Marketing Brochure for services offered by RBS (Luxembourg) S.A.

1. RBS (Luxembourg) S.A.
A market-leading Independent Management Company
and provider of risk management services to the
Investment Fund industry

3. RBS (Luxembourg) S.A. is a market-leading independent management
company based in Luxembourg, with the full backing of The Royal Bank
of Scotland Group. We bring together the powerful combination of the
Group’s size, strength and wide-ranging capability, with our local
experience and expertise to provide tailored independent third party
Management Company and Risk Management services to our
investment fund clients.
RBS (Luxembourg) S.A. provides the required capital and substance as
a management company for Collective Investment Schemes domiciled in
Luxembourg and elsewhere in Europe. We carry out oversight monitoring
of the appointed service providers within a robust framework of
Corporate Governance.
Our Mission:
“To be the leading independent third party Management Company and
provider of Risk Management services for our clients”
RBS (Luxembourg) S.A. – Independent Management Company Services 3

4. Working for
our clients
Market leader Our services
The Royal Bank of Scotland Group is one of the world’s largest RBSL is committed to providing a “first class” service to
banking and financial services groups, which has a long history financial institutions of all sizes looking for a partner with a
of providing quality fiduciary services to collective investment proven record of robust corporate governance to act as their
schemes (“scheme” or “fund”). Management Company. In addition to our traditional
In the UK, our Trustee & Depositary Services business (TDS) is European based clients, RBSL has extensive client
the market-leading independent trustee/depositary to the unit relationships from North and South America (incl. USA and
trust and Open Ended Investment Company (OEIC) industry. Brazil), through Central and Eastern Europe, to Australia and
Having provided trustee and depositary services for over 70 the Far East (incl. China, Hong Kong and Singapore).
years, TDS now works with more management companies and We understand what is important to our clients and provide:
more investment schemes than any other depositary in the UK –
giving us extensive experience of all aspects of collective I solid client support and guidance backed by quick,
investment scheme operations. proactive and responsive decision making;
Building on this unparalleled success in the UK, RBS I a real focus on building long-term, successful business
(Luxembourg) S.A. (“RBSL”) was established in 2004 to provide relationships;
independent third party Management Company services
to UCITS and non-UCITS schemes (e.g. Specialised I a comprehensive product range with the flexibility to tailor
Investment Funds). individual solutions.
The market demand for these services originally arose from the Once appointed as Management Company for a fund, RBS
UCITS III Directive which included a requirement for the entity (Luxembourg) S.A. supervises and controls the activities of
that sponsors the fund (“Promoter”) of Luxembourg-domiciled the main service providers, (the Central Administrator, the
funds to have ‘local substance’, with certain minimum capital Investment Manager and the Principal Distributor) on behalf
requirements and operational, monitoring and reporting of the client Board.
responsibilities. For non-local Promoters, these substance and
In addition to carrying out the oversight of the delegated
operational requirements can be quite onerous – both financially,
entities, RBS (Luxembourg) S.A. retains certain key
in relation to capital requirements, operations and management
functions which are undertaken in-house:
time and from a risk perspective, given the need to ensure
compliance with changing local regulatory requirements. I Monitoring of the Investment Restrictions by the RBS
The introduction of UCITS IV has further increased the (Luxembourg) S.A. Investment Compliance team;
focus on corporate governance and independent oversight, I Monitoring of Market Risk by the RBS (Luxembourg) S.A.
with additional emphasis on the oversight role of the Portfolio Risk Services team.
Management Company.
By providing the necessary substance in Luxembourg,
Today, the added value of appointing an independent RBS (Luxembourg) S.A. allows its clients to focus on
Management Company to act as the fund’s local representative managing the performance of their funds, and growing
is undeniable, providing comfort to both “the Promoter” and the
their assets.
fund’s Board of Directors.
4 RBS (Luxembourg) S.A. – Independent Management Company Services

5. Independence
A key aspect of the RBS (Luxembourg) S.A. Management
Company proposition is that our operations are genuinely
independent.
RBS (Luxembourg) S.A. is independent from any single
custody, fund accounting or transfer agency provider. On
that basis, our systems and processes have been designed
to accept multiple data feeds from a range of suppliers.
Our independence ensures:
I the avoidance of potential conflicts of interest in fulfilling
our management company duties;
I an objective and diligent review of the performance of
service providers, with regular and detailed reporting
to clients;
I constant monitoring of the developing trends in corporate
governance and a timely and appropriate response to any
subsequent changes to relevant legislation.
As a direct consequence of our independence, we have
been able to develop strong working relationships and
systems interfaces with most of the major custodians and
third party administrators servicing the investment industry
within Europe. This enables our clients to select their
preferred mix of quality specialist service providers, secure
in the knowledge that all parties will work together in an
efficient and entirely seamless manner. This also places
RBSL in a strong position to help clients deal with the new
UCITS IV requirements, such as conflicts of interest, at
arm’s length.
RBS (Luxembourg) S.A. – Independent Management Company Services 5

