EX-99 3 dex99.htm REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Report of Independent Registered Public Accounting Firm

Exhibit 99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE RETIREMENT SAVINGS PLAN OF

PERSHING LLC

Financial Statements for the

Years Ended December 31, 2005, 2004, and

Period May 1, 2003 to December 31, 2003

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

TABLE OF CONTENTS

 

     PAGE

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

    1

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 2005 AND 2004

    2

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND PERIOD FROM MAY 1, 2003 TO DECEMBER 31, 2003

    3

NOTES TO FINANCIAL STATEMENTS

    4 -8

SUPPLEMENTAL SCHEDULE

   

SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS HELD AT END OF YEAR

    9 -14

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Committee and the Participants of

The Retirement Savings Plan of Pershing LLC

New York, New York

We have audited the accompanying statements of net assets available for benefits of The Retirement Savings Plan of Pershing LLC as of December 31, 2005 and 2004, and the related statements of changes in net assets available for benefits for the years ended December 31, 2005 and 2004 and the period May 1, 2003 to December 31, 2003. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2005 and 2004, and the changes in its net assets available for benefits for the years ended December 31, 2005 and 2004 and the period May 1, 2003 to December 31, 2003, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets held at end of year as of December 31, 2005 is presented for purposes of additional analysis and is not a required part of the financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Ernst & Young LLP

New York, New York

June 23, 2006

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 

     December 31,
     2005    2004

ASSETS:

      

Investments:

      

Mutual funds at fair value

      

Core investment options

    $ 82,493,736    $ 74,695,566

Asset allocation/ life strategy funds

      8,825,851      6,959,038

Index funds

      5,874,233      5,911,916

Extended options

      150,440,892      116,413,544

Loans to participants

      7,482,274      7,414,985
             

Total investments

      255,116,986      211,395,049

Employer’s contributions receivable

      13,661,845      13,339,454
             

Total assets

      268,778,831      224,734,503
             

NET ASSETS AVAILABLE FOR BENEFITS

    $ 268,778,831    $ 224,734,503
             

See accompanying notes to the financial statements.

 

2

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

 

     Year Ended
December 31,
2005		    Year Ended
December 31,
2004		    From May 1,
2003 to
December 31,
2003

ADDITIONS:

         

Investment income:

         

Interest and dividend income

    $ 9,384,888    $ 5,526,835    $ 2,311,578

Net appreciation in fair value of investments

      9,127,347      12,214,448      9,936,510
                    

Total investment income

      18,512,235      17,741,283      12,248,088
                    

Contributions:

         

Employer

      13,661,845      13,425,187      12,200,456
                    

Participants

         

Transfer in from participants

      —        —        147,861,400

Participants’ contributions during the period

      23,042,727      20,758,952      7,666,583
                    

Total participants’ contributions

      23,042,727      20,758,952      155,527,983
                    

Total contributions

      36,704,572      34,184,139      167,728,439
                    

Total additions

      55,216,807      51,925,422      179,976,527
                    

DEDUCTIONS:

         

Benefits paid to participants

      11,602,643      6,521,591      2,219,411

Administrative expenses

      55,064      39,681      32,813
                    

Total deductions

      11,657,707      6,561,272      2,252,224
                    

Transfers from other plans

      485,228      1,646,050      —  
                    

Net increase

      44,044,328      47,010,200      177,724,303

NET ASSETS AVAILABLE FOR BENEFITS

         

Beginning of period

      224,734,503      177,724,303      —  
                    

End of period

    $ 268,778,831    $ 224,734,503    $ 177,724,303
                    

See accompanying notes to the financial statements.

 

3

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

NOTES TO FINANCIAL STATEMENTS

 

1. DESCRIPTION OF THE PLAN

General Information – The Retirement Savings Plan of Pershing LLC (the “Plan”) is a defined contribution plan sponsored by The Bank of New York Company, Inc. (the “Company”), which is intended to meet the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). The Plan provides employees with an opportunity to invest a portion of their annual compensation, augmented by matching Company contributions, as well as discretionary contributions made by the Company, for additional income in their retirement.

