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TO BE THE BEST

❱❱ SOME CATEGORIES HAD LEADING THE JUDGING PROCESS for this year’s awards was a truly gamut- CANDIDATES SO OBVIOUS, THEY running affair. Some categories had leading candidates so obvious, COULD BE SEEN FROM SPACE... they could be seen from space. Two such categories were the fund OTHERS WERE LESS CLEAR-CUT, AND launch of the year and, consequently, the personality of the year – both FIERCELY COMPETITIVE. ❰❰ of which went to Neil Woodford for the phenomenal success of his new firm, Woodford Investment Management, and its inaugural Equity Income Fund. The night’s other other personality award, CIO of the year, was a similarly unanimous choice – the anti-benchmark pioneer Yves Choueifaty of Tobam. That the two winners should have such different investment philosophies shows Europe’s investment industry, like a good portfolio, continues to enjoy a healthy diversity. Other categories were less clear-cut and fiercely competitive, not least in the sections covering specialist, alternative and boutique management companies. The judges’ decisions were not made any easier by the fact so many of the entrants enjoyed a bumper year in terms of asset growth, client wins and returns. The number of positive statistics adorning the entries was a gratifying sight and one that suggests encouraging times are ahead. Regulation continues to dominate the agenda for many market participants, but there is a general consensus that with so many important changes either having gone live or scheduled to do so shortly, a peak has been reached. Should this be the case, the industry can at last get back to the really important task of finalising their awards entries for 2016.

Nicholas Pratt Technology & Operations Editor, Funds Europe

FUNDS EUROPE funds europe n Published by Funds Europe Limited GROUP EDITOR Nick Fitzpatrick Tel: +44 (0)203 178 5875 [email protected] DEPUTY EDITOR 288 Bishopsgate David Stevenson Tel: +44 (0)203 178 5876 [email protected] n SENIOR STAFF WRITER George London EC2M 4QP Mitton Tel: +971 (0) 4295 4618 [email protected] n STAFF WRITER Kit Klarenberg Tel: +44 (0)203 Tel: +44 (0)203 178 5872 n Fax: +44 (0)203 178 4002 427 5224 [email protected] EDITORIAL DIRECTOR Fiona Rintoul fiona.rintoul@funds-europe. © Funds Europe Limited, 2015 com n TECHNOLOGY & OPERATIONS EDITOR Nicholas Pratt [email protected] n SUB-EDITOR David Ryan n ART DIRECTOR Lucy Erikson n PUBLISHER Alan Chalmers Tel: +44 (0)203 178 5877 alan.chalmers@ funds-europe.com n GROUP SALES MANAGER David Wright Tel: +44 (0)203 178 5878 david.wright@funds-europe. com n EDITORIAL AND EVENTS COORDINATOR Paula Towner Tel: +44 (0)203 178 5874 paula.towner@funds-europe. ISSN 1477-4453 com n WEB MANAGER Steve Dimitrov Tel: +44 (0)20 3178 5873 [email protected] n READERSHIP Printed by Buxton Press ADMINISTRATOR Michael Fennessy Tel: +44 (0)20 3427 5226 [email protected]

The views expressed in Funds Europe do not necessarily coincide with the views of the publishers. Although the EDITORIAL ADVISORY BOARD publishers have made every effort to ensure the accuracy of n n the information contained in this publication, neither Funds Eu- Penelope Biggs Northern Trust, London Jean-Baptiste de Franssu Incipit, Brussels Peter Elam Håkansson East rope Limited nor any contributing author can accept any legal Capital, Stockholm n Robert Parker Credit Suisse, London n Todd Ruppert RTR International, London & Baltimore responsibility whatsoever for any consequences that may arise from errors or omissions contained in the publication or from acting on any advice given. In particular, this publication is not SUBSCRIPTION a substitute for professional advice on a specific transaction. Subscription enquiries: [email protected] n Delivery in Europe: €385 n Delivery outside Europe: €495

funds-europe.com 3 FUNDS EUROPE AWARDS

Funds Europe Awards 2015 Judges

Richard Large, Aberdeen Asset Management Sponsors Nick Baker, Alpha Financial Markets CLS Communication Consulting CLS Communication is a language service provider offering translation, writing and editing. The firm has more than Luke Ransley, Aviva Investors 600 in-house staff and more than 5,000 external language Rakesh Vengayil, BNP Paribas specialists, and provides a comprehensive range of services for end-to-end multilingual text management, from translation Investment Partners and copywriting to design and layout. CLS Communication Edward Glyn, Calastone specialises in the financial, life science, insurance, legal, telecoms and utilities sectors. Steve Butler, Camradata Milestone Group Neil Morgan, Capita Asset Services Milestone Group provides advanced software solutions to the Steve Young, Citisoft funds management industry for asset managers, fund product Trevor Hunt, Columbia Threadneedle managers, fund product manufacturers, fund distributors, life and pension companies and fund service providers. The Diana Mackay, Fund Buyer Focus company was formed in 1998 and now operates globally with Alan Chalmers, Funds Europe clients in Europe, North America, Asia, Australia and South Africa. Milestone Group’s flagship product, the pControl Nik Pratt, Funds Europe funds processing application platform, provides a common Bill Gourlay, Idea Group application environment designed to address a range of current industry priorities. Mike Ryder Richardson, Investec Asset RBC Investor & Treasury Services Management RBC Investor & Treasury Services (RBC I&TS) is a specialist Catherine Doherty, Investit provider of asset servicing, custody, payments and treasury Clare Vincent-Silk, Investit services for financial and other institutional investors worldwide. The firm serves clients from 18 locations across Paul Sutton, Knadel North America, Europe, Asia and Australia, delivering Paul Roberts, Milestone Group custodial, advisory, financing and other services to safeguard clients’ assets, maximise liquidity and manage risk in multiple Mark Low, RBC Investor & Treasury jurisdictions. RBC I&TS had €2.56 trillion in client assets under Services administration and custody as at May 2015. Simeon Downes, SCM Private

RBC Investor & Treasury Services

4 December/January 2016 The tower and the glory

The great and the good of Europe’s asset management industry gathered at the Tower of London in November for the 11th Funds Europe awards. A total of 20 prizes were given out on the night to both firms and individuals as decided by our independent group of judges, who spent many weeks poring over the numerous entries. The night ended with guests and judges alike happily networking and enjoying the refreshments.

funds-europe.com 5 FUNDS EUROPE AWARDS

EUROPEAN PERSONALITY EUROPEAN CIO OF THE YEAR EUROPEAN ASSET OF THE YEAR Award winner: Yves Choueifaty MANAGEMENT FIRM OF THE Award winner: Neil Woodford Accepted by: Yves Choueifaty YEAR (ASSETS > €100BN) Accepted by: Saku Saha Presented by: Philippe Award winner: Robeco Presented by: Philippe Lespinard Accepted by: Nicholas Shaw Lespinard Presented by: Steve Butler

EUROPEAN ASSET EUROPEAN ASSET EUROPEAN SPECIALIST MANAGEMENT FIRM OF THE MANAGEMENT FIRM OF THE INVESTMENT FIRM OF YEAR (ASSETS €20BN-€100BN) YEAR (ASSETS < €20BN) THE YEAR Award winner: Candriam Award winner: Unigestion Award winner: Ashmore Accepted by: Naïm Abou-Jaoudé Accepted by: Fiona Frick Accepted by: Kevin Bond Presented by: Emma Crabtree Presented by: Phil Davies Presented by: Shiv Taneja

EUROPEAN ETF PROVIDER OF EUROPEAN HEDGE FUND FIRM EUROPEAN FUND LAUNCH OF THE YEAR OF THE YEAR THE YEAR Award winner: Amundi ETF Award winner: Aspect Capital Award winner: Woodford Accepted by: Philip Philippides Accepted by: Christopher Reeve Investment Management Presented by: Neil Morgan Presented by: Miller Guo Accepted by: Saku Saha Presented by: Jerome Bloch

