Hard Work at the Coal Face There Is No Denying It, 2010 Was a Tough Year, According to Our Fund Administration Survey Respondents

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FUND ADMINISTRATION

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

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

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

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

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

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SURVEY RESULTS

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

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

COMPANY Global (€billion) Funds domiciled COMPANY Won in 2010 Retained in 2010 in Europe only, €bn JP Morgan WSS 5,440 768 Alceda 15 65 BNY Mellon 2,679 1,102 BBH 91 n/d Caceis 1,150.2 1,128.3 BNP Paribas n/d n/d Citi 1,082 501 BNY Mellon 237 236 RBC Dexia 795 n/a Bank of Ireland 6 65 BBH 775 220 Caceis n/d n/d BNP Paribas 771 600 Capita n/d n/d Northern Trust 754 232 Custom House 40 all HSBC 749.8 428.3 Citi 167 26 Soc Gen 455 462.5 Deutsche Bank 30 120 UBS 313 233 HSBC 296 7 SEI 300 32 Ipes 8 72 Bank of Ireland 110 90 JP Morgan 118 n/a Maitland 57 0.5 Maitland 209 1,088 Custom House 44.7 14.7 Northern Trust 181 26 Capita 41.6 41.6 RBC Dexia 227 20 Deutsche Bank 40.8 11.5 SEI n/a n/a Ipes 30.5 30.5 Soc Gen 30 190 Swedbank 10.3 10.3 State Street n/a n/a Alceda 44Swedbank 68 State Street n/a n/a UBS 60 313

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TOP THREE MANDATE WINS IN 2010 (bn)

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

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DIRECTORY Fund admin guide

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

ALCEDA €0.25bn / Fund manager / Ucits III Senior executives: Alceda Fund Management SA €0.22bn / Fund manager / Jean-Marc Crepin (Luxembourg) 36 avenue du X Septembre Ucits III Managing director (MD) 2550 Luxembourg tel: +352 248 329 1 Representative offices (Europe) in: Sean Pairceir (Dublin) fax: +352 248 329 444 Luxembourg, Germany, Switzerland Partner email: [email protected] web: www.alceda.lu Specialist services or skills offered: Geoffrey Cook (Luxembourg) Tailor-made products Partner Country of origin: Germany 2010 product launches / developments: Operating in Europe: 4 years The Alceda Star Free Career Funds under administration at 31/12/10 Concept Global AuA: €775bn Senior executives: World Education Index Certificate Domiciled in Europe: €220bn Michael Sanders (Luxembourg) The Mama Sustainability Fonds 01 Net flow during 2010: +€351bn Chief executive officer (CEO) 2010 geographic focus: Av. NAVs per month 2010: 34,600 Germany Mandates won in 2010: 91 Helmut Hohmann (Luxembourg) Europe Chief communications officer (CCO) Americas Biggest-by-AuA client: 2011 product growth/development focus: €152.1bn / Fund manager / RICs Marc Kriegsmann (Luxembourg) Russia long/short equity Ucits III Variable annuities, 529 plans, separate Chief finance officer (CFO) Wind and solar power plants SIF accounts Service harbour in S Europe Smallest-by-AuA client: Uwe Krönert (Luxembourg) 2011 focus on these geographies: €0.026bn / Fund manager / RICs Chief operating officer (COO) Asia India Top Three mandate wins in 2010: Funds under administration at 31/12/10 United States €120.0bn / Fund manager / RICs, Global AuA: €4.0bn Variable annuities, 529 plans, separate Domiciled in Europe: €4.0bn BBH accounts Net flow during 2010: +€2.0bn Brown Brothers Harriman €33.0bn / Fund manager / Sicav, FCP Mandates won in 2010: 15 140 Broadway €7.5bn / Fund manager / Ucits, Trust Mandates retained in 2010: 65 New York 10005 USA Representative offices (Europe) in: Biggest-by-AuA client: tel: +1 212 493 1818 Ireland, Luxembourg, Switzerland, UK €1bn / Pension plan / SIF web: www.bbh.com Specialist services or skills offered: Top three mandate wins in 2010: Country of origin: USA ETF (exchange traded fund) services €1bn / Pension plan / SIF Operating in Europe: 35 years REIF (real estate inv. fund) services

