Dear Customers and Friends:

Ann Bergin

Welcome to the third issue of Wealth Management Services Quarterly. This edition covers our initiatives to expand operational efficiencies for our mutual fund customers, in addition to creating much-needed, automated solutions for the managed accounts and alternative investment markets.

The news in this issue is very good indeed, beginning with two major mutual-fund projects that we have been working on for quite some time.

Mutual Fund Profile Service, which we redesigned this year, will help solve a longstanding issue of disseminating vital information about fund securities, and we’re receiving a very positive response from our clients. We consider the work accomplished on the service an important beginning to drive further the capabilities of Profile to become a dynamic central source for rules-based processing and information. This will be a prime focus for us in 2008.

We also responded to the SEC’s Rule 22c-2 (redemption fee) requirement by developing Networking for Standardized Data Reporting – an offshoot of our account-reconciliation service. And that, too, is becoming increasingly recognized by industry members as an essential compliance tool.

Our Managed Accounts Service entered industry-wide testing this fall, giving us an opportunity to perfect the technology, and ready the service for full production. In addition, our proposal to initially automate the most significant and difficult processing aspects of alternative investment products continues to gain momentum, with a growing core of customers committed to partner with us, once we receive approval from the SEC to move forward.

Finally, the continuing importance and relevance of Fund/SERV®, reflected in volume growth, becomes more apparent every year. We will end 2007 with five days on which daily volumes pierced 1,000,000 transactions; and we project that the daily average for the year will reach an unprecedented 680,000, compared with 569,000 in 2006.

All of this – because of your continuing support. From all of us in Wealth Management Services, we wish you and those close to you a peaceful and happy holiday season.

As always, we welcome your comments.

Ann Bergin
Managing Director & General Manager
Wealth Management Services
The Depository Trust & Clearing Corporation