I. Product Overview Custody service for corporate annuity fund means that ICBC, as entrusted by the clients of corporate annuity fund, provides safe custody service for corporate annuity fund assets according to relevant laws, regulations and custody contracts as well as handles the businesses such as clearing for annuity fund, securities settlement, accounting, asset valuation and supervision on investment. The corporate annuity fund custody system, through the separation of ownership, use rights and supervisory rights for corporate annuity fund assets, effectively constructs a mechanism for mutual supervision between managers, thus ensuring the safety, independence and integrity of corporate annuity fund assets. Besides, the custody system can effectively reduce the operation costs of corporate annuity fund, improve operational efficiency of corporate annuity and raise the return on annuity fund. In August 2005, ICBC was the one of the first batch of banks which obtained the qualification of corporate annuity fund custodian (Qualification No.: 0017) after the review and authentication of the Ministry of Human Resources and Social Security; and such qualification was renewed in 2008, 2011 and 2014 (Qualification No.: 0138). So far, ICBC has occupied about 40% market share in terms of custody service for corporate annuity fund, becoming the largest custodian bank for such service in China.
II. Target Customers Enterprises (including industries) which have established or will establish corporate annuity system; Trustees which manage corporate annuity fund under the entrustment of enterprises, including corporate annuity councils and legal entities; Social insurance agencies which manage previous corporate annuity fund.
III. Scope of Services i. Basic services Collection and payment: Provide corporate annuity fund collection and salary payment services. Asset custody: set separate accounts for independent safekeeping, to ensure the safety, independence and integrity of corporate annuity fund assets. Clearing service: handle the clearing of corporate annuity fund and settlement of securities according to relevant contracts and the instructions of the party concerned. Accounting and asset valuation: conduct accounting and asset valuation for corporate annuity fund, and check the results with investment managers. Supervision on investment: supervise the investment and operation of corporate annuity fund assets according to relevant national laws and regulations as well as custody contracts, and if any problems are found, promptly report to regulatory authorities and trustees. Information disclosure: submit the report on custody service for corporate annuity fund and financial statements to trustees on a regular basis. Safekeeping of materials: keep custody records, account books, reports and other related materials in connection with corporate annuity fund according to national regulations. ii. Value-added services Performance evaluation: provide clients with comprehensive performance evaluation of managers, whole market manager analysis and manager style analysis; provide comprehensive analysis including fund market analysis for annuity schemes, calculation of return on investment, relative performance analysis, risk measurement, performance analysis, performance attribution analysis and industry ranking; and provide various performance evaluation services including monitoring of manager risks and public opinions. Customized reports: provide various types of reports in connection with custody service for corporate annuity fund, as requested by clients. Information rendering: render information consulting services including macroeconomic information, industry news, special reports, analytical reports and market information. Bond transaction: ICBC, the largest trader in the national interbank bond market, can conduct bond transactions as the counterparty of corporate annuity fund, and prior consideration can be given to transaction types and value.
IV. Advantages i. Rich experience in custody services ICBC was the first domestic custodian bank for corporate annuity fund. In December 2001, it was the first one to obtain the qualification as a custodian bank for corporate annuity fund accredited by the People’s Bank of China. In the following year, the Bank provided custody service for social security annuity funds in Shanghai and Shenzhen. ICBC was one of the first batch of domestic custodian banks approved by the Ministry of Human Resources and Social Security. In August 2005, the Bank obtained the qualification of custodian bank for corporate annuity fund accredited by the Ministry of Human Resources and Social Security, thus possessing the statutory conditions for annuity fund custody. ICBC was the first domestic custodian bank for single standardized market annuity fund. In June 2006, it was the first one to provide custody service for single standardized market annuity fund in China. ICBC was the largest domestic custodian bank for corporate annuity fund. Its market share in terms of corporate annuity fund custody is always maintained at about 40%. ii. Localized custody services With more than 17,000 domestic branches and sub-branches, ICBC has developed a custody service network throughout the country. With respect to corporate annuity fund collection and salary payment, ICBC’s outlets, Internet banking system and ATMs can provide corporate and personal customers with the most convenient and efficient payment, salary inquiry and collection services. iii. Ominibearing transaction supervision ICBC was the first one in the banking industry to establish a division called Supervision and Risk Management Division under the Asset Custody Department which would specially supervise various investments. It has developed a powerful transaction supervision system, which consists of more than 400 regular indicators of five categories. Besides, individualized indicators can be tailor-made to meet customers’ diverse requirements. Through the specialized system, professionals could conduct ominibearing supervision on corporate annuity fund investment, thus protecting the safety of corporate annuity fund assets to the maximum extent. iv. Powerful asset custody system ICBC, leveraging on its largest market share in corporate annuity business in the banking industry, provides annuity customers with a full package of value-added services including pension product investment information and trading service, evaluation of asset manager’s style and selection of asset manager, internal indicator customization and performance assessment benchmark consulting service, consulting on annuities under trusteeship and outsourcing of information data and analysis tools, in order to help customers make decisions on entrusted investment and value preservation/enhancement of annuity assets. v. Advanced Internet banking services Customers can handle businesses such as file transfer, report query, equity information query, account details query, net value reconciliation, research report delivery, transfer order management and customer service on a self-help basis.
V. Business Guide i. Business contact: enterprises and trustees can contact local branches of ICBC. ii. Signing of agreement: a Contract on Corporate Annuity Scheme Custody will be signed based on sufficient communication between the Bank and customers; iii. Opening of account: fund custody accounts and securities accounts will be opened as required by regulatory authorities; iv. Handover of assets: annuity fund assets will be handed over, including funds and various portfolios in the account; v. Custody operation: services including asset custody, annuity fund collection, salary payment, accounting, asset valuation, clearing and delivery, and performance evaluation will be provided according to custody agreement, and investment and operation of corporate annuity fund will be supervised, with issue of periodic custody reports to regulatory authorities and trustees.
VI. Contact Information If you would like to apply for any service, please contact local branch or sub-branch of ICBC or the Entrusted Asset Division I of Asset Custody Department under the Head Office of ICBC: Contact person(s): Feng Kunwei, Zheng Weiwei, and Zhang Yingbo Tel: (8610)66105656/81013681/66105774 Fax: (8610)66105769 E-MAIL: email@example.com, firstname.lastname@example.org, email@example.com