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Private equity & alternative fund services collateral management, full suite of France, Ireland, Luxembourg, Poland. Offshore funds services performance and risk (ex-ante and ex-post) Specialist services or skills offered: Derivatives processing solutions measurements and reporting, pooling, cross- Derivatives360 Infomediary® connectivity solutions border fund distribution support (local and GASB reporting/compliance 2010 product launches/developments: regional TA) Portfolio stress testing Securities lending Fair value pricing Global fund servicing model 2010 product launches/developments: Eagle PACE Infomediary® Ucits IV Kiid reporting pack, Kiid / SRRI Access 2010 geographic focus: monitoring dashboard, Kiid / SRRI simulation Investor analytics risk solutions Asia MasterSuite for pension funds: includes Luxembourg reporting and net asset valuation (Nav) 2010 product launches/developments: Dublin AlphaSuite for alternative asset managers Derivatives360 2011 product growth/development focus: Ucits risk reporting Transfer agency connectivity (Infomediary®) 2010 geographic focus: Money market stress testing Global transfer agency service Europe (esp Belgium and Netherlands) 2010 geographic focus: Fund distribution support services Asia Europe 2011 focus on these geographies: 2011 product growth/development focus: Middle East and Africa Asia Ucits funds support esp. in Asia Asia Luxembourg Ucits IV master-feeder integrated service 2011 product growth/development focus: Dublin Reporting in preparation for Solvency II Distribution and marketing support 2011 focus on these geographies: Distributor workbench BNP PARIBAS Europe Distribution support consultancy BNP Paribas Securities Services Asia (AlphaSuite Asia for asset managers) Derivatives lifecycle management 9 rue du Débarcadère Latin America Continuing development of 93500 Pantin Derivatives360 France BNY MELLON New operating models for Ucits funds tel: +33 1 42 98 1000 BNY Mellon Asset Servicing Transfer agency fax: +33 1 42 98 04 33 One Canada Square, Canary Wharf Fund administration email: London E14 5AL Investment manager solutions 2011 focus on these geographies: [email protected] UK web: http://securities.bnpparibas.com tel: +44 20 7570 1784 Europe web: www.bnymellon.com Middle East and Africa Country of origin: France Asia Operating in Europe: 78 years Country of origin: USA Operating in Europe: 36 years BANK OF IRELAND Senior executives: Bank of Ireland Securities Services Patrick Colle (Pantin, Paris) Senior executives: New Century House, Mayor Street Lower CEO Nadine Chakar (New York) IFSC Dublin 1 Head of global financial institutions Ireland Philippe Ricard (Pantin, Paris) tel: +353 1 670 0300 Head of asset and fund services (AFS) Frank Froud (London) web: www.boiss.com Head of Emea asset servicing Bernard Tancre (Luxembourg) Country of origin: Ireland Head of product management AFS Tim Keaney (London) Operating in Europe: 40 years CEO BNY Mellon asset servicing Funds under administration at 31/12/10 Senior executives: Global AuA: €771bn Funds under administration Deirdre Flannery (Dublin) Domiciled in Europe: €600bn at 31/12/10 MD Net flow during 2010: +€43bn Global AuA: €2,679 Av. NAVs per month 2010: 87,000 Domiciled in Europe: €1,102 Fearghal Woods (Dublin) Mandates won in 2010: n/d Net flow during 2010: n/d Global head of business development Mandates retained in 2010: n/d Av. NAVs per month 2010: 198,000 Mandates won in 2010: 237 Liam Butler (Dublin) Biggest-by-AuA client: Mandates retained in 2010: 236 Global head of client relationship €250bn / Fund manager / Ucits management Smallest-by-AuA client: Biggest-by-AuA client: n/d €0.150bn / Fund manager / UCI Smallest-by-AuA client: n/d Paul Heffernan (Dublin) Head of UK & European business Representative offices (Europe) in: Top three mandate wins in 2010: development France, UK, Germany, Luxembourg, €202bn / Fund manager / US mutual Belgium, Netherlands, Spain, Italy, Isle of funds Funds under administration at 31/12/10 Man, Ireland, Switzerland, Poland, Jersey, €98bn / Fund manager / Global funds Global AuA: €110 Hungary, Portugal, Greece, Guernsey, Turkey €32.5 bn / Fund manager /Offshore funds Domiciled in Europe: €90 Representative offices (Europe) in: Net flow during 2010: -€10bn Specialist services or skills offered: UK, Denmark, Germany, Italy, Spain Av. NAVs per month 2010: 35,000 OTC derivatives middle and back office, Netherlands, Russia, Switzerland, Belgium, Mandates won in 2010: 6

