Operational Efficiency: - PDF Free Download

From distribution chain to value chain Ad-valorem pricing driven from manufacturer Bps paid out along the distribution chain Very little consumer price competition AUM is the industry metric Pre-RDR Fund Manager Platform Adviser Consumer 1, Post-RDR Consumer pays explicitly for advice and service Price pressure passed up the value chain Platform pricing models evolving AUM no longer the litmus test 75 5 1

Billions AUM vs Profit AUM per Platform (213) 6 5 4 3 2 1 Profits per Platform (212) 15 1 5-5

Per Employee metrics 1 8 6 4 2 15 AUM per Employee (213) Profits (212) 1 5-5

Thousands Per Adviser metrics Costs per Adviser (212) 14 12 1 8 6 4 2 Profits (212) 15 1 5-5

Thousands Per Customer metrics 5 4 3 2 1 15 Costs per Customer (212) Profits (212) 1 5-5

Altus Ltd 213 version 1.2 Altus Ltd 213 version 1.2 Budget Definition Financial Reconciliation Financial Auditing Cashflow Forecasting Expenditure Allocation Client Money Reconciliation Tax Calcs Tax Reporting Tax Reclamation Tax Planning & Optimisation Tax Lobbying Fixed Asset Recording Asset Tracking Asset Depreciation Exchange Traded Asset Trading Unitised Fund Trading Derivatives Trading Cash Trading Commodities Trading Luxury Goods Trading Property Trading Structured Product Trading Transfer Initiation Transfer Valuation Handling Transfer Discrepancy Mgmt Asset Re-registration Transfer Completion Receipts Collection Payment Disbursement Cash Monitoring Assets Under Admin Reporting New Asset Take-on Platform Statistics Reporting Capital Adequacy Reporting Statutory Reporting Internal Financial Reporting Business Financing Mergers & Acquistn Mgmt Capital Adequacy Mgmt Currency Mgmt Investor Relations Mgmt Share Reconciliation Unit Reconciliation Cash Reconciliation Title Reconciliation Nominee Account Mgmt Aggregation Mgmt Disaggregation Mgmt Corporate Actions Mgmt Income Mgmt Fees & Rebates Mgmt Property Mgmt Enterprise Architecture Business Process Improvement Portfolio Mgmt Programme Mgmt Project Execution 3 rd Party Relationship Mgmt Charging Preference Maint Account & Wrapper Calculations Non-custody Account Maint Account Closure Investment Selection Mgmt Portfolio Rebalancing Cash Balance Maint Model Portfolio Selection Investment Restriction Mgmt Investment Research Provision Contribution Allocation Income Payment Mgmt Fund Manager Rebate Allocation Contribution Alterations Contribution Cancellation Withdrawal Processing Investment Payment Mgmt Pension Payment Mgmt Savings Withdrawal Mgmt Transfer Out Processing A/c & Wrapper Chg Deduction Title Transfer Cash Settlement Stamp Duty Payment PTM Levy Payment Vision & Objectives Defn Situational Analysis Business Model Dev Portfolio Analysis Operating Model Dev Strategic Initiative Mgmt Quote Account Setup Wrapper Setup Transfer In Processing Account or Wrapper Activation Account or Wrapper Canc Account Valuation Reporting Wrapper Valuation Reporting Asset Valuation Reporting Transaction History Reporting Non-custody Asset Reporting Tax Voucher Reporting Model Portfolio Reporting Direct Sales Reporting Intermediary Discovery Intermediary Tendering Intermediary Details Recording Platform Account Setup Agreement Mgmt Intermediary Platform Config Platform Technical Platform Tool Provision Intermediary Training Literature Distribution Risk Mgmt Control Mgmt Business Assurance Mgmt Business Continuity Mgmt Regulation Compliance Mgmt Proposition Document Mgmt Survey & Information Sharing Brand Mgmt Proposition Promotion Event Mgmt Campaign Mgmt Proposition Scoping Proposition Sourcing Proposition Build/Integration Proposition Testing Proposition Config & Pricing Savings Product Design Investment Product Design Pension Product Design Remuneration Allocation Charge Novation Remuneration Recovery Remuneration Reporting Intermediary Structure Maint Intermediary MI Reporting Intermediary Account Planning Intermediary Relationship Mgmt Intermediary Business Training Corporate Identity Defn Communication Planning Communication Authorisation External Comms Mgmt Internal Comms Mgmt Proposition Relationship Mgmt Proposition Activity Reporting Proposition Technical Integrator Data Provision Proposition Review Proposition Amendment Proposition Analysis Asset Range Model Portfolio Mgmt Market Analysis Market & Cust Segmentation Competitor Research Market Valuation Client Needs Analysis Macroeconomic Analysis Supplier Tendering