On May 1, 2003, the Company acquired Credit Suisse First Boston’s Pershing unit. The Plan was established as of May 1, 2003 by the Company for domestic employees of Pershing LLC and its participating affiliates (collectively “Pershing”).

On January 1, 2006, the Retirement Savings Plan of BNY Brokerage, Inc. merged into the Plan. At that time, the Plan was also renamed as the Retirement Savings Plan of BNY Securities Group (“New Plan”). The New Plan offers investment opportunities in 29 new funds, plus the BNY Company Stock Fund. Under the New Plan, participants may contribute up to 20% of pre-tax earnings, subject to limitation in accordance with Internal Revenue Service regulations. In addition, employees may contribute on an after-tax basis, thereby allowing for a combination of both pre-tax and after-tax earnings. The Company makes a dollar-for-dollar matching contribution equal to 100% of the first $3,000 of contributions under the New Plan.

Administration of the Plan – The Plan is administered by the Plan Committee (“Committee”) consisting of at least three persons, whose positions with The Bank of New York, a wholly-owned subsidiary of the Company, are set forth in the Plan to serve as fiduciaries of the Plan. In accordance with the provisions of the Plan, The Bank of New York provides certain administrative and investment services to the Plan.

Participation – Under the terms of the Plan, each employee (as defined) becomes eligible to participate in the Plan after completing 30 days of service. A part time employee whose principal place of employment is in the U.S. shall become a participant on the first day following completion of one year of service. All employees who have not yet enrolled in the Plan after 45 days of employment are automatically enrolled in the Plan with a deferral rate of 4% of their bi-weekly pay unless they elect otherwise. Pershing employees who were previously participants in the Employees’ Savings and Retirement Plan of Credit Suisse First Boston (“CSFB Plan”) as of May 1, 2003 were eligible to become participants of the Plan immediately. Participants in the CSFB Plan had a choice to rollover their balances into the Plan or leave their balances in the CSFB Plan. Approximately $147.9 million of the balances from the CSFB Plan were transferred to the Plan and credited to the Employee’s Account.

Contributions – Employees may voluntarily contribute up to 20% of their total compensation (as defined) to the Plan. Total compensation for Plan purposes is limited to $210,000 for 2005, $205,000 for 2004 and $200,000 for 2003.

Participant contributions are always 100% vested.

 

4

To satisfy Section 401(k) of the Internal Revenue Code of 1986 as amended (the “Code”), contributions are limited to the extent necessary to reduce the actual deferral percentage for the affected highly compensated group, as defined by the Code. The maximum individual salary deferral contribution per participant for each Plan Year is $14,000 in 2005, $13,000 in 2004 and $12,000 in 2003, and will increase to $15,000 in 2006, as provided in the Code.

There are two types of contributions made to the Plan by the Company: (1) the “Retirement Contribution” and (2) the “Non-discretionary Contribution” or “Matching Contribution.”

Retirement Contribution – All employees are eligible for the Retirement Contribution. The employee must be employed by Pershing on December 31st of each year in order to receive that year’s Retirement Contribution. The contribution is based on the amount of base salary paid to the employee during the Plan Year and years of service. Based on these factors, the Company may contribute up to 10% of the employee’s base salary. The Retirement Contribution vests upon completion of five years of service.

Non-Discretionary Contribution or Matching Contribution – Pershing makes a contribution to the employee’s account for a particular year, provided the employee is employed on December 31st of that year. The amount of this contribution depends on the employee’s eligibility group (as defined).

Group 1 Eligible Employees – Participants who are Managing Directors receive a contribution equal to 6% of base salary earned while eligible for the Plan, to a maximum of $12,600 for 2005, $12,300 for 2004 and $12,000 for 2003, reduced by the amount of Pershing’s Retirement Contribution to the employee’s account for such year if the employee was hired on or after January 1, 2000 by the Company or a predecessor company.

Group 2 Eligible Employees – Participants who are not Group 1 employees will receive a Matching Contribution equal to 100% of their contributions, up to $3,000 for 2005, 2004, and 2003.

Non-discretionary or Matching Contributions are always 100% vested.

Participant Accounts – The participant’s account is credited with the applicable amount of Company contributions and any voluntary contributions made by the participant. Payments with respect to a participant’s interest under the Plan are charged to the participant’s account. The account is also credited or charged with the proportionate share of changes in the net assets of the Plan arising from investment activities.

