The document summarizes the findings of a survey of senior executives in the asset servicing industry. It finds that while optimism is currently low, expectations are that conditions will improve somewhat over the next six months. However, asset managers are more pessimistic than asset servicers. Regulatory burdens, low interest rates, and market instability are weighing on the industry. Key concerns are consistent across sectors and regions and include regulatory costs, client nervousness, market uncertainty, and the EU financial crisis. Luxembourg remains the most optimistic region.
1. INEUM Kurt Salmon QUADRICHROMIE
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Kurt Salmon
Investment Servicing Business
Confidence Index - Survey
Building and maintaining sustainable business
in the asset servicing and management industry
July 2011
2. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
INEUM Kurt Salmon QUADRICHROMIE
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About Us
Kurt Salmon is a global management consultancy of more than 1,600 consultants in 15 countries across five
continents. Our clients are industry leaders who benefit from our deep industry and functional expertise. As trusted
advisor, Kurt Salmon partners with clients to design, and then drive strategies and solutions that make lasting and
meaningful impact. We are committed to deliver measurable results for our clients through executional excellence.
Kurt Salmon is part of Management Consulting Group Plc, listed on the London Stock Exchange.
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Contents
Research Background 4
Executive Summary 5
A snapshot of industry attitudes and key concerns 7
Optimism to creep through from a current low 7
Market is split as asset servicers identify opportunities 8
National optimism differs whilst caution remains a general trend 9
Key concerns are consistent throughout the industry 10
Navigating in turbulent times - actions taken by the industry 12
Earnings growth will be limited with some players expecting more 12
Transfer concerns into harmonized strategies – the industry approach 13
Enhancing the existing value proposition as an effective approach to sustainable growth 14
Regulatory changes pose a challenge and opportunity 15
Operational efficiency is a key to cost reduction 16
Take care of the customers 17
An industry approach to building and maintaining sustainable business 19
Case study - Brown Brothers Harriman: partner in the pursuit of business sustainability 19
Kurt Salmon, the business sustainability process 22
3
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Research Background
The investment servicing industry has been under considerable pressure in recent times. During May and June of
2011, Kurt Salmon conducted a survey in an effort to gauge current sentiment and expectations over the coming
6 months.
Senior Executives representing both Asset Managers, Asset Management Companies and the providers of Asset
Servicing were questioned on topics such as business environment and earning expectations, areas of concern and
the strategies that have been put in place.
The report provides a barometer of views on the current situation and plans for the near future with an aim to
identify key strategies that will endure beyond the coming six to nine months.
Figure 1
Number of financial institutions polled
28 participants
Senior Executives were •
CEO
polled •
COO
Asset Manager
•
Country Head
36%
•
Head of strategy and products 64%
Asset Servicing
•
Head of regulatory affairs
•
Head of sales and distribution
Assets size
Asset under Management (USD • 1.6
Trillion)
Asset under Custody • 107.3
Administration (USD Trillion)
9 countries Countries coverage
Countries coverage Australia, Belgium, France, Ireland, 4% UK/Ireland
4%
Japan, Luxembourg, Portugal, Luxembourg
11% 21%
Switzerland, UK
3% France
7% Belgium
Portugal
14% 36%
Switzerland
Japan
Australia
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Executive Summary
Asset Mangers and Asset Servicers alike, find the current business climate difficult with neither expecting a
significant improvement for the second half of 2011. On the other hand, the level of skepticism differs with Asset
Service providers registering as marginally cautions rather than full out pessimistic. Asset Managers are clearly
expecting the doldrums to persist well into 2012.
For a good part, low interest rates, general market instability (in particular the European financial situation) and
regulatory burden are responsible for poor expectations across Europe, Australia and Japan. A closer look reveals
a somewhat polarized landscape - clearly some countries are dealing with particular issues; Japan and Portugal for
example, whilst other regions and in particular Benelux expect a better than average improvement.
In addition to agreeing on industry concerns that appear less than positive the market also appears to be in agreement
regarding earnings growth expectations which remain mostly cautions. With fewer external opportunities the
asset management industry will turn to its core services and infrastructure with an aim to maximize the potential
of existing products through enhanced distribution - BRIC and CIVETS markets are key - and focused pricing. In
parallel to the expected revenue increase, cost reduction, which means streamlining operations, will result in a net
gain.