6 December/January 2016 EUROPEAN MARKETING EUROPEAN THOUGHT EUROPEAN CONSULTANT OF CAMPAIGN OF THE YEAR LEADERSHIP OF THE YEAR THE YEAR Award winner: Kas Bank Award winner: Schroders Award winner: Alpha Financial Accepted by: Wouter de Jonge Accepted by: Clelia Fabbricatore Markets Consulting Presented by: Pablo Navascues Presented by: Catherine Doherty Accepted by: Nick Baker Presented by: John Kennedy

EUROPEAN CUSTODIAN EUROPEAN ADMINISTRATOR EUROPEAN SPECIALIST OF THE YEAR OF THE YEAR ADMINISTRATOR OF THE YEAR Award winner: HSBC Securities Award winner: BNP Paribas Award winner: Alter Domus Services Securities Services Accepted by: Davinia Smith Accepted by: Gina Slotosh Accepted by: Andrew Butler Presented by: Hugh Moir Presented by: Hugh Moir Presented by: Hugh Moir

EUROPEAN HEDGE FUND EUROPEAN TRANSFER AGENT EUROPEAN FRONT TO BACK ADMINISTRATOR OF THE YEAR OF THE YEAR OFFICE PROVIDER OF THE YEAR Award winner: State Street Award winner: RBC Investor & Award winner: SimCorp Accepted by: Helen Bakoulis Treasury Services Accepted by: John Mayr Presented by: Hugh Moir Accepted by: Emma Crabtree Presented by: Rakesh Vengayil Presented by: Hugh Moir

funds-europe.com 7 FUNDS EUROPE AWARDS

EUROPEAN FRONT OFFICE EUROPEAN BACK AND MIDDLE PROVIDER OF THE YEAR OFFICE PROVIDER OF THE YEAR Award winner: Liquidnet Award winner: Vermilion Accepted by: Brian Kehoe Accepted by: Stephen Quigley Presented by: Rakesh Vengayil Presented by: Rakesh Vengayil

8 December/January 2016 Empowering your clients through intelligence

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For professional investors or advisers only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued in December 2015 by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority. w47493 FUNDS EUROPE AWARDS European personality of the year Winner: Neil Woodford, Woodford Investment Management

IF ANYONE WAS in doubt as Neil Woodford, Woodford to whether the ‘star manager’ Investment Management tag was still relevant in today’s asset management industry, the phenomenal success of the Woodford Equity Income fund has shown just how important the presence of someone like Neil Woodford is deemed by investors. It has even seen the coining of a new phrase – ‘the Woodford effect’ – in reference to the frenzy of interest from investors last summer to join his latest eponymous vehicle, Woodford Investment Management. After a career of more than 35 years, Woodford remains one of Europe’s well-known and best- performing fund managers and was appointed a Commander of the British Empire in 2013 for services to the economy.

SURPRISING THE MARKET He established his reputation as the head of UK equities at Invesco Perpetual, managing more than ❱❱ THE SUCCESS OF WOODFORD He followed this up in April 2015 £15 billion (€20.7 billion) in INVESTMENT MANAGEMENT HAS with the launch of the Woodford assets – including a flagship DEMONSTRATED THE ENDURING Patient Capital Trust, a UK-listed high-income fund that delivered APPEAL OF A GENUINE STAR fund specialising in early-stage 2,635% in cumulative returns over MANAGER AMONG INVESTORS. ❰❰ companies, which raised a record 25 years – before surprising the £800 million on launch. market in October 2013 when he announced his intention to strike more than three times the FTSE INSTANT CREDIBILITY out on his own. All Share Index, which was up by The success of Woodford Woodford Investment 6.5% in the same period. Investment Management has Management was formed the This performance saw Woodford demonstrated the enduring following year and its first fund, crowned as the best performer appeal of a genuine star manager the Woodford Equity Income, in the UK equity income sector among investors. Woodford’s has raised more than £7.6 billion and demonstrated the strength presence gave the vehicle instant in little over a year. It returned of loyalty among the investors credibility, thanks to his belief in 19.6% to investors, more than that switched their money from core investment principles and a double the 9.6% average return his former Invesco fund to his complete focus on the long-term for UK equity companies and new vehicle. management of clients’ money.

10 December/January 2016 CREDIBLE RELIABLE CONNECTED

EUROPEAN SPECIALIST ADMINISTRATOR WINNER FUNDS EUROPE AWARDS &

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2015_208_280_Bleed5mm_Right_Page.indd 1 19/08/2015 09:01:13 FUNDS EUROPE AWARDS European CIO of the year Winner: Yves Choueifaty, Tobam

IN NAMING HIM CIO of the Yves Choueifaty, year, the judges recognised the Tobam pioneering work Yves Choueifaty has done in what has become widely known as ‘smart beta’ investing. At a time when the role of the CIO is harder to define than ever, with responsibilities spread across so many areas, his is one of the clearest examples in the market today of a clear and single- minded investment approach. Since 2005, when he formed the Paris-based asset management firm Tobam, he has continued to beat the drum for his contrarian, anti-benchmark philosophy, patented as the Maximum Diversification approach. His research has been instrumental in highlighting the weaknesses of traditional market- ❱❱ CHOUEIFATY HAS CONTINUED not have a sales team. Instead, cap weighted benchmarks and TO BEAT THE DRUM FOR HIS almost half of its team works promoting the benefits of his CONTRARIAN, ANTI-BENCHMARK in research, developing the patented maximum diversification PHILOSOPHY. ❰❰ mathematical properties of the approach as a true measure that diversification measurement and captures the equity risk premium founding Tobam, he spent several exploring how to implement it. without bias. years at Credit Lyonnais Asset A member of the 300 Club Perhaps most importantly, Management, rising from head think tank, Choueifaty continues Choueifaty has generated a of financial engineering and to be a prolific publisher of sustained period of positive quantitative investment to CIO research, spreading the gospel performance, particularly in and then CEO. of his particular brand of active 2015. Tobam’s anti-benchmark After its foundation, Tobam management, whereby the strategy has generated a 38% was incubated by Lehman aim should be not to beat the increase in AuM in the year up Brothers and became part of its benchmark but to make that same to the end of June 2015 with net quantitative asset management benchmark go up. inflows in excess of $2.6 billion team. It became independent In addition to its promotion (€2.4 billion). Tobam has also in 2008 and has since attracted of anti-benchmark investing, won clients in 11 new countries, two minority shareholders Choueifaty has also ensured including its first Asian sovereign in California pension fund Tobam continues to support wealth fund and first Italian CalPERS and French asset sustainable investment. It has built mandate, and increased its staff manager Amundi. up a sizeable ESG portfolio and from 26 to 36. The latter has become a established partnerships with Central to all of this success distribution partner given that, both Human Rights Watch and has been Choueifaty. Prior to somewhat uniquely, Tobam does Amnesty International.

