Fund Administration Challenges and Opportunities in 2010

FUND ADMINISTRATION

Hard work at
the coal face
There is no denying it, 2010 was a tough year, according
to our fund administration survey respondents.
Nicholas Pratt finds out what sizeable challenges they faced

Fund managers’ demand for product flow According to Catherine Brady, head of the European Union and the United States,
placed pressure on custodian banks and fund services Emea (Europe, Middle East such as Ucits IV, Solvency II and the
other providers of fund administration and Africa) at Citi, the principal challenge Alternative Investment Fund Management
services throughout 2010 as the industry of last year was managing the new flow Directive.
grappled with squeezed revenues. of product needs from asset management Fund administrators’ revenues were also
Regulation and a general rise in complexity clients in the post-crisis environment, as under threat, says Tim Keaney, chief
were also challenges. But at least fund flows well as understanding and interpreting executive officer at BNY Mellon Asset
were up, Fund Europe’s annual survey shows. the wave of new regulations coming from Servicing. “The persistent low interest rate

46

environment globally challenged all services such as FX overlay and FX funds support clients seeking distribution
custodians’ net interest revenue. Securities were important. For others there was a opportunities in emerging markets. And in
lending and FX revenues remain renewed focus by clients on managed 2011, it is highlighting the continued
significantly below historic highs. accounts. Several administrators reported a improvements of these links, between
“At the same time our clients continued to great demand for reporting services, whether Europe and emerging markets, in support of
be challenged by ever-greater complexity – that be cross-border tax reporting (JP cross-border distribution via Ucits, as an
new instruments, investment models, Morgan), online transfer agency reporting area of concentration. As Geoffrey Cook,
distribution, and regulatory reform. This in (Northern Trust), Ucits risk reporting (BNY partner at Brown Brothers Harriman, says:
turn challenged us to keep building the Mellon) or even environmental, social and “Particular decisions relating to the location
flexible and scaleable solutions they need, governance (ESG) reporting (State Street). and use of management company
which required significant dollar For those administrators focused more on passporting and a review of the application
reinvestment in intellectual capital and new alternative managers, plenty of business was of product bifurcation between Ucits and
technology. Meanwhile, margins continued concentrated on the sophisticated Ucits non-Ucits will become critical.”
to be squeezed as clients sought to reduce market as well as the redomiciling of funds
their own costs.” from offshore to onshore. There was also a Issues and challenges for 2011
Some administrators talk of a growing
Net inflows confidence as markets rise again.
On the positive side, net inflows were up “Existing clients are starting to look to
for the year. The survey shows that the total create more innovative products and
net inflow figure was $619.92bn ‘The persistent low services again,” says Andre le Roux, head of
(€880.29bn). (This excludes State Street, interest rate business development at Maitland.
which did not split out its administration Furthermore, clients want to get their new
inflows from its custody inflows. State environment globally products to market as quickly as possible.
Street's combined inflows were $2,036bn). challenged all Consequently, administrators will find that
All but one of the respondents reported they need to innovate at a pace far greater
positive net inflows. custodians’ net than in the past.
There were 1,828 mandates won and 1,974 interest revenue’ While there is some optimism in terms of
retained in 2010. There was a wide variation prospects for 2011, there is also a recognition
in terms of asset size, client type and product among fund administrators that the
type. The size of these mandates varied from challenges of 2010 will persist into this year,
€0.094bn (Swedbank) to €202bn (Bank of not least the regulatory burden. “We must
New York Mellon). And the client types need to provide lines of liquidity for hedge continue to keep pace with the evolving
included the traditional (US mutual funds, funds and funds of hedge funds as noted by client complexity and challenges paralleled
global fund managers, insurance companies Deutsche Bank AFS. “Raising capital in by regulatory challenges and ensure we
and multi-national pension plans) to the 2010 was certainly very difficult for the small capitalise on the opportunities to provide a
alternative (hedge funds, funds of funds and to mid-size manager which has in turn
private equity). lengthened the launch time of new funds,”
But the biggest variation was in the product says Mike Hughes, the managing director.
types requested by both the traditional and
alternative clients. For example, fund Destinations
managers were increasingly looking for In terms of destinations, the most notable
multi-asset strategies and exchange-traded development was the focus on
funds while the alternative hedge funds were wider international distribution as
seeking real estate funds, commodity trading administrators looked beyond the traditional
advisers, bank debt and managed accounts. confines of Europe. This included both
the established markets such as the
Product development United States as well as the
With such a wide array of investment popular emerging markets in
strategies evident in the new mandates won Asia, the Middle East and
by fund administrators, it was no surprise South America.
that 2010 saw a large increase in the Developing links to these
development of new services and products. markets is going to be a key
In fact, so wide-ranging was the list of focus for administrators in 2011.
products provided that it is difficult to pick Citi, for example, cited that a key
any major trends. focus during 2010 was the establishment of
For some administrators, FX-related links between Europe and Asia in order to

