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ASSETSERVICINGTIMES 30.03.2011 WEDNESDAY AST www.assetservicingtimes.com CONTENTS AC Plus adopted by Scotiabank Scotiabank is going live with the AC Plus financial data management solution for managing security reference data and end of day pricing. page2 Brandywine selects Eagle Eagle Investment Systems has been se- lected by Brandywine Global Investment Management to deploy its hosted serv- ice, Eagle ACCESS. Citi to partner Man Group page2 28.03.2011 Broadridge launches en- Man Group has finalised the terms of an agreement Simon White, head of product and client operations at hanced Gloss with Citi Global Transaction Services’ Securities Man, commented: “Our decision to award a new brief Broadridge Financial Solutions has en- and Fund Services division to become Man’s global to Citi will help us achieve our goals of having fully in- hanced the fixed income and financing shareholder services partner. dependent fund administration and transfer agency functionality of its trade processing and services, thereby creating a scalable global platform settlement solution, Gloss. Under the terms of the agreement Citi will perform glo- for our future business. “Citi has been chosen based page3 bal shareholder and transfer agency services for AHL on its proven expertise, unrivalled global presence and and Man multi-manager private investor products, demonstrable track record of service delivery for private which are distributed globally through Man’s network investor operations. Regional focus of approved intermediaries and distribution partners. The mature markets of continental Europe are competing hard against their “Both Citi and Man are committed to maintaining and im- Citi will commence its role at the end of March and Asian and American rivals for business proving the excellent client service levels that we have a joint project will then follow to enhance services to page5 Man’s funds, simplify administration arrangements worked so hard to achieve. With the industry’s largest and migrate all of Man’s private investor products proprietary network spanning 59 markets and over $12.6 onto Citi’s platform. Man and Citi will adopt a phased trillion in assets under custody, Citi is a global leader in People moves approach to this programme of work to ensure that domestic and cross-border securities services for the Find out the latest hires, and who is get- client service levels are not disrupted. world’s top issuers, intermediaries and investors. ting promoted within the industry. readmore p2 page7

Oklahoma Teachers renews J.P. Morgan mandate Northern Trust to buy Omnium

Oklahoma Teachers Retirement System has renewed its mandate with J.P. Northern Trust has agreed to buy Omnium LLC, the technology-driven fund Morgan for a further five years. J.P. Morgan will provide custody and securi- administration business of Citadel.It follows a number of mergers and ac- ties lending services to the fund. quisitions within the fund administration industry around the world, as funds increasingly want to see their service providers larger in scale and with a Other contenders for the mandate included State Street, BNY Mellon and greater infrastructure than previously expected. Neither firm was prepared Northern Trust. to comment on the acquisition. Ten markets, ten cultures, one .