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Mandates retained in 2010: 65 Funds under administration at 31/12/10 Funds under administration at 31/12/10 Biggest-by-AuA client: Global AuA: €1,150.2bn Global AuA: €41.6bn €6bn / Fund manager / Multi-asset Domiciled in Europe: €1,128.3bn Domiciled in Europe: €41.6bn Smallest-by-AuA client: Net flow during 2010: +€89.7bn Net flow during 2010: +€3.5bn €3m / Hedge fund / Multi-asset Av. NAVs per month 2010: n/a Av. NAVs per month 2010: 3,814 Mandates won in 2010: n/d Top three mandate wins in 2010: Mandates retained in 2010: n/d Representative offices (Europe) in: €3bn / Investment bank / Structured UK, Dublin, Guernsey €1bn / Asset manager / Fund of funds Biggest-by-AuA client: €1bn / Hedge fund / Multi-asset +/-€300bn / Asset manager / various Specialist services or skills offered: Smallest-by-AuA client: n/a Authorised corporate director Representative offices (Europe) in: Investment managers management Ireland and UK Top three mandate wins in 2010: n/d Company solutions Company secretarial Specialist services or skills offered: Representative offices (Europe) in: Special purpose vehicle We cover a wide range of specialised France, Luxembourg, Ireland products including multi-manager funds, Switzerland, Germany, Belgium 2010 product launches/developments: property funds, hedge funds and fund of Netherlands Calastone settlement/reconciliation hedge funds, mutual funds, money market package funds, and structured products for off-shore Specialist services or skills offered: Stock lending and on-shore structures. BoISS is regarded as Hedge fund and FOHF valuations, Virtual 2010 geographic focus: a ETF service provider in Europe and has pooling, Cloning, Securities lending, Equity UK and Dublin serviced some of the largest players in the finance, Prime brokerage, 2011 product growth/development focus: physical and synthetic ETF space Rolling out Calastone software 2010 product launches/developments: into Ireland 2010 product launches/developments: Newcits and Ucits set-up service 2011 focus on these geographies: ETFs Redomiciliation of offshore funds UK and Dublin Structured products Restructuring Ucits funds for Regulated hedge funds Ucits IV CITI 2010 geographic focus: 2010 geographic focus: Citi, Citigroup Centre, Canada Square, Europe Luxembourg, Ireland (Ucits hubs) Canary Wharf USA 2011 product growth/development focus: London E14 5LB Asia Outsourcing and value-added UK 2011 product growth/development focus: services tel: +44 20 7986 6000 ETFs Improving fund distribution support fax:: +44 20 7500 2308 Structured products Securities lending email: [email protected] Regulated hedge funds 2011 focus on these geographies: web: www.transactionservices.citigroup.com 2011 focus on these geographies: Latin America Europe Asia Country of origin: USA USA Benelux Operating in Europe: 40 years Asia CAPITA Senior executives: CACEIS Capita Financial Group Sanjiv Sawhney (Luxembourg) Caceis Investor Services 42-47 Minories Global head of fund services 1-3 place Valhubert London EC3N 1DX 75206 Paris Cedex 13 UK Catherine Brady (Dublin) France tel: +44 870 607 2555 Head of fund services Emea tel: 33 1 57 78 00 00 web: www.capitafinancial.com email: [email protected] Marion Mulvey (Dublin) web: www.caceis.com Country of origin: UK Head of Emea alternative investments Operating in Europe: Since mid-70’s Country of origin: France Bernard Hanratty (Dublin) Operating in Europe: 25+ years Senior executives: Investor services franchise director Chris Addenbrooke (Leeds) Senior executives: CEO Funds under administration François Marion (Paris) at 31/12/10 CEO Karl Midl (London) Global AuA: €1,082bn Director, relationship management and Domiciled in Europe: €501bn Jean-Pierre Michalowski (Luxembourg) product development Net flow during 2010: +€92bn Deputy CEO Av. NAVs per month 2010: 25,890 Sylvie Philippot (Paris) Jackie Millan (London) Mandates won in 2010: 167 Deputy CEO Finance director Mandates retained in 2010: 26