Investment Programs – Each of the Plan’s participants directs The Bank of New York as the trustee of the Plan (the “Trustee”) to invest their account in one or more of over 190 investment funds available under the Plan. There are a wide variety of investment choices such as stable value, international, indexed, bond, and growth funds. The Plan investment options are arranged in four groups: Core Investment Options, Asset Allocation/Life Strategy Funds, Index Funds and Extended Options.

Core Investment Options – represent six funds for investors who are less experienced but comfortable with choosing investment options from a variety of styles.

 

5

Asset Allocation/Life Strategy Funds – provide a professionally managed mix of investments diversified across asset classes.

Index Funds – Index Funds closely track specific market indices, offering investors cost-effective exposure to markets and sectors.

Extended Options – represents a wide array of investment styles. These investment options are generally for more experienced investors who seek a more focused approach to investing.

The Plan is intended to qualify under Section 404 (c) of ERISA.

Withdrawals from the Plan – The full value of the participant’s vested interest in his or her account in the Plan may be distributed upon termination of the participant’s employment. The account value will be paid as a lump sum distribution. The participant may elect to have the total vested value of the account remain in the Plan until April 1 of the year following the year the participant attains age 70  1/2; however, account balances less than $1,000 (amended from $5,000 effective March 28, 2005) will be automatically distributed in cash after termination of employment if a distribution has not been requested. Employees working past age 70  1/2 may defer commencement of distributions until April 1 following the calendar year in which they terminate employment.

In the event of the participant’s death, payments will be made to the designated beneficiary. If the participant is married, the spouse is automatically the beneficiary, unless the participant designated an alternate beneficiary, which is consented to by the participant’s spouse as witnessed by a plan representative or notary public. If the participant is not married, and if no beneficiary was designated, payments go directly to the participant’s estate.

Subject to certain limitations, a participant may also withdraw all or part of his or her account that is vested upon attainment of age 59 1/2 or in the event of total disability.

Loans to Participants – Participants may borrow against their account balance according to the procedures as described in the Plan’s Summary Plan Description . Loans from the Plan must be repaid over one to five years for a regular loan and one to ten years for a primary residence loan. Participant loans are secured by the balance in the participant’s account and bear interest rate based on the prime lending rate (4.50% in 2005, 4.25% - 4.50% in 2004, and 4.25% in 2003). Loans will be repaid by deducting a set amount of principal and interest from each of the participant’s paycheck. The participant cannot borrow against the value of their retirement contribution and earnings even if they are vested. Generally, the participant may borrow up to 50% of the total vested value of the account with a minimum loan amount of $500 and a maximum of $50,000.

Forfeitures – Participant forfeitures are maintained by the Plan.

Amendment, Suspension and Termination – The Board of Directors of the Company (the “Board”) may amend or terminate the Plan, in whole or in part, at any time. No such amendment or termination, however, may have the effect of diverting any part of the net plan assets to any purpose other than for the exclusive benefit of the participants. Likewise, no amendment or termination may reduce the interest of any participant in the trust fund accrued prior to such amendment. The Board may, however, make such amendments, of retroactive effect if necessary, as are required or advisable to comply with the provisions of the Code and ERISA pertaining to savings plans and trusts.

 

6

In the event of termination, the Plan and the trust agreement may be kept in effect by the Board with respect to the contributions already made to the Plan, or the trust agreement may be terminated. If the trust agreement is terminated, assets of the trust fund, except for The BNY Company Stock Fund, shall be converted into cash and such cash shall be distributed to the participants in proportion to their respective interests. Participants in the BNY Company Stock Fund shall receive their proportionate share of the fund assets in The Bank of New York Company, Inc. common stock, and cash for any fractional shares.

Additional information regarding participants’ rights is provided in the Summary Plan Description.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the more significant accounting policies of the Plan:

Use of Estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Investment Valuation – The Plan’s investments are held by the Fidelity Trust Company, the custodian, and are reported at fair value. Loans to participants are valued at their outstanding principal balances.

Investment Transactions and Investment Income – Investment transactions are recognized on the trade date of the purchase or sale. Dividend income is recognized on the ex-dividend date. Interest income is recognized on an accrual basis.