6. RBS (Luxembourg) S.A. –
A leading independent third
party Management Company
Our business model
Our independent management company model is Société d’Investissement à Capital Variable (SICAV)
designed to be as efficient as possible, enabling all of
the parties within the chain to focus on their respective SICAV Board
(with Custodian
areas of expertise.
representation & Depository
from Promoter) Bipartite Agreements
Contractual arrangements are designed to be straightforward
and practical, without unnecessary layers of bureaucracy.
A typical – but by no means exclusive – arrangement for a Management
SICAV structure is as follows: Company RBS
I RBS (Luxembourg) S.A. is appointed via a Management
Luxembourg (S.A.)
Company Agreement with the SICAV.
Tripartite
I RBS (Luxembourg) S.A. and the Board of Directors of Agreements
the SICAV appoint the Registrar/Transfer Agent via a
tripartite Transfer Agency Agreement.
I RBS (Luxembourg) S.A. and the Board of Directors of the Registrar &
Investment Promoter/
SICAV appoint the Investment Manager via a tripartite Administrator Transfer
Manager Distributor*
Investment Management Agreement. Agent
I RBS (Luxembourg) S.A. and the Board of Directors of
the SICAV appoint the Distribution Agent via a tripartite Within the above structure, RBS (Luxembourg) S.A.
Distribution Agreement. becomes a contracting party to the Agreements with the
service providers for which we provide oversight duties,
I RBS (Luxembourg) S.A. and the Board of Directors of whilst the Board of Directors retains full control of product
the SICAV appoint the Administrator via a tripartite development.
Administration Agreement.
N.B. For other scheme structures, a different arrangement may apply.
I The Custodian is appointed directly by the Board
of Directors of the SICAV.
6 RBS (Luxembourg) S.A. – Independent Management Company Services

7. Key responsibilities
As Management Company, the key responsibilities of RBS (Luxembourg) S.A. include:
I Monitoring of compliance with the Investment Restrictions and Policies.
The investment compliance team at RBS (Luxembourg) S.A. is highly experienced and capable. It enjoys a strong track
record in diligently monitoring the compliance of our clients’ funds with the investment restrictions and policies laid
down in the fund’s constitution documents and the prevailing investment legislation.
I Portfolio risk management services.
UCITS funds are required to employ an independent risk monitoring process – the complexity of which is driven by the
extent of derivatives usage. RBS (Luxembourg) S.A. has invested heavily in robust IT systems that provide the foundation
of our Risk Management Process (“RMP”) which has been fully approved by the Luxembourg Regulator.
Key elements of our investment market risk monitoring include:
Monitoring performed by the Management Company (typically at each NAV)
I At overall fund level (and at manager level for multi-manager structures)
I VaR at a 99% confidence level and/or other confidence level as agreed
I Line-by-line asset level contribution
I Parametric, historical, Monte Carlo VaR at a 99% confidence level (or other confidence level as agreed)
I Marginal VaR at asset level – how the fund VaR will change if a stock is removed/sold.
I Incremental VaR at asset level – how the fund VaR will change with an increased weighting
I Highlighted large contributors or changes to VaR day-on-day
I Top ten contributors approach to risk (countries, currencies, assets, etc.)
I Exceptions (over an agreed tolerance) and large movements in the VaR
I Stress-testing scenarios
I Daily back-testing
RBS (Luxembourg) S.A. – Independent Management Company Services 7

8. I Supervision of the delegated entities. delegates are subject to rigorous ongoing monitoring by
RBS (Luxembourg) S.A., including initial and periodic
RBS (Luxembourg) S.A. is permitted to delegate the
(minimum annually) due diligence reviews and frequent
functions of Investment Management, Central
(typically monthly) reviews of Key Performance Indicators
Administration and Distribution for its Management
(“KPI”).
Company clients, but at all times retains the responsibility
for these delegated functions. As a consequence, all Our operational activities include the following monitoring:
Scope of key control Frequency of performance of control
Price sheet delivery Each NAV report
Trial balance delivery Each NAV report
Monthly NAV variances Monthly
Stale and manual prices Monthly
Performance fees: receipt and review Monthly
Tax reporting Annually
Budget review Annually
Review of financial reports and Long Form report Annually/semi-annually
NAV errors Upon occurrence
NAV suspension/liquidation Upon occurrence
Distribution payment Upon occurrence
Cash and security reconciliation Monthly
Total Expense Ratio (TER) Monthly
Securities lending Monthly
Share reconciliations Sampling
Cash movements Sampling
Cash reconciliations Sampling
Market timing/late trading Monthly
KYC and blocked accounts Monthly
Queries/complaints Upon occurrence
Above all, the main role of the Management Company is to ensure Investor Protection.
8 RBS (Luxembourg) S.A. – Independent Management Company Services