12 December/January 2016 The world at your fingertips

SEPTEMBER 2014 • ISSUE 129 • €40 AUTUMN 2014 WINTER 2014 OCTOBER 2014 • ISSUE 130 • €40 SEPTEMBER 2014 • ISSUE 129 OCTOBER 2014 • ISSUE 130

RATE RIDDLE CAYMAN Reducing duration ISLANDS Strong despite AIFMD OPENING UP Saudi Arabia’s stock market

Sukuk First-time issuers

India since the election South Korea MODI’S Distribution battle Listed asset managers in Europe TOUGH MOMENT FLOOD Alibaba DEFENCES BATTLE Investing in China’s internet NEW Multi-asset funds in the face of sudden change RIVAL Frontier markets Shanghai-Hong Kong Stock Connect INTERVIEWS North Korea, Iran and Cuba TOP DOWN › Aviva Investors, COO The ETF strategists › BNP Paribas IP

TAIWAN DISTRIBUTION • SECURITIES LENDING • ISLAMIC FINANCE TECHNOLOGY • INTERVIEWS • FUND ADMINISTRATION FRONTIER MARKETS • FUND ADMINISTRATION • CLEARING & SETTLEMENT GLOBAL CUSTODY SURVEY 2014 • MIFID II • SIBOS PREVIEW

01 cover - sejss:00 cover 24/10/13 17:24 Page 1

JUNE 2014 • ISSUE 126 • €40 NOVEMBER 2013 • ISSUE 121 • 40 WINTER 2014 AUTUMN 2014 JUNE 2014 • ISSUE 126 OEBR21 SU 121 ISSUE • 2013 NOVEMBER

Plus ❱ Private equity panel ❱ Fund manager roundtable HIGH HOPES Colombia on the rise

Argentina Finding a debt solution Multi-management Competing with asset allocators in a fixed income world

Beijing fund industry roundtable

Why Russian equities are dominating portfolios STATE IRANReturning to global markets? CONTROL Plus China’s economy and systemic risk › Branding: special discussion Plus as seen by its local chief executives › Ending Europe’s inducements ❱ Brazilian retail investment ❱ The Cuba investor ❱ Custody banking

CORPORATE BONDS • CLEARING & SETTLEMENT • AWARDS SHORTLIST DUBAI VS RIYADH • AFRICAN ASSET SERVICING • EGYPT TRANSFER AGENCY • FUND FORUM PREVIEW • PEOPLE MOVES

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www.funds-europe.com www.fundsglobalmena.com www.fundsglobalasia.com FUNDS EUROPE AWARDS European asset management firm of the year > €100bn

Winner – Robeco

NETHERLANDS-BASED ASSET London, Mark Barry. David Steyn, manager Robeco is a company Robeco A number of new funds have on the up. In 2014, it set itself been added in this time, many a series of ambitious targets, of which go beyond traditional which it has surpassed in 2015. equity markets. Two of these Assets under management funds are based on quantitative have increased by €40.8 billion, investment, an area in which bringing the overall total to an Robeco has been active since the all-time high of €246 billion, half early 1990s and is now one of the of which is institutional business. largest quant houses in Europe, Robeco has also made a managing €32 billion in pure number of senior appointments in quant strategies. the past year in order to continue Robeco has also consolidated its international expansion plans, its status as a champion of including new chief executive sustainable investing this past David Steyn and new head of year, managing €82.6 billion in Robeco’s institutional business in ESG-integrated assets.

SHORTLIST

ALLIANZ GLOBAL INVESTORS The firm has enjoyed a significant increase in AuM, from €373 billion to €446 billion, and a positive global performance in which 72% of qualified assets outperformed their benchmarks. In addition, Allianz GI also notched up a number of new developments, including the launch of its UK Infrastructure Debt fund, the opening of a Brussels office and, in partnership with the School of Life, the publication of the book Risk Wise: Nine Everyday Adventures, authored by Polly Morland, which challenges the common assumption risk is to be avoided.

EURIZON The Italian asset manager has seen stellar growth for its Eurizon GP Unica offering, a portfolio management service for the Italian market that has attracted investment of more than €7.6 billion in its first year. Its central feature is the chance for clients to take an active role in asset allocation with a choice of four components: asset class, target market, management style and instrument type.

JP MORGAN ASSET MANAGEMENT The US powerhouse has enjoyed another successful year throughout Europe and continues to manage some of the region’s largest funds. JPMAM also found time to launch a new Sicav vehicle that applies multi-asset investing techniques to convertible bonds, the Global Capital Structure Opportunities fund, which debuted in March 2015.

SCHRODERS The firm was able to continue the success of the previous year by recording a growth in European AuM of 24.8% and net sales of €10.5 billion up to the end of June. Schroders has also strengthened its brand ranking in Europe with fund buyers and consultants and been prominent in its thought leadership initiatives, publishing a number of reports on a diverse range of topics including the defined contribution scheme.

14 December/January 2016 European asset management firm of the year, €20bn-€100bn

Winner – Candriam

IT HAS BEEN an eventful period Naïm Abou-Jaoudé, ❱❱ THE CORE EUROPEAN for Candriam, formerly known Candriam FUNDS HAVE BEATEN as Dexia Asset Management. At THEIR PERFORMANCE the beginning of 2014 it faced INDICATORS AND THE an uncertain future, but since FRANCHISE’S FOUR being bought by New York Life ALPHA GENERATION Investment and rebranding as STRATEGIES HAVE Candriam, the firm has gone from DELIVERED IN EXCESS strength to strength. OF 10%. ❰❰ The renewed momentum generated by the rebrand is Meanwhile, staff has increased clearly evident in the company’s by 5% in the first half of 2015 with figures. Net new cash inflows in a further 10% increase planned the first half of 2015 reached €8 for the next 18 months. Central billion, taking AuM to a record to Candriam’s success has been €90 billion. Candriam’s European the leadership of chief executive equities franchise has performed and chairman Naïm Abou-Jaoudé, especially well, led by Geoffroy who has been present for nigh Goenen. All of the core European on 20 years. It was his insistence range of funds have beaten their any new buyer for Dexia, as it performance indicators and its was then, would retain faith in its four alpha generation strategies management and be committed have delivered in excess of 10%. to its long-term future.

SHORTLIST

ARTISAN PARTNERS The firm’s focus on active strategies has paid dividends in the five years it has been operating in Europe. In 2015, Artisan has grown its European assets to more than $10 billion (€9.1 billion), with its flagship Artisan Partners Global Fund accounting for $1.7 billion of that total. It has also enhanced its good reputation with fund selectors and demonstrated its commitment to Europe with additional hires in its distribution and support divisions.

KAMES CAPITAL The company has performed consistently on a pan-European scale. It has amassed €79 billion in assets while its funds have outperformed their primary benchmarks over the past three years, including its flagship Strategic Global Bond Fund. Kames has also launched two market neutral funds which aim to deliver returns uncorrelated to other asset classes, and two absolute return bond funds.

UNION BANCAIRE PRIVÉE The independent Swiss asset manager has enjoyed a 12% rise in AuM for its institutional business, which is now worth more than €20 billion. It has also been active in launching new funds, 11 in all, during the past 12 months, including one designed as a direct response to the Swiss National Bank currency crisis in January 2015. UBP also launched U-Access, its single manager alternative Ucits platform.

funds-europe.com 15 FUNDS EUROPE AWARDS European asset manager of the year < €20bn

Winner – Unigestion

THE JUDGES REWARDED ambitions for innovation and Fiona Frick, Unigestion for a highly successful Unigestion thought leadership, a subject year that has seen the Swiss- chief executive Fiona Frick has based firm grow its AuM by 38%, promoted across various media. from €11.8 billion to €16.3 billion. In December, the firm launched The firm also received inflows the Uni-Global Cross Asset of more than €2 billion in that Navigator, a multi-asset strategy time, the majority of which (€1.78 that allocates across a wide billion) went into its range of risk- range of risk premia and managed equity strategies. opportunities linked to Ever since inception, Unigestion macroeconomic themes or has focused on providing market dislocations. long-term outperformance of Unigestion has also developed the broad markets as opposed a new tool for private debt to discrete on-year investment investors, the Private Debt horizons. Allocator, aimed at demystifying The judges were also a notoriously complex asset class impressed with Unigestion’s for investors.

SHORTLIST

EI STURDZA Part of the Swiss private banking group Sturdza, this fast-growing investment manager places great importance on the independence of its portfolio managers, none of whom are employees of EI Sturdza. The firm grew its assets from $2.4 billion (€2.2 billion) to $2.7 billion in the year up to June 2015 with its EI Sturdza Strategic Europe Value Fund faring particularly well, with +83.28% returns over the last three years and AuM growth of close to 70% in the last year.

H20 This specialist, information ratio-driven asset manager has built of AuM of £5 billion (€6.9 billion) in the five years since its inception, including £1.3 billion in the last year. The firm puts this growth down to its investment philosophy that prioritises value diversification as the most stable source of performance over time and a methodology based on long/short risk allocation.

