PS- 360 investment funds

PRODUCT SPECIALIST - 360 Investment Funds PS-360 A Product Specialist-360 (PS-360) is the professional responsible of all aspects linked to one specific set of financial products or business line.

This document reflects the scope of activities that a Product Specialist for Investment Funds shall embrace.

Sejad Imamović 13.3.2012

PRODUCT SPECIALIST 360 Product Specialist-360 (PS-360) is the professional responsible of all aspects linked to one specific set of financial products or business line.

The range of responsibilities embraces four pillars: Two pillars regard business line strategy: I. Product’s Offer Management a) New products development b) Product Maintenance c) Product Positioning d) Best Practices II. Product’s Profitability Budgeting and Planning

Investment Funds

Two pillars regard business line operation: III. Product’s Advertising a) Marketing and Commercialization Tools b) Marketing, Communication and PR c) Articles and Conferences d) Incentives Strategies IV. Product’s Sales Operation Support a) Sales Force Training b) Sales Material c) Help Desk d) IT Maintenance and New development e) Process and Documentation

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PRODUCT SPECIALIST 360 1. OFFER MANAGEMENT Aim: to guarantee bank’s competitiveness regarding product’s offer in terms of its scope, features, price and image. PS-360 is the main responsible about Bank’s products offer, acting proactively to market’s demand and trend.

1.1

New Products Development

A product specialist is inclined to offer most attractive investment funds that would be suitable for the large scope or our clients. In cooperation with fund managers he shall decide about the new products upon the sales and market potential.

Policy to choose new investment funds: • The variety of funds to enable building different investment portfolios taking into account different risk profiles, maturities, currencies, sector and geographical dispersion, etc.

• The funds that meet investors needs and follow market trends • The funds that enable the possibility to build an attractive sales history around it.

• The funds that can generate attractive sales volumes.

• The funds that offer competitive advantages.

• The funds that enable tax benefits for investors (e.g. subfunds of the umbrella fund offering switching).

1.2

Product Maintenance 1.2.1 Product’s Adjustments and Customization

The business line of investment funds is a vivid subject, heavily dependant on classic rules of supply and demand. This means the asset management company constantly seeks new opportunities (new funds being launched) thus reacting on increased demand, however in the case of decreasing interest sometimes it is necessary to optimize and rationalize the fund management. Therefore there are many activities in terms of funds mergers, changing the names /investment policy/investment objectives which are monitored on a daily basis.

The offer of the funds shall be revised periodically, at least once per year – in the first quarter of each calendar year. Sporadic revision will be a constant task in order to follow the policy of investment funds’ choice approach.

1.2.2 Agreements The duty of a product specialist is to assure the terms and conditions set forth in different agreements (distribution agreement, paying agency agreement, operational memorandum, etc.) are being obliged and fulfilled by all parties involved. The bank’s best interest shall be preserved at all times.

1.2.3 Legal Affairs & Compliance One of most important issues related to the investment funds is legal affairs and compliance with regulations. This area of business has one of the strictest legal frameworks – the goal of supervisor is to achieve the same level of protection for the investors in and outside Slovenia. For that reason we are obliged to swiftly react to any legal affair that affect the business line vis-à-vis investors and general public as well as to adapt the necessary documents in order to be in compliance with different regulations governing this business area, eg. MiFID.

Investment Funds

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PRODUCT SPECIALIST 360 1.3

Products Positioning 1.3.1 Market research

Market research is a constant everyday task of a product specialist. For that reason the product specialist shall obtain as much information as possible regarding the market players, mostly via different specialized websites, such as www.efama.org, www.alfi.lu or www.citywireglobal.com 1.3.2 Benchmark Analysis The benchmark analysis shall be made upon market research, especially in certain events such as promotional activities and introduction of new funds.

Opportunities and Threats Opportunities -

Switching tax-free (portfolio optimization)

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CPPI open-end funds

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Low NAV’s – purchase opportunities

Threats -

Further decrease of NAV prices; loss of investors' confidence

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Negative experience since mid-2007

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Less assets for investments

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New investment alternatives

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Higher interest rates

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More competitors on the market

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More aggressive marketing campaigns by competitors (eg. fees reduction).

1.3.3 Pricing

The pricing shall be revised upon market research. In certain events we shall apply improved pricing conditions (discount on entrance fees), such as promotions of new funds, anniversaries or offering special conditions for different segments.

1.4.

Best Practices 1.4.1 Research

A product specialist shall attend different seminars to learn about best practices applied elsewhere. This can be done within or outside the bank group. The purpose is to share the experience and ideas regarding the methods of successful approach towards the clients.