Administrative Expenses – Certain administrative fees are paid for by the Company.

Tax Status – The Plan has applied for but has not received a determination letter from the Internal Revenue Service stating that the Plan is qualified under Section 401(a) of the Code. However, the plan administrator believes that the Plan is designed to comply with and is operating in accordance with the requirements in the Code, and, therefore, believes the Plan is qualified and the related trust is exempt from taxation.

 

7

3. INVESTMENTS

The fair values of individual investments that represent five percent or more of the Plan’s net assets available for benefits are as follows:

 

     December 31,
     2005    2004

Investments at Fair Value:

      

Fidelity Managed Income Portfolio Fund

    $ 51,905,437    $ 46,850,462

Alliance/Frontier Growth Fund

      16,437,169      16,228,971

The Plan’s investments (including gains and losses on investments bought and sold, as well as held during the period) appreciated in fair value as follows:

 

     Net Appreciation in Fair Value
     2005    2004   

From May 1 to

December 31,
2003

Core investment options

    $ 2,045,004    $ 3,171,726    $ 2,379,495

Asset allocation / life strategy funds

      368,381      395,655      391,220

Index funds

      312,674      488,270      250,879

Extended options

      6,401,288      8,158,797      6,914,916
                    
   $ 9,127,347    $ 12,214,448    $ 9,936,510
                    

The Plan’s investment in The Bank of New York Company, Inc. common stock earned dividend income of $48,262 in 2005 and zero in 2004 and 2003.

 

8

SUPPLEMENTAL SCHEDULE

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS HELD AT END OF YEAR

 

Identity of Issue,

Borrower, Lessor or

Similar Party

    Number of
Shares Held		    Fair Value

    Core Investment Options

      

*  Fidelity Managed Income Portfolio Fund

    51,905,437    $ 51,905,437

    Alliance/Frontier Growth Fund

    1,135,948      16,437,169

*  Fidelity Growth and Income Fund

    36,773      1,264,984

    Vanguard Institutional Index Fund

    89,997      10,260,515

    Vanguard Capital Opportunity Fund

    14,940      1,140,105

*  Fidelity Diversified International Fund

    45,652      1,485,526
         

Total Core Investment Options

       $ 82,493,736
         

    Asset Allocation/ Life Strategy Funds

      

*  Fidelity Asset Manager Fund

    14,681    $ 235,634

*  Fidelity Asset Manager Growth Fund

    17,021      256,670

*  Fidelity Asset Manager Income Fund

    18,204      233,560

*  Fidelity Freedom Income Fund

    12,859      146,207

*  Fidelity Freedom 2000 Fund

    25,222      307,961

*  Fidelity Freedom 2010 Fund

    91,014      1,278,749

*  Fidelity Freedom 2020 Fund

    177,293      2,607,983

*  Fidelity Freedom 2030 Fund

    114,904      1,725,858

*  Fidelity Freedom 2040 Fund

    72,369      639,015

    Vanguard Life Strategy Conservative Growth Fund

    16,748      259,426

    Vanguard Life Strategy Growth Fund

    28,004      588,089

    Vanguard Life Strategy Income Fund

    29,112      392,714

    Vanguard Life Strategy Moderate Growth Fund

    8,337      153,985
         

Total Asset Allocation/ Life Strategy Funds

       $ 8,825,851
         

    Index Funds

      

*  Fidelity U.S. Bond Index Fund

    81,870    $ 892,382

    Vanguard Balance Index Fund

    21,204      420,254

    Vanguard Value Index Fund

    8,352      186,160

    Spartan U.S. Equity Fund

    273      12,050

    Vanguard Total Stock Market Fund

    24,518      735,552

    Vanguard Growth Index Fund

    21,041      579,472

    Vanguard Extended Market Index Fund

    7,846      268,950

    Vanguard Mid Cap Index Fund

    11,529      922,089

    Vanguard Small Cap Index Fund

    31,329      893,805

    Vanguard Euro Stock Index Fund

    4,427      287,946

    Vanguard Total International Stock Fund

    11,555      164,895

    Vanguard Pacific Stock Index Fund

    4,743      53,782

    Vanguard REIT Index Fund

    5,408      456,896
         

Total Index Funds

       $ 5,874,233
         

(continued on next page)