6NDOD %UHGGSL[ODU +|MGSL[ODU NewsInBrief

PrinceRidge Group selects AC Plus adopted by us with an end-to-end KIID solution, one of the mandatory UCITS IV components,” said Chris- QTIX Scotiabank tophe Coquema, global head of Markets and Investment Strategy at AXA Investment Man- The PrinceRidge Group has selected ReadQ Scotiabank is going live with the AC Plus finan- agers. “As the regulatory landscape evolves, Systems’ QTIX trading system for its start-up cial data management solution for managing choosing an investment servicing provider who financing desk. security reference data and end of day pricing. can best meet our needs now and for the im- The PrinceRidge Group launched its institution- mediate future is important.” al finance desk, headed by Thomas McHugh in Scotiabank selected AC Plus to centralise secu- December of 2010. The financing desk offers a rity master and end of day pricing data content to “We are delighted to be able to further extend full range of repo & securities lending in most support core business applications. The Phase our relationship with AXA IM,” said Tim Caverly, USD fixed-income assets and specialises in a 1 solution captures North American and Latin executive vice president and head of sales and variety of financing solutions to assist its clients American equities data from multiple sources. business development for State Street’s Global by boosting returns on cash and securities hold- Services business in Europe. “State Street has ings, financing long positions, matching cash Rob Ord, director and head of data manage- the infrastructure and solutions to support our flows and reducing funding costs. ment at Scotiabank, said: “AC Plus’ off-the- clients as they optimise their operations antici- shelf capabilities, particularly its data model, pating the requirements of UCITS IV, and we According to Robert Cardone, president of feed handlers and operational interface for data have a presence in all major European serv- ReadQ Systems, “QTIX, our latest technology analysts, meet our requirements for standard ice centres and key distribution locations for offering, is designed to provide broker-dealers functionality and also provides us with the abil- UCITS funds globally. Our network gives us with a robust yet user friendly solution that is ity to customise various elements to support our deep, local expertise and ensures we remain easy to implement. We look forward to working unique business needs.” connected to local and regional regulators.” with The PrinceRidge Group to help grow their new business initiative.” Phil Lynch, president and chief executive officer State Street was originally appointed by AXA In- at Asset Control, said, “Many multinational vestment Managers in December 2004, to pro- Gen II reports growth such as Scotiabank are opting for consolidated, vide fund accounting and administration serv- centralised data infrastructures in order to meet ices across the UK, France and Germany. The a diverse set of business requirements. We are Private equity fund administrator Gen II Fund relationship has since extended to include Lux- pleased that Scotiabank has placed its trust in Services has transitioned over 125 fund entities embourg, Ireland and Switzerland and the AXA Asset Control to develop a shared data manage- representing $21 billion of capital under admin- Rosenberg APAC fixed and balanced funds. istration over the last 18 months. ment framework that can help reduce time to market for new business initiatives and provide “Many firms experience a level of trepidation optimal use of data across the organisation.” State Street’s comprehensive UCITS reporting in moving their fund administration, either from capabilities include exposure and concentration another service provider or their in-house team. limit reporting, Value-at-Risk (VaR) analysis, We have successfully demonstrated our ability State Street launches UCITS IV back testing and stress testing. These reports to transition their information and a key reason KIID servicing with AXA are configured and generated by risk special- for our growth is the high level of service and ists and backed by documented methodology. our ability to handle complexity,” said Steven Clients receive a full set of pre-defined reports State Street has extended its relationship with Millner, managing principal. detailing the risk profiles of their funds for each AXA Investment Managers (AXA IM) to provide of the UCITS-required reporting elements. For “The success and timeliness of transitioning end-to-end production and servicing for the Key clients who also require compliance testing to these fund entities is the result of our highly Investor Information Document (KIID), a manda- support their UCITS portfolios, State Street can skilled professionals coupled with our propri- tory requirement of the new UCITS IV directive. provide an additional reporting suite that incor- etary processes, procedures, and technology Under UCITS IV, asset managers will be obliged porates testing of asset mix, concentration risk, tools,” said Norman Leben, managing principal. to replace their current simplified prospectus or quality ratings and leverage restrictions. Addi- factsheet with a KIID for each individual UCITS tional interactive risk services are available and First custodian joins Statpro product sold within the European Union. include customisable reporting and position- based risk analysis. State Street is working closely with regulators Portfolio analysis and asset pricing services provid- and clients to provide solutions that help clients er Statpro Group has won the first custodian deal optimise their operations in the wake of UCITS IV BNY Mellon Asset Servicing for its cloud-based StatPro Revolution service. and continuing regulatory changes. State Street enhances Workbench platform offers Europe-wide coverage and end-to-end It has signed a multi-year contract with RBC solutions that span the investment value chain, BNY Mellon has a new capability that integrates Dexia Investor Services, which plans to roll out including core custody and fund administration investment-level information on client private Revolution to its client base of fund managers, services, performance analytics, transfer agency equity portfolios – sourced from the Burgiss pension funds and insurance companies. and tax reporting at investor level. Group – and makes it available via BNY Mel- lon Asset Servicing’s Workbench™ portal. The Terms of the deal were not revealed. service will, for the first time, allow institutional State Street’s KIID solution incorporates data clients with a Burgiss data subscription to ac- provision, including calculation and monitoring The new service went live on February 28 after cess consolidated, detailed information on their of Ongoing Charges and Synthetic Risk and being on beta since July. StatPro said more than public and private market investments in a sin- Return Indicator (SRRI) as well as provision of 250 companies trialled the service and the first gle location. Past Performance, document collation/manage- few trials had converted to paying users. ment and translation. According to data tracked by the BNY Mellon CEO Justin Wheatley said Revolution was an US Master Trust Universe, for plans with more entirely new category of service for portfolio ana- AXA IM is the first client to work with State Street than $1 billion in assets, 95 per cent have an lytics, providing global access to sophisticated using the KIID solution. “We have extended our allocation to private equity (PE). The median web-based analytics and reporting, as well as the relationship with State Street as we felt they PE allocation among all plan types was almost ability to share portfolios between private groups. were best suited at this point in time to provide 10 per cent of total assets, with foundations 2 NewsInBrief NewsInBrief

