with whom we transact business fail, for whatever reason, the entire legal liability to replace stock or make a cash payment falls on Pershing and not Capital International.

Furthermore, the effect of this Agreement allows us to essentially ‘piggy-back’ off Pershing’s scale and presence within the market. We are able to secure a much wider range of credit lines with market makers and other market participants and are able to deal in almost unlimited size. The end result is a significantly enhanced capability and better prices for our clients.

Through this Agreement, Capital International believe they have created one of the safest, most comprehensive and effective management packages for its clients, particularly bearing in mind that it is coupled with substantial insurance protection.

Capital International

NOTE: A copy of the Model ‘B’ Clearing Agreement is available for inspection upon request.

One of the safest, most comprehensive and effective custody management packages Global Custody International nominee services

Pershing has access to unequalled industry expertise & expanded financial resources Capital International

Custodian Summary

Pershing

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Pershing Limited is the UK’s largest specialist clearing firm settling on average 15% of all London Stock Exchange daily equity transactions. Pershing have some 3,700 staff globally and support 1,100 financial organisations worldwide.

Over the last 15 years, Pershing has provided institutional brokers with global market reach through a single hub, offering an integrated clearing, settlement and custody solution.

Through their central counterparty and central securities depositary memberships, they provide General Clearing Member services and low-cost settlement.

As a subsidiary of The Bank of New York Mellon Corporation, Pershing has access to unequalled industry expertise, expanded financial resources and maintains a strong presence on the world’s major exchanges.

The Bank of New York Mellon Corporation was formed in July 2007 through a merger between The Bank of New York Company and Mellon Financial Corporation of Pittsburgh.

The combination of two enterprises rich in history, vision and performance has created a global financial services growth company unmatched in its commitment to asset management and servicing.

Together, the two institutions have created the world’s largest securities servicing provider and a top asset management firm globally - a financial services growth company without peer.

The Company serves more than 100 markets through a global presence in 37 countries establishing it as a truly global provider to a truly global clientele.

The Bank of New York Mellon is positioned to deliver world-class service to clients, provide superior performance to shareholders and create more and better opportunities for the people who keep the company strong.

Global Custody International nominee services

Client Care We take client care very seriously. We are proud to have some major international corporations as our key clients and we understand that client satisfaction is essential to our success. We have a comprehensive Client Care Programme to ensure we are delivering our clients the best service possible. Below is a summary of what it includes:

Communication We listen, ask questions and challenge our clients so we understand their business, enabling us to develop pragmatic and intelligent solutions. We build collaborative relationships with our clients to deliver sustainable and innovative solutions to their business issues.

Advocacy By understanding our clients’ business issues and needs, we act as an advocate for our client whenever we deal with regulatory agencies or other third parties. We involve our clients in the project, we ask for their opinion and we deliver the project according to their schedule.

Responsiveness Once we have delivered a project, we follow up to make sure the client is completely satisfied that we have provided them our best throughout the project. We maintain flexibility to fit with our clients’ resourcing requirements.

Excellence We focus on delivering the best result at a realistic price that reflects the value we have delivered to our clients. We offer a significantly diverse range of services meaning that we can offer our clients a complete solution to all their environmental and sustainability challenges.

Capital International

Further Information For more information go on-line to our web portal at www.capital-cts.com or alternatively contact us at the details below: E-mail: Website: Telephone: In writing:

info@capital-iom.com www.capital-iom.com +44 (0) 1624 654200 Capital International Limited Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG

Global Custody International nominee services

Capital International

Capital International Limited Capital House Circular Road Douglas Isle of Man IM1 1AG www.capital-cts.com T : +44 (0) 1624 654299 F: +44 (0) 1624 654291 E: info@capital-cts.com Capital International Limited is a member of the London Stock Exchange Capital International Limited is a member of the Capital International Group Capital International Limited is licensed by the Isle of Man Financial Supervision Commission Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG

Winner 2010 Company of the Year

Capital International Group Isle of Man Newspapers

awards for

excellence

CIL - Global Custody Brochure - V2.01-01.12

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