9. Our Mission:
“To be the leading independent
third party Management
Company and provider of
Risk Management services for
our clients”
RBS (Luxembourg) S.A. – Independent Management Company Services 9

10. Comprehensive
product range
Our existing broad product range is constantly evolving in Long-term investment in client partnerships,
response to market and regulatory changes. We currently products and technology
provide management company services for both UCITS
and non-UCITS funds, including: RBS (Luxembourg) S.A. is a well-established provider of
services to the investment fund industry. Our product
I Sociétés d’Investissement à Capital Variable (SICAVs) – range, the quality of our service and our continuing
open-ended investment companies; investment in people, systems and technology, have all
I Fonds communs de placement (FCPs) – contributed to our prominent position within the industry.
contractual funds; Our technology investment programme contributes to an
I Specialised investment funds (SIFs). improved product and reporting capability, resulting in a
speedy service, with more accurate and timely information
Unbundled services for clients. Our client partnership approach has resulted in
long-term relationships with key fund managers and
In addition to our full management company proposition, investment companies across the globe.
we also offer many of our services on an unbundled,
standalone basis. These services include assistance to Our continuing investment in each of these areas helps
proprietary management companies and self-managed us to ensure we will continue to meet and exceed the
SICAVs, monitoring of portfolio risk and monitoring of the expectations of our clients.
investment restrictions applicable to the client’s funds.
Ancillary Services
With the wealth of experience and expertise built up by
RBS (Luxembourg) S.A., we can provide additional
assistance to our clients with other related services,
either in-house or in conjunction with carefully selected
partners, including:
I Assistance in establishing Luxembourg-domiciled
investment funds, on a consultative basis;
I Introduction to key players in Luxembourg (service
providers, auditors, legal advisers, etc.);
I Assessment of overall risk to which a fund is exposed
and advice on risk mitigation from a corporate
governance perspective;
I Introduction to independent directors;
I Assistance with cross-border registration.
10 RBS (Luxembourg) S.A. – Independent Management Company Services

11. Next steps
Fund Promoters can take comfort from our significant If you would like to find out how we can assist with your
expertise in the management of collective investment funds or would like further information on any aspect of our
schemes and in the consequent knowledge that all services, please contact our business development team:
necessary day-to-day monitoring is being dutifully Contact:
conducted on their behalf. RBS (Luxembourg) S.A.
The key benefits of appointing RBS (Luxembourg) S.A. as 33 Rue de Gasperich
your Management Company include: L-5826 Hesperange
I capital, substance and infrastructure are provided by Luxembourg
RBS (Luxembourg) S.A.; Telephone: +352 27 111 343
I product development is retained by the Promoter and +352 27 111 344
Board of Directors; Website: www.rbs.com/gts
I our solution is fully independent and E-mail: RBSLux_sales@rbs.com
commercially robust;
I complete flexibility in your choice of service providers;
I risk is significantly mitigated;
I considerable expertise based on wide experience;
I robust and proven processes and technology;
I speed to market with a scaleable solution;
I our solution enhances investor protection and
provides added comfort to fund Promoters and
Boards of Directors.

12. RBS (Luxembourg) S.A. (“RBSLux”) is authorised by the
Commission de Surveillance du Secteur Financier (CSSF)
in Luxembourg to conduct collective portfolio management.
This material is issued by RBS (Luxembourg) S.A. and is
intended to provide the recipient (the “Recipient”) with a
summary of the services provided by RBS (Luxembourg) S.A.
Unless and until RBS (Luxembourg) S.A. and the Recipient
agree to, and sign, formal written contracts for the provision
of services, it is not intended that RBS (Luxembourg) S.A.
or the Recipient are, or will be, bound by anything
contained within this material.
Any views or opinions expressed in this material (including
statements or forecasts) constitute the judgement of
RBS (Luxembourg) S.A. as of the date indicated and are
subject to change without notice. RBS (Luxembourg) S.A.
does not undertake to update this document. The Recipient
should not rely on any representations or undertakings
inconsistent with the above paragraphs.
RBS (Luxembourg) S.A. is a member of The Royal Bank of
Scotland Group (“RBS Group”). RBS (Luxembourg) S.A.
and its affiliates, connected companies, employees or
clients may have an interest in financial instruments of
the type described in the material or in related financial
instruments. Such interest may include dealing, trading,
holding, acting as market-makers in such instruments and
may include providing general banking, investment
banking, credit and other financial services to any
company or issuer of securities or financial instruments
referred to herein.
90037935_02/11
The Royal Bank of Scotland plc.
Registered office: 36 St Andrew Square, Edinburgh EH2 2YB
Registered in Scotland No. 90312
Authorised and regulated by the Financial Services Authority.