One sign of an industry trying to draw competitive advantage from wherever it might arrive appears in the form of
FATCA, AiFMD and UCITS IV/V. More industry participants will find ways to have regulatory reform work for them
than not.
At the end of the day the customer matters. Every player in the investment servicing business will make sure that
the customer experience is close and quantifiable.
Michel Kabanga KAYEMBE
Investment Funds Advisory Services, Practice Leader
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INEUM Kurt Salmon QUADRICHROMIE
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A snapshot of industry attitudes and key concerns
Optimism to creep through from a current low
Tough market conditions have almost become the norm with ongoing economic crises raging through Europe.
The investment servicing industry as a whole is contending with one regulatory reform after another which adds
change on top of an already unstable base. Emerging markets continue to grow but not without a few faltering
steps, adding to an air of nervousness, further compounded by unprecedented natural disasters, such as Japan.
In the face of adverse conditions industry confidence is not surprisingly low and should remain that way though
there does seem to be a glimmer of hope from some industry contenders over the next six to nine months.
Figure 2
Perceptions about the current business conditions Over the next 6 months
33.0 52.7
Key findings from our research
• arket pressure and few opportunities are putting a squeeze on the investment servicing industry as reflected
M
by a negative perception of the current business conditions.
• ver the next 6 months conditions are expected to improve with an increase of 19.6 points.
O
• arket pressure pushes industry players to pursue their effort in containing cost while looking for new sources of
M
revenue with a focus on the value proposition in light of limited opportunities.
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8. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
INEUM Kurt Salmon QUADRICHROMIE
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Market is split as asset servicers identify opportunities
Asset Servicers have converted changes, whether directly positive or negative, into opportunities whilst Asset
Managers have not. As a result Asset Servicers expect some improvement in business conditions, a factor that
creates a clear distinction within the investment servicing industry.
Figure 3
Over the next 6 months – Asset Managers Over the next 6 months – Asset Servicers
38.4
14.3
Key findings from our research
• Asset servicing providers and asset managers are separated by a difference of 24.1 points.
• sset managers are considerably more pessimistic as they don’t see any future structural changes over the next
A
6 months. The asset management industry will have to demonstrate its capability to cope with the uncertainty
through new sources of revenue with a clear approach for survival. Their confidence is to improve with an increase
of over 4.5 points.
• sset servicers expect an increase of middle office outsourcing and plan to extend their global service offerings
A
capabilities despite great regulatory burden. Their confidence is to improve with an increase of over 15.2 points.
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9. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
INEUM Kurt Salmon QUADRICHROMIE
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National optimism differs whilst caution remains a general trend
A common trend of low interest rates, general market instability and regulatory burden ties regions – caution
prevails. However, different regions are facing different challenges a fact reflected by varying levels of optimism.
Figure 4
Confidence Level Frontier
25% 33% 42% Benelux
17% 50% 33% UK / Ireland
25% 50% 25% France
0% 50% 50% * Australia / Japan
33% 33% 33% Switzerland
* 100% Portugal
* Limited sample set of 1 or 2 participant(s)
Pessimist Cautious Optimistic
Key findings from our research
• ocal market conditions are considered favorable by 42% of organizations surveyed - Luxembourg, as the largest
L
fund administration platform in Europe remains optimistic.
• In Luxembourg, Asset servicers are expecting:
• Asset funds to return to pre-crisis levels and to win new mandates (small, medium and large size).
• Demand for Specialised Investment Funds (SiF), private equity structures to increase.
• Modest increases in interest rates are expected to have a positive impact on net interest income revenue.
• All other regions remain cautious.
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INEUM Kurt Salmon QUADRICHROMIE
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Key concerns are consistent throughout the industry
Regardless of the industry sector or region the core concerns are evident. Asset managers and service providers
are harmonious about the root cause of negative sentiment in the prevailing business environment.
Figure 5
Industry main concerns Asset mgt Asset servicing
Regulatory burden cost related 50 50 N=2
Client nervousness 67 33 N=3
General market uncertainty 43 57 N=7
Stock market downturn 100 0 N=3
EU financial crisis 62 38 N=13
Japan tsunami, nuclear crisis 75 25 N=4
Middle east political instability 50 50 N=4
Low interest rate 36 64 N=11
Key findings from our research
• 6% of the participants are concerned about the EU financial crisis, the low level of interest rates and general
6
market uncertainty.