 

9

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

SCHEDULE H, LINE 4(i)—SCHEDULE OF ASSETS HELD AT END OF YEAR (Continued)

 

Identity of Issue,

Borrower, Lessor or

Similar Party

    Number of
Shares Held		    Fair Value

    Extended Options

      

*  Fidelity Fund

    6,773    $ 215,501

*  Fidelity Trend Fund

    616      35,232

*  Fidelity Ginnie Mae Fund

    44,248      480,096

*  Fidelity Contra Fund

    88,202      5,711,975

*  Fidelity Equity Income Fund

    6,760      356,804

*  Fidelity Growth Company Fund

    27,852      1,772,197

*  Fidelity Muni Income Fund

    204      2,621

*  Fidelity Value Fund

    20,184      1,531,549

*  Fidelity Government Income Fund

    117,243      1,186,502

*  Fidelity Select Healthcare Fund

    12,561      1,709,474

*  Fidelity Select Technology Fund

    21,326      1,346,751

*  Fidelity Independence Fund

    7,035      138,236

*  Fidelity OTC Portfolio Fund

    7,573      286,167

*  Fidelity Overseas Fund

    6,671      277,596

*  Fidelity Europe Fund

    4,276      153,805

*  Fidelity Pacific Basin Fund

    6,511      167,140

*  Fidelity Real Estate Investment Fund

    30,913      963,236

*  Fidelity Balanced Fund

    143,670      2,695,617

*  Fidelity International Discovery Fund

    11,509      364,368

*  Fidelity Capital Appreciation Fund

    68,033      1,707,620

*  Fidelity Convertible Securities Fund

    3,054      68,586

*  Fidelity Blue Chip Fund

    220,162      9,502,179

*  Fidelity Disciplined Equity Fund

    5,828      161,498

*  Fidelity Low-Priced Stock Fund

    133,560      5,454,607

*  Fidelity Worldwide Fund

    6,615      129,454

*  Fidelity Equity Income II Fund

    11,440      261,508

*  Fidelity Stock Selector Fund

    1,674      41,414

*  Fidelity Aggressive Growth Fund

    40,948      728,873

*  Fidelity Dividend Growth Fund

    163,035      4,693,775

*  Fidelity Export and Multinational Fund

    50,683      1,076,497

*  Fidelity Focused Stock Fund

    5,655      67,296

*  Fidelity Aggressive International Fund

    8,656      147,072

*  Fidelity Small Cap Independence Fund

    23,117      473,436

*  Fidelity Europe Capital Appreciation Fund

    9,841      216,700

*  Fidelity Latin America Fund

    34,964      1,118,161

*  Fidelity Japan Fund

    18,456      336,450

*  Fidelity Japan Smaller Companies Fund

    24,710      415,630

*  Fidelity Strategic Income Fund

    42,708      445,445

*  Fidelity Fifty Fund

    27,353      621,753

    PIMCO Total Return Fund

    235,889      2,476,836

    Alliance CCM Capital Appreciation I Fund

    18,409      363,955

    Brazos Small Capital Growth Fund

    3,362      62,764

    Alliance CCM Mid-Cap I Fund

    16,923      464,375

    T. Rowe Price New Horizons Fund

    11,165      354,376

    T. Rowe Price European Stock Fund

    3,566      61,192

(continued on next page)

 

10

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS HELD AT END OF YEAR (Continued)

 

Identity of Issue,

Borrower, Lessor or

Similar Party

    Number of
Shares Held		    Fair Value

Extended Options (continued)

      