MAJEDIE ASSET MANAGEMENT The judges were especially impressed by this independent, active management boutique for its effective web presence and prolific thought leadership, including the monthly Majedie Bulletin distributed via email. It has also continued to have great success with its £1 billion Tortoise fund, which has quadrupled in growth since 2012.

WILLIAM BLAIR 2015 was a highly successful year for William Blair’s European funds, in which it increased AuM by 67% to $7.3 billion. It has gained a lot of traction among investors in the Netherlands especially, and fostered a reputation for carefully managed funds with strong client service at the heart of it all.

16 December/January 2016 European specialist investment firm of the year

Winner – Ashmore Group

ASHMORE HAS DEVELOPED market funds. It has suffered Christoph Hofmann, a reputation as a pure emerging Ashmore some inevitable redemptions in market investment manager its EM debt funds as a result of since launching its first emerging negative market trends. But it has market fund in 1992, the Ashmore stayed resolute and true to its Emerging Markets Liquid investment philosophy and client- Investment Portfolio. Since then, centric approach. Ashmore has spread across Integral to Ashmore’s success Europe and grown its assets has been its 20-plus years’ under management. heritage in emerging market Ashmore earned a reputation investing and an investment as a pioneer in the Chinese committee steeped in industry investment market when, in experience. It also continues January 2014, it became the first to engage with the wider non-Greater China-based asset market, running an annual manager to be granted an RQFII education programme for central licence for investing in China’s bank/sovereign wealth fund domestic securities market. ❱❱ INTEGRAL TO ASHMORE’S SUCCESS relationships, a multi-day seminar In the judges’ opinion, Ashmore HAS BEEN ITS 20-PLUS YEARS’ run in conjunction with Cass has also managed to weather HERITAGE IN EMERGING MARKETS Business School and an annual the storm in what has been a AND AN INVESTMENT COMMITTEE Emerging Market Investment challenging period for emerging STEEPED IN INDUSTRY EXPERIENCE. ❰❰ Forum held in London.

SHORTLIST

PANTHEON The specialist investor in private equity, real estate and infrastructure has committed €849 million to general partners with European strategies and won a number of mandates in Poland, Finland and Switzerland over the past year. Pantheon has also been an active member of industry associations and regulatory committees and a prolific participant in industry conferences and research projects.

RUFFER A UK-based, discretionary manager of an absolute return fund, Ruffer has experienced a strong growth in assets under management of more than 10% to £18.4 billion (€25.4 billion) in the 12 months up to the end of June 2015. The growth has been largely down to bold allocations to growth assets such as Japanese equities, a dedicated focus on its single mandate and a conviction-based investment philosophy.

TUNDRA FONDER The Swedish boutique has forged a strong reputation in its native market for its frontier market funds, which include Vietnam, Bangladesh, Nigeria and Pakistan among its chosen markets. The judges were impressed by Tundra’s ability to attract inflows in a market segment so out of favour with many investors. The Tundra Pakistan Fund, the only dedicated Pakistan equity fund outside of Pakistan, has fared especially well in the past year, outperforming the MSCI Pakistan benchmark by more than 10% in the year up to June 2015.

funds-europe.com 17 FUNDS EUROPE AWARDS European ETF provider of the year Winner – Amundi

AMUNDI HAS REGISTERED a Valérie Baudson, Amundi ETF MSCI World Low consistently strong performance Amudi ETF Carbon Ucits ETF, developed with in Europe’s ETF market. the help of MSCI, which aims to In 2014, it amassed €18.4 billion reduce the carbon footprint by in assets for its ETFs, confirming 50% compared to its parent index, its position as the fifth-largest the MSCI World. This was thought ETF provider in Europe. This to be genuinely groundbreaking growth has continued, with by the panel of judges. Amundi reporting €1.5 billion of net new assets for the first SMART BETA semester of 2015. Another key development Amundi has backed this growth has been Amundi’s partnership with an increase in support for with the Edhec-Risk Institute investors. It has reinforced its and its ERI Scientific Beta arm, sales teams across Europe. which has seen it develop a In addition, the judges were broad range of smart beta impressed by the fact Amundi ETFs, making Amundi the third- has managed to combine this ranked ETF provider in Europe steady growth with some clear in terms of net sales. ❱❱ innovation in terms of product ONE OF THE ETFS AMUNDI This range includes the Global development. BROUGHT TO MARKET THIS YEAR Equity Multi Smart Allocation The new ETFs Amundi has AIMS TO REDUCE ITS STRATEGY’S Scientific Beta Ucits ETF, which, brought to market this year CARBON FOOTPRINT BY 50% in addition to being one of the include its S&P 500 BuyBack Ucits COMPARED TO ITS PARENT INDEX, longest-sounding products ETF, which provides exposure MSCI WORLD. THIS WAS THOUGHT TO available on the market today, to the growing potential of US BE GENUINELY GROUNDBREAKING offers investors multiple exposure ❰❰ buyback programs, and the BY THE PANEL OF JUDGES. in a single transaction.

SHORTLIST

OSSIAM The judges felt Ossiam’s ETFs are able to offer investment benefits other providers cannot. As a pure smart beta house, Ossiam has continued its policy of innovation in 2015 with the launch of an equity strategy based on fundamental indicators and a value-driven investment methodology. The new strategy was launched via the February 2015 debut of the Ossian Shiller Barclays CAPE Sector Value Europe ETF, the world’s first ETF to be based on the cyclically adjusted price-to-earnings (CAPE) valuation metric developed by Professor Robert Shiller in 1981.

WISDOMTREE EUROPE After almost a decade of success in the US market, WisdomTree has looked to replicate its success in the European market. Since launching in October 2014, WisdomTree Europe has cross-listed more than 30 ETFs on exchanges across Europe and achieved commendable AuM growth of 281% since launch. The judges were impressed by the solid back-testing of its ETFs, its admirable record on listings and its ability to outperform market cap-weighted ETFs. These attributes have made WisdomTree’s ETFs a very credible alternative to some of the generic ETFs available on the market.

18 December/January 2016 European hedge fund firm of the year Winner – Aspect Capital

THE POSITIVE PERFORMANCE Anthony Todd, firm’s trend-following model Aspect Capital and strong business development and have led to three new displayed in the past year made implementations of the Aspect Aspect Capital the outstanding Diversified Programme released candidate in the fiercely fought in August 2014, December 2014 hedge fund category. and April 2015. The London-based systematic Aspect plans to continue adding investment manager enjoyed a new asset classes, with Chinese 22.57% return for its flagship managed futures next on the list fund, Aspect Diversified, making of instruments. it one of the top performers in its Additionally, the migration of peer group. over-the-counter derivatives to Aspect Capital’s investment central clearing facilities will philosophy is based on a likely open up new asset classes, commitment to medium-term like interest rate swaps and credit trends as the primary source of default swaps, that can offer its returns, an approach clearly significant diversification. Aspect justified by the positive results in has successfully test-traded these the past year. ❱❱ ASPECT PLANS TO CONTINUE instruments and will be looking Aspect’s ongoing research ADDING NEW ASSET CLASSES, WITH to incorporate these into its efforts have helped to deliver a CHINESE MANAGED FUTURES NEXT Diverisified Programme over the series of enhancements to the ON THE LIST OF INSTRUMENTS. ❰❰ next 12 months.

SHORTLIST

ABBEY CAPITAL The Dublin-based alternative manager has specialised in the creation and management of liquid, multi-manager managed futures, global macro and FX portfolios and has become a prominent player in the commodity trading advisor (CTA) market. Abbey Capital’s strategy is designed to provide diversification to traditional stock/bond portfolios. It employs proprietary risk systems and segregated account structures, and recently launched its first 1940 Act liquid alternative fund, which has raised close to $200 million of assets in its first year.

AURUM The firm has announced a number of new funds this year as part of its strategy to provide investors with a consistent source of income, with minimal exposure to traditional asset classes. It is Aurum’s belief the market is awash with funds that are essentially ‘beta masquerading as alpha’ and that its own funds are genuinely uncorrelated to mainstream markets. In addition to launching its first comingled, AIFMD-compliant fund in 2014, the Aurum Alpha Fund, Aurum has set up the Regeneration Portfolio, which provides grants to environmental NGOs.