Supplier Negotiation Supplier Contract Mgmt Consumables Mgmt Supplier Relationship Mgmt Building Services Mgmt Building Maint Building Alteration Mgmt Office Moves Mgmt Goal Definition Past Performance Analysis Operational Planning Plan Approval Preferences Maint Complaint Mgmt Regular Communication Ad-hoc Communication Non-individual Auth Changes Death Registration Personal Authority Changes Authority Revocation Model Goals Maint Goals Capture Risk Profiling Income & Expenditure Capture Financial Plan Mgmt IT Workspace Provisioning Comms Infrastructure Mgmt IT Service Mgmt Application Dev Application Maint Disaster Recovery IT Research & Dev Staff Recruitment Staff Provisioning Payroll Mgmt Benefit Mgmt Staff Training Employee Relations Mgmt Mgmt Information Reporting Master Data Mgmt Knowledge Mgmt Data Mining Identity Verification Due Diligence Checks Address Verification Credit Scoring Identity Tracing Customer Name Change Customer Address Change Personal Details Change Non-individual Details Change Subject Data Reporting Capacity Planning Work Mgmt Business Activity Monitoring Process Definition Legal Legal Approval Litigation Mgmt Contact Mgmt Inbound Comms Mgmt Outbound Comms Mgmt Telephony Provisioning Altus Ltd 213 version 1.2 Altus Ltd 213 version 1.2 Exchange Traded Asset Trading Unitised Fund Trading Derivatives Trading Cash Trading Commodities Trading Luxury Goods Trading Property Trading Structured Product Trading Share Reconciliation Unit Reconciliation Cash Reconciliation Title Reconciliation Corporate Actions Mgmt Income Mgmt Fees & Rebates Mgmt Portfolio Rebalancing Cash Balance Maint Contribution Allocation Income Payment Mgmt Fund Manager Rebate Allocation Contribution Alterations Contribution Cancellation Withdrawal Processing Pension Payment Mgmt Savings Withdrawal Mgmt Transfer Out Processing Title Transfer Cash Settlement Account Valuation Reporting Wrapper Valuation Reporting Asset Valuation Reporting Transaction History Reporting Model Portfolio Reporting Activity metrics Capability hierarchy Level 1 Business Change Strategy Risk & Control Communications Operational Account Wrap Platform Financial Control Cash ACCOUNT ADMINISTRATION PROPOSITION MANAGEMENT Customer Experience Customer Validation Account & Wrapper Account & Wrapper Proposition Marketing Proposition Setup Comms Financial Reporting Withdrawal Payments Mgmt. Authority Tax Fixed Assets Wrapper Asset Account & Wrapper Proposition Reporting Development Customer Financial Corporate Finance Planning Pension Payment Market Research Mgmt. ASSET ADMINISTRATION Asset Trading Asset Transfer Contribution Payments Mgmt INTERMEDIARY ADMINISTRATION Withdrawal Payments Intermediary Setup Remuneration Income Drawdown Goods & Services Procurement Asset Reconciliation Custody Trades Settlement Intermediary Platform Intermediary Business Proposition Facilities IT Infrastructure HR Business Information Customer Details Business Process Legal Services Communications Handling Wrap Platform ASSET ADMINISTRATION PROPOSITION MANAGEMENT ACCOUNT ADMINISTRATION INTERMEDIARY ADMINISTRATION All 8 Level 1 capabilities are in scope to show broad breakdown of business costs. Level 2 Level 3 Wrap Platform ASSET ADMINISTRATION Asset Trading Asset Reconciliation Custody Asset Transfer ACCOUNT ADMINISTRATION PROPOSITION MANAGEMENT Account & Wrapper Account & Wrapper Setup Wrapper Asset Account & Wrapper Reporting Contribution Payments Mgmt INTERMEDIARY ADMINISTRATION Withdrawal Payments Intermediary Setup Remuneration Intermediary Business Intermediary Platform Trades Settlement Customer Experience Customer Validation Authority Customer Details Customer Financial Planning 2 Level 2 capabilities relating to customers, assets, accounts and advisers giving more detail on core platform activities Wrap Platform ASSET ADMINISTRATION Asset Trading Asset Reconciliation Asset Transfer Custody ACCOUNT ADMINISTRATION PROPOSITION MANAGEMENT Account & Wrapper Account & Wrapper Setup Wrapper Asset Account & Wrapper Reporting Contribution Payments Mgmt Withdrawal Payments Trades Settlement INTERMEDIARY ADMINISTRATION Intermediary Setup Remuneration Intermediary Business Intermediary Platform Customer Experience Customer Validation Authority Customer Details Customer Financial Planning 29 Level 3 capabilities relating to assets and accounts giving an indepth comparison of some of the finer points of operating a platform