• he industry is clearly sensitive to the market conditions. This means it is imperative that asset managers and
T
asset servicers be able to assess the sensitivity of earnings whatever the business conditions in which they
operate.
• egulatory burden and related cost have been accepted as embedded to the financial sector.
R
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INEUM Kurt Salmon QUADRICHROMIE
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Navigating in turbulent times - actions taken by the
industry
Earnings growth will be limited with some players expecting more
Most participants expect little change in the top line however some have clearly identified viable areas for growth.
With tough external factors the asset industry will have to turn inwards and innovate with what it already has.
Figure 6
Earning growth expected over Asset servicing Asset mgt
the next 12 months
14.0
Extremely optimistic
20
13.2
Optimistic
11.5
8.5 A cautious outlook prevails
Cautious
4.1
2.5
Pessimistic
2.5
0.0
Extremely pessimistic
0.0
Key findings from our research
• onsidering that a cautious outlook prevails, the average earnings expected range from 4.1% to 8.5%.
C
• onfidence in structural changes remains low however, the industry expects an optimistic 14% to 20% growth.
C
• ey Metrics effecting the positive upswing include:
K
• ncrease in revenue per AuM
I
• ncrease in average revenue per client
I
• Increase in net sales per product (fund)
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13. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
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Transfer concerns into harmonized strategies – the industry approach
The asset industry will continue to operate in a restrictive environment one which is driving managers and service
providers alike to focus on factors within their control. Strategies to reduce cost (synergy, outsourcing and
improved efficiency) and increase revenue with customers, more evolution rather than revolution, is the recipe for
continued and sustainable growth, growth against which the industry has marked double figures.
Figure 7
Key source of earnings Asset mgt Asset servicing
Internal factors
Internal factor - value proposition
57 43 N=23
adjustement
Revenue
Internal factor - pricing discipline 17 83 N=6
Cost
Internal factor - cost containment
13 88 N=8
based approach
External factor - normalization / of net
0 100 N=6
interest income
External factors
Key findings from our research
• trategy will focus on the value proposition as attested by 53% of the participants who are already working on
S
adjustments to secure their source of earnings over the coming months coupled with a pricing discipline in an
effort to increase their margin.
• ighter filter on deal acceptance with an aim to reject the unprofitable. Whatever the size of the deal, asset
T
servicing providers who want to stay in the industry have recognized the importance of identifying non profitable
clients.
• iFMD and UCITS V bring with them the necessity to align risk against reward with the liability of a depositary
A
or custodian bank.
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14. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
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Enhancing the existing value proposition as an effective approach to sustainable
growth
Most organizations will follow a common trend and capitalize on existing products distributed through new and/or
extended channels. In parallel, cost will be driven down with externalization of middle-office functions. In general
confidence is high that these two measures will promote stable growth over and beyond the next six to nine
months.
Figure 8
Components of an adjusted value proposition
Slice #1 Extending distribution
capabilities, reporting services
7%
Slice Slice #2 Middle-office outsourcing
#5
capabilities (OTC, collat mgt)
29%
18%
Slice #1 Slice #3 Expending business to new markets
Slice #4
/ extending geographical coverage
(mainy Emerging Markets : BRICS,
CIVETS)
21%
Slice #3 Slice #4 Fund governance, directors ships,
25% oversight and risk management
Slice #2
Slice #5 New asset class / investment solutions
capital protection (e.g asset
allocation)
Key findings from our research
• nvesting in distribution services, reporting and middle–office services are the priorities for the next 6 months and
I
should provide continued growth.
• he enhancement of distribution capabilities will require organizations to establish and develop relationships
T
with 3rd party distributors in the perspective of an open architecture for example; reaching beyond an asset
manager’s traditional network.
• any organizations also expect to expand their business into the emerging markets, such as BRIC and CIVETS
M
regions (Brazil, Russia, India, China, Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa respectively).
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Regulatory changes pose a challenge and opportunity
A number of regulatory changes are either on the horizon or already in motion and although not identified as
a particular cause of concern their strategic relevance becomes interesting when turned into a competitive
advantage. Over two thirds of interviewees are approaching regulation as such.