DYNAMIC A diversified, systematic manager with offices in London, Jersey and New York, Dynamic’s flagship fund, the Dynamic Offshore Fund, generated a 22.73% return in the past year, building on a 32% return the previous year and a 12.8% average annualised return since its inception at the turn of the millennium. Dynamic has developed a proprietary trading and risk management infrastructure to minimise market impact and enhance performance.

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360_PUB_FUNDSEURO-2015_IOS_v2.indd 1 16/12/2015 12:34 European fund launch of the year Winner – Woodford Equity Income

WHEN AWARDING A WINNER Neil Woodford, Woodford for the best fund launch of Investment Management the year, it was impossible for the judges to look beyond the Woodford Equity Income fund. The inaugural fund from star manager Neil Woodford’s new outfit, Woodford Investment Management, has been a massive success across the board. Prior to its launch in June 2014, there was a scramble among investors to get on board. Woodford also managed to attract money from former investors in his Invesco funds, including £400 million (€553 million) from the UK’s biggest fund shop, Hargreaves Lansdown, The interest in the Woodford fund has been entirely justified. Since launch, it has beaten all peers in the UK funds market, ranking first out of 86 funds in the ❱❱ INTEREST IN THE FUND HAS BEEN of 9.5%. Quantitative analysts UK equity income sector. ENTIRELY JUSTIFIED. SINCE LAUNCH, from the likes of Hargreaves It has raised more than £7.6 IT HAS BEATEN ALL PEERS IN THE UK Lansdown have attributed the billion in its first 12 months and FUNDS MARKET, RANKING FIRST OUT fund’s success to combination returned 19.6% to investors, more OF 86 IN THE UK EQUITY INCOME of strong selection and sector than doubling the sector average SECTOR. ❰❰ positioning.

SHORTLIST

FRANKLIN TEMPLETON The Franklin K2 Alternative Strategies Fund was the firm’s first multi-manager, multi-strategy Luxembourg-registered Sicav fund and a response to the growing demand for actively managed funds. It has also proved to be one of the firm’s faster- growing funds, raising an impressive $847 million (€773 million) in assets and returning 4.40% since launch.

LYXOR The Lyxor JPX-Nikkei 400 Ucits ETF was one of the first ETFs to introduce investors to the new Japanese equity benchmark, the JPX-Nikkei 400 index, which has proved so popular in 2015. Consequently, Lyxor’s ETF has accumulated more than $1 billion in assets under management, making it by far the biggest European-listed ETF tracking this benchmark. The fact Lyxor was so quick to exploit the investor interest in the Japanese market is testament to its product development and marketing capability.

funds-europe.com 21 European marketing campaign of the year Winner – Kas Bank

THE IDEAL MARKETING campaign should have many Sikko van Katwijk, Kas Bank things – clarity, purpose, boldness, the ability to grab the attention and true originality. In the view of the judges, Kas Bank’s Custodian Principles demonstrated all of these properties. The Netherlands-based asset servicing bank’s campaign sought to highlight its custody offering by sparking a debate on the standards in custodianship in the European investment market. The custody market is one of the most competitive sectors in financial services. As services have become commoditised, consolidation among providers has created a handful of global giants for whom scale has become the defining property. For more regionally focused players like Kas Bank, unable to match the size and section of professionals from ❱❱ THE CAMPAIGN WAS LAUNCHED scale of their larger rivals, the the worlds of culture, science WITH A SERIES OF FILMS THAT importance of customer service and even mountaineering – HIGHLIGHTED SOCIAL ISSUES AND has never been greater. the idea being to relate the THE REFLECTIONS OF A CROSS- The campaign is built around concept of custodianship to a SECTION OF PROFESSIONALS FROM the bank’s stated Custodian wider environment than simply THE WORLDS OF CULTURE, SCIENCE Principles of “secure, protect and investors’ assets. AND EVEN MOUNTAINEERING. ❰❰ develop”, a set of “distinct cultural Distribution was centred on and moral values” by which the key markets within the UK and bank defines itself. At the same Bank recently hosted a debate the Netherlands and used online time, Kas Bank is also looking to on this very issue, asking, “Is advertising as well as print use these values as a set standard transparency the new green?” publications to showcase how the for the industry to follow in the Kas Bank targeted institutional Custodian Principles can relate to pursuit of better client service. investors in its home market industry challenges. Social media In the current climate of and the UK, where the pensions was also employed, albeit in a opinion, few people think of industry is increasingly looking more targeted approach. banks as guardians of society’s to its Dutch counterpart as a The videos, available on the moral values, so the boldness model for best practice and bank’s website, have continued of Kas Bank’s campaign is greater transparency. The to attract interest and regularly clearly evident. However, cost campaign was launched with a clock up 1,500 views every month, transparency is a topical theme series of films that highlighted a underlining how Kas Bank’s for pension fund trustees and number of social issues and the campaign has ultimately been their advisers. In fact, Kas reflections of a diverse cross- effective in practice.

funds-europe.com 23 FUNDS EUROPE AWARDS European thought leadership of the year Winner – Schroders

THIS AWARD WENT to Schroders The report examines the Lesley-Ann Morgan, for Global Lessons in Developing Schroders advantages of a DC scheme Post-retirement Solutions – a (flexibility and choice) against 55-page report that takes an in- the pronounced risk retirees will depth look at the post-retirement outlive their savings. arrangements of nine countries. The report also suggests what As far as the judges were an ideal retirement fund should concerned, this research aim to provide – such as stable addresses a highly topical and and real investment returns, important subject. reliable protection against As a society, we are at an longevity risk, flexibility and inflection point in the defined simple implementation – and contribution (DC) market. how these properties might be For many years, it has been reflected in a DC scheme (by clear that traditional pension focusing firstly on stable growth arrangements underwritten by strategies and then on longevity the state or by employers are protection in later life). unsustainable and the retirees of Schroders followed up its the future will have to shoulder report by using the findings more of the retirement risk to generate videos, short themselves via DC schemes. blog pieces, summaries and The Schroders report is the presentations. result of five months of research More importantly, the firm into the DC schemes of major has started working with other ❱❱ SCHRODERS’ REPORT SUGGESTS markets such as the UK, US and participants in the market, WHAT AN IDEAL RETIREMENT FUND Australia, along with Chile, including asset managers and SHOULD AIM TO PROVIDE AND which has been a pioneer of pension funds, to develop HOW THESE PROPERTIES MIGHT state-promoted pensions, and solutions to what it is a critical BE REFLECTED IN A DEFINED Singapore, where the DC scheme issue for asset managers, not just CONTRIBUTION SCHEME. ❰❰ is compulsory. now but in the future.

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EY EY’s Global Fund Distribution business intelligence service is an archetypal example of industry research. It is well presented, reliably informed and constantly updated. It brings different regional patterns together into a coherent summary of global trends. The judges were also impressed with the use of social media such as LinkedIn to engage a wider audience and further the research and its findings.

UBS The Pension Fund Indicator, annually produced by UBS, has achieved notable recognition within the industry and represents a laudable effort by an asset manager to produce a comprehensive guide to the pensions market. The judges recognised the potential for the PFI to be a useful educational tool for pension fund trustees and managers alike.