and endowments having the highest share at “Brandywine Global required a strategic solu- • Bloomberg: The market interface between just under 30 per cent. As of Dec. 31, 2010, the tion that could offer the technology and software Bloomberg and Gloss has been extended market value of PE assets in the Trust Universe to streamline the management of its global and to handle principal outright trades, repos, was $110 billion. alternative investments, with the ability to be im- prices and fixed income instruments from plemented quickly and provide immediate cost Bloomberg into Gloss. “Private equity represents a significant expo- benefits,” said John Lehner, president and chief sure for most institutional investors, and with executive officer of Eagle. “Eagle ACCESS Large-scale issuance of debt has stimulated our ability to bring their PE data onto our Work- provides the complete solution, delivering the banks’ desires to trade globally in fixed income bench portal, we can now help clients see their functionality, expertise and future support that products. Broadridge has worked with three in- entire portfolio in a few clicks,” said John Gru- Brandywine Global requires.” vestment banks to help them quickly launch or ber, managing director, global product strategy extend their global fixed income businesses in of BNY Mellon Asset Servicing’s Performance Europe and Asia Pacific in less than six months, & Risk Analytics (P&RA) group. “Historically, Broadridge launches enhanced with one of the operations going live in under institutional investors have been challenged to Gloss three months. A number of other clients are also combine their exposure to these private invest- in the process of rolling out the Gloss solution ments with publicly-traded portfolios. This capa- this year. Broadridge Financial Solutions has enhanced bility adds a new level of transparency, which is the fixed income and financing functionality of critical to our clients.” “We are very pleased to be supporting the ambi- its multi-asset trade processing and settlement tions of our clients and responding to the evolv- solution, Gloss. BNY Mellon is the first custodian to integrate ing requirements of the brokerage community content produced by Burgiss onto a custodial as they seek to rapidly launch or extend their reporting platform. Identified as a key need The platform offers users additional processing businesses in new areas and geographies. We through BNY Mellon’s client advisory board, the support for tri-party repurchase agreements, au- have been particularly pleased to help clients consolidated private equity information allows to-borrows and mortgage-backed securities as get these complex businesses up and running institutions to streamline their reporting process well as new P&L methodology and a Bloomberg in less than six months from start to go-live,” while gaining greater insight and transparency interface. In parallel, Broadridge has extended said Robin Kneale, head of strategy & product into performance and investment risks. Without its global fixed income client base for Gloss with management, Securities Processing Solutions leaving the Workbench interface, clients can ac- three new implementations. International, Broadridge. “This should be seen cess holdings-level analysis of their limited part- as another element of our ongoing roll-out of in- nerships and can view, analyse and report on Gloss’ new functionality will further increase us- depth multi-asset capabilities which deliver in- holdings, sector and geographical exposures. ers’ operational efficiency, and includes: creased efficiency and automation to our users’ trade processing and settlement operations,” “Our long-standing partnership with BNY Mellon • Tri-party repurchase agreements (repos): Kneale added. has always been about the customer. Getting Gloss creates SWIFT MT527 messages more of their data into Workbench is a big win for deal initiation and closing, the receipt of GoldenSource opens for clients,” said James Kocis, president of the the related MT558 status messages, and Burgiss Group. the receipt of MT54n messages that carry office information about the collateral assigned. Brandywine selects Eagle It also supports the representation of these GoldenSource Corporation has enhanced its movements as transactions and as entries Asia-Pacific presence with the opening of a Bei- jing office. With Beijing, GoldenSource now has Eagle Investment Systems LLC, has been se- in the books and records of the broker. four offices in Asia, including Hong Kong, Mel- lected by Brandywine Global Investment Man- • New Auto-borrows functionality supports the bourne, and Mumbai. Located in the Chaoyang agement LLC (Brandywine Global), to deploy its receipt of reports, in particular the RP31 re- District, GoldenSource’s Beijing office will pro- hosted service, Eagle ACCESS for data man- port from Euroclear, on a schedule defined vide sales and support for a growing client base, agement, investment accounting and perform- by the client. It automatically represents which includes several leading Chinese finan- ance measurement solutions. these movements as transactions and as cial institutions. Investment managers continue to struggle with entries in the books and records of the bro- managing new complex investments, and as a ker, both as a record against the depot and “Spurred by the expanding economy and ma- result are looking at solutions that can automate as sub-balances for auto-borrows/loans. turing financial system, clients are demanding the process and provide future support. Bran- This will enable brokerages to