Figure 9
Is regulation a constraint or does Main regulation being implemented over the next 6/9
it create some opportunities? months
Asset mgt Asset servicing
15%
Slice #1
33%
Slice #2 Other / general regulation 40 60 N=5
T2S 100 N=1
52%
Slice #3 Solvency 67 33 N=3
CAD 100 0 N=2
DODD - Franck 29 71 N=7
RDR 100 0 N=2
Slice #1 A pure constraint
FATCA 44 56 N=16
Slice #2 Offersome opportunities AIFMD 29 71 N=14
UCITS V 38 63 N=18
Slice #3 Each constraint can create an
opportunity
UCITS IV 30 70 N=10
Key findings from our research
• nly 15% of those polled identify regulatory change as a pure constraint with an overwhelming 85% that identify
O
some kind of opportunity.
• hanges in regulation are identified as an opportunity even though they are considered a constraint by some
C
52% of those polled.
• he top 3 regulatory changes in sight for the next 6 to 9 months: FATCA, AiFMD and UCITS IV.
T
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INEUM Kurt Salmon QUADRICHROMIE
INE_06_0409_Logo_CMYK
14/12/2010
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Operational efficiency is a key to cost reduction
Organizations will (if not already doing so) break down their different functions in order to harmonize processes,
find synergies and indentify tasks that can be handled elsewhere. At the same time centers of excellence will
further improve economies of scale and efficiency leading to lower costs.
Figure 10
Operational efficiency constituents
Enhance / Rationalize platforms
Shared services refer to: HR,
18% compliance, legal or IT functions
Shared
services
Offshoring / nearshoring 33%
11%
7% 31%
Centre of
Outsourcing Centre of excellence refers to a
excellence functional expertise located whether
in one country or in a specific region
Key findings from our research
• reater operations efficiency is a key to future growth with shared services (such as HR, compliance and
G
legal), centers of excellence (with functional expertise being located in one country or region) and platform
rationalization as key proponents.
• trong organization is required with well managed procedures to ensure that improvements are effectively
S
implemented throughout the operational model, resulting in a lower risk of failure.
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Take care of the customers
All in all, the industry understands that their clients expect a regular and informative relationship. The ability to
establish and maintain such a relationship will over time increase share of wallet and drive sustainable earnings.
Figure 11
Asset manager – Asset servicing –
the customer intimacy journey the customer intimacy journey
14%
Communicating Communicating 22%
directly with 43% directly with
clients (Roadshow, clients (Roadshow,
survey) survey) 67%
43%
42%
45%
Improving client Improving client 37%
36%
experience / experience /
Ensuring reliability Ensuring reliability 21%
18%
of the promised of the promised
services services
10% 9%
14%
Leveraging / 40% Leveraging / 45%
expanding existing expanding existing
40% 23%
services and services and
expertise 10% expertise 9%
Weekly / daily Monthly Quarterly Half a year Yearly
Key findings from our research
• Regular customer interaction will play a key role in an effort to expand growth.
• 0% of asset managers and 45% of asset service providers polled mentioned that they only meet their clients in
4
a formal manner two or four times per year for a strategic review.
• oughly 40% of relationship managers (asset managers and asset service providers equally) ensure satisfaction
R
of services on a weekly basis.
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An industry approach to building and maintaining
sustainable business
Case study - Brown Brothers Harriman: partner in the pursuit of business
sustainability
Geoffrey M. Cook, there is no real return on those investments - interest
Partner, rates are needed to give long-term meaningful return.
Brown Brothers Liquidity has, therefore, been temporarily restored but,
Harriman in the low-interest-rate environment, this may not be
sustainable.
Geoffrey was made a
Partner of the Firm in Until there is a greater agreement, on a multi-country
January 2009, is res- basis, on public finance that is in balance with what
ponsible for the Firm’s the public is willing to accept, there will continue to
Luxembourg office, be uncertainty. We are in an unusual economic cycle,
its Global Relationship the likes of which we have never really seen before. We
Management and Bu- are all doing okay, people continue to invest in funds,
siness Development BBH is doing very well, our own capital investments
disciplines as well as are increasing, and however, we are not yet back in a
its Fund Solutions and normal economic cycle.
Distribution Support
offering. Therefore, we would say that the outlook for the market
seems to be stable for the immediate future. We expect
Mr. Cook is a member it to only start to trend more positively when some of
of the Institute of Chartered Accountants of Scotland. these other structural factors become clearer.
1. WHAT IS YOUR VIEW OF MARKET CONDITIONS IN 2. WHAT ARE THE PRIORITIES FOR BBH TO MAKE
THE NEXT 6 MONTHS? YOU SUCCESSFUL?