PIMCO Global Bond I Fund

    22,153    $ 211,560

PIMCO High Yield Fund

    101,279      984,430

T. Rowe Price International Discovery Fund

    9,282      383,891

Neuberger Berman Partners Investment Fund

    25,155      705,610

PIMCO Long-Term Government I Fund

    154,607      1,700,678

T. Rowe Price New Asia Fund

    21,336      252,408

T. Rowe Price High Yield Fund

    36,796      254,260

DWS Global Thematic Fund

    7,973      241,511

Credit Suisse Fixed Income Fund

    356,233      3,476,834

T.Rowe Price New Era Fund

    31,021      1,274,943

American Century Ultra Investments Fund

    8,580      258,160

American Century International Growth Fund

    14,966      151,004

American Century Value Fund

    43,687      303,623

American Century Real Estate Fund

    18,943      482,098

American Century International Discovery Fund

    6,168      90,107

Morgan Stanley Institutional Emerging Markets Debt Fund A

    38,642      149,544

Morgan Stanley Institutional Large-Cap Growth Fund A

    10,936      213,141

Columbia Acorn Fund Z

    160,612      4,524,447

Columbia Acorn USA Fund Z

    18,744      506,638

Morgan Stanley Institutional U.S. Real Estate Fund A

    29,281      685,464

UBS Global Equity Fund

    8,110      102,992

Clipper Fund

    55,372      4,881,079

Oldmut Select Growth Fund

    2,637      61,541

Van Kampen Aggressive Growth A Fund

    3,924      61,757

ICAP Equity Portfolio Fund

    163      6,710

Janus Mercury Fund

    12,455      286,213

TIFI Templeton Emerging Markets Fund

    83,534      1,581,300

T. Rowe Price Mid-Cap Growth Fund

    73,763      3,993,550

Morgan Stanley Institutional Fund Trust CP FX Income Fund

    13,015      149,538

Morgan Stanley Institutional Fund Trust High Yield I Fund

    12,632      65,436

Morgan Stanley Institutional Fund Trust Equity I Fund

    1,633      20,074

Morgan Stanley Institutional Fund Trust U.S. Small-Cap Value Fund

    2,271      52,887

Morgan Stanley Institutional Fund Trust U.S. Mid-Cap Value Fund

    816      21,368

Morgan Stanley Institutional Fund Trust Value I Fund

    8,125      138,938

Morgan Stanley Institutional Fund Trust Mid-Cap Growth I Fund

    3,169      78,776

(continued on next page)

 

11

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS HELD AT END OF YEAR (Continued)

 

Identity of Issue,

Borrower, Lessor or

Similar Party

    Number of
Shares Held		    Fair Value

Extended Options (continued)

      

Neuberger Berman Genesis Trust

    77,536    $ 3,764,389

Oakmark Select I Fund

    189,270      6,226,969

Oakmark International I Fund

    83,524      1,880,981

Oakmark Fund I

    24,411      997,910

PIMCO StockPlus Institutional Fund

    11,724      118,766

T.Rowe Price Science & Technology Fund

    9,331      182,609

WFA Opportunity Fund

    3,350      150,295

T. Rowe Price Emerging Market Bond Fund

    32,267      438,838

T. Rowe Price Emerging Market Stock Fund

    45,047      1,156,810

T. Rowe Price Equity Income Fund

    27,010      700,098

USAA GNMA Trust

    26,453      253,688

USAA Income Stock Fund

    3,504      53,263

USAA Growth Fund

    2,080      31,653

T. Rowe Price Small-Cap Value Fund

    81,111      2,993,815

Templeton Growth Fund Class Advisor

    17,831      409,216

Vanguard International Value Fund

    36,299      1,263,939

Vanguard Strategic Equity Fund

    87,394      1,916,553

Vanguard Global Equity Fund

    79,034      1,541,949

Vanguard Morgan Growth Fund

    29,258      518,155

Vanguard Selected Value Fund

    65,035      1,226,569

Credit Suisse Capital Appreciation Fund Common Class

    2,284      39,491

Credit Suisse Mid Cap Growth Fund

    2,230      74,198

Credit Suisse Global Fixed Income Fund Common Class

    10,904      103,693

American Funds AMCAP Fund A

    147,199      2,814,454

American Funds American Mutual Fund A

    12,497      328,284

American Funds Capital Income Builder Fund A

    21,663      1,148,786

American Funds Capital World Growth & Income Fund A

    43,549      1,592,572

American Funds Euro Pacific Growth Fund A

    13,778      566,309

American Funds Fundamental Investment Fund A

    3,144      111,296

American Funds Growth Fund of America Fund A

    137,277      4,236,378

American Funds Investment Co of America Fund A

    10,089      316,405

American Funds New Economy Fund A

    10,008      234,591

American Funds New Perspective Fund A

    13,485      386,081

American Funds Small Cap World Fund A

    490      17,285

American Funds Washington Mutual Fund A

    11,124      343,069

Van Kampen Emerging Growth Fund A

    5,100      212,367

(continued on next page)

