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Working with our asset owner clients to help them reduce their overall transaction costs and conserve

plan assets is at the heart of what we do within Convergex’s Plan Sponsor Services business. Although our

commission recapture programs remain the primary vehicle helping to generate savings for our clients, many

of our asset owner clients are significantly increasing their commission recapture program returns by utilizing

our Event Trading model, which provides a seamless, cost effective way to reduce portfolio transaction costs.

Convergex’s Event Trading model was created partially as an alternative to transition management

services, and also as a means to extend the boundaries and savings opportunities offered within a

traditional commission recapture program. Event Trades result from situations in which the asset owner,

not the manager, makes a portfolio adjustment that results in a trading transaction. Typical Event Trading

opportunities are generated through portfolio adjustments, trim trades, manager fundings, cash inflows and

outflows, and instances when our clients need to raise cash to fund pension obligations.

Our Event Trading model is ideal for more straight forward plan-initiated portfolio restructurings, such as

when a single asset class (typically in global equities) is required. The Convergex Event Trading team includes

our Plan Sponsor Sales team and members of our Global Portfolio Trading team, all of whom work directly

with our asset owner clients, their asset managers and plan consultants to help determine the most effective

options for executing asset owner-initiated portfolio adjustments. Another important part of our Event

Trading service model is providing feedback throughout the Event Trading process to all relevant parties,

which also includes comprehensive pre and post Event Trading analysis.

We realize there are portfolio transactions in which our asset owner clients may be best served by working

with a Transition Manager. However, there are many types of asset owner-initiated portfolio transactions that

should not require working with a Transition Manager, and the extra costs and time requirements associated

when employing a Transition Manager can be minimized when utilizing Convergex’s Event Trading model.

In fact, when we speak with our asset owner clients and their consultants regarding how they handle their

“Event Trading, A Proven, Cost-Effective Alternative to Traditional Transition Management”By Tim Conway, Managing Director Head of Plan Sponsor Services

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small-mid-sized plan-initiated portfolio transactions, we increasingly hear that those transactions may not

be appealing to Transition Managers, and that those smaller portfolio transactions are often charged higher

commissions rates. Although our Event Trading model shares certain similarities with Transition Management,

the two models can be very different as there are complexities with the types of portfolio transactions that

the two models look to service.

Below is a summary of some of the common questions we are often asked about Convergex’s Event Trading model:

Q: Does an asset owner or plan need to have a commission recapture program in place with Convergex in order to utilize your Event Trading model? A: No, Convergex can easily onboard new asset owner clients so that they can utilize our Event Trading model without having a commission recapture program in place with us, while still receiving the benefits of quality execution services and reduced transaction costs.

Q: What is Convergex’s average Event Trading transaction size?

A: The average Event Trading transaction size that Convergex executes on behalf of our asset owner clients is $30 million in principal value, and we have no minimum principal size requirements.

Q: Can you provide an overview of Convergex’s Event Trading pricing?

A: We do not have a single Event Trading rate for all asset owner clients. However, we offer very competitive pricing for Event Trades, with pre-negotiated Event Trading rates that most often are below our core commission recapture rates. We offer these rates as an added incentive to our asset owner clients to include various types of plan initiated transactions within their commission recapture program. Of course, the amount of any rebate that our clients who have a commission recapture program in place with Convergex will receive will be determined by the commission rate that their investment manager applies to a specific Event transaction. We know that our asset owner clients are very focused on improving overall portfolio returns, while also remaining dedicated to reducing overall plan costs and expenses in this challenging investment climate. Convergex’s Plan Sponsor Sales team is committed to working with our large asset owner clients to help them achieve their goals while further exploring how our Event Trading model can best serve our clients’ needs.

When considering your options for your next portfolio change, please contact Tim Conway at tconway@convergex.com or your Convergex Plan Sponsor Representative at 800.992.7526, and we will work with you to determine if our Event Trading model is right for you.

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IMPORTANT INFORMATION

Convergex is an agency-focused global brokerage and trading related services provider. In the U.S., Convergex offers products and services through

Convergex Execution Solutions LLC (member NYSE/FINRA/NFA/SIPC), of which Convergex Prime Services is a division; Westminster Research Associates LLC

(member FINRA/SIPC); and Convergex Solutions LLC, of which Connex, Jaywalk and LDB are divisions. In London, Convergex operates through Convergex

Limited, which is incorporated in England and Wales (registered with company number 06262150). Convergex Limited is authorized and regulated by the

Financial Conduct Authority (FCA) of the United Kingdom. Westminster Research Associates LLC is regulated in the United States by the U.S. Securities and

Exchange Commission. Westminster provides services in Australia pursuant to an exemption from the requirement to hold an Australian financial services

license under the Corporations Act 2001 (ASIC Class Order [CO 03/1100])..

Convergex provides brokerage services primarily on an agency basis, but may operate in a riskless principal and/or net trading capacity, and in connection

with certain ETF or ADR transactions, may act as principal or engage in hedging strategies. Convergex does not engage in market making or investment

banking activities.

The material, data and information (collectively “Convergex Information”) that is available from Convergex is intended for institutional investor use only;

is for informational purposes only; is subject to change at any time; is not intended to provide tax, legal or investment advice; and does not constitute a

solicitation or offer to purchase or sell securities. Convergex Information is believed to be reliable, but Convergex does not warrant its completeness or

accuracy and Convergex assumes no duty to update such information. Clients should read their account agreement(s) and documentation with Convergex

carefully as those documents contain important information and disclosures about the products or services covered thereby. Convergex is not responsible

for third-party information or services, including market data from the exchanges. (Rev 3/28/16)

© 2016 Convergex Group, LLC. All Rights Reserved.