October 14, 2003

1
Presentation to
The Money Management Institute
Fall Conference
October 14, 2003
2
Top 5 Separately Managed Account Challenges
Percentage of Managers Polled
Source Financial Research Corporation
3
Mellon Service Model
New Account Opening Services
Account Administration Services
Mellon Back Office CheckFree APL
Dual Contract Account Services
Account Closing Services
Other Services (e.g., trade support)

• Over 7 years of Managed Accounts Outsourcing
  Experience
• Approximately 38 program sponsors supported
• 6 clients with 10 billion in managed account
  assets
• 50,000 managed accounts under administration

4
Outsourcing Benefits

• Focus on core competencies
• Speed to market for new products
• Enhance profitability/achieve earlier breakeven
• Pure variable cost environment
• Mitigate the need to hire/fire based on business
  growth/stagnation
• Transfer operational risks
• Improve service quality
• Synergy with corporate goals and objectives

5
Operational Cost Reductions Can Free Investment
Dollars to Drive Industry Growth
Potential impact higher when sponsor savings
included
6
In-house Operations vs. Outsourced Operations
Profit Margins
Outsourcing enhances managed account program
profitability
Source Cerulli Associates