47

FUND ADMINISTRATION

result, both for our clients and for ourselves,” of outsourcing other non-core aspects of
says Marcel Guibout, Emea mutual fund their business [in addition to Ucits IV
administration product head at JP Morgan ‘We anticipate an requirements],” says Pierre Cimino, member
Worldwide Securities Services. of the executive committee at Caceis.
The implementation of Ucits IV is likely to
increased demand for The France-based administrator is not
produce several such opportunities, says alternative Ucits and alone in this as many asset servicing
Guibout, such as the production of the Key providers look to expand their outsourcing
Investor Information Document (Kiid) and
for more complex services beyond the traditional back-
any other operational issues that might arise product types in the office functions, such as traditional
in the early years of adoption. fund administration, and more into middle-
This view is supported by Rob Wright,
regulated environment, office functions such as valuations and
global head of product and client segments in particular real estate reporting. This explains the focus on
at RBC Dexia Investor Services. “The advanced performance and risk reporting
implementation of Ucits IV will bring
and private equity’ (Swedbank), as well as the development of
significant change and challenges to the support services for securities lending,
fund management industry and this collateral management, counterparty risk
heightened regulation – particularly in management and also over-the-counter
areas such as risk monitoring and derivatives trading and the challenges that
compliance – may help protect and greater use of central counterparties, and
maintain the reputation of Ucits funds and a greater need for independent valuations,
increase their market attractiveness, will bring. fe
particularly alternative investment managers
looking to further develop fund products that
are Ucits-compliant.”
Administrators focused on the hedge fund
market will continue to see the smaller funds
struggle for capital, says Deutsche Bank’s
Hughes, despite the fact that hedge fund
indices have enjoyed a good start to 2011.
“Smaller managers have started to get some
traction as well. However, the challenge for
them to grow will be significant given capital
is flowing in a waterfall from the $5bn funds
downwards to the sub-$100m funds.”
For those alternative funds that do manage
to raise capital, it is likely that the main area
of demand will be in the alternative Ucits
space, says André Valente, who heads fund
services business development, client
relationships and marketing at UBS. “We
anticipate an increased demand for
alternative Ucits and for more complex
product types in the regulated environment,
in particular real estate and private equity.”

Outsourcing
Given the pressures facing fund managers in
terms of regulation and reporting, allied
with market conditions that are still creating
relatively little in terms of returns or capital
flows, it is no surprise that administrators are
looking to promote the benefits of
outsourcing to the market.
“Another challenge in 2011 is convincing
the asset management industry of the benefits

48

SURVEY RESULTS

Weights and measures
Twenty-one companies responded to Funds Europe’s annual survey.
Here is an indication of how they performed over 2010.

ASSETS UNDER ADMINISTRATION MANDATES WON & RETAINED IN 2010
AT 31 DECEMBER 2010 (RANKED HIGHEST TO LOWEST) (IN ALPHABETICAL ORDER)

COMPANY Global (€billion) Funds domiciled COMPANY Won in 2010 Retained in 2010
in Europe only, €bn
JP Morgan WSS 5,440 768 Alceda 15 65
BNY Mellon 2,679 1,102 BBH 91 n/d
Caceis 1,150.2 1,128.3 BNP Paribas n/d n/d
Citi 1,082 501 BNY Mellon 237 236
RBC Dexia 795 n/a Bank of Ireland 6 65
BBH 775 220 Caceis n/d n/d
BNP Paribas 771 600 Capita n/d n/d
Northern Trust 754 232 Custom House 40 all
HSBC 749.8 428.3 Citi 167 26
Soc Gen 455 462.5 Deutsche Bank 30 120
UBS 313 233 HSBC 296 7
SEI 300 32 Ipes 8 72
Bank of Ireland 110 90 JP Morgan 118 n/a
Maitland 57 0.5 Maitland 209 1,088
Custom House 44.7 14.7 Northern Trust 181 26
Capita 41.6 41.6 RBC Dexia 227 20
Deutsche Bank 40.8 11.5 SEI n/a n/a
Ipes 30.5 30.5 Soc Gen 30 190
Swedbank 10.3 10.3 State Street n/a n/a
Alceda 4 4 Swedbank 6 8
State Street n/a n/a UBS 60 313

50

TOP THREE MANDATE WINS IN 2010 (bn)