24 December/January 2016 European consultant of the year Winner – Alpha Financial Markets Consulting

THE PAST 12 MONTHS has 2014 and advising on a range Euan Fraser, Alpha Financial been an eventful and successful Markets Consulting of digital issues such as peer- period for Alpha Financial to-peer lending, crowdfunding, Markets Consulting. Not only biometrics and the use of social did the consultant go through media. Alpha FMC has also a management buyout, it also focused on improving client pursued its ambitions to become performance with dedicated more Euro-centric with the practices for technology, opening of a new European distribution, mergers and office in the Netherlands and acquisitions, operational a strengthening of its teams in outsourcing and regulation. London, Paris and Luxembourg. The judges were also impressed This has led to a growing by the level of engagement and impressive client list that Alpha FMC has had with that includes 15 of the top 20 the industry. It has played a European asset managers, from significant role in a number of boutiques (Lombard Odier) to industry forums, including user multinationals (Deutsche Asset & groups for system vendors like Wealth Management) and from European Aladdin and Charles pension funds (APG) to private River and the steering committee equity (HgCapital). for the UK’s Investment Alpha FMC was also involved in Association’s flagship Statement one of the year’s biggest success of Principles initiative. stories – the debut of Woodford Alpha FMC has also conducted Investment Management, from a number of benchmarking its inception to what has been ❱❱ ALPHA FMC HAS PUSHED A STRONG studies, including one on the most successful fund launch DIGITAL AGENDA, RECRUITING investment operations that in history. A HEAD OF DIGITAL IN OCTOBER includes 56 European managers In particular, Alpha FMC 2014 AND ADVISING ON ISSUES to date; a regulatory study for has pushed a strong digital SUCH AS PEER-TO-PEER LENDING, managers representing more agenda this year, recruiting CROWDFUNDING, BIOMETRICS AND than €8 trillion in assets; and a a head of digital in October THE USE OF SOCIAL MEDIA. ❰❰ client service study.

SHORTLIST

EY The broad coverage of EY’s consulting team continues to impress. It has advised clients on a range of operational topics, from front office transformation to data and analytics and cyber security. All of this has been achieved while the company has undergone a change of strategy to its core business.

INVESTIT The consultant has continued to lead the way in a number of important areas for the European investment market. With the imminent arrival of MiFID II set for January 2017, Investit has developed a toolkit designed to help firms achieve compliance. The firm has also taken a lead role in benchmarking managers’ use of commissions.

funds-europe.com 25 FUNDS EUROPE AWARDS European custodian of the year Winner – HSBC Securities Services

THE JUDGES REWARDED Importantly, Custody Plus Cian Burke, HSBC HSBC Securities Services (HSS) Securities Services enables HSBC to provide for its continued provision of a execution, clearing and settlement truly universal custody offering and custody for clients wishing that caters for traditional long- to invest in the China A-shares only funds and alternatives and market via the new Hong Kong provides a range of services from Shanghai Stock Connect venture. transfer agency to middle office It also meets the pre-trade outsourcing. requirements of Stock Connect The Germany-based HSBC for securities to be delivered Trinkhaus continues to perform from custody to broker, the solidly in Europe but it has been day before execution date, as the global custodian’s unique links well as providing T+0 DVP/ with the Asian funds market that RVP settlement, thereby helping have stood out in 2015. European managers access In particular, two initiatives from the China market with reduced HSS made waves. The first was the operational risk. launch of its Custody Plus service, ❱❱ HSBC TRINKHAUS CONTINUES TO HSBC was also the first to offer an integrated custody-plus- PERFORM SOLIDLY IN EUROPE BUT IT custody services for RQFII funds execution offering developed in HAS BEEN THE GLOBAL CUSTODIAN’S and continues to be the leading conjunction with HSBC Global UNIQUE LINKS WITH THE ASIAN FUNDS provider, with 46% in RQFII Banking and Markets. MARKET THAT HAVE STOOD OUT. ❰❰ custody sales globally.

SHORTLIST

BNP SECURITIES SERVICES An impressive year for BNPSS saw the French custodian increase assets under custody by 18% to more than $9 billion as a result of several new and existing client implementations, including €180 billion of assets for Italian insurer Generali. BNPSS also looked beyond Europe to the emerging markets of Latin America, where it expanded its Latin American business by 20%, and Asia, launching ASEAN and Stock Connect programmes and winning a mandate with China Universal Management for RQFII Ucits and Stock Connect-related services.

RBC INVESTOR & TREASURY SERVICES The Canadian asset servicer has built up a popular custody offering over the past five years and expanded its global custody network to cover 87 markets. Meanwhile, it has built up its European business, which accounts for more than a third of its 2,800-strong global client base. A number of senior appointments and a continued presence on key industry bodies have also helped RBC to further the reputation of its custody business.

SOCIÉTÉ GÉNÉRALE SECURITIES SERVICES SGSS has been able to cement its standing in 2015 as one of the biggest European custodians and a top-ten global custodian. Assets under custody in Europe increased by 6%, while custody-related and depositary activities increased by 25% during 2015. Luxembourg has been particularly fruitful for SGSS, providing ten new mandates and an increase in assets under custody of 14%.

26 December/January 2016 CLS Communication would like to congratulate all the winners at the Funds Europe Awards on their achievement.

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THE JUDGES REWARDED Asset Management (worth Patrick Colle, BNP Paribas BNP Paribas Securities Services Securities Services $37 billion in assets under (BNPPSS) for the significant administration). investment it has made in its asset This mandate underlines the servicing business. Recruitment significant work BNPPSS has done has increased, a new fund to develop an Asian operation, distribution platform has been aided by the opening of two built and, as recently as June offshoring centres in Asia, making 2015, it completed the acquisition it one of the few European-based of Credit Suisse’s Prime Fund administrators with a truly global Services, boosting its credentials offering and a follow-the-sun in the alternative administration operating model. space and adding $237 billion BNPPSS has also been providing (€216 billion) in assets under clients with new services, a administration. financing facility for private The investment has paid equity and real estate funds, and dividends in what has been a enhancing existing services for record-breaking year for BNPPSS. stress test reporting and risk and Assets under administration performance. has increased by 31% to $1,862 ❱❱ THE SIGNIFICANT INVESTMENT In addition, it has created two billion for 8,134 funds and some IN ITS ASSET SERVICING BUSINESS innovation labs to explore the significant new mandates have HAS PAID DIVIDENDS IN WHAT HAS possibilities of emerging trends been won – including the RQFII BEEN A RECORD-BREAKING YEAR such as big data and blockchain Ucits funds for China Universal FOR BNPPSS. ❰❰ technology.

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HSBC SECURITIES SERVICES It has been a challenging year for HSBC Securities Services, as it has been for many fund administrators, but it should be recognised for the work it has undergone in two important areas. Firstly, it has invested heavily in a new service for tax- transparent funds that combines accounting, custody and transfer agency functions. Secondly, HSBC has looked to exploit its big strength – the connectivity to Asian markets – by working with the China Construction Bank.

SOCIÉTÉ GÉNÉRALE SECURITIES SERVICES SGSS managed to record a year of stable growth amid an internal reorganisation that saw the Securities Services division realigned with the Investment Banking unit. Assets under administration grew by 14% to €604 billion by end of June 2015. This included a number of important European mandates, from Luxembourg-based alternative funds to Italian pension funds and French state-owned reinsurers.

STATE STREET The US asset servicer continues to be a solid presence in the European fund administration sector. This was another solid year in terms of growth and business wins and renewals, including the outsourcing of a major asset manager’s fund administration service to State Street Jersey. State Street has also developed a number of digital services for clients, including the Investor Portal and the Ideas app.

funds-europe.com 27 FUNDS EUROPE AWARDS European specialist administrator of the year Winner – Alter Domus

THE JUDGES NOTED 2015 was involvement. In 2014, it was Laurent Vanderweyen, a very successful year for Alter Alter Domus the first fund approved by the Domus, building on an already Commission de Surveillance impressive market share of the du Secteur Financier (CSSF) to European private equity and real provide depositary services in estate servicing sectors. Luxembourg and achieved similar The company underwent a approval from the Financial corporate rebranding in October Conduct Authority (FCA) in the 2014 in order to integrate the UK. In April 2015, it launched a earlier acquisitions of O’Donovan depositary service in Malta. Stewart and Vigel & Associes. In addition, it achieved Alter Domus also produced ISAE 3402 (Level 2 Control a compelling set of numbers. Reports) certification for its Between June 2014 and June fund administration services in 2015, the firm won new business Guernsey, Jersey and Paris and from 230 existing clients and for its depositary offering in 163 new clients. This involved Luxembourg and the UK. incorporating 1,673 new legal And while 93% of its clients are structures, meaning Alter based in Europe, it has sought to Domus now has more than 6,300 provide administrative coverage structures under administration in some of the specialist markets and $65 billion (€59.2 billion) of that exist outside of the continent, assets under administration, a notably the Cayman Islands. 35% increase on 2014. ❱❱ THE AIFMD HAS DOMINATED Alter Domus has also invested The AIFMD has dominated THE ADMINISTRATIVE AGENDA in the technology for its fund the administrative agenda for FOR ALTERNATIVE AND SPECIALIST administration platform, alternative and specialist funds FUNDS AND ALTER DOMUS HAS BEEN upgrading to a new version of and Alter Domus has been AT THE FOREFRONT IN TERMS OF ITS FrontInvest from eFront to improve at the forefront in terms of its INVOLVEMENT. ❰❰ its reporting capabilities.