improve con- more sophisticated EDM solutions to improve dywine Global deployed Eagle’s data manage- trol of depot balances and benefit from a operational efficiency, transparency, and risk ment solution in 2006. In 2010, Brandywine more straightforward reconciliation. control. With China currently in the top five ge- Global conducted a search for an investment ographies based on total Tier 1 capital, this of- • Mortgage-backed securities: Gloss calcu- accounting and performance measurement fice is of strategic importance to our long-term lates the partial redemption proceeds when system and selected Eagle’s hosted invest- growth plans,” said Mike Meriton, president and a factor is changed, and automatically up- ment management suite to replace its existing CEO of GoldenSource. “As China’s regulatory dates the book cost. It also interacts auto- installed applications. hub, the Beijing office further demonstrates our matically with upstream trading systems to commitment to the region and reinforces our ensure that transaction processing, instruc- position as a global EDM provider with a deep “Eagle’s ability to manage complex securities tion messaging, booking and accounting understanding of local business needs.” and calculate sophisticated performance analy- entries are made in a controlled way. sis were key factors for selecting Eagle,” said Mark Glassman, chief administration officer at • P&L methodology: To ensure a consist- “Since 2006, QDII (Qualified Domestic Institu- Brandywine Global Investment Management. ent profit and loss methodology can be tional Investor), a scheme that allows Chinese in- “Eagle’s model encompasses full services and used across the widest range of financial stitutions to invest in financial products overseas, support as well as continued commitment to in- products, Gloss supports the value dated has accelerated the opening up of financial mar- novation through its rigorous release schedule. constant yield accretion methodology with kets to international securities and investments,” Eagle ACCESS will maintain the platform and FIFO trade matching. Yield prices can be said Neill Vanlint, managing director of EMEA and provide additional assistance to help create calculated from clean prices using either Asia-Pacific at GoldenSource. “Financial institu- operational efficiencies across our back office the Monaco formula or the RBA/RBNZ for- tions need to keep up with continuous innovation within a short deployment timeframe.” mula for Australia / New Zealand. as more domestic investors demand alternative 3 NewsInBrief investment vehicles and complex instruments to complement our existing representative office in Kleinwort Benson’s offshore reach with an ad- diversify their portfolios.” Hong Kong, and are a reflection of our commit- ditional presence in the Isle of Man and South ment to growing our finance industry’s presence Africa, enhancing and consolidating its position “Having spent five years in the region, we have in international markets in the coming years.” in the offshore banking and fiduciary services observed that current domestic infrastructure markets. The purchase of COG will strengthen and platforms do not have the necessary con- Sean Costello, Jersey Finance’s head of busi- Kleinwort Benson’s banking proposition, both in nectivity for deal execution across the global ness Development for the GCC and India, add- terms of liquidity and capital base. markets, which increases the opportunity for ed: “We are now seeing growing interest from global solutions to support these investments GCC nations and India in the wider capabilities “The acquisition of COG is in keeping with Klein- strategies,” said Brian Rooney, sales director of of Jersey’s finance industry. In the GCC, for wort Benson’s strategy of developing its on and Asia-Pacific at GoldenSource. “Thus, domestic example, there is greater appreciation that Jer- offshore business,” said Sally Tennant, chief ex- financial institutions are aggressively looking sey’s flexible legislation can be a natural choice ecutive officer of Kleinwort Benson. to mature, best-in-breed solutions to transform for Islamic asset and wealth management, their infrastructure and enable rapid growth in a whilst in India, as well as seeing persistent in- “It will add further scale and strength to our short timeframe.” terest in Jersey’s funds expertise, that is now banking and fiduciary businesses, enhancing extending to corporate and listings work - there our client offering with the addition of innova- tive products and new distribution channels. Jersey Finance opens in Abu are currently, for instance, 86 Jersey companies listed on worldwide exchanges with a market The combined business will have enormous Dhabi and Mumbai capitalisation of £16 billion. These are the kinds strength and depth in terms of its people, serv- of messages we will be looking to communicate ices and systems.” Jersey’s links with India and the Gulf Coopera- through our expanded global representative of- Close Brothers Offshore Group currently em- tion Council (GCC) nations will be strengthened fice network.” ploys 350 people across the four jurisdictions, following the official launch of Jersey Finance’s with Kleinwort Benson employing 358 in the representative offices in Abu Dhabi and Mumbai Cayuga selects Quintillion Channel Islands, and 271 in the UK. and the signing of a Tax Information Exchange Agreement (TIEA) with India. Quintillion fund administration has been chosen Crederian picks SunGard A Jersey delegation consisting of States of Jer- to provide administration services to the Cayuga sey