Company € Client type Product type
Alceda 1 Pension Plan SIF
0.25 Fund manager Ucits III
0.22 Fund manager Ucits III
NAVS – AVERAGE PER
BBH 120 Fund manager RICs, variable annuities, 529 plans, separate accounts
MONTH IN 2010
33 Fund manager Sicav, FCP
7.5 Fund manager Ucits, Trust
Company Av/month
BNP Paribas n/d n/d n/d
HSBC 728,332
BNY Mellon 202 Fund manager US mutual funds
Soc Gen 682,259
98 Fund manager Global funds
BNY Mellon 198,000
32.5 Fund manager Offshore funds
State Street 179,919
Bank of Ireland 3 Investment bank Structured products
RBC Dexia 163,098
1 Asset manager Fund of funds
BNP Paribas 87,000
1 Hedge fund Multi-asset
Northern Trust 66,000
Caceis n/a n/a n/a
Bank of Ireland 35,000
Capita n/d n/d n/d
BBH 34,600
Custom House 0.45 Hedge fund/managed account platform CTA
Citi 25,890
0.12 Private equity Real estate
UBS 16,809
0.1 Hedge fund/FoF Multi-asset
Capita 3,814
Citi n/a Insurance Offshore fund
Custom House 3,016
n/a Alternative AM AI
JP Morgan 2,817
6 Asset manager Offshore fund
SEI 2,000
Deutsche Bank 4.4 Investment bank Private equity FoF
Swedbank 1,800
4.2 Investment bank Infrastructure
Maitland 1,222
2.9 Hedge fund Bank debt
Deutsche Bank 325
HSBC 5 Private equity FoF Multiple
Ipes 75
2.1 Hedge fund n/d
1 Fund manager n/d Caceis n/a
Ipes 0.87 Fund manager Private equity fund Alceda n/d
0.85 Fund manager Private equity buyout fund
0.45 Fund manager Private equity FoF
JP Morgan 2.2 Investment manager Multi-asset NET FLOW DURING 2010
0.63 Asset manager Mutual fund
0.46 Asset manager Mutual fund
Maitland n/d n/d n/d Company +/- €billion
Northern Trust 34 Investment manager Outsourcing Alceda +2
29 Investment manager Outsourcing BBH +351
16 Pension Outsourcing BNP Paribas +43
RBC Dexia 7 Funds Transfer funds BNY Mellon n/d
3 Bank Funds Bank of Ireland -10
1 Insurance Custody Caceis +89.7
SEI 3.65 Multi-strat credit Multiple Capita +3.5
1.45 Family office Multiple Custom House +7.1
0.59 Multi-product Multi Citi +92
Soc Gen 3.66 Asset manager Private equity, hedge funds, real assets Deutsche Bank +20
3.39 Asset manager n/d HSBC +3.5
0.31 n/d n/d Ipes +5
State Street n/d Pension plan Pension fund JP Morgan +17
n/d Bank overseeing pension fund Real estate fund Maitland n/a
n/d Bank various Northern Trust +39
Swedbank 0.29 Fund manager Multi-asset RBC Dexia n/d
0.24 Fund manager FoF SEI n/a
0.09 Fund manager Multi-asset Soc Gen +5.2
UBS 17 Social security Multi-asset State Street n/a
8.5 Bank Multi-asset Swedbank 0.3
4 Pension fund Multi-asset UBS n/a

51

DIRECTORY

Fund
admin
guide
The necessary facts and
figures of the administrators
who responded to our survey

€0.25bn / Fund manager / Ucits III
€0.22bn / Fund manager / Jean-Marc Crepin (Luxembourg)
ALCEDA Senior executives:
Alceda Fund Management SA
36 avenue du X Septembre Ucits III Managing director (MD)
2550 Luxembourg
tel: +352 248 329 1 Sean Pairceir (Dublin)
Luxembourg, Germany, Switzerland Partner
Representative offices (Europe) in:
fax: +352 248 329 444
email: info@alceda.lu
web: www.alceda.lu Geoffrey Cook (Luxembourg)
Tailor-made products Partner
Specialist services or skills offered:

Germany
The Alceda Star Free Career
Country of origin: 2010 product launches / developments:
4 years
Concept Global AuA: €775bn
Operating in Europe: Funds under administration at 31/12/10

World Education Index Certificate Domiciled in Europe: €220bn
Michael Sanders (Luxembourg) The Mama Sustainability Fonds 01 Net flow during 2010: +€351bn
Senior executives:

Chief executive officer (CEO) Av. NAVs per month 2010: 34,600
Germany Mandates won in 2010: 91
2010 geographic focus:

Helmut Hohmann (Luxembourg) Europe
Chief communications officer (CCO) Americas
€152.1bn / Fund manager / RICs
Biggest-by-AuA client:

Russia long/short equity Ucits III Variable annuities, 529 plans, separate
2011 product growth/development focus:
Marc Kriegsmann (Luxembourg)
Chief finance officer (CFO) Wind and solar power plants SIF accounts
Service harbour in S Europe
€0.026bn / Fund manager / RICs
Smallest-by-AuA client:
Uwe Krönert (Luxembourg)
Asia
2011 focus on these geographies:
Chief operating officer (COO)
India
United States €120.0bn / Fund manager / RICs,
Top Three mandate wins in 2010:

Global AuA: €4.0bn Variable annuities, 529 plans, separate
Funds under administration at 31/12/10

Domiciled in Europe: €4.0bn accounts
€33.0bn / Fund manager / Sicav, FCP
BBH
Net flow during 2010: +€2.0bn Brown Brothers Harriman
Mandates won in 2010: 15 140 Broadway €7.5bn / Fund manager / Ucits, Trust
Mandates retained in 2010: 65 New York 10005
USA
Ireland, Luxembourg, Switzerland, UK
tel: +1 212 493 1818
€1bn / Pension plan / SIF
web: www.bbh.com

ETF (exchange traded fund) services
USA
€1bn / Pension plan / SIF REIF (real estate inv. fund) services
Top three mandate wins in 2010: Country of origin:
Operating in Europe: 35 years

54

Private equity & alternative fund services collateral management, full suite of France, Ireland, Luxembourg, Poland.
Offshore funds services performance and risk (ex-ante and ex-post)
Derivatives processing solutions measurements and reporting, pooling, cross- Derivatives360

Infomediary® connectivity solutions border fund distribution support (local and GASB reporting/compliance
regional TA) Portfolio stress testing
Securities lending Fair value pricing
2010 product launches/developments:

Global fund servicing model Eagle PACE
Infomediary® Ucits IV Kiid reporting pack, Kiid / SRRI Access

monitoring dashboard, Kiid / SRRI simulation Investor analytics risk solutions
Asia MasterSuite for pension funds: includes

Luxembourg reporting and net asset valuation (Nav)
Dublin AlphaSuite for alternative asset managers Derivatives360

Ucits risk reporting
Transfer agency connectivity (Infomediary®) Money market stress testing

Global transfer agency service Europe (esp Belgium and Netherlands)