PierreCimino (Luxembourg) Christine Hayes (Leeds) Biggest-by-AuA client: Member of the executive committee Operations director €237bn / Insurance /

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Various Senior exeutives: email: [email protected] Smallest-by-AuA client: Dermot S L Butlern (Malta and Dublin) web: www.dbafs.com €0.05bn / Asset manager / Group chairman Offshore fund Country of origin: Germany David P.M. Blair (Malta & Dublin) Operating in Europe: 30 years Top three mandate wins in 2010: Group CEO Senior executives: n/a / Insurance / Offshore fund Mike Hughes (London) n/a /Alternative AM / AI Mark Hedderman (Malta & Dublin) Head of alternative fund services Emea €6bn / Asset mgr / Offshore fund Group chief operating officer Jason Brandt (London) Representative offices (Europe) in: Kevin Caruana (Malta) Head of client services Emea Austria, Belgium, Bulgaria, Czech MD Republic, Denmark, Finland, France, John Sergides (London) Germany, Greece, Hungary, Ireland, Funds under administration Product strategy Emea Italy, Jersey, Luxembourg, Monaco, at 31/12/10 Netherlands, Norway, Poland, Portugal, Global AuA: €44.72bn Tom Dolan (Dublin) Romania, Russia, Serbia, Slovakia, Domiciled in Europe: €14.67bn Head of client services – Dublin office Spain, Sweden, Switzerland, Turkey, Net flow during 2010: +€7.14bn Ukraine, UK Av. NAVs per month 2010: 3,016 Funds under administration at 31/12/10 Mandates won in 2010: 40 Global AuA: €40.8bn Specialist services or skills offered: Mandates retained in 2010: all Domiciled in Europe: €11.5bn Cross-border asset pooling, Offshore Net flow during 2010: +€20bn fund distribution support services, Biggest-by-AuA client: Av. NAVs per month 2010: 325 External fund link administration (UK), €8.79bn / Hedge fund / Multi-asset Mandates won in 2010: 30 Ucits IV KII services, Market-leading long Smallest-by-AuA client: Mandates retained in 2010: 120 only & AI capability, Private equity <€50k / Hedge fund / Multi-asset administration, Asset allocation solutions, Top three mandate wins in 2010: Biggest-by-AuA client: Multi-manager fund solutions, OTC / €0.45bn / Hedge fund – managed €8.5bn / Investment bank / Managed complex instrument pricing, Financial account platform/ CTA account & unitised account / DB global regulatory reporting, Directors payroll tax €0.12bn / Private equity / Real estate fund derivatives services, Share-class hedging service €0.10bn / Hedge fund – FoF / Multi-asset Smallest-by-AuA client: €0.001bn / Hedge fund / Long-short 2010 product launches/developments: Representative offices (Europe) in: Cross-border distribution support Guernsey, Ireland, Luxembourg, Top three mandate wins in 2010: for Ucits Netherlands, Malta €2.9bn / Hedge fund / Bank debt Nav process automation model €4.4bn / Investment bank / PE FoF PE administration services in Emea Specialist services or skills offered: €4.2bn / Investment bank / 2010 geographic focus: Chariot web reporting platform Infrastructure UK Chariot dealing platform Middle East Representative offices (Europe) in: Europe-Asia links to support distribution 2010 product launches/developments: London, Dublin, Luxembourg, Jersey, opportunities in emerging markets Managed accounts/managed account Amsterdam 2011 product growth/development focus: platforms Cross-border distribution support Nascent emerging manager fund product Specialist services or skills offered: for Ucits Chariot dealing platform Liquidity lines (credit), FX overlay, Enhanced transfer agency reporting 2010 geographic focus: Fund of hedge fund / alternative asset Ucits IV key investor information USA custody and safekeeping, 2011 focus on these geographies: China and Hong Kong Trustee and depository services, Western European footprint, eg, Sweden India Corporate services (SPV administration), Deepen emerging market capabilities 2011 product growth/development focus: Cash management, Links between emerging market and An efficient middle-office product Vendor payables, Europe to support cross-border distribution Nascent US fund Online FoHF trade order management, Comprehensive middle-office programme ETFs, Financial statement preparation CUSTOM HOUSE 2011 focus on these geographies: Custom House Global Fund Services Ltd South America, particularly Brazil 2010 product launches/developments: Tigne Towers, Tigne India Liquidity lines for FoHF Sliema SLM 3172 Further develop the US market FX overlay Malta ETF tel: +356 2258 2100 DEUTSCHE BANK 2010 geographic focus: email: Deutsche Bank Alternative Fund Services Germany [email protected] 1900 Wright Place, Suite 100 Europe, the Middle East and Africa (Emea) web: www.customhousegroup.com Carlsbad 92008 USA USA 2011 product growth/development focus: Country of origin: Malta tel: +1 760 918 4900 Ucits Operating in Europe: 18 years fax:: +1 760 804 9304 Middle-office services

