© 2010 ADP, Inc.

Investment Control

Louise Santacroce DirectorDecember 2010

Investment Control

Louise Santacroce DirectorDecember 2010

Organizational AlignmentOrganizational Alignment

Investment Control Investment Control

AD

P R

S Fu

nd A

dditio

n

Histo

ryA

DP R

S Fu

nd A

dditio

n

Histo

ry

1989 1992 1997

ADP acquires Mercer 401(k)

1996 1998

Partnership- Goldman Sachs

1999 2000

Partnership- AIG/Sun America

2001

Partnership- Morgan Stanley

2002

Partnership- Merrill Lynch

2003

ADP Access platform launched

2004 2006 2005 2007 2008 2009

ADP acquires Scudder 401(k)

Total # of Funds = 4

Total # of Funds = 845

Total # of Funds = 4,235

80% of fund add growth has taken place since 2006

Investment Control is responsible for:Investment Control is responsible for:

Global Fund Administration This includes:

► Investment Company Contracts

► Underwriting of Investment selection in Non IPS Plans

► Set up and maintenance of global fund data

► Fund Actions - Fund Closings, Mergers, Name, Ticker or CUSIP change

► Market Timing and Redemption Fees

► 22c2 Reporting

► Mutual Fund Restitution

Investm

ent C

om

pany

Contra

ctsIn

vestm

ent C

om

pany

Contra

cts

Th

ere

are

mu

ltiple

con

tracts n

eed

ed

d

ep

en

din

g o

n th

e p

rod

uct. T

he

com

mon

con

tacts a

re:

▪Sellin

g/D

istribu

tor A

gre

em

en

t

▪Serv

ice A

gre

em

en

t

▪22

c2 A

gre

em

en

t

▪NS

CC

Trad

ing

Ag

reem

en

t

Ad

ditio

nally

we w

ork w

ith le

gal

on

an

y A

men

dm

en

ts or

Certifi

catio

ns re

qu

ired

by o

ur

investm

en

t partn

ers.

Underw

riting

of

Investm

ents in

a P

lan

Underw

riting

of

Investm

ents in

a P

lan

►IP

S v

ersu

s OFA

(or a

s I call it

“NO

N IP

S”)

►

Are

the in

vestm

en

t bein

g

req

ueste

d b

y a

pla

n

▪

Existin

g in

the m

arke

t/pro

du

ct bein

g re

queste

d?

▪

If yes – A

re th

ey o

pen a

nd

availa

ble

for u

se? D

oes th

e clie

nt

meet a

ny re

strictions?

▪

If no - A

re th

ey co

ntra

ctually

co

vere

d in

the m

arke

t/pro

duct

bein

g re

queste

d? D

oes th

e clie

nt

meet a

ny re

strictions? C

an

they

be a

dd

ed fo

r this clie

nt?

▪

If yes -p

roce

ss a G

lob

al a

nd

Pro

duct a

dd.

▪

If no - re

turn

the re

quest th

rough

N

ew

Busin

ess.

Glo

bal fu

nd

data

an

d o

ng

oin

g

main

tenance

Glo

bal fu

nd

data

an

d o

ng

oin

g

main

tenance

▪Fun

d n

am

es a

s they a

pp

ear o

n

Sta

tem

ents, W

ebsite

s and V

RS

▪All Fu

nd

Info

rmatio

n – Q

uickTa

kes,

Fact S

heets, P

rosp

ectu

s Links

▪Marke

t timin

g re

strictions

▪KD

OC

and In

vestm

en

t Optio

n

Agre

em

ents (n

ew

task to

the

gro

up

)

▪MA

AG

pro

cessin

g (v

ia In

dia

)

▪22c2

Reportin

g

▪Mutu

al Fu

nd R

estitu

tion

Fund A

ctions

Fund A

ctions

►Fu

nd

Clo

sing

s, Merg

ers, N

am

e,

Ticke

r or C

US

IP ch

an

ge

▪Pre

pare

com

mu

nica

tion

for

Pla

n, Pa

rticipan

t an

d FA

▪Coord

inate

deta

ils with

Fun

d

Fam

ily, A

DP Tra

din

g a

nd

O

pera

tion

s.

▪Exe

cute

actio

n v

ia O

FA sw

ap

fu

nctio

nality

or w

ork

ing

with

th

e S

yste

ms Te

am

s.

Do you know what these are and why they are important?Do you know what these are and why they are important?

• 12b1• Sub TA• bps• 22c2• IM• FM• FFS• IPS• AIS• CCT or CIT• GIC or GAC

Questio

ns…

…..

Questio

ns…

…..

►

Wh

at q

uestio

ns d

o y

ou h

ave fo

r m

e?