our visionSUMMER 2013

Alternative Investment Solutions

Custody & Lending

Distribution & Marketing

Fund Accounting & Administration

Risk Management & Compliance

Transfer Agent & Shareholder Services

Sharing clear solutions on topics affecting our clients and their shareholders through innovative insights, sophisticated technology, and a solid tradition.

www.usbfs.com | 1.800.300.3863

THE RESULTS ARE IN...

U.S. Bancorp Fund Services is a Top Rated ProviderU.S. Bancorp Fund Services

Armed with our mutual fund and alternative product expertise and sophisticated technology, we go the distance to improve internal operations, enhance reporting functionality, and provide meaningful customer service and superior deliverables for our clients.

Thanks to the feedback we received from our biggest fans, our clients, we scored significantly ahead of global averages in every service area and were “Top Rated” in eight primary

categories in Global Custodian’s 2013 Mutual Fund Administration Survey.

From our “willingness to help the client” to our “high quality personnel,” U.S. Bancorp Fund Services was praised for our “pro-activeness on issues and new regulations.”

As a Top Rated provider, we achieved a weighted average score that equaled or exceeded the scores of all providers in a given category or across the survey as a whole.

The following “Top Rated” awards correlate to our client base and target market:

  Multi-provider.   Single provider.   North American region.   $100 million–$ 1billion.   $1-$5 billion.   Equity.   Fixed income.   Other investment strategies.

We thank you, our clients, for your time and effort and look forward to continuing to provide you the high-quality, customer-centric services you’ve come to expect from U.S. Bancorp Fund Services.

For more information, contact your relationship manager or email usbfsinfo@usbank.com.

“Certainly no provider in this survey can match the U.S. Bancorp combination of excellence in both the core service areas of fund accounting and TA and on the human side of the business.”

- 2013 Global Custodian Mutual Fund Administration Survey

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Reconciliation Upgrades on the HorizonFund Accounting

In an effort to continue to provide our clients with cutting-edge technology, U.S. Bancorp Fund Services is currently in the process of upgrading the system used in the reconciliation process. The enhancements will provide greater functionality and the ability to reconcile more items, more often. In the future, our goal is to also increase the efficiency of external custodian/broker reconciliations.

Our interactive tool allows multiple departments to connect and provide stored feedback during the reconciliation process, thus increasing the efficiency with the daily process and increasing the functionality for creating and recording exceptions.

We are committed to offering a resource that allows fund accountants to more easily reconcile securities, as well as the ability to expand the frequency of reconciliations.

As part of the enhancement, rules-based matching functionality will provide for flexibility in identifying the same security on multiple systems with different identifiers and the ability to create tolerance levels for matches as well.

We are also increasing functionality for aging open reconciliation items, providing the ability to update and store supporting documentation for each reconciliation, and creating enhanced management reporting and management dashboards for the oversight of team activity.

For more information on updates occurring within the reconciliation process, please contact your relationship manager.

U.S. Bank Turns 150U.S. Bank

U.S. Bank is marking its 150th anniversary in 2013. U.S. Bank’s national charter, which is based in Cincinnati, was signed during Abraham Lincoln’s presidency on July 13, 1863.

1863 was a different time. It was the height of the Civil War, and the future of the Union was uncertain. The west was still a frontier, and nearly half of the states in our current footprint were not yet ratified.

Banking looked different, too. Handwritten log books, telegraph ciphers, and custom-printed currency were part of daily work. Men with rifles guarded our vaults and women were largely absent.

Since then, the banking industry has changed incredibly and U.S. Bank has not only survived, but thrived. Today, U.S. Bank is the fifth-largest commercial bank in the United States, and the parent company to U.S. Bancorp Fund Services.

