Central Treasury Trust Regional Information Meetings May 06

Central Treasury Trust Background Response to Feasibility Study Evolution and progress for current investments Central Treasury Trust - ILCU Credit Union Movement Proposal Facilitated by Davy Authorised by the Regulator Compliant with The Order

Central Treasury Trust Central Treasury Managed Fund (Fund of Funds) Short-Term Liquidity Fund (up to 15 months) Medium-Term Fund (1 - 5 years) Long-Term Fund (5 – 10 years) Phase 1 = Convert CIM Ongoing Fund into CTT on May 18 th Phase 2 = Direct investment into other sub-funds at a later stage (Note no CIM transactions can be processed on May 18 th or 19 th due to conversion to CTT)

Central Treasury Trust Only fund of its type fully compliant and authorised by the Regulator Separate Legal Entity – Monitored independently by Northern Trust Daily Liquidity Professionally managed Diversification of counterparty risk Asset Allocation Risk Adverse – No Equities, Property or Hedge Funds, fx currency All investments held to maturity are capital guaranteed

Central Treasury Trust Role of Northern Trust Administration = Fund accounting purchase (lodgements) & sale (withdrawals) of funds/units calculating NAV & income/interest maintaining register of unit holders cash settlement to/from counterparties prepare unit trust accounts for auditors Trustee & Custodian legal owner of funds assets on behalf of the investors holds funds assets in custody on behalf of the investors One of largest Fund Administrators in world 97 countries & €2.6tr under management

Key Changes for Credit Unions Cut Off Times Instruction Forms Contract Notes CIM Statements Central Treasury Trust

Key Changes - Cut Off Times Instructions will continue to be sent to ILCU –(not to Davy or NT) Funds will continue to be sent directly to/ received from the ILCU bank account at BOI Rathfarnham Shopping Centre Dublin 14 –Bank account no = –Sort Code = Cheques & Lodgment/Withdrawal instructions to be received by ILCU by close of business evening before dealing day Lodgements by bank transfer can be done on morning of dealing day once instruction form is in ILCU the day before Central Treasury Trust

Key Changes - Instruction Form Combines Lodgement, Withdrawal & Transfer instruction forms New books of instruction forms will be sent to credit unions this week. Must be used from May 18 th onwards Must be received by ILCU by close of business on day before dealing (by post or fax) NB. If form is not sent, NT cannot process the lodgement, withdrawal or transfer NB. If form is received late, your instruction will not be dealt the next day and will be held over until following day Central Treasury Trust

Key Changes - Contract Notes Sent by Northern Trust to Credit Unions on dealing day Provides details of the lodgement or withdrawals and units bought/ sold Audit trail back to CIM statements at month end EXAMPLE

Central Treasury Trust Key Changes - CIM Statements Statements have been re-designed Looks more like a bank statement with debits and credits The Ongoing Fund section will be replaced by 2 new sections: 1.Monthly Cash Statement & 2.Monthly Unit Transaction Statement

Central Treasury Trust CIM statement – Monthly statement sample

Central Treasury Trust Outstanding Documentation Credit Union Re-investment Mandate – Sent out 25 th April Currently, coupons & maturing amounts are automatically invested into the Ongoing Fund Post conversion, they will be invested in CTT on receipt of mandate Completed mandates must be returned a.s.a.p. CTT Conversion forms- Conversion forms returned from now converted late June Currently 73% have transferred over ILCU Mandate - Sent out in March 06 Includes provision for using faxed instructions Completed mandates should be returned a.s.a.p. Only 50% received back so far

Central Treasury Trust Summary Proactive move by ILCU/Credit Unions In line with Global Standards- successfully introduced to Credit Unions in the United States, Canada & Australia Monitored & authorised by Financial Regulator Monitored by Independent Trustee Professionally Managed Diversified Portfolio Improved investment opportunities and wider choice

Trustee (Authorised Investments) Order - Update Registrar formally commenced review August 05 ILCU held regional consultation meetings Sept 05 ILCU sent submission to DOF November 05 ILCU has held 2 meetings with each of Department of Finance Registrar of Credit Unions CUAC Changes made to Registrars initial document to date not sufficient

Central Treasury Trust Q&A Session