Fund distribution support services Asia Europe

Middle East and Africa
Asia Ucits funds support esp. in Asia Asia
2011 focus on these geographies: 2011 product growth/development focus:

Luxembourg Ucits IV master-feeder integrated service
Dublin Reporting in preparation for Solvency II Distribution and marketing support

Distributor workbench
Europe Distribution support consultancy

Asia (AlphaSuite Asia for asset managers) Derivatives lifecycle management
BNP PARIBAS
BNP Paribas Securities Services
9 rue du Débarcadère Latin America Continuing development of
93500 Pantin Derivatives360
France New operating models for Ucits funds
Transfer agency
BNY MELLON
tel: +33 1 42 98 1000 BNY Mellon Asset Servicing
fax: +33 1 42 98 04 33 One Canada Square, Canary Wharf Fund administration
London E14 5AL Investment manager solutions
BP2S_Corporate_comms@bnpparibas.com
email:
UK
Europe
web: http://securities.bnpparibas.com tel: +44 20 7570 1784
web: www.bnymellon.com Middle East and Africa
Country of origin: France Asia
Operating in Europe: 78 years Country of origin: USA
36 years BANK OF IRELAND
Bank of Ireland Securities Services
Operating in Europe:

Patrick Colle (Pantin, Paris) New Century House, Mayor Street Lower
Senior executives:

CEO Nadine Chakar (New York) IFSC Dublin 1
Senior executives:

Head of global financial institutions Ireland
Philippe Ricard (Pantin, Paris) tel: +353 1 670 0300
Head of asset and fund services (AFS) Frank Froud (London) web: www.boiss.com
Head of Emea asset servicing
Bernard Tancre (Luxembourg) Ireland
Head of product management AFS
Country of origin:
Tim Keaney (London) Operating in Europe: 40 years
CEO BNY Mellon asset servicing

Global AuA: €771bn Deirdre Flannery (Dublin)
Funds under administration at 31/12/10 Senior executives:

Domiciled in Europe: €600bn MD
Funds under administration

Net flow during 2010: +€43bn Global AuA: €2,679
at 31/12/10

Av. NAVs per month 2010: 87,000 Domiciled in Europe: €1,102 Fearghal Woods (Dublin)
Mandates won in 2010: n/d Net flow during 2010: n/d Global head of business development
Mandates retained in 2010: n/d Av. NAVs per month 2010: 198,000
Mandates won in 2010: 237 Liam Butler (Dublin)
Mandates retained in 2010: 236 Global head of client relationship
€250bn / Fund manager / Ucits management

n/d
€0.150bn / Fund manager / UCI Paul Heffernan (Dublin)
Smallest-by-AuA client: Biggest-by-AuA client:
n/d
Head of UK & European business

development
France, UK, Germany, Luxembourg,
€202bn / Fund manager / US mutual
Top three mandate wins in 2010:

Belgium, Netherlands, Spain, Italy, Isle of funds
Man, Ireland, Switzerland, Poland, Jersey, Global AuA: €110
€98bn / Fund manager / Global funds
Hungary, Portugal, Greece, Guernsey, Turkey €32.5 bn / Fund manager /Offshore funds Domiciled in Europe: €90
Net flow during 2010: -€10bn
UK, Denmark, Germany, Italy, Spain Av. NAVs per month 2010: 35,000

OTC derivatives middle and back office, Mandates won in 2010: 6
Netherlands, Russia, Switzerland, Belgium,

55

DIRECTORY

Mandates retained in 2010: 65
Global AuA: €1,150.2bn Global AuA: €41.6bn
Funds under administration at 31/12/10 Funds under administration at 31/12/10

€6bn / Fund manager / Multi-asset Domiciled in Europe: €1,128.3bn Domiciled in Europe: €41.6bn

Net flow during 2010: +€89.7bn Net flow during 2010: +€3.5bn
€3m / Hedge fund / Multi-asset Av. NAVs per month 2010: n/a Av. NAVs per month 2010: 3,814

Mandates won in 2010: n/d
Mandates retained in 2010: n/d
€3bn / Investment bank / Structured UK, Dublin, Guernsey
Top three mandate wins in 2010: Representative offices (Europe) in:

€1bn / Asset manager / Fund of funds
€1bn / Hedge fund / Multi-asset +/-€300bn / Asset manager / various

Authorised corporate director
n/a
Investment managers management

Ireland and UK Company solutions
n/d
Company secretarial

Special purpose vehicle
We cover a wide range of specialised France, Luxembourg, Ireland
Specialist services or skills offered: Representative offices (Europe) in:

products including multi-manager funds, Switzerland, Germany, Belgium
property funds, hedge funds and fund of Netherlands Calastone settlement/reconciliation

hedge funds, mutual funds, money market package
funds, and structured products for off-shore Stock lending
and on-shore structures. BoISS is regarded as Hedge fund and FOHF valuations, Virtual

a ETF service provider in Europe and has pooling, Cloning, Securities lending, Equity UK and Dublin

serviced some of the largest players in the finance, Prime brokerage,
physical and synthetic ETF space Rolling out Calastone software

into Ireland
Newcits and Ucits set-up service

ETFs Redomiciliation of offshore funds UK and Dublin
2010 product launches/developments: 2011 focus on these geographies:

Structured products Restructuring Ucits funds for
Regulated hedge funds Ucits IV CITI
Citi, Citigroup Centre, Canada Square,
Europe Luxembourg, Ireland (Ucits hubs)
2010 geographic focus: 2010 geographic focus:
Canary Wharf
USA London E14 5LB
Asia Outsourcing and value-added
UK
services tel: +44 20 7986 6000
ETFs Improving fund distribution support
fax:: +44 20 7500 2308
Structured products Securities lending email: gene.peterson@citi.com
Regulated hedge funds web: www.transactionservices.citigroup.com
Latin America

Europe Asia
USA
USA Benelux
Country of origin:
40 years
Asia

CAPITA
Capita Financial Group Sanjiv Sawhney (Luxembourg)
Senior executives:

42-47 Minories Global head of fund services
CACEIS
Caceis Investor Services
1-3 place Valhubert London EC3N 1DX
75206 Paris Cedex 13 UK Catherine Brady (Dublin)
France tel: +44 870 607 2555 Head of fund services Emea
tel: 33 1 57 78 00 00 web: www.capitafinancial.com
email: info@caceis.com Marion Mulvey (Dublin)
web: www.caceis.com Country of origin: UK Head of Emea alternative investments
Since mid-70’s
Bernard Hanratty (Dublin)
France
Investor services franchise director
Country of origin:
25+ years
Chris Addenbrooke (Leeds)
Operating in Europe: Senior executives:

CEO Funds under administration
François Marion (Paris)
Senior executives:

Karl Midl (London) Global AuA: €1,082bn
at 31/12/10
CEO
Director, relationship management and Domiciled in Europe: €501bn
Jean-Pierre Michalowski (Luxembourg) product development Net flow during 2010: +€92bn
Deputy CEO Av. NAVs per month 2010: 25,890
Sylvie Philippot (Paris) Jackie Millan (London) Mandates won in 2010: 167
Deputy CEO Finance director Mandates retained in 2010: 26

PierreCimino (Luxembourg) Christine Hayes (Leeds)
Operations director €237bn / Insurance /
Member of the executive committee

56

DIRECTORY

Various email: infoAFS@list.db.com
Dermot S L Butlern (Malta and Dublin)
Senior exeutives:
web: www.dbafs.com
€0.05bn / Asset manager / Group chairman

Offshore fund Germany
David P.M. Blair (Malta & Dublin)
Country of origin:
30 years
Group CEO

n/a / Insurance / Offshore fund Mike Hughes (London)
Top three mandate wins in 2010: Senior executives:

n/a /Alternative AM / AI Mark Hedderman (Malta & Dublin) Head of alternative fund services Emea
€6bn / Asset mgr / Offshore fund Group chief operating officer
Jason Brandt (London)
Kevin Caruana (Malta) Head of client services Emea
Austria, Belgium, Bulgaria, Czech MD

Republic, Denmark, Finland, France, John Sergides (London)
Germany, Greece, Hungary, Ireland, Product strategy Emea
Italy, Jersey, Luxembourg, Monaco,

Netherlands, Norway, Poland, Portugal, Global AuA: €44.72bn Tom Dolan (Dublin)
at 31/12/10

Romania, Russia, Serbia, Slovakia, Domiciled in Europe: €14.67bn Head of client services – Dublin office
Spain, Sweden, Switzerland, Turkey, Net flow during 2010: +€7.14bn
Ukraine, UK Av. NAVs per month 2010: 3,016
Mandates won in 2010: 40 Global AuA: €40.8bn

Mandates retained in 2010: all Domiciled in Europe: €11.5bn
Cross-border asset pooling, Offshore Net flow during 2010: +€20bn

fund distribution support services, Av. NAVs per month 2010: 325
External fund link administration (UK), €8.79bn / Hedge fund / Multi-asset Mandates won in 2010: 30

Ucits IV KII services, Market-leading long Mandates retained in 2010: 120
only & AI capability, Private equity <€50k / Hedge fund / Multi-asset

administration, Asset allocation solutions,
Multi-manager fund solutions, OTC / €0.45bn / Hedge fund – managed €8.5bn / Investment bank / Managed
Top three mandate wins in 2010: Biggest-by-AuA client:

complex instrument pricing, Financial account platform/ CTA account & unitised account / DB global
regulatory reporting, Directors payroll tax €0.12bn / Private equity / Real estate fund derivatives
services, Share-class hedging service €0.10bn / Hedge fund – FoF / Multi-asset
€0.001bn / Hedge fund / Long-short

Cross-border distribution support Guernsey, Ireland, Luxembourg,
2010 product launches/developments: Representative offices (Europe) in:

for Ucits Netherlands, Malta €2.9bn / Hedge fund / Bank debt

Nav process automation model €4.4bn / Investment bank / PE FoF
PE administration services in Emea €4.2bn / Investment bank /
Chariot web reporting platform Infrastructure

UK Chariot dealing platform

Middle East
Europe-Asia links to support distribution London, Dublin, Luxembourg, Jersey,

opportunities in emerging markets Managed accounts/managed account Amsterdam

platforms
Cross-border distribution support Nascent emerging manager fund product

for Ucits Chariot dealing platform Liquidity lines (credit), FX overlay,

Enhanced transfer agency reporting Fund of hedge fund / alternative asset
Ucits IV key investor information USA custody and safekeeping,

China and Hong Kong Trustee and depository services,
Western European footprint, eg, Sweden India Corporate services (SPV administration),

Deepen emerging market capabilities Cash management,
Links between emerging market and An efficient middle-office product Vendor payables,

