Service Profile
With fund custodianship service, the China Merchants Bank accepts the consignment of the mutual fund management institution to safe keep the fund assets for the interest of the fund owners, and to supervise the routine investment operation of the fund management institution. The custodian opens independent account for fund assets, performs clearing and transferring upon instructions from the management institution, safe keeps the entrusted fund assets, and supervises fund operations within its authority prescribed by pertinent state laws and mutual fund contracts. All services are subjected to proper charges.

Target Clients
Mutual Fund Management Companies

Service Features and Advantages:

1.	Through its fund custodianship service system "Net-Bank Express," the China Merchants Bank realized "zero fund in transit" in cash maneuver for fund operation;
2.	The China Merchants Bank establishes independent accounts for the purpose of separate management of its own assets and the mutual fund assets;
3.	The China Merchants Bank has a clear job distribution arrangement with mutual fund management companies, in which, the Bank is responsible for backstage operations such as fund assets safekeeping, fund cash clearing and accounting, as well as supervision on fund investment operations.

Function Description:

1.	Assets safekeeping: the China Merchants Bank is liable to safe keep all the entrusted assets, and to hold the mutual fund account books for over 15 years.
2.	Fund clearing: the China Merchants Bank performs clearing and transferring upon instructions from the management institution;
3.	Accounting service: the China Merchants Bank establishes separate special accounts for mutual fund assets as well as independent account books for the purposes of accounting, rechecking, auditing the net assets value as well as per capita fund product net value calculated by the fund management firms;
4.	Supervision on investment operations: the China Merchants Bank supervises fund operations within its authority prescribed by pertinent state laws and mutual fund contracts, which mainly refers to check the percentage composition of various investment instruments;
5.	Preparing reports: the China Merchants Bank prepares reports on fund operation performance, and submit them to the China Securities Regulatory Commission and the People' s Bank of China.