SUMMER 2013

our vision

Committed to investor

services, Alternative Investment

Solutions introduces Finomial’s

next-generation technology

platform to meet increased

regulations and growing

demand for transparency.

www.usbfs.com | 1.800.300.3863 3

Powerful New Investor Services Platform for AISAlternative Investment Solutions

We are pleased to announce that U.S. Bancorp Fund Services has adopted a next-generation technology platform from Finomial to provide you with even greater transparency and data security as we process your investor transactions and on-board new investors.

What is the next-generation technology platform?

Finomial is an investor services platform that transforms the buy side investment process and regulatory compliance by automating the current manual hedge fund and private equity subscription process between an investor, fund manager, and administrator. The platform delivers risk reduction and efficiency, and provides hedge fund and private equity managers with powerful investor analytics to drive compliance, marketing, and investor relations. This platform allows for one central user interface accessible by all three parties to a transaction; investor, administrator, and fund manager.

This new technology ensures that investor data remains secure and is compliant with regulations regarding the security of customer data, including the Massachusetts Data Security Statute (201 CMR 17), the Gramm-Leach-Bliley Act, Dodd-Frank, and SEC Regulation S-P, as well as other federal and state data security statutes and regulations. It also provides superior protection for your investor data and avoids the risks associated with email and fax communication.

Benefits for your investors

Your investors will be able to take advantage of this secure platform to receive trade receipts and trade confirmations from U.S. Bancorp Fund Services. This will ensure compliance with data security regulations and will improve the overall investor experience.

As your fund administrator, U.S. Bancorp Fund Services already provides you with outstanding investor compliance services every time we

on-board investors to your fund. We review subscription documents and supporting materials provided by investors to ensure compliance with:

  Anti-Money Laundering.

  Know Your Customer.

  ERISA.

  Investment Company Act of 1940.

  Other SEC and FINRA requirements.

  AIFMD, FSA, and EU requirements.

The Finomial platform further enables U.S. Bancorp Fund Services to offer your fund a full service FATCA compliance offering.

For more information or to schedule a demonstration, please contact your primary administrator or your U.S. Bancorp Fund Services BDO.

4

MARS® Team Grows to Provide Enhanced Data TransparencyTransfer Agent & Shareholder Services

The need for mutual fund clients to gather clean, transparent data regarding trade activity has reached an all-time high in the past year. This need for data and information has made our MARS® Sales, 22c-2 Compliance & CRM system an even more relevant solution, causing our Sales & Compliance Reporting support team to be the fastest growing area of the Transfer Agent.

One of the leading reasons for the increased need for transparency and the rapid growth of the team is the industry’s trend of rolling individual account positions into omnibus accounts. This trend requires funds to reach outside of the Transfer Agent to receive sub accounting files from multiple intermediaries to identify who is truly buying and selling their positions that comprise the omnibus accounts. Receiving data from multiple sources generally results in different file formats, which can translate into a need to pull multiple reports to draw the appropriate conclusions. The strength of the MARS® product is its ability to easily receive these various files so the support team can scrub and generate reports reflecting all transaction details customized for each client.

Another factor contributing to the growth we have experienced is the NSCC/DTCC standardized file format delivery tool, Omni/

SERV. Although Omni/SERV was designed to standardize record lengths and positions, thereby making the decryption of the data more efficient, it can still be a complex process for clients to manage the information with their own resources. U.S. Bancorp Fund Services can facilitate client and intermediary setup with Omni/SERV, decrypting the data received from multiple large intermediaries and creating immediate and useful output through MARS®.

The move to omnibus positions also creates challenges in properly compensating wholesalers for fund sales in their territories. MARS® has the ability to determine how and where sales actually occur in order to make the payment process both accurate and efficient.

