CUSTODIAN SERVICES ON OFFER

Custody is the storage and safekeeping of securities/investments while maintaining accurate records of ownership.

It also refers to administration of investments on a day-to-day basis such as collection of dividend, interest and bonuses.

a) Segregation of assets

The intention here is to ensure that a clear distinction is maintained between investments held for Pension Fund Administrators (PFA) and investments held for the Pension Fund Custodian (PFC).

We shall open a set of accounts for each PFA through which all cash transactions and investments shall be processed.

The core services that we provide include the following:

• Settlement of trades.
• Safe keeping of securities
• Portfolio valuations
• Reporting and communications
• Inward and outward remittances (cash transfers)
• Foreign exchange conversion
• Registration of securities
• Corporate actions
• Income collection
• Tax reclamation
• Proxy voting

b) Settlement Capability

This refers to the final transfer of cash from the purchaser to the seller in exchange for the delivery of the securities to the purchaser.

Details of any failed trades will be communicated Immediately to allow remedial action to be taken.

c) Safekeeping

This is the storage and protection of a customer’s financial assets, valuables and documents.

The assets shall be held in a vault specifically dedicated for the custody of pension scheme assets.

d) Registration and Recording

The purpose is to safeguard the clients’ entitlements and to keep the details of the beneficial owner in confidence.

The system will keep track of all securities that will be out for registration and this will be coupled with the manual records .

e) Corporate Actions

Refers to any event involving a company’s issued security other than market trading e.g. dividend, bonuses, rights issue etc.

The entitlements will be tracked and a pre-advice will be sent to the respective PFA.

f) Proxy voting

The exercise of voting rights of an investor in shares, bonds etc through a third party, based on a legally valid authorization and in conformity with the investor’s instructions.

We provide a proxy voting service for holdings at Annual General Meetings and Extraordinary General Meetings.

g) Income collection

Any income accruing to the portfolio will be collected as and when it falls due to avoid loss of investment opportunities.

h) Cash Management

The non-invested funds held in your current account with us will earn interest awaiting investment instructions.

i) Tax reclamation

We shall endeavor that all the income earned is received gross, since the income accruing on all pension schemes’ investments is exempt from withholding tax.

j) Reporting

Our system is capable of generating the reports, which can be made available to you on request or at an agreed frequency in line with the Service Level Agreement:

Statutory Reports shall be filed with PenCom at a predetermined frequency.