Despite the positive rebound in the economy towards The foundation for all our work at BBH is the relationship
the end of 2010 following the 2008-2009 financial we have with our clients. Therefore, our priorities are
crisis, we at BBH are taking a fairly neutral view of the primarily dictated by those of our clients. This factor
short-term market conditions – in other words, it is has been core to our strategy for many years and will
neither positive nor negative, rather, we feel that we are continue to remain so. This is also what we believe
in a ‘holding pattern’ at the moment. makes our business truly sustainable – our structure
and our business model is uniquely client-centric. Ours
There is a feeling of uncertainty in the marketplace is a privately held partnership, and our success is fully
largely due to the European government debt dependent on the success of our clients.
problems. Uncertainty impacts currencies, the ability to
invest, market stability in both debt and equity markets. How do you align with clients and how often do you
Markets thrive on clarity and direction and, until there contact them?
is a clearer path forward in terms of when and how
European debt restructuring is to take place, we will We work with our clients to create a framework that
continue to live in a slightly surreal world. is aligned around their strategic objectives. In order to
attain this alignment, we need to know what our clients
How do you view bank liquidity at the moment? want to achieve. We also advocate regular contact with
clients on all levels. One of the benefits of a partnership
Banks have done a good job of restoring liquidity by structure is that clients can easily access the business
moving assets out of other financial vehicles into bank owners, and the flat hierarchy promotes collaboration
deposits. However, in a low-interest-rate environment and flexibility.
19
20. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
INEUM Kurt Salmon QUADRICHROMIE
INE_06_0409_Logo_CMYK
14/12/2010
24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE M100 Y100
Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87
Web : www.carrenoir.com
M65 Y100
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Our service delivery and strategic approach is local- the business. This approach produces ownership and
to-local with a global overlay to ensure a consistent alignment – and ultimately promotes the sustainability
approach. For example, one of our main areas of focus of our organisation’s business.
in recent years has been on creating a global service
model for many UCITS funds which are registered in To ensure consistency of approach globally and to
one domicile (for example, in Dublin or Luxembourg) monitor our progress, we have set up, what we call,
but sold and invested globally. Those clients need “Disciplines” – for both Relationship Management
an operating model that will cover the entire globe – and Sales – in order to provide a framework for our
starting in Japan through to the end of the U.S. day employees in the RM and Sales areas. We give them
– the end points of delivery are local, in Hong Kong, a toolbox, consisting of a light geographical overlay
Tokyo, Luxembourg, New York, and so on. The most of tools and best practices, which the Discipline
noteworthy feature of this model is that it is commanded management monitors to make sure that we are
and controlled globally to ensure smooth and consistent providing a consistent experience to our clients. The
service delivery. Discipline reports back centrally and educate us as to
how we are performing. It also delivers sales reporting,
In a partnership, the partners are directly liable for which helps us understand where we need to adjust, the
the firm’s obligations; therefore, risk management is a types of business we sell, the types of clients, etc.
high priority for us. In short, for us, risk is personal. We
focus on risk management at the local and global levels. What type of clients do you have and what type are
Globally, our focus is at an enterprise risk level which you looking for?
covers not only the firm itself, but also every element
from credit to operational risk for our whole Investor We subscribe to the philosophy of maintaining a
Services organization. Our product risk managers balanced portfolio of clients. We choose to serve a
oversee the implications of executing certain functions smaller number of clients than our peers – more in the
with certain products. We also have local, geographical hundreds, than the thousands – so that we can build
risk functions. Finally, we instill personal responsibility better and longer lasting relationships with each of
for risk management in all our employees at every level them. We service the large international blue chip asset
across our firm. managers, as well as maturing middle-sized clients, and
we also work with some start ups, taking some bets on
How selective are you in terms of choosing your new companies that will grow to be successful. A great
clients? example - we engaged with an asset manager in 2001
that had zero assets when we started to work with them.