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2011 focus on these geographies: Passive hedging product for Ucits. In-house designed investor web portal Dublin 2010 geographic focus: New fund start-up service Hong Kong Luxembourg (growing Ucits capability) Dedicated carry scheme service USA UK Ireland 2010 product launches/developments: HSBC 2011 product growth/development focus: Sif / Sicar structures (new Lux office) HSBC Securities Services HSBC Amanah securities services Swift interface (on banking platform) 8 Canada Square Solvency II product for Europe. Listed funds service (CISX membership) London E14 5HQ ETF synthetic swap model 2010 geographic focus: UK 2011 focus on these geographies: UK, esp. building outsourcing practice web: www.hsbcnet.com/hss Luxembourg (Ucits capability) Luxembourg / Western Europe UK Russia / CEE Country of origin: UK Ireland 2011 product growth/development focus: Middle-office offering Senior executives: IPES Portfolio monitoring solution Mike Martin (London) Ipes, 1 Royal Plaza, Royal Avenue Listed funds offering: AIM, CISX and LSE Global head of fund services St Peter Port GY1 2HL Compliance offering Guernsey 2011 focus on these geographies: Richard Godfre (London) tel: +44 1481 713 843 UK Head of fund services Europe fax:: +44 1481 715 219 Western Europe email: [email protected] Nordic region Paul Stillabower (London) web: www.ipes.com Global head of business development JP MORGAN fund services Country of origin: Guernsey JP Morgan Worldwide Securities Services, Operating in Europe: 13 years 125 London Wall Carole Anderson (London) London EC2Y 5AJ Head of business development fund Senior executives: UK services Europe Kevin Brennan (Guernsey) tel: +44 20 7777 2000 CEO web: www.jpmorgan.com Funds under administration at 31/12/10 Global AuA: €749.81bn Gavin Hayman (Guernsey) Country of origin: USA Domiciled in Europe: €428.28bn CFO Operating in Europe: 36 years Net flow during 2010: €3.53bn* Barry McClay (Guernsey) Senior executives: *Excludes any net movement for FX COO Susan Ebenston (London) impact, Market change or net Subs/Reds Managing director Justin Partington (London) Global fund services product head Av. NAVs per month 2010: 728,332 Commercial director Mandates won in 2010: 296 Christopher Edge (London) Mandates retained in 2010: 7 Funds under administration at 31/12/10 Managing director Global AuA: €30.5bn Emea fund services product executive Biggest-by-AuA client: Domiciled in Europe: €30.5bn €64.8bn / Insurance / Fund admin, Net flow during 2010: +€5bn Marcel Guibout (London) Custody, NII, FX, Lending, Trustee Av. NAVs per month 2010: 75 Executive director, Emea mutual fund Smallest-by-AuA client: Mandates won in 2010: 8 administration product head €0.15bn / Asset manager / Fund admin, Mandates retained in 2010: 72 NII, FX, Trustee Francis Jackson (London) Biggest-by-AuA client: Managing director, worldwide securities Top Three mandate wins in 2010: €6.5bn / Fund manager / PE fund services sales regional executive Emea €2.1bn / Hedge fund Smallest-by-AuA client: €5.03bn / Private equity FoF / Multiple €0.13bn / Fund manager / PE FoF Funds under administration at 31/12/10 €1bn / Fund manager Global AuA: €5,440bn Top three mandate wins in 2010: Domiciled in Europe: €768bn Representative offices (Europe) in: €0.87bn / Fund manager / PE fund Net flow during 2010: +€17bn Germany, Guernsey, Ireland, Luxembourg €0.85bn / Fund manager / PE buyout fund Av. NAVs per month 2010: 2,817 Malta, UK €0.45bn / Fund manager / PE FoF Mandates won in 2010: 118 Mandates retained in 2010: n/a Specialist services or skills offered: Representative offices (Europe) in: Middle-office support; UK, Luxembourg, Jersey, Guernsey Biggest-by-AuA client: Alternative investment fund services. €210bn / Asset manager / Multi-asset Alternative investment specialist services Specialist services or skills offered: Smallest-by-AuA client: Banking supplier selection (assistance with) €0.004bn / Asset manager / Mutual fund 2010 product launches/developments: and Swift Interface, Specialist focus: ETF global operating platform private equity and closed ended asset class Top three mandate wins in 2010: UK mutual funds Report design and implementation €2.2bn / Investment manager / Multi-asset