Ministers, the director-general of the Jersey Global Macro Fund an Investment Fund man- Commission and representa- aged by Cayuga Capital Partners LLP. Crederian Fund Services has selected Sun- tives of Jersey’s finance industry will travel to Gard’s Asset Arena Transfer Agency system to India for the launch on 15th March of Jersey Fi- Rowan Levy, chief operating officer with Cayuga provide a customised approach to investor serv- nance’s representative office in Mumbai. Capital Partners, said: “Quintillion stood out for icing and reporting, with the flexibility to organ- us on a number of fronts. Through the pre-selec- ise and service investors based on their unique The group will then head to Delhi to sign the TIEA tion, selection and on-boarding process they dis- processing needs. A Web-based solution, Asset with India on Friday 18th March, a move that will tinguished themselves as a high quality offering Arena Transfer Agency is delivered on an ap- take the total number of similar agreements Jer- with a clear understanding of what was required, plication service provider (ASP) basis. sey has signed to 21, with countries such as the when and how. USA, UK, France, Germany and China. Asset Arena allows Crederian to process share- “Throughout we have found the team pro-active holder records in a specialised and automated Following that, the Jersey delegation will travel and professional. We look forward to growing fashion, supporting the firm’s commitment to pro- to the UAE to mark the opening of Jersey Fi- with them for many years to come.” viding tailored services. SunGard’s Asset Arena nance’s representative office in Abu Dhabi on Transfer Agency will help Crederian deliver new Sunday 20th March with a reception at the Brit- service offerings and complex tax reporting to Ken Somerville, head of business development ish Embassy, hosted by the British Ambassa- specific groups of investors without significantly at Quintillion, said: “We are delighted to add a dor Dominic Jeremy OBE and officiated by HE increasing its staffing levels. The firm will take team of Cayuga’s calibre to our administration Bottom line: Sheikha Lubna bint Khalid bin Sultan Al Qasimi, advantage of SunGard’s service-based delivery, platform. We feel strongly that the unique com- Minister for Foreign Trade and a member of the giving investors Web access to transfer agency bination of our powerful customised technology Abu Dhabi royal family, and Jersey’s Senator recordkeeping and reporting services while solutions and experienced operations teams Philip Ozouf. maintaining data in a secure environment. will be a great compliment to their business. We Your securities services expert wish Cayuga well in the development of their The two new offices will support the promotion fund and look forward to working together in the Vince Ciavardini, president and chief executive of- in Central and Eastern Europe of Jersey as an international finance centre in years ahead.” ficer of Crederian Fund Services, said: “We select- India and the GCC region and act as a hub for ed SunGard’s Asset Arena because of the strength Jersey Finance to communicate the breadth and Kleinwort Benson buys Close of its reputation and the quality of its solutions. We 2 @ depth of its financial services. Both offices will continue to be impressed with SunGard’s respon- Our network is available for you in Central and Eastern Europe for your securities services be overseen by Sean Costello, head of Jersey Brothers siveness to our requirements and with the speed Finance’s Business Development in the GCC and ease of implementing Asset Arena Transfer business. We bring you in-depth local experience and award winning international expertise. and India. In India, Sean will be supported by Kleinwort Benson has agreed a deal to acquire Agency. With the help of SunGard and Asset Are- ING is your partner in Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Slovak Business Development Representatives Kapil Close Brothers Offshore Group for £29.1 million. na, we can stay focused on our business, custom- Republic and Ukraine. For more information call Lilla Juranyi, Global Head of Investor Services Dua, based in Delhi, and Jyoti Tathgur, based ize services to our clients’ needs, and continue to The acquisition comprises COG’s private bank- in Mumbai. expand our product offerings.” on +31 20 563 6435 or e-mail: [email protected]. ing, fund administration, fund management, trust and asset management businesses across Geoff Cook, chief executive of Jersey Finance, Guernsey, Jersey and the Isle of Man. It also Mark Judah, senior vice president and manag- www.ingcommercialbanking.com commented: “Both the GCC and India are key fi- includes COG’s wholly-owned shared service ing director of SunGard’s Asset Arena Transfer nance and business centres that we have been centre in Cape Town. Agency business unit, said: “By providing Creder- visiting for some years and we are delighted that ian with a fully hosted transfer agency platform like we are now to have permanent representation The purchase increases the size of Kleinwort SunGard’s Asset Arena, we were able to provide in both locations. This is a natural extensions Benson’s private wealth assets under man- Crederian Fund Services with a cost-effective so- of Jersey’s growing links with these regions, will agement to approximately £7 billion. It extends lution in a timeframe that met their demands.” ING Commercial Banking is a marketing name of ING Bank N.V., registered by the Netherlands Authority for the Financial Markets (AFM). Copyright ING Commercial Banking (2010). 4 NewsInBrief