To run a sustainable organization we need to be very Today they manage over $40 billion, and we service the
selective and focused in terms of our client base, majority of those assets.
especially in the current environment. We have very
rigorous upfront and ongoing selection criteria for How do you choose a good start up?
clients to make sure they are aligned with the type of
organization we are and would want to be. We need We look at a start-up’s plans, its products, its area
to understand the owners of the organization, their of focus, and get answers to questions such as: Who
business philosophy, resources, capitalisation, and are the people that are involved with it? How serious
sometimes there are also country /political issues to are they? Do they have the right resources, sufficient
take into account. capitalization and backing to get up and running? What
are their distribution plans? This can give us a fairly
We view top-line growth in two parts in order to be good idea straight away about how realistic and viable
sustainable. The first is growth with existing clients, they are. It’s important to have a balanced portfolio to
and the second is growth through new clients. We be sustainable – the bigger complex clients will push
take a focused approach to both. We have made it our you into new areas, the others medium-sized ones
mantra to have very limited stand-alone sales efforts. provide the volume, and the smaller start-ups are a way
Whilst relationship management and sales are different of incubating ideas and an exciting source of potential
disciplines, we encourage our relationship managers growth. They become collectively a group of clients that
to own the whole process and be responsible for the works well together in terms of how we move forward
client relationship, both before and after BBH wins as an organization.
20
21. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
INEUM Kurt Salmon QUADRICHROMIE
INE_06_0409_Logo_CMYK
14/12/2010
24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE M100 Y100
Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87
Web : www.carrenoir.com
M65 Y100
Ce fichier est un document d’exécution créé sur
Illustrator version CS3.
K100
3. WHAT DIFFERENTIATES YOU AND MAKES YOU The proof that our strategy works is really shown
THE SERVICE PROVIDER OF CHOICE? in how we are doing – our clients are expanding, our
business is expanding – we service more than $3 trillion
1. ur client -centric and consistent approach has
O in assets globally, we are expanding geographically and
probably been the most important reason why we in terms of products – for example, we are expanding
have built a consistent and increasing group of clients our Transfer Agency business for cross-border fund
on a global basis. managers – we have trebled our Transfer Agency book
of business in the last 18 months and doubled staff in
2. ur people – we don’t have an enormous balance
O that area, which is key to building out of global funds
sheet of assets, which makes our people even more and asset managers’ services. Our clients also continue
valuable to us. They are our best assets. For us it is to rate us very highly in industry surveys as well as in our
critical to get the people right, which is shown in all own internal client satisfaction surveys which of course,
our client feedback, surveys report cards etc. to us, is the most critical measure of our success.
3. ur partnership structure – we can consistently, year-
O
on-year, pursue our focused strategic direction. In
2009-2010 we did not lay off any staff by design in
order to proactively maintaining our workforce for
the time when we would come out of the crisis and
be ready to supporting our clients when they needed
us the most. We can adapt our response to market
conditions in a measured thoughtful way which can
smooth out economic peaks and troughs. We made
some modest cost adjustments, but there was no front
line impact. The partners accepted a lower return in
2009 and, in 2010, our performance rebounded.
21
22. KURT SALMON INVESTMENT SERVICING BUSINESS CONFIDENCE INDEX - SURVEY
INEUM Kurt Salmon QUADRICHROMIE
INE_06_0409_Logo_CMYK
14/12/2010
24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE M100 Y100
Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87
Web : www.carrenoir.com
M65 Y100
Ce fichier est un document d’exécution créé sur
Illustrator version CS3.
K100
Kurt Salmon, the business sustainability process
From the analysis performed we can trace an almost sequential flow of questions to answers and issues to
solutions. Participants representing key areas of the business have made clear their concerns and understanding
of where the risks and challenges come from today and forward into the medium term. In doing so and as part of
the exercise areas in which the industry is taking initiative to ensure a prosperous and sustainable future becomes
apparent.
1 2 3 4
Immersion Set direction Prepare road map Take action
What does “business To what extent How should we What feedback do
sustainability” the business develop and clients and industry
means for your sustainability adds communicate our influencers provide
organization? unique value and vision to foster the on this concept?
creates lasting broadest possible
impact? alignment?
Iterate
In order to steer a clear path to sustained growth an organized and rigorous approach is necessary. Kurt Salmon has
identified four key steps based around a set of Business Sustainability Criteria (the value of any individual criterion
is important to the global process) with at the end of each step a value oriented deliverable. The organization
in question is measured and referenced against the criteria alongside comparable rivals in order to identify key
indicators. With recommendations in hand indicators are built into the organization’s business and importantly,
communication mediums. As part of the process implementation value verses implementation cost are clearly
evaluated.