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€0.63bn / Asset manager / Mutual fund Forex funds 2010 product launches/developments: €0.46bn / Asset manager / Mutual fund Multi manager fund administration Transfer agency: new global funds portal 2010 geographic focus: Derivatives: expansion of capability Representative offices (Europe) in: South Africa Straight-through processing Guernsey, Ireland, Jersey, Luxembourg, Luxembourg 2010 geographic focus: United Kingdom Malta Australia: new fund servicing business 2011 product growth/development focus: Scandinavia: new fund servicing Specialist services or skills offered: Private equity business Propriety cross-border tax reporting system Forex funds USA: launch of alternative businesses Independent derivatives valuation Retirement fund wrappers 2011 product growth/development focus: 2011 focus on these geographies: ETFs: development of capability 2010 product launches/developments: Sub-Saharan Africa (ex RSA) FoHF: functionality and capability Cross-order Tax Reporting Malta Master feeder funds (for Ucits IV Corporate secretary services for UK Luxembourg admin) Investment trust service clients 2011 focus on these geographies: 2010 geographic focus: NORTHERN TRUST USA: product expansion to US managers Guernsey Northern Trust Scandinavia: further Nordics expansion 2011 product growth/development focus: 50 Bank Street Switzerland: asset managers/asset owners Grow ETF business London E14 5NT Cross-border tax reporting UK RBC DEXIA 2011 focus on these geographies: n/a tel: +44 20 7982 2000 RBC Dexia Investor Services fax:: +44 20 7982 2002 71 Queen Victoria Street, 4th Floor MAITLAND web: www.northerntrust.com London EC4V 4DE Maitland Fund Services UK Maitland House Country of origin: USA web: www.rbcdexia.com 1 River Park, River Lane, Operating in Europe: 19 years Mowbray, Cape Town Country of origin: Canada/Belgium South Africa Operating in Europe: Established in tel: +27 21 681 8000 Senior executives: January 2006. Predecessor companies fax:: +27 21 681 8100 Wilson Leech (London) RBC Global Services and Dexia Fund email: [email protected] CEO for Emea Services present since 1986 and 1959 web: www.maitlandgroup.com respectively Brian Ovaert (London) Country of origin: Malta Head of worldwide operations and Senior exeutives: Operating in Europe: 11 years technology Emea Tony Johnson (London) Global head, sales and distribution Senior executives: Toby Glaysher (London) Dan Mackelden (London) Head of GFS for Ireland, Luxembourg Simon Shapland (Luxembourg) Head of business development – Europe and UK Head, Europe, sales and distribution