 

12

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS HELD AT END OF YEAR (Continued)

 

Identity of Issue,

Borrower, Lessor or

Similar Party

    Number of
Shares Held		    Fair Value

Extended Options (continued)

      

T. Rowe Price Financial Services Fund

    22,795    $ 481,888

American Funds New World Fund A

    596      23,053

ICAP International Equity Fund

    2,557      84,106

PIMCO Emerging Market Bond Instituional Fund

    98,013      1,093,825

PIMCO Real Return Fund

    158,915      1,760,783

T. Rowe Price Media & Telecomm Fund

    13,705      460,348

Vanguard Convertible Securities Fund

    2,037      27,295

ICAP Select Equity Fund

    8,689      314,279

Janus Aspen Mid Cap Growth Fund

    4,361      126,558

Munder Internet Fund A

    15,560      321,480

Needham Growth Fund

    44,279      1,580,322

Janus Aspen International Growth Fund I

    7,393      262,658

Credit Suisse Large Cap Value Fund A

    225,679      4,360,121

Janus Aspen Large-Cap Growth Institutional Fund

    3,323      69,322

Janus Aspen 40 Institutional Fund

    7,228      200,069

Vanguard Inflation-Protected Securities Fund

    143,613      1,746,333

American Funds Growth Fund America Fund A

    50      1,546

Vanguard Equity Income Fund

    1,412      67,451

Vanguard Growth & Income Fund

    8,854      461,109

Vanguard International Growth Fund

    53,996      3,607,459

Vanguard Wellesley Fund

    6,042      127,302

Vanguard Wellington Fund

    11,238      589,217

Vanguard Windsor II Fund

    47,978      2,668,512

Dreyfus Founders Equity Growth Fund

    36,733      188,440

Dreyfus Founders Growth Fund

    5,259      58,431

Dreyfus Founders Mid Cap Fund

    6,478      30,639

Alliance Bernstein Technology Fund

    4,854      299,214

Templeton Global Bond Fund

    14,667      150,923

MFS Emerging Growth Fund I

    553      19,629

MFS Massachusetts Investors Growth Stock Fund I

    3,156      41,220

(continued on next page)

 

13

THE RETIREMENT SAVINGS PLAN OF PERSHING LLC

SCHEDULE H, LINE 4(i) - SCHEDULE OF ASSETS HELD AT END OF YEAR (Continued)

 

Identity of Issue,

Borrower, Lessor or

Similar Party

   

Number of

Shares Held

    Fair Value

    Extended Options (continued)

      

    MFS Research International Fund

    66    $ 1,462

    Credit Suisse Large Cap Value Fund

    129,269      142,195

    WFA Growth Institutional Fund

    3,893      85,303

    Vanguard Capital Value Investment Fund

    10,184      118,847

    DWS RREEF RE SECS Fund

    14,361      298,843

    Vanguard Energy Fund

    40,801      4,294,263

    Vanguard Explorer Fund

    6,626      463,210

    Vanguard Primecap Fund

    37,583      2,546,966

    Vanguard Windsor Fund

    6,855      396,741

    AIM Constellation Fund I

    4,257      114,721

    American Century Global Gold Investments Fund

    42,887      664,750

    Putnam Vista Fund

    36,999      410,314

    Credit Suisse High Income Fund

    31,390      243,902

    Credit Suisse Global Small Cap Fund

    262      5,557

    Asset Allocation Growth Fund

    44      697

    Tifi Temple Foreign Equity

    4,168      92,987

    USAA International

    247      5,768

    Columbia Convertible Securities A

    711      12,135

*  BNY Company Stock Fund

    166,023      1,768,146
         

Total Extended Options

       $ 150,440,892
         

Loans to Participants

    Various loans at various
rates due from one to
ten years		    $ 7,482,274
         

TOTAL INVESTMENTS

       $ 255,116,986
         

 

* Represents a party-in-interest

 

14