As is necessary in a constantly evolving and complex environment a periodic (at this time annual) calibration of
the Business Sustainability Criteria is performed through an equivalent survey process.
22
23. Contributors
We would like to thank the financial institutions who
contributed to our research and their participation in this
survey:
• Aberdeen (UK)
• Apex (Ireland)
• Brown Brothers Harriman (UK, Luxembourg, US)
• BNY Mellon (Belgium, Luxembourg)
• BNP Paribas Securities Services (Luxembourg)
• CACEIS (France)
• CITI (Luxembourg)
• Credit Suisse Fund Services (Luxembourg)
• Dexia Asset Management (France)
• Fidelity (UK)
• HSBC (UK)
• Invesco (Belgium)
• JP Morgan WSS (Luxembourg)
• KBL (Luxembourg)
• Millenium (Portugal)
• Natixis (Luxembourg)
• Northern Trust (UK)
• Pictet (Switzerland)
• RBS (Luxembourg)
• Schroders (Luxembourg)
• Societe Generale Securities Services (France)
• State Street Bank (France)
• Swiss Global Asset Management (Luxembourg)
• Tokio Marine Asset Management (Japan)
24. Our offices
GERMANY - DÜSSELDORF USA - SAN BRUNO JAPAN - TOKYO
Königsallee 11 1250 Bayhill Drive, Suite 315 Akasaka Nakagawa Bldg.
40212 Düsseldorf San Bruno, CA 94066 3-11-3 Akasaka, Minato-ku
T +49 (0)211 7595 0 T +1 650 616 7200 107-0052 Tokyo
T +81 3 3586 6840
BELGIUM - BRUSSELS USA - SAN FRANCISCO
Bd la Woluwelaan 2 box 4 345 California Street, Suite 2500 LUXEMBOURG - LEUDELANGE
1150 Brussels San Francisco, CA 94104 41, Zone d’activité Am Bann
T +32 (0)2 663 79 20 T +1 415 296 9200 L-3372 Leudelange
T +352 26 37 74 1
CHINA - HONG KONG FRANCE - LYON
99 Queen’s Road Immeuble Le Front de Parc MOROCCO - CASABLANCA
66/F, The Center 109, boulevard de Stalingrad Twin Center, Tour Ouest
Central Hong Kong BP 11259 Angle des bds Zerktouni Al Massira
T +1 852 3960 6448 69608 Villeurbanne cedex 20100 Casablanca
T +33 4 72 82 52 00 T +212 (0)5 22 95 83 21
CHINA - SHANGHAI
#1702 Evergo Tower
1325 Central Huaihai Rd FRANCE - MARSEILLE UNITED KINGDOM - LONDON
200031 Shanghai 5, place de la Joliette 10 Fleet Place
T +86 21 6121 3668 13002 Marseille London, EC4M 7RB
T +33 4 26 84 58 50 T +44 20 7710 5200
USA - ATLANTA
1355 Peachtree Street, N.E., FRANCE - NANTES UNITED KINGDOM - MANCHESTER
Suite 900 Impasse Augustin-Fresnel 25 Hale Road
Atlanta, GA 30309 BP 80363 Altrincham WA14 2EY
T +1 404 892 0321 44816 Saint-Herblain cedex T + 44 0161 925 2727
T +33 2 51 80 14 06
USA - CALIFORNIA SWITZERLAND - GENEVA
100 Pacifica, Suite 470 FRANCE - PARIS 105, rue de Lyon
Irvine, CA 92618 159, avenue Charles de Gaulle 1203 – Genève
T +1 949 609 0123 92521 Neuilly-sur-Seine cedex T +41 2 23 89 42 00
T +33 1 55 24 30 00
USA - MINNEAPOLIS TUNISIA - TUNIS
120 S. 6th Street, Suite 1600 FRANCE - TOULOUSE Immeuble Carthage centre
Minneapolis, MN 55402 9, rue de Sébastopol - BP 867 Rue du Lac de Constance
T +1 612 378 1700 31015 Toulouse cedex 6 Bloc A 2e étage
T +33 5 67 31 45 55 1053 Les Berges du Lac – Tunis
T +216 71 96 50 57
USA - NEW YORK
650 Fifth Avenue, 30th Floor ITALY - ROME
New York, NY 10019 Via Attilio Regolo, 19
T +1 212 319 9450 I-00192 Roma
T +39 06 3280 3235
www.kurtsalmon.com