Europe to support cross-border distribution Nascent US fund Online FoHF trade order management,
Comprehensive middle-office programme ETFs, Financial statement preparation

South America, particularly Brazil
CUSTOM HOUSE 2011 focus on these geographies:
Custom House Global Fund Services Ltd
India Liquidity lines for FoHF
Tigne Towers, Tigne
Sliema SLM 3172 Further develop the US market FX overlay
Malta ETF
tel: +356 2258 2100
Germany
DEUTSCHE BANK 2010 geographic focus:
Deutsche Bank Alternative Fund Services
kevin.caruana@mt.customhousegroup.com 1900 Wright Place, Suite 100 Europe, the Middle East and Africa (Emea)
email:

web: www.customhousegroup.com Carlsbad 92008 USA
USA
Ucits
Malta tel: +1 760 918 4900
Middle-office services
Country of origin:
Operating in Europe: 18 years fax:: +1 760 804 9304

58

Passive hedging product for Ucits. In-house designed investor web portal
Dublin New fund start-up service

Hong Kong Luxembourg (growing Ucits capability) Dedicated carry scheme service

USA UK
Ireland
Sif / Sicar structures (new Lux office)

HSBC Amanah securities services Swift interface (on banking platform)
HSBC 2011 product growth/development focus:
HSBC Securities Services
8 Canada Square Solvency II product for Europe. Listed funds service (CISX membership)
London E14 5HQ ETF synthetic swap model
UK, esp. building outsourcing practice
UK
Luxembourg (Ucits capability) Luxembourg / Western Europe
web: www.hsbcnet.com/hss
UK Russia / CEE
UK Ireland
Middle-office offering
Country of origin: 2011 product growth/development focus:

Portfolio monitoring solution
Listed funds offering: AIM, CISX and LSE
IPES
Mike Martin (London) Ipes, 1 Royal Plaza, Royal Avenue
Senior executives:

Global head of fund services St Peter Port GY1 2HL Compliance offering
Guernsey
UK
Richard Godfre (London) tel: +44 1481 713 843
Head of fund services Europe fax:: +44 1481 715 219 Western Europe
email: info@ipes.com Nordic region
Paul Stillabower (London) web: www.ipes.com
Global head of business development JP MORGAN
fund services Guernsey JP Morgan Worldwide Securities Services,
125 London Wall
Country of origin:
13 years
Carole Anderson (London) London EC2Y 5AJ

Head of business development fund UK
services Europe Kevin Brennan (Guernsey)
Senior executives:
tel: +44 20 7777 2000
CEO web: www.jpmorgan.com

Global AuA: €749.81bn Gavin Hayman (Guernsey)
USA
Domiciled in Europe: €428.28bn CFO
Country of origin:
36 years
Net flow during 2010: €3.53bn*

Barry McClay (Guernsey)
COO Susan Ebenston (London)
Senior executives:

Managing director
*Excludes any net movement for FX

Justin Partington (London) Global fund services product head
impact, Market change or net Subs/Reds

Av. NAVs per month 2010: 728,332 Commercial director
Mandates won in 2010: 296 Christopher Edge (London)
Mandates retained in 2010: 7 Managing director
Global AuA: €30.5bn Emea fund services product executive

Domiciled in Europe: €30.5bn
€64.8bn / Insurance / Fund admin, Net flow during 2010: +€5bn Marcel Guibout (London)

Custody, NII, FX, Lending, Trustee Av. NAVs per month 2010: 75 Executive director, Emea mutual fund
Mandates won in 2010: 8 administration product head
€0.15bn / Asset manager / Fund admin, Mandates retained in 2010: 72

NII, FX, Trustee Francis Jackson (London)
Managing director, worldwide securities
€6.5bn / Fund manager / PE fund services sales regional executive Emea

€2.1bn / Hedge fund

€5.03bn / Private equity FoF / Multiple €0.13bn / Fund manager / PE FoF

€1bn / Fund manager Global AuA: €5,440bn

Domiciled in Europe: €768bn
€0.87bn / Fund manager / PE fund Net flow during 2010: +€17bn

Germany, Guernsey, Ireland, Luxembourg €0.85bn / Fund manager / PE buyout fund Av. NAVs per month 2010: 2,817

Malta, UK €0.45bn / Fund manager / PE FoF Mandates won in 2010: 118
Mandates retained in 2010: n/a

Middle-office support; UK, Luxembourg, Jersey, Guernsey

Alternative investment fund services. €210bn / Asset manager / Multi-asset

Alternative investment specialist services
Banking supplier selection (assistance with) €0.004bn / Asset manager / Mutual fund
Specialist services or skills offered: Smallest-by-AuA client:

and Swift Interface, Specialist focus:
ETF global operating platform private equity and closed ended asset class

UK mutual funds Report design and implementation €2.2bn / Investment manager / Multi-asset

59

DIRECTORY

€0.63bn / Asset manager / Mutual fund Forex funds
€0.46bn / Asset manager / Mutual fund Multi manager fund administration Transfer agency: new global funds portal

Derivatives: expansion of capability
South Africa Straight-through processing

Guernsey, Ireland, Jersey, Luxembourg, Luxembourg

United Kingdom Malta Australia: new fund servicing business

Scandinavia: new fund servicing
Private equity business

Propriety cross-border tax reporting system Forex funds USA: launch of alternative businesses

Independent derivatives valuation Retirement fund wrappers
ETFs: development of capability