Finally, Rule 22c-2 compliance reporting continues to gain momentum as fund companies add oversight responsibilities of their shareholder activity, ensuring it complies with their frequency trading policies. The compliance module of MARS® screens transaction activity, regardless of how or where it occurs, so that violations

SUMMER 2013

our vision

www.usbfs.com | 1.800.300.3863 5

We’re on Top!U.S. Bank

U.S. Bancorp was named one of The Milwaukee Journal Sentinel’s 2013 Top Workplaces in southeastern Wisconsin. Top Workplaces recognizes the most progressive companies based on employee opinions about company leadership, communication, career opportunities, workplace environment, managerial skills, pay, and benefits.

“I am motivated by the fact that I feel valued

and know that I can make a difference. It is

encouraging to know that people will listen to

the ideas I bring forward.”

- U.S. Bancorp Employee

can be quickly and easily identified, reported, and eliminated.

Our dedicated MARS® support team within the Transfer Agent can make adopting these tools and technology easier and can ensure that each fund client gains maximum use of the system and their data. The team provides expertise in:

  Project management.

  Training.

  Data scrubbing

» Identifying and correcting any unknown data elements associated to transactions.

  File importing

» Contacting and managing the data delivery process with intermediaries.

  Compliance report review/analysis.

We look forward to assisting clients in obtaining and analyzing data as the omnibus and compliance environments continue to evolve. If the MARS® product and our support team can help you, please contact your relationship manager.

6

2013 Client Conference ReviewU.S. Bancorp Fund Services

U.S. Bancorp Fund Services clients, partners, and employees celebrated the accomplishments we have achieved through teamwork at this year’s Client Conference at the Abbey Resort in Fontana, Wisconsin.

The general session remarks were presented by U.S. Bancorp Fund Services President Joe Redwine and U.S. Bancorp Wealth Management and Security Services Vice Chairman Terry Dolan. Featured presentation topics included performance, marketing, and distribution by: George Young, partner at St. Denis J. Villere & Company, LLC, and risk assessment presented by a panel including legal and compliance professionals and auditors. In addition, Milwaukee Police Department Training and Outreach Officer Mitchell Ross spoke about workplace safety and preparedness. Roundtable sessions covered topics including the use of performance in fund marketing materials; valuation and oversight practices and trends; best practices aimed toward fund growth; sub-advisor oversight; and compliance.

Guests also enjoyed entertainment from improvisational comedy group, ComedySportz® and participated in activities including golf, tennis, a boat tour, and zip lining. Thank you to everyone who joined us at our 2013 All-Star Client Conference.

JUNE / 12.13.14 / 2013

“Where’s the Risk” Risk Assessment Panel with Jeanine Bajczyk (USBFS),

Laura Del Prato (Cohen Fund Audit Services), Michael O’Hare (Stradley

Ronon’s Investment Management Group), and Jeff Squires (Vista360)

Todd Snodgrass (Eagle Investment Systems), Joe Neuberger (USBFS),

Ryan Connor (Thomas White International), and Joe Breiner (USBFS)

at the Lobster Tailgate Dinner and cocktail reception

WE LOOK FORWARD TO SEEING ALL OF OUR CLIENTS AT OUR 2014 EVENT JUNE 11-13.

SUMMER 2013

our vision

www.usbfs.com | 1.800.300.3863 7

Dealing With DealersDistribution & Marketing

Navigating the waters of mutual fund distribution is challenging enough given the intense competition, costly “platform” fees, and barriers of entry often outside your fund’s control. Platforms are crowded, and establishing a relationship with them is not always a given. Increasingly, it is not only the major wirehouses and other prominent broker-dealers that seek established track records or minimum levels of AUM before considering a particular new fund, but a number of the major supermarkets are also now requiring the demonstration of known demand from clients, RIAs, FAs, or other correspondent firms before undertaking due diligence review of a new fund.

Preparing for Success

Whether you are looking to launch a new product or simply trying to better understand your options with an existing one, you should be aware of these challenges and considerations before beginning the registration process. The days of a platform adding a fund simply because the fund/advisor or its Distributor asks them to do so are largely over. Often, there is significantly more to the process than simply amending an agreement or distributing an updated fund schedule, particularly with the major platforms. In some cases, there is more paperwork unrelated to the actual ‘Agreement’ that needs attention prior to gaining access to a platform. Please keep this, and Quasar, in mind as you look to distribute your fund offerings. We are prepared to provide you with guidance and information related to these unique processes that vary from dealer to dealer.