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AUGENTIUS It was a similarly good year for private equity and real estate specialist administrator Augentius. Client numbers increased by 31% and assets under administration by 27%, while more than 100 new jobs were created in its various operating centres. Some notable business wins included SL Capital (the PE arm of Standard Life), Equis and Mayfair Equity Partners.

IPES Another encouraging set of results suggests specialist administrators have enjoyed a prosperous year. In 2015, Ipes won 36 new clients, building on a successful 2014 when the company added 27 new clients, in addition to a retention rate of 94% year on year. The provision of AIFMD reporting has been central to the increase in clients and in January 2015, the start of AIFMD reporting, Ipes filed more than 22 reports in seven European countries on behalf of 35 managers.

28 December/January 2016 European hedge fund administrator of the year Winner – State Street

AS FAR AS the judges are and committee member positions Jeff Conway, concerned, State Street’s figures State Street on bodies such as the Association speak for themselves. For the of the Luxembourg Fund Industry year to June 2015, it has grown and the Irish Funds Industry its European hedge fund AuM Association. by 4.2% to $401 billion (€366 Regulation has been the billion) and, notably, expanded dominant theme for European its number of clients to 492, an hedge funds and State Street impressive increase of 26%. has reacted to this by launching State Street has won a number of a data management service new clients but also managed to to satisfy the demands of the retain several of its largest clients, AIFMD, in addition to expanding which is no small achievement in existing services to cover the what has become an increasingly requirements of FATCA reporting. competitive marketplace and one State Street has also contributed in which the battle for mandates to the industry’s efforts to get has scarcely been fiercer. to grips wuth new regulatory The capture of new mandates requirements, taking a lead, has also given State Street a along with local regulators, in the much more even split between implementation of the AIFMD and its US and European hedge fund new rules in the UK (the Client administration businesses and Assets Sourcebook) designed to helped to cement its commitment protect customers’ money. to the European market. ❱❱ STATE STREET HAS WON A NUMBER State Street has also looked This commitment has also OF NEW CLIENTS AND ALSO to develop the principle of been demonstrated by the firm’s MANAGED TO RETAIN SEVERAL self-service and operational participation in a number of EU OF ITS LARGEST CLIENTS – NO transparency for its clients, trade bodies and on regulatory SMALL ACHIEVEMENT IN WHAT launching the AIS 360 initiative, an working groups. For example, HAS BECOME AN INCREASINGLY analytical tool for external clients State Street executives hold senior COMPETITIVE MARKETPLACE. ❰❰ that provides real-time data.

SHORTLIST

BNP PARIBAS SECURITIES SERVICES The French asset servicer has made some notable acquisitions over the past 12 months, notably the purchase of Prime Fund Services in June 2015, which has helped BNPSS to swell its assets under administration in the alternatives space to $237 billion. It has also made BNPSS one to watch for 2016, say the judges. In addition to the acquisition, BNPPSS has expanded its services in areas such as stress-test reporting, risk and performance, financing for private equity and real estate, and the use of emerging technology such as big data and blockchain.

SS&C GLOBEOP While BNPSS has been notable for its recent acquisitions, SS&C GlobeOp has been pursuing this path for some time. Its most recent additions, Citi’s hedge fund business and the software of Advent of DST, illustrate the mix of technology and asset servicing that sets SS&C GlobeOp apart from many of its rivals. In addition to its M&A activity, the company has sought to enhance its offering through a FATCA-themed web portal, an online NAV service and a new team dedicated to cyber security.

funds-europe.com 29 FUNDS EUROPE AWARDS European transfer agent of the year Winner – RBC Investor & Treasury Services

THIS HAS BEEN a highly Sébastien Danloy, than a third of the serviced impressive year for RBC Investor RBC Investor & funds domiciled in the important Treasury Services & Treasury Services (RBC I&TS), cross-border centres of Ireland dispelling any doubts there and Luxembourg, where it is the may have been about the firm’s largest third-party transfer agent commitment to the securities currently operating. servicing industry. This cross-border capability has RBC I&TS provides a full range been complemented by RBC’s of shareholder services including distribution network, typified by registrar and transfer agency, the development of its Global cash management, fee processing, Fund Distribution Platform. e-business facilities and investor RBC has 45 years’ offshore reporting. Of particular interest experience and its extensive to the judges was its increased distribution network now covers geographic coverage and more than 90 countries. enhanced distribution capability In addition to the enhancement The global client base has of its cross-border distribution expanded to more than 2,800 ability, RBC has invested clients, with over a third of these significantly in its asset servicing in Europe. Meanwhile, overall capability and made a number of assets under custody and important appointments among its administration have risen from executive team. CAD3.48 trillion (€2.32 trillion) ❱❱ IN THE TRANSFER AGENCY Several key initiatives have been to CAD3.82 trillion between SECTOR, RBC I&TS PROVIDES started in the past year, including April 2014 and April 2015. SERVICES FOR MORE THAN 13 a five-year technology roadmap, a In the transfer agency sector MILLION SHAREHOLDERS GLOBALLY, new tool for asset managers, Fund specifically, RBC I&TS provides WITH MORE THAN A THIRD OF THE Sales Intelligence, and upgrades services for more than 13 million SERVICED FUNDS DOMICILED IN to its Shareholder Accounting & shareholders globally with more IRELAND AND LUXEMBOURG. ❰❰ Registration Application.

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SOCIÉTÉ GÉNÉRALE SECURITIES SERVICES The French asset servicer has had a stellar year in terms of growth, recording a 46% increase in transfer agency activity, building on 72% growth in the past four years. The portfolio of clients has almost doubled in this time, helped by the expansion of regional offices in France, Luxembourg and Italy, where SGSS was mandated by 12 management companies to support their transfer agency activity.

STATE STREET State Street continues to be the primary provider of transfer agency services in the UK with more than a 60% share of the market. It has also increased its share of several other European markets, including Ireland (20.3%, up from 18.3%) and Luxembourg (14.3%, up from 12.8%) as of December 2014. In total, State Street has delivered a 5.6% growth in shareholder accounts administered throughout Europe, including the transition of Standard Life Investments from BNY Mellon on a multi- year contract.