Steve Georgala (London) Vic Holmes (Guernsey) Funds under administration CEO Head of GFS for Channel Islands at 31/12/10 John Mills (Luxembourg) Global AuA: €795bn Director Funds under administration Net flow during 2010: n/d at 31/12/10 Av. NAVs per month 2010: 163,098 Dirk Oppelaar (Geneva) Global AuA: €754bn Mandates won in 2010: 227 Director Domiciled in Europe: €232bn Mandates retained in 2010: 20 Net flow during 2010: +€39bn Funds under administration Av. NAVs per month 2010: 66,000 approx. Top Three mandate wins in 2010: at 31/12/10 Mandates won in 2010: 181 €7bn / Funds / Transfer funds Global AuA: €57.0bn Mandates retained in 2010: 26 €3bn / Bank / Funds Domiciled in Europe: €0.5bn €1bn / Insurance / Custody Net flow during 2010: n/a Biggest-by-AuA client: Av. NAVs per month 2010: 1,222 €297bn / Investment mgr / Fund admin Representative offices (Europe) in: Mandates won in 2010: 209 Smallest-by-AuA client: Belgium, France, Ireland, Italy, Mandates retained in 2010: 1,088 €6m / Investment mgr / Fund admin Luxembourg, Spain, Switzerland, UK Biggest-by-AuA client: Top three mandate wins in 2010: €22.9bn / Fund manager / Unit €34bn / Investment mgr / Outsourcing Specialist services or skills offered: trusts/pension segregated funds €29bn / Investment mgr / Outsourcing Distribution support Smallest-by-AuA client: €16bn / Pension / Outsourcing Shareholder services €49k / Hedge fund / Multi-strategy Alternative investments Representative offices (Europe) in: 2010 product launches/developments: UK, Guernsey, Ireland, Jersey, 2010 product launches/developments: Fixed income funds Luxembourg, Netherlands, Sweden Foreign exchange

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Securities lending Specialist services or skills offered: Representative offices (Europe) in: Alternatives investments Independent pricing and collateral France, Luxembourg, Germany, Ireland, 2010 geographic focus: Management services Italy Italy Specialist services or skills offered: Spain 2010 product launches/developments: OTC Pricing Switzerland Ucits Middle-office OTC products 2011 product growth/development focus: Qualified investment funds Collateral management Distribution support Family offices Reporting: performance and risk Foreign exchange 2010 geographic focus: measurement Alternatives investments UK 2011 focus on these geographies: Scandinavia 2010 product launches/developments: Europe (eg Germany) Switzerland OTC pricing Asia (eg Taiwan) 2011 product growth/development focus: Middle-office OTC – collateral mgt n/a Specific reporting (perf-risk) SEI INVESTMENTS 2011 focus on these geographies: n/a 2010 geographic focus: SEI Investments Global Fund Services Ltd Germany Styne House, Upper Hatch Street SOCIETE GENERALE Italy Dublin 2 Société Générale Securities Services France 2011 product growth/development focus: Ireland Tour CB3 189, rue d’Aubervilliers tel: +353 1 638 2435 75886 Paris Cedex 18 Kiid offer email: [email protected] France OTC pricing web: www.seic.com/ims tel: +33 1 56 37 37 63 Middle-office OTC: collateral mgt fax:: +33 1 56 37 37 11 2011 focus on these geographies: Country of origin: USA email: [email protected] OTC pricing Operating in Europe: 16 years web: www.sg-securities-services.com Middle-office OTC: collateral mgt Specific reporting (perf-risk) Senior executives: Country of origin: France David Morrissey (Dublin) Operating in Europe: 21 years STATE STREET Director of European business development State Street Bank and Trust Company Senior executives: 20 Churchill Place William Montgomery (Dublin) Alain Closier (Paris) Canary Wharf Director of new business Global head of SGSS London E14 5HJ UK Dan Petrovic (London) Bruno Prigent (Paris) tel: +44 20 3395 2500 Director of new business Deputy head of SGSS web: www.statestreet.com

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

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

Funds under administration Funds under administration Timothy J. Caverly (Luxembourg) at 31/12/10 at 31/12/10 Executive vice-president Global AuA: €300bn+ Global AuA: €455bn Domiciled in Europe: €32bn+ Domiciled in Europe: €462bn William Slattery (Dublin) Net flow during 2010: n/a Net flow during 2010: +€5.18bn Executive vice-president Av. NAVs per month 2010: >2,000 Av. NAVs per month 2010: 682,259 Mandates won in 2010: n/a Mandates won in 2010: 30 NOTE: Consistent with State Street’s Mandates retained in 2010: n/a Mandates retained in 2010: 190 reporting policies, our assets under custody and administration are reported Biggest-by-AuA client: Biggest-by-AuA client: combined €27bn / SWV / Multiple €101.7bn / Asset manager / Tracker, Smallest-by-AuA client: structured funds, alternative funds Funds under administration €0.01bn / Boutique investment Smallest-by-AuA client: at 31/12/10 mgr/ Ucits €0.013bn / Asset manager / Alternative Global AuA: €16,046bn funds Domiciled in Europe: €2,910bn Top Three mandate wins in 2010: Net flow during 2010: +€2,036bn €3.65bn / Multi-strat credit / Multiple Top three mandate wins Av. NAVs per month 2010: 179,919 €1.45bn / Family office / Multiple in 2010: Mandates won in 2010: 122 €585m / Multi-product / Multi €3.66bn / Asset manager / Mandates retained in 2010: n/d Private equity, hedge funds, real assets Representative offices (Europe) in: €3.39bn / Asset manager Biggest-by-AuA client: n/d Dublin, London, Amsterdam €0.31bn /n/a Smallest-by-AuA client: n/d