Building Momentum

Quasar values its relationships with platforms as our role is crucial to your success in executing agreements and establishing a relationship with a financial intermediary. We strive to reduce the time it takes for our clients to bring their products to market. This process often requires your active involvement. Once a fund is successful in gaining access to a platform, it is important for fund and advisor sales personnel to remain engaged with the specific financial intermediary. This may involve providing information regarding sales reporting, home office contacts, or other information to the intermediary. Quasar plans to host an outreach call for our

clients to cover some of these topics in the near future, and we look forward to your participation.

Sustaining Growth

Finally, it is important to keep your financial intermediaries up to date with fund changes. Quasar serves in this capacity on behalf of our clients by notifying financial intermediaries of new funds, name changes, share class closings, fund mergers, and other material changes to your fund offerings. We encourage the dissemination of such notices as soon as information may be made public. It’s best for clients to keep us informed of anticipated changes to allow us an opportunity to perform this function promptly, as drafting such notices is typically a collaborative effort between you, your relationship manager, and Quasar.

Please contact your relationship manager for more information.

8

Around the World and Close To HomeU.S. Bancorp Fund Services

To better serve our current and future clients, we took a close look at our Business Development Officer (BDO) territories and redrew the map. For your sales needs, contact the BDO in your territory or email usbfsinfo@usbank.com.

Mutual Fund Solutions & ETF Servicesopen-end mutual funds / closed-end mutual funds / BDCs / LGIPs / CTFs / ETFs

HAWAII

ALASKA

MARK ELLEGARD

Senior Vice PresidentMilwaukee, WI800.561.1087mark.ellegard@usbank.com

GEORGE SAPP

Senior Vice PresidentGlendora, CA866.201.4402george.sapp@usbank.com

Senior Vice PresidentNaperville, IL888.455.5553michael.castino@usbank.com

MIKE CASTINO

HUGH HERNDON

Senior Vice PresidentCincinnati, OH800.243.3809hugh.herndon@usbank.com

Registered Fund Services

ETF & UIT Services

SUMMER 2013

our vision

www.usbfs.com | 1.800.300.3863 9

Mutual Fund Solutions & ETF Servicesopen-end mutual funds / closed-end mutual funds / BDCs / LGIPs / CTFs / ETFs

Alternative Investment Solutionshedge funds / fund of funds / private equity funds

HAWAII

ALASKA

JERRY BARBARA

Senior Vice PresidentWilmington, DE800.236.2297gerald.barbara@usbank.com

MICHAEL MILMOE

Senior Vice PresidentSan Francisco, CA800.428.8424michael.milmoe@usbank.com

SCOTT SYRACUSE

Senior Vice PresidentHackensack, NJ 800.699.9137scott.syracuse@usbank.com

Vice PresidentHackensack, NJ 800.710.9096gary.rossmann@usbank.com

GARY ROSSMANN

TIM JONES

Senior Vice PresidentLondon, United Kingdom+44 (0)20.7330.2220tim.jones@usbank.com

For additional questions or product information, please call:Bob Kern, Business Development Manager Phone: 800.300.3863 Email: bob.kern@usbank.com

North & South America

Europe, Asia, Africa, Australia

UNITED KINGDOM

IRELAND

10

Moving On UpAlternative Investment Solutions

As part of our successful acquisition of AIS Fund Administration, and to make room for continued growth, we are proud to announce the relocation of our fund services team to a new London office at the site of the former London Stock Exchange. In June, we moved into the premier office building, which was completely redeveloped in 2008 and is located in the heart of the financial district just steps from the Bank of England and the Royal Exchange. Thank you for your continued support as we celebrate this exciting change.