Sub-Saharan Africa (ex RSA) FoHF: functionality and capability

Cross-order Tax Reporting Malta Master feeder funds (for Ucits IV

Corporate secretary services for UK Luxembourg admin)
Investment trust service clients
USA: product expansion to US managers

Guernsey Scandinavia: further Nordics expansion
2010 geographic focus: NORTHERN TRUST
Northern Trust
50 Bank Street Switzerland: asset managers/asset owners
Grow ETF business
London E14 5NT
Cross-border tax reporting UK RBC DEXIA
2011 focus on these geographies: n/a tel: +44 20 7982 2000 RBC Dexia Investor Services
fax:: +44 20 7982 2002 71 Queen Victoria Street, 4th Floor
MAITLAND web: www.northerntrust.com London EC4V 4DE
Maitland Fund Services UK
Maitland House USA web: www.rbcdexia.com
1 River Park, River Lane,
Country of origin:
19 years
Mowbray, Cape Town
Country of origin: Canada/Belgium
South Africa Operating in Europe: Established in
tel: +27 21 681 8000 January 2006. Predecessor companies
Wilson Leech (London) RBC Global Services and Dexia Fund
Senior executives:
fax:: +27 21 681 8100
email: chantal.cantin@maitlandgroup.com CEO for Emea Services present since 1986 and 1959
web: www.maitlandgroup.com respectively
Brian Ovaert (London)
Malta Head of worldwide operations and
technology Emea Tony Johnson (London)
Country of origin: Senior exeutives:
11 years
Global head, sales and distribution

Toby Glaysher (London)
Dan Mackelden (London) Head of GFS for Ireland, Luxembourg Simon Shapland (Luxembourg)
Senior executives:

Head of business development – Europe and UK Head, Europe, sales and distribution

Steve Georgala (London) Vic Holmes (Guernsey)
CEO Head of GFS for Channel Islands

John Mills (Luxembourg) Global AuA: €795bn
at 31/12/10

Director Net flow during 2010: n/d
Av. NAVs per month 2010: 163,098

Dirk Oppelaar (Geneva) Global AuA: €754bn Mandates won in 2010: 227
at 31/12/10

Director Domiciled in Europe: €232bn Mandates retained in 2010: 20
Net flow during 2010: +€39bn
Av. NAVs per month 2010: 66,000 approx.
Mandates won in 2010: 181 €7bn / Funds / Transfer funds
Funds under administration Top Three mandate wins in 2010:

Global AuA: €57.0bn Mandates retained in 2010: 26 €3bn / Bank / Funds
at 31/12/10

Domiciled in Europe: €0.5bn €1bn / Insurance / Custody
Net flow during 2010: n/a
Av. NAVs per month 2010: 1,222 €297bn / Investment mgr / Fund admin

Mandates won in 2010: 209 Belgium, France, Ireland, Italy,

Mandates retained in 2010: 1,088 €6m / Investment mgr / Fund admin Luxembourg, Spain, Switzerland,

UK

€22.9bn / Fund manager / Unit €34bn / Investment mgr / Outsourcing
Biggest-by-AuA client: Top three mandate wins in 2010:

trusts/pension segregated funds €29bn / Investment mgr / Outsourcing Distribution support

€16bn / Pension / Outsourcing Shareholder services
€49k / Hedge fund / Multi-strategy Alternative investments

UK, Guernsey, Ireland, Jersey,

Fixed income funds Luxembourg, Netherlands, Sweden Foreign exchange
2010 product launches/developments: 2010 product launches/developments:

60

Securities lending
Alternatives investments Independent pricing and collateral France, Luxembourg, Germany, Ireland,

Management services Italy
Italy

Spain OTC Pricing

Switzerland Ucits Middle-office OTC products

Qualified investment funds Collateral management
Distribution support Family offices Reporting: performance and risk

Foreign exchange measurement
Alternatives investments UK

Scandinavia
Europe (eg Germany) Switzerland OTC pricing
2011 focus on these geographies: 2010 product launches/developments:

Asia (eg Taiwan) Middle-office OTC – collateral mgt
n/a Specific reporting (perf-risk)

n/a
Germany
SEI INVESTMENTS 2011 focus on these geographies: 2010 geographic focus:
SEI Investments Global Fund Services Ltd
Styne House, Upper Hatch Street Italy
France
SOCIETE GENERALE
Dublin 2 Société Générale Securities Services
Ireland Tour CB3 189, rue d’Aubervilliers
Kiid offer
tel: +353 1 638 2435 75886 Paris Cedex 18
email: ManagerServices@seic.com France OTC pricing
web: www.seic.com/ims tel: +33 1 56 37 37 63 Middle-office OTC: collateral mgt
fax:: +33 1 56 37 37 11
OTC pricing
USA email: Sgss.Com@socgen.com
web: www.sg-securities-services.com Middle-office OTC: collateral mgt
Country of origin:
16 years
Specific reporting (perf-risk)

Country of origin: France
David Morrissey (Dublin) 21 years
Senior executives:
STATE STREET
State Street Bank and Trust Company
Director of European business development
20 Churchill Place
Alain Closier (Paris) Canary Wharf
Senior executives:
William Montgomery (Dublin)
Director of new business Global head of SGSS London E14 5HJ
UK
Dan Petrovic (London) Bruno Prigent (Paris) tel: +44 20 3395 2500
Director of new business Deputy head of SGSS web: www.statestreet.com