Investment Funds

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PRODUCT SPECIALIST 360 1.4.2 Implementation A product specialist shall do his best in order to implement best practices within sales network.

2. PROFITABILITY Aim: to guarantee bank’s profitability out of own Bl-products Responsibility: PS-360 shall take active part in defining profit goals, monitor its achievement, advice and aware the bank’s management about possible deviations and solutions.

2.1 Budgeting & Planning 2.1.1 Planning The budgeting planning shall be carried out in accordance with internal rules and taking into account the position of the relevant asset management company.

2.1.2 Execution The execution of budgeting shall be constantly supported by all the means available.

2.1.3 Monitoring The budgeting execution shall be monitored very closely, at the end of each month the data will be provided. Should there be discrepancies between budget and realization, there shall be additional planning carried out.

A product specialist shall provide a monthly report regarding the budget realization to assure the results achievements. Further on, the regular quarterly memo for heads of divisions shall be prepared with comments and suggestions regarding achievements of results.

3. ADVERTISING Aim: to maintain and improve products market positioning Responsibility: PS-360 shall take active part in planning, development and execution of marketing affairs and other kind of activities channelled to improve product’s exposure and therefore its market placement (external and internally).

3.1 Marketing & Commercialization Tools 3.1.1 Sales Campaigns The product specialist is responsible for sales special campaigns. There are numerous possibilities to build the sales campaign on, for instance: Campaign New open-end funds with constant portfolio protection investment policy The national campaign of fund manager promotion The promotion of regular contributions

Investment Funds

Explanations New possibilities of portfolio diversification for more conservative clients To improve the general awareness and brand name of the asset management company The promotion of regular contributions to optimize results

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PRODUCT SPECIALIST 360 The combination of deposit + funds duo package The new subfunds within umbrella structure CORP: Employee package Open-end capital protected funds

Possible repetition of the campaigns that were carried out in 2008 In accordance with the asset management company

The offer to companies to create incentive schemes for its employees by investing into funds Special offer for CORP clients guaranteeing both liquidity and investment protection

3.2 Marketing, Communication & PR

In order to support sales campaigns a product specialist shall be involved in marketing materials preparations as well as delivering new ideas on the clients’ approach. Apart from that a product specialist shall provide answers to media related to investment funds. He is also responsible for preparation of monthly fact-sheets that are published on the website, as well as for monthly investment outlook.

On a monthly basis he shall provide the “fund of the month” choice, while on sporadic occasions he shall provide different information to sales network.

3.3 Articles & Conferences A product specialist shall be involved in writing articles on specific topics that are related to investment fund business. The articles shall be published on our website as well as on external professional sites.

Apart from that a product specialist shall be responsible for organizing conferences in collaboration with fund managers.

3.4. Incentives Strategies 3.4.1 Internal Incentives 3.4.2 Incentives & Promotions in Cooperation with Partners In cooperation with the asset management company the incentive programme for the sales network that may include: - the investment seminar for top 10 sellers in specific period set in advance - the gadget provided by the asset manager for best seller of the month in specific period set in advance Depending on the results of this incentive programme a similar cooperation shall be reconsidered in the future. There shall be a promotion at least once per year.

4. SALES OPERATION SUPPORT Aim: to guarantee adequate sales process by supporting sales activities.

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PRODUCT SPECIALIST 360 Responsibility: PS-360 shall facilitate optimal levels of sales operation by spreading internally the technical knowledge about the Bl-products as well as providing all required elements to commercialize Bl-products.

4.1 Sales Force Training For all the employees with investment funds sales licence we shall organize trainings to boost sales results and to exchange sales ideas.

4.2 Sales Material On the monthly basis a product specialist shall provide the database to head of branches for sales material order. In cooperation with the asset management company and marketing department he shall support the sales points with all the material needed, including fact-sheets, brochures, posters, etc.

The training materials shall be reviewed at least one per year in order to assure the update of its contents.

4.3 Help Desk Fund’s help desk is implemented for sales network in relationship to all the queries needed, helping to solve clients’ complaints, to IT infrastructure, etc.

The data shall be available on the intranet, however the product specialist is available for further information regarding all aspects. The official documents and information can also be obtained at bank’s website.

4.4 IT Maintenance and New Development Responsible for IT maintenance of existing IT support, and also to develop new functionalities to enable us more flexible sales approach.

4.5 Processes & Documentation (Manuals & Technical Documentation) Responsible for processes documentation including manuals and technical documentation, as well as internal operational memorandum about the activities related to executing the operational tasks.

Investment Funds

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PRODUCT SPECIALIST 360

Investment Funds

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