Manulife Financial

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Manulife Financial

• Fund Accounting Outsource

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Agenda
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Drivers Toward Outsourcing Decision Making
Process Implementation Outcomes
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Manulife Financial

• Global provider of financial protection and
  wealth management products in Canada, United
  States and Asia
• Profitability in 2006 3.9 Billion
• Geographically diverse in 19 countries
• Each country a strategic business unit (SBU)
• Core strengths Product Innovation, Distribution
  and Customer Service

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Assessing Canadian Fund Accounting Operations

• Scope
• Calculation of 487 daily mutual and segregated
  fund Net Asset Values
• 28 Billion assets under management
• 50 staff in Toronto and Halifax
• Objective to select a vendor who can
• Provide fund accounting services for all
  Canadian-based funds
• Exhibit high degree of professionalism
  excellent customer service
• Provide services with accuracy timeliness at a
  competitive price
• Work with Manulife as a strategic partner

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Considerations in the Outsourcing Decision
Business Benefits
Operational Risks

• Focus on core business
• Flexibility and scalability to support growth and
  new strategic business initiatives
• Long term financial savings predictability of
  cost model
• Enhanced BUCP capabilities

• Immediate assumption of valuation risks
• Assumption of transition risk
• Management of staff retention and flight risk
  throughout transition
• Complex, proprietary fund structures
• Maintenance of quality

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Key Criteria for the Vendor
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Strategic partnership Reputation in servicing
similar clients Transition expertise Transition
strategy Technological capabilities Expertise in
marketplace Post-implementation service
model Overall pricing structure References
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Why Select RBC Dexia?
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Largest Provider in Canada Comprehensive,
Customized Transition Plan Proven Commitment
Approach to Staff Retention Sophisticated,
Flexible Scalable Model for Growth Reputation
for Outstanding Quality Service Long Term
Financial Savings
RBC DexiaValue Proposition
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Approach to Outsourcing
Assumption of Toronto Halifax operational
responsibilities
Phased transition of business operations to RBC
Dexia Toronto
Transfer and connection of technology
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Alignment of Client and Vendor
Guiding Principles
Approach

• Partnership
• Transparency
• Teamwork
• Shared vision (urgency, cant fail, etc)

• Dedicated project team to support implementation
• Co-developed project plan
• Joint ownership for success
• Rapid, low risk transition

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Assessing Outcomes

• Implementation
• Key milestones met on time
• Knowledge retained
• Limited disruption to either organization
• CEO alignment

• Impact on business
• Quality maintained retained staff throughout
  transition
• Delivered several strategic initiatives along
  with transition
• Further extension of relationship since transition

Largest liftout of Canadian fund accounting
services
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Learning from Success

• Assess outsourcing on business merits
• Understand the goals, expectations, and
  requirements up front
• Base contract on business goals, not solely legal
  concepts. Service standards negotiated up front.
  Must be win/win
• Parallel approach ensured understanding of
  complex fund structures prior to live date with
  RBC Dexia
• Communicate openly, leveraging strong project
  management
• Measure quality against key deliverables

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Questions
October 31, 2007
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