Bottom line: Your securities services expert 2in Central and Eastern Europe @ Our network is available for you in Central and Eastern Europe for your securities services business. We bring you in-depth local experience and award winning international expertise. ING is your partner in Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Slovak Republic and Ukraine. For more information call Lilla Juranyi, Global Head of Investor Services on +31 20 563 6435 or e-mail: [email protected].

www.ingcommercialbanking.com

ING Commercial Banking is a marketing name of ING Bank N.V., registered by the Netherlands Authority for the Financial Markets (AFM). Copyright ING Commercial Banking (2010). CountryFocus

Singapore The city state of Singapore is in prime position to increase its share of Asia’s custody market

BEN WILKIE REPORTS

The economic crisis has focused the global of further liberalisation - an event fund manag- population is educated and highly regarded as banking world into an area where excitement ers are already salivating over efficient and comparatively low-cost compared was already strong. Pretty much everyone now to other financial centres. It’s now considered agrees that Asia is where everything is happen- Since full independence in 1965, Singapore has the fourth largest financial centre in the world. ing. And Singapore, as one of the most well-es- gone from strength to strength. A stable gov- tablished markets, is reaping the benefits. ernment that has long concentrated on ensur- Singapore is enjoying growth from all quarters. ing the legal, technological and infrastructure Domestically, savings are rising and institutional The opportunities in Asia continue to grow, both resources are in line with the requirements of investment has had a relatively successful cou- in established markets such as Hong Kong and international investors. ple of years. As one of the safest jurisdictions in Japan, as well as the newer economies of Vi- the world, let alone in Asia, it has also attracted etnam and its neighbours. Meanwhile, the Chi- As one of the four Asian Tigers - along with Hong regional and international investors looking for a nese authorities appear constantly on the verge Kong, South Korea and Taiwan - Singapore’s flight to quality.

6 CountryFocus CountryFocus

“Singapore has one of the best reputations of Of at least equal importance are the sover- ing for the Chinese market, Singaporean busi- any domicile anywhere in the world,” says local eign wealth funds. Singapore itself is a wealthy nesses have taken their fair share. consultant John Ng. The government has good nation, with a lot of money to invest, and the relations with most of the rest of the world, and Government makes no secret of doing its best Even those banks that now have a Chinese li- it has made it a priority to remain a centre that to ensure as much of the work is done in the cence and offices on the ground, still use their is attractive to the global investment community. country as possible. But funds from other Asian operations centres in Singapore to service any This is combined with a wealthy local populace countries, as well as further afield - Gulf states in of the business they get. As the opportunities who are comfortable with making investments particular - also like the operating environment grow, Singapore is confident that it will increase through the many funds on offer to locals.” of the island. This has not gone unnoticed by its share of the Chinese business on offer. the banks - BNY Mellon has just established a “Hong Kong offices will of course get a lot of Technically, Singapore cannot be beaten. Its sovereign institutions group focused on supporting business,” says Ng. “But I wouldn’t write off Sin- electronic infrastructure means that