Altus Ltd 213 Version 1. Market Research Proposition Marketing Comms Scheme Implementation DISTRIBUTION MANAGEMENT Channel Remuneration PROPOSITION MANAGEMENT Product Development SCHEME MANAGEMENT Scheme Product and Proposition Selling Distributor Customer Business Development Proposition Proposition Development Scheme Transfer Scheme Reporting New Money Customer Experience Financial Control Fixed Assets Scheme Pricing Scheme Tendering Policy Calcs Individual Customer Corporate Finance INVESTMENT ADMINISTRATION Investment Reconciliations Asset Fund Closure Corporate Customer Financial Reporting Cash Fund Design Fund Operation Fees & Rebates POLICY ADMINISTRATION Corporate Customer Communication Risk Transfer Risk & Control Business Change Communications Facilities Tax Strategy Operational Business Information Policy Premium Investment Payments Protection Claims Processing HR Goods & Services Procurement Communications Handling IT Infrastructure Business Process Legal Services Policy Underwriting Results Industry Commentary & Analysis Key charts and graphs Analysis of market trends plus commentary on where we see significant potential for efficiency gains Visual summary of key results to highlight any significant trends or issues in platform operation costs Platform specific heat-map Complete set of data tables Life, Pensions & Investment Unique heat map of each participant s cost profile against averages across all platforms in the survey Platform A Platform B 22% 13% 12% 18% 2% 17% ACCOUNT ADMINISTRATION 16% 19% 13% 1% 24% 16% 1% 11% 2% 5% 1% 4% ASSET ADMINISTRATION 15% 11% 25% 17% 14% 16% PROPOSITION MANAGEMENT 8% 3% 4% 8% 3% 5% INTERMEDIARY ADMINISTRATION 7% 14% 7% 9% 5% 8% 6% 8% 12% 9% 18% 11% 24% 2% 26% 24% 15% 22% 1% 1% 1% INTERMEDIARY ADMINISTRATION Platform A Platform B Platform C Platform D Platform C Platform D Platform E Average Platform E Average Intermediary Business 334.8 19.5 264.6 24.6 22.3 25.2 Intermediary Setup 146.6 12.2 115.9 15.2 11.5 11.7 Remuneration 24.7 155.6 19.2 189.3 117.8 178.7 Intermediary Platform 153.2 145.3 121.1 155.2 15.3 136. A complete set of data tables in both hard and soft copy. Note that all the data is blinded to ensure anonymity 4.