Barry O’Rourke (Dublin) Jean-Claude Martinez (Paris) USA
COO
Country of origin:
MD Operating in Europe: 25+ years

Anne Deegan (Dublin) Serge Jacqueline (Paris)
Head of fund administration and asset Joseph Antonellis (London)
Senior executives:
MD, SEI investments trustee and custodial
services (Ireland) servicing Vice-chairman

Timothy J. Caverly (Luxembourg)
Executive vice-president
Funds under administration Funds under administration

Global AuA: €455bn
at 31/12/10
Global AuA: €300bn+
at 31/12/10

Domiciled in Europe: €32bn+ Domiciled in Europe: €462bn William Slattery (Dublin)
Net flow during 2010: n/a Net flow during 2010: +€5.18bn Executive vice-president
Av. NAVs per month 2010: >2,000 Av. NAVs per month 2010: 682,259
Mandates won in 2010: n/a Mandates won in 2010: 30 NOTE: Consistent with State Street’s
Mandates retained in 2010: n/a Mandates retained in 2010: 190 reporting policies, our assets under
custody and administration are reported
combined
€101.7bn / Asset manager / Tracker,
€27bn / SWV / Multiple

structured funds, alternative funds Funds under administration
€0.01bn / Boutique investment

€0.013bn / Asset manager / Alternative Global AuA: €16,046bn
Smallest-by-AuA client: at 31/12/10
mgr/ Ucits
funds Domiciled in Europe: €2,910bn
Net flow during 2010: +€2,036bn
€3.65bn / Multi-strat credit / Multiple Av. NAVs per month 2010: 179,919

Mandates won in 2010: 122
Top three mandate wins
€1.45bn / Family office / Multiple
€3.66bn / Asset manager / Mandates retained in 2010: n/d
in 2010:
€585m / Multi-product / Multi
Private equity, hedge funds, real assets
€3.39bn / Asset manager n/d
€0.31bn /n/a
Dublin, London, Amsterdam n/d

61

DIRECTORY

€8.5bn / Bank / Multi-assets / UBS
n/a / Pension plan / Pension fund Sweden, Norway, Estonia, Latvia, €4bn / Pension fund / Multi-assets
Top three mandate wins in 2010: Representative offices (Europe) in:

€15.09bn/ Bank / Real estate fund Lithuania, Luxembourg
€32.45bn/ Bank / Various Switzerland, Luxembourg, Ireland, Jersey

Fund registration service in Baltic countries

Austria, Belgium, France, Germany,

Guernsey, Ireland, Italy, Jersey, Alternative Ucits, strong in FoHF.

Luxembourg, Netherlands, Poland, Fund administration Distribution support for 28 countries

Switzerland Transfer agency ETF
Portfolio accounting Private labelling (incl full legal support)
ManCo services
Compliance support Estonia
Specialist services or skills offered: 2010 geographic focus:

Legal administration services Sweden
Blue sky fund services Luxembourg ETF

Treasurer’s office support Single-manager HF
New product launch support, mergers, Fund administration Institutional fund concepts

liquidation and regulatory support Transfer agency
Portfolio accounting Asia Pacific

Ireland
ESG reporting Sweden
2010 product launches/developments: 2011 focus on these geographies:

Entity exposure monitoring Estonia ETF

GASB 53 public pension funds Luxembourg PE / Infrastructures / Real estate

Global Asia Pacific
2010 geographic focus: 2011 focus on these geographies:

Jersey
UBS
UBS Global Asset Management Fund Services
Ucits IV (Kiid reporting) Ireland
Brunngässlein 12
Collateral tracking & messaging tracking, PO Box 4002
Alternative investment replication Basel
Switzerland
Global
tel: +41 61 288 62 69
fax: +41 61 288 45 40
SWEDBANK AB email: fundservices@ubs.com
Swedbank, Regeringsgatan 13 web: www.ubs.com/fundservices
SE 105 34 Stockholm
Sweden Country of origin: Switzerland
tel: +46 8 5859 0000 Operating in Europe: 50+ years
web: www.swedbank.se

André Valente (Basel)
Senior executives:
Sweden
Head, fund services business development,
Country of origin:
6 years
CRM and marketing

Ola Laurin (Stockholm) Markus Steiner (Basel)
Senior executives:

Head of securities services Head, fund services Switzerland
Henrik Staffas (Stockholm) Mark Porter (Luxembourg)
Head of fund services Head, fund services Luxembourg

Don McClean (Dublin)
Global AuA: €10.3bn Head, fund services Ireland

Domiciled in Europe: €10.3bn
Net flow during 2010: €0.3bn
Av. NAVs per month 2010: 1,800 Global AuA: €313bn

Mandates won in 2010: 6 Domiciled in Europe: €233bn
Mandates retained in 2010: 8 Net flow during 2010: n/a
Av. NAVs per month 2010: 16,809
Mandates won in 2010: 60
€8.3bn / Fund manager / Mandates retained in 2010: 313

Multi-asset

€0.094bn / Fund manager / Multi-asset €172bn / Bank / Multi-asset / UBS
Smallest-by-AuA client: Biggest-by-AuA client:

€0.14bn / Bank / Multi-asset

€0.285bn / Fund manager / Multi-asset

€0.242bn / Fund manager / FoF
€0.094bn / Fund manager / Multi-asset €17bn / Social security / Multi-asset

62

Fund Administration Challenges and Opportunities in 2010

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