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Top three mandate wins in 2010: Representative offices (Europe) in: €8.5bn / Bank / Multi-assets / UBS n/a / Pension plan / Pension fund Sweden, Norway, Estonia, Latvia, €4bn / Pension fund / Multi-assets €15.09bn/ Bank / Real estate fund Lithuania, Luxembourg Representative offices (Europe) in: €32.45bn/ Bank / Various Specialist services or skills offered: Switzerland, Luxembourg, Ireland, Jersey Representative offices (Europe) in: Fund registration service in Baltic countries Austria, Belgium, France, Germany, Specialist services or skills offered: Guernsey, Ireland, Italy, Jersey, 2010 product launches/developments: Alternative Ucits, strong in FoHF. Luxembourg, Netherlands, Poland, Fund administration Distribution support for 28 countries Switzerland Transfer agency ETF Portfolio accounting Private labelling (incl full legal support) Specialist services or skills offered: 2010 geographic focus: ManCo services Compliance support Estonia Legal administration services Sweden 2010 product launches/developments: Blue sky fund services Luxembourg ETF Treasurer’s office support 2011 product growth/development focus: Single-manager HF New product launch support, mergers, Fund administration Institutional fund concepts liquidation and regulatory support Transfer agency 2010 geographic focus: Portfolio accounting Asia Pacific 2010 product launches/developments: 2011 focus on these geographies: Ireland ESG reporting Sweden 2011 product growth/development focus: Entity exposure monitoring Estonia ETF GASB 53 public pension funds Luxembourg PE / Infrastructures / Real estate 2010 geographic focus: 2011 focus on these geographies: Global UBS Asia Pacific 2011 product growth/development focus: UBS Global Asset Management Fund Services Jersey Ucits IV (Kiid reporting) Brunngässlein 12 Ireland Collateral tracking & messaging tracking, PO Box 4002 Alternative investment replication Basel 2011 focus on these geographies: Switzerland Global tel: +41 61 288 62 69 fax: +41 61 288 45 40 SWEDBANK AB email: [email protected] Swedbank, Regeringsgatan 13 web: www.ubs.com/fundservices SE 105 34 Stockholm Sweden Country of origin: Switzerland tel: +46 8 5859 0000 Operating in Europe: 50+ years web: www.swedbank.se Senior executives: Country of origin: Sweden André Valente (Basel) Operating in Europe: 6 years Head, fund services business development, CRM and marketing Senior executives: Ola Laurin (Stockholm) Markus Steiner (Basel) Head of securities services Head, fund services Switzerland Henrik Staffas (Stockholm) Mark Porter (Luxembourg) Head of fund services Head, fund services Luxembourg

Funds under administration at 31/12/10 Don McClean (Dublin) Global AuA: €10.3bn Head, fund services Ireland Domiciled in Europe: €10.3bn Net flow during 2010: €0.3bn Funds under administration at 31/12/10 Av. NAVs per month 2010: 1,800 Global AuA: €313bn Mandates won in 2010: 6 Domiciled in Europe: €233bn Mandates retained in 2010: 8 Net flow during 2010: n/a Av. NAVs per month 2010: 16,809 Biggest-by-AuA client: Mandates won in 2010: 60 €8.3bn / Fund manager / Mandates retained in 2010: 313 Multi-asset Smallest-by-AuA client: Biggest-by-AuA client: €0.094bn / Fund manager / Multi-asset €172bn / Bank / Multi-asset / UBS Smallest-by-AuA client: Top three mandate wins in 2010: €0.14bn / Bank / Multi-asset €0.285bn / Fund manager / Multi-asset €0.242bn / Fund manager / FoF Top three mandate wins in 2010: €0.094bn / Fund manager / Multi-asset €17bn / Social security / Multi-asset