30 December/January 2016

FUNDS EUROPE AWARDS European front to back office provider of the year Winner – SimCorp

SIMCORP CONTINUES TO Klaus Holse, significant technology issues be the clear market leader in SimCorp facing asset managers and the front to back systems space, vendors alike – legacy systems,. thanks in no small part to its The report, entitled Legacy policy of continuous product Systems: The Elephant in the development. The company’s Room, presents new findings from strategy of committing 20% analysts and industry experts of its revenue to research and to illustrate the industry’s development and a policy of over-reliance on technology two product releases every year that is not fit for purpose. In ensures SimCorp Dimension addition, SimCorp has created (SCD) is consistently able to keep a European Trade Repository pace with an ever-demanding User Group to help clients meet client base of asset managers. new EMIR derivatives reporting In the past year, SCD has requirements. introduced a new data warehouse SimCorp’s continued success function, an enhanced front office has, though, created challenges it to enable tighter integration with will have to meet in the future, as the investment book of record have other vendors. (IBOR), and improvements to It has a number of big projects the middle office for better to deliver over the next 12 performance workflow and ❱❱ A STRATEGY OF COMMITTING months, namely the replacement calculations. 20% OF ITS REVENUE TO RESEARCH of legacy systems at prominent SimCorp has also consolidated AND DEVELOPMENT AND A POLICY asset managers. its market-leading position OF TWO NEW RELEASES EVERY It also has to address the issue by signing contracts with new YEAR, ENSURES SIMCORP IS ABLE TO of new delivery methods for and existing clients and has KEEP PACE WITH ASSET MANAGERS’ software, such as the use of cloud contributed to industry thinking DEMANDS. ❰❰ computing and software as a with a report on one of the most service (SaaS) models.

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EZE SOFTWARE GROUP In recent years, the central focus for Eze Software has been the integration of its Order Management System (OMS), Execution Management System (EMS) and Portfolio Management System (PMS). The idea is to create one overall system, the Eze Software Investment Suite, combining its various applications for trading, analytics, compliance, data management and portfolio accounting. In 2015 this, work has been supplemented by the addition of new regulatory reporting functions for the likes of the AIFMD.

Eze now has more than 100 clients using both its OMS and PMS and more than 1,500 asset managers using one or more components from the Eze Software Investment Suite. Eze has gained significant traction among the hedge fund community. The challenge it now faces is to replicate this success with the wider asset management community and to produce a fully integrated system that can deliver on a large-scale basis.

32 December/January 2016 European front office provider of the year Winner – Liquidnet

LIQUIDNET’S DEDICATED Mark Pumfrey, functionality will include point-of- FOCUS on the buy-side Liquidnet trade analytics. has helped it to establish a Managing commission reputation as a favourite vendor budgets is likely to be a key among asset managers and a challenge for asset managers key provider of execution and in the future, thanks to new trading services, evidenced by rules on inducements and the fact it connects more than the relationship with brokers, 780 institutional investors to 43 including the purchase of broker markets in five continents. research. Liquidnet has been Liquidnet is also widely an early mover in the provision regarded as a well-run company of commission management and, while the judges recognise systems, and in April 2015 it Liquidnet’s track record and good launched an additional feature to standing with asset managers, enable to measure and rate the diligently developed over the quality of its research providers. past decade, this award is also Most recently, it has announced down to the company’s continued plans to provide direct innovation and the enhancements connectivity to the first dark pool and initiatives embarked on in for corporate bonds, with 120 US the past 12 months. firms representing 50% of asset ownership so far signed up. FULLY INTEGRATED In among all of the new A new platform, Liquidnet 5, was ❱❱ WHILE THE JUDGES RECOGNISE products and platforms, launched in January 2015. In LIQUIDNET’S GOOD STANDING WITH Liquidnet has also achieved a addition to an expanded liquidity ASSET MANAGERS, DILIGIENTLY record quarter. The first quarter pool and new execution tools, DEVELOPED OVER THE PAST DECADE, of 2015 saw a 12% increase the platform also integrates the THIS AWARD IS ALSO DOWN TO ITS on daily liquidity and a 31% commission management and CONTINUED INNOVATION OVER THE increase on average execution payment functions. Forthcoming PAST 12 MONTHS. ❰❰ size year on year.

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MISYS The company has spent much of the past year developing its FusionInvest system for asset managers adopting liability- driven investment (LDI) strategies. While this makes it a more specialist offering than many other front office systems, Misys has developed a loyal and sizeable client base. The judges also credited Misys for the work it has done to fully integrate the technology it inherited when it acquired risk management vendor Sophis back in 2011.

SIMCORP The judges recognised the significant investment SimCorp has made in the front office component of its SimCorp Dimension (SCD) system, not least in its investment book of record (IBOR) solution. Addressing the IBOR is a complex task not without its challenges, not least its integration with other front office systems and workflows, but SimCorp’s investment has helped to ensure significant progress in this area.

funds-europe.com 33 FUNDS EUROPE AWARDS European back and middle office provider of the year Winner – Vermilion Software

IT HAS BEEN a highly successful global presence and quicken its Marcus Noble, year for Vermilion and its client Vermilion Software time to market with accurate fund reporting software. As well as information. In addition, a new signing more clients than its service V:Utilities was launched competitors, the company has in 2015 to provide clients with the made a number of enhancements flexibility to meet both custom to cater for a growing demand and market standard outputs. among asset managers for services that help meet their ever- NO MESSING ABOUT onerous reporting requirements. What has most impressed the For example, the V:Pitch service, judges is the fact Vermilion a web-based application for recognises the importance of the creating ad-hoc reporting, was implementation process. In an launched as a way for asset industry where it can take more managers to reduce the cost of than a year to fully install new producing sales and marketing systems, it is refreshing to have presentations by eliminating the a system that can be set up in a ❱❱ need for manual copying and IN AN INDUSTRY WHERE IT CAN timely and cost-effective manner. pasting of content. TAKE MORE THAN A YEAR TO The judges praised Vermilion’s Vermilion has also adopted the FULLY INSTALL NEW SYSTEMS, IT success in taking a UK product open data distribution standard IS REFRESHING TO HAVE A SYSTEM and selling it throughout Europe FundsXML in the global rollout of THAT CAN BE SET UP IN A TIMELY and beyond. ❰❰ the platform to Netherlands-based AND COST-EFFECTIVE MANNER. Vermilion has also contributed Robeco as part of its drive to instil to the industry through its more automation in the reporting championing of the proof-of- process and to foster greater concept as opposed to the integration of workflow. traditional request-for-proposal This will enable the asset process as a more effective means manager to continue to expand its of procurement.

SHORTLIST

MILESTONE GROUP Valuations and the task of calculating a notional asset value (NAV) have become of primary importance in the post-financial crisis era. With the advent of new regulations, from the AIFMD to MiFID II, as well as the increase in back-office outsourcing, the oversight of NAV calculations has never been more important. Milestone’s pControl Fund Oversight offering is attempting to address this issue and define a best standard for asset managers to follow.

SS&C GLOBEOP As one the most acquisitive companies in the industry, SS&C GlobeOp has consistently added to its capabilities, most recently with the purchase of hedge fund systems vendor Advent. While this strategy creates a challenge in terms of integrating inherited technology, the judges feel it is producing some notable developments in terms of hedge fund services. Of particular note are the performance attribution systems and the EMIR transaction reporting service.

34 December/January 2016 Empowering client service professionals Vermilion Software is the leading global provider of client reporting and communications software and services to the asset management industry.

WINNER Back & Middle Office Provider of the Year

Our award-winning product, Vermilion Reporting Suite, is designed to deliver accurate, flexible and scalable client reporting and communications. The success of our product is deeply embedded in our key differentiator: exceptional domain knowledge and deep understanding of the asset management arena. London Vermilion Reporting Suite Boston Transforming traditional client reporting Singapore into a tangible return on investment Sydney www.vermilionsoftware.com Trusted Cross-Border Expertise Assured Financial Strength

Combining over 25 years’ UCITS expertise alongside leading specialist asset servicing solutions, RBC Investor & Treasury Services supports asset managers around the world by helping them achieve their cross-border distribution objectives.

To discover how we can help support your market and product expansion, visit rbcits.com

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© Royal Bank of Canada 2014. RBC Investor & Treasury Services™ is a global brand name and is part of Royal Bank of Canada. RBC Investor & Treasury Services is a specialist provider of asset servicing, custody, payments and treasury services for fi nancial and other institutional investors worldwide. RBC Investor Services™ operates through two primary operating companies, RBC Investor Services Trust and RBC Investor Services Bank S.A., and their branches andaffiliates. In the UK, RBC Investor Services Trust operates through a branch authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. ® / ™ Trademarks of Royal Bank of Canada. Used under licence.

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