Our new London office is located at:

125 Old Broad Street, 5th Floor London, EC2N 1AR Phone: +44 (0)20 7330 2000 Email: usbfsinfo@usbank.com

Disaster Recovery Exercise a SuccessRisk Management & Compliance

On July 15, 2013, U.S. Bancorp Fund Services, LLC and Quasar Distributors, LLC executed their annual disaster and work area recovery exercise for each of their core business lines. More than 150 employees reported to work at the disaster recovery site located in West Allis, Wis. There were also additional employees working from home. The exercise simulated a disaster recovery scenario of an IT outage at our Milwaukee locations. The disaster recovery evaluation was successful; all of the participants tested mission critical functions with no major exceptions noted. An executive summary will be available on the CCO portal within the next month.

SUMMER 2013

our vision

www.usbfs.com | 1.800.300.3863 11

Check Out Our New Website!U.S. Bancorp Fund Services

We are very excited to announce the launch of our new website. We spent the first half of the year redesigning our site to better serve our current and prospective clients and provide enhanced content regarding our alternative investment solutions and related services.

Visit the newly updated www.usbfs.com to learn about our products and services and to check out U.S. Bancorp Fund Services in the news, our case studies, and upcoming industry events. Our mutual fund and ETF pages will be updated in the coming months; stay tuned for details!

Check Out Our New WebsiteU.S. Bancorp Fund Services

We are very excited to announce the launch of our new website. We spent the first half of

the year redesigning our site to better serve our current and prospective clients and provide

enhanced content regarding our alternative investment solutions and related services.

Visit the newly updated www.usbfs.com to learn about our products and services and

to check out U.S. Bancorp Fund Services in the news, our case studies, and upcoming

industry events. Our mutual fund and ETF pages will be updated in the coming months; stay

tuned for details!

BUILDING ON FOUR DECADES OF INVESTMENT EXPERIENCE

With nearly 45 years of service distinction, U.S. Bancorp Fund Services combines industry-leading technology with high-quality customer service to provide our clients with customized solutions For more information about our comprehensive suite of mutual fund and alternative investment product services, call 800-300-3863 or visit www.usbfs.com.

U.S. Bancorp Fund Services, LLC 615 East Michigan Street Milwaukee, WI 53202

Please send your comments and suggestions to usbfsinfo@usbank.com. U.S. Bank does not guarantee the products, services, or performance of its affiliates and third-party providers.

081513

our visionSUMMER 2013

See US at the Following Conferences & EventsU.S. Bancorp Fund Services

From coast to coast, our team of professionals will be on site at industry-leading conferences to discuss your 2013 servicing needs.

September 10-11 | Alternative Strategy Mutual Funds Forum, New York, NY

September 15-17 | Alpha Hedge West, San Francisco, CA

September 17 | U.S. Bank UK Partnership Event, London, UK

September 18 | Regional CCO Forum, Congress Asset Management, Boston, MA

September 23 | U.S. Bancorp Fund Services AIS Golf Outing, New York, NY

September 22-25 | ICI Tax & Accounting Conference, San Antonio, TX

October 1-3 | Alternative Asset Summit, Las Vegas, NV

October 2-4 | Morningstar ETF Invest Conference, Chicago, IL

October 3 | Legal and Compliance Valuations Panel, Chicago, IL

October 15 | Regional CCO Forum, U.S. Bank Tower, Los Angeles, CA

October 17 | Regional CCO Forum, Jensen Investment Management, Portland, OR

October 25 | Regional CCO Forum, Fort Pitt Capital Group, Pittsburgh, PA

November 5 | ICI Closed-End Fund Conference, New York, NY

November 5-6 | All Client Quarterly Conference Call for CCOs

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For more information about any of our upcoming events please contact U.S. Bancorp Fund Services at usbfsinfo@usbank.com

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