Understanding the Investors’ e-Delivery Experience: NetXInvestor™ April 2014

Agenda 1 e-Delivery: Benefits The Investor Experience Resources 2 3

What Is e-Delivery? Investors can choose electronic delivery (e-delivery) of account communications, including account statements, trade confirmations, tax documents and more With e-delivery, investors can view account communications online, as well as print, download or e-mail them at their convenience Instead of waiting for paper account communications through the mail, investors will receive an e-mail notification when a new communication is available to view online

The Benefits of e-Delivery Convenience and Flexibility Investors can access account communications from virtually any computer, at any time1 Investors can choose which account communications to receive electronically, and change those preferences at any time Upon enrollment, investors will have access to historical account information, not just new account communications Increased Security Identity theft from sending sensitive information through the mail can be reduced by accessing account communications via a password-protected website Centralized Record Keeping Like an online filing cabinet, eligible account communications2 can be easily accessed in one place—reducing the amount of paper clutter at home Account statements are available for 10 years Tax documents are available for seven years Trade confirmations are available for six years 1 Requires access to the Internet to view PDFs 2 Availability for account communications may vary by type

A Better Choice for the Environment e-Delivery Helps Investors Conserve Natural Resources North Americans still consume more paper per capita – upwards of 500 lbs. annually – than anyone else on earth1 More than 40% of logged trees are used for paper, and for every ton of paper produced, two to four tons of trees are brought to the mill2 More than 30 million forested acres, an area about the size of Pennsylvania, are lost annually2 1 Environmental Paper Network. (2011). The State of the Paper Industry 2011. Retrieved from http://environmentalpaper.org/state-of-the-paper-industry-2011.php 2 Source: 2011, http://www.woodconsumption.org/products/paper.pdf

Get All of the Information You Need…Online Account statements and reports Trade confirmations Tax documents Notifications Proxy materials and shareholder communications Mutual fund, exchange-traded fund (ETF) and unit investment trust (UIT) prospectuses1 Quarterly Performance Reports (QPRs)1 e-Delivery offers access to eligible account communications including the following: 1 If offered by your financial organization

Enrollment and the Investor Experience NetXInvestor™

Enrollment Through NetXInvestor.com Investors can self-register and enroll for e-delivery through NetXInvestor™ The profile (level of access) created will be either EDELIVERY (documents only) or a match to your firm’s default access (NXC-ONLINE-REG) unless your firm offers trading. Trading is not available for NXC-ONLINE-REG Profiles created through online registration will automatically pull in other accounts with the SSN as primary or secondary to allow the investor to link

The Investor Experience – Registration STEP 1: Visit NetXInvestor.com and click “Register” TIP: Use the “Remember me” functionality to simplify the process on future visits. 9 9 9

The Investor Experience – Registration STEP 2: Verify that your firm offers online registration by entering the first 3 digits of the account number 10 10 10

The Investor Experience – Registration STEP 3: Review the terms and click the I Agree button – then the Continue button will allow the investor to advance 11 11 11

The Investor Experience – Registration STEP 4: Provide user information (a Social Security number and U.S. mailing address are required) The SSN must be primary on the account number the investor enters 12 12 12

The Investor Experience – Identity Verification STEP 5: Verify the investor’s identity to help further safeguard information Questions are obtained from public databases which may include property records, DMV, and car registrations; answers are not retained The investor may be asked a question where the correct answer is that the answer does not apply Three questions are asked to help verify the investor’s identity. Each one must be answered correctly for the process to continue. However, if one question is answered incorrectly, the investor will be presented with a fourth question. The fourth question must be answered correctly for the process to continue. 13 13 13

The Investor Experience – Creating a User ID and Password STEP 6: Create a user ID and secure password, and provide a valid e-mail address An e-mail will be sent to the address and should be received within 15 minutes so the investor can continue the process Information including date of birth and mother’s maiden name is gathered in case of future need to reset the password by your firm 14 14 14

The Investor Experience – Finalizing Registration STEP 7: Click the link in the e-mail received to complete the registration process within three days Please note: If the investor does not click the link in the e-mail and complete the registration process within three days, the user ID will be deleted, and the investor will have to restart the registration process 15 15 15

The Investor Experience – Registration Completed STEP 8: Once the investor has completed the process, a confirming e-mail will be sent Please Note: At this point the investor is not enrolled in e-delivery, but has a completed user ID. 16 16 16

The Investor Experience – First Log In To log in and view account communications, the investor can visit NetXInvestor.com and log in, using their newly created user ID and password. Checking “Remember Me” will simplify this process in the future. 17 17 17

The Investor Experience – First Log In When the financial organization and User ID have been entered correctly, this screen will appear. If the investor set up a password upon registration, they may enter it here; skip ahead to slide 20. If the home office has created the User ID, the investor may login here using the temporary password the investor was provided by your firm. 18 18 18

The Investor Experience – First Log In After entering the correct temporary password, the investor can create a new permanent password. 19 19 19

The Investor Experience – First Log In The next step is setting up security questions. The investor must set up four questions and provide answers. Please note, if the investor is on a home/ private computer, they may wish to check “Remember Me” to avoid answering these questions in the future. Investors may choose to “unmask” their answers to easily see what they are typing to confirm accuracy. 20 20 20

The Investor Experience – First Log In Next, the user will select the security image that will appear each time they log in. Clicking the blue “Select” hyperlink will bring up a series of images and the investor should select one. Confirm the selection via the blue hyperlink below each picture; the blue arrow offers additional selections. 21 21 21

The Investor Experience – First Log In Now the investor will choose a security phrase, then click “Continue”. 22 22 22

The Investor Experience – First Log In The final step of security verification is to review all of the selections made. The questions on the sample screen below are examples of questions that might be chosen/answered. Please note: the investor, when checking “Remember Me”, ensures they do not have to answer these questions on every log-in. 23 23 23

The Investor Experience – First Log In To sign up for e-delivery, the investor, once logged in, may click “Go Paperless” from the top right of any page. Note that the top menu bar will differ depending on if the investor has full online access, or only access for e-delivery. e-Delivery (only) Profile NXC-ONLINE-REG/DEFAULT Profile 24 24 24

The Investor Experience – First Log In After clicking “Go paperless”, the investor may click “Quick Enroll” to enroll all account communications automatically, or click “Edit” to enroll accounts and communications individually. Please note: the tabs at the top of the page will appear differently per the investor level of access (e-delivery only or full access/NXC-ONLINE-REG/DEFAULT; this example is “full access.” The process is the same. 25 25 25

The Investor Experience – First Log In If the investor has chosen “Edit”, they must check the box next to the account communications they wish to receive electronically. The investor can return to this screen and update preferences at any time. If the investor chooses to receive proxy and shareholder communications electronically, they will be asked to enter a four-digit numerical Personal Identification Number (PIN), then click Save PIN. When finished, the investor may click Save. 26 26 26

The Investor Experience – Confirming Electronic Delivery On the next screen, the investor clicks “I agree,” giving his or her consent to receive electronic account communications 27 27 27

The Investor Experience – Confirming Electronic Delivery After agreeing, the investor will see a pop-up screen confirming choices; they will also receive an e-mail confirmation as well as a letter, for security purposes. After enrollment, the investor will only receive chosen account communications electronically. 28 28 28

The Investor Experience – Accessing Electronic Documents An e-mail will be sent to the investor when a new account communication is available to view online. To view the communication, the investor may log in to NetXInvestor and click “Communications,” then make a selection from the list that appears on the left. 29 29 29

Common Questions Q: An investor failed the identity verification process. Why? Investors can “fail” the identity verification process for a number of reasons: Answering questions incorrectly Starting a session without finishing “Timing out” of a session Closing a browser window In some cases, due to insufficient public information, an investor will be unable to verify his or her identity. In such cases, only the home office can set up the user ID 1 If offered by your financial organization 30

Common Questions Q: An investor is locked out during self-registration. Investors can be locked out for reasons tied to the security of the overall process They have attempted to complete the verification process more than four times in one week, whether they have previously passed or failed They have failed the verification process twice in a one week period Your home office can use Account Services, Client on Boarding (COB) or NPNX to establish e-delivery for an investor and update delivery preferences, after your firm has received authorization from that investor. Collect authorization by using Pershing’s User ID and Electronic Delivery Request form or by incorporating the appropriate language into your firm’s new accounts form. The form is available in the Material Catalog via Resources in NetX360. Q: How do I help the investor gain access? 1 If offered by your financial organization 31

Common Questions Q: An investor is locked out trying to complete self- registration. The password for this was created by the investor as part of the identity verification. It does not equal the home office password logic. Your firm is not able to reset the password if the investor has not completed self-registration. If the investor does lockout during this period, they will need to re-start the self-registration process. 1 If offered by your financial organization 32

Accessing Additional Account Communications Prospectuses, Shareholder Communications and Proxy Materials

Accessing Prospectuses Prospectuses can be accessed directly from a link in the e-mail notification To view these communications, the investor should click the appropriate link in the e-mail to be redirected to a PDF version, or to a website with additional information These documents are not archived online, so the investor should save them to his or her computer for later reference The investor may have up to 25 different links for prospectus in the e-mail Mutual fund, exchange-traded fund (ETF) and unit investment fund (UIT) prospectuses are available via e- delivery 34

Accessing Shareholder Communications and Proxy Materials Proxy materials can be accessed directly from a link in the e- mail notification To view these communications, the investor should click the appropriate link in the e-mail to be redirected to a PDF version, or to a website with additional information These documents are not archived online, so the investor should save them to his or her computer for later reference To vote proxy events, the investor will need to enter the control number found in the notification e-mail as well the four-digit numerical PIN that was created when he or she enrolled in e-delivery 35

Home Office enrollment An Option to Help Increase Your Firm’s adoption Home Office enrollment 36

Home Office Assistance with Enrollment Pending enrollment: an option that allows you to add the e-delivery instructions to an account (create a User ID, temporary password, email address, and preferences) without any paper. This option still sends paper documents to the investor until he/she logs into the website, reviews preferences and agrees to Terms & Conditions. Contact your home office to determine if your firm is offering this option and your firms process. The Electronic delivery and user ID request form allows you to help investors enroll for e-delivery, without going through online registration1. After signing the form and accepting the terms and conditions of e-delivery, the investor can then return the form to you or to your home office. Here are several suggestions for obtaining e-delivery preferences: Include the form with new account paperwork Make it available to investors during meetings Include it in a mailing to a list of investors Create an e-mail and send to your investors 1 Investors need online access to view account communications, once accounts have been enrolled in e-delivery 37

Self-Service: Verifying if an Account is Enrolled in e-Delivery Netx360

Verify if the account is enrolled Pull up the account and select Profile and then select Online Access & eDelivery 39 39 39

Verify if the account is enrolled If the account has online access, this screen will reflect the user ID and e-mail address Type of online access: myedocumentsuite.com = EDELIVERY (documents only) Net Exchange Client = Your firms’ default access to NetXInvestor If the investor enrolled in documents, a  will show with status of enrolled If the account is enrolled in Proxy or Prospectus – the section at the bottom will confirm the address that will receive the e-mail 40 40 40

Marketing resources and tools Driving e-Delivery adoption Marketing resources and tools

e-Delivery Resources Marketing material and tools are available in the resources section of NetX360—search using key word “ed-info” E-delivery guides provide more detail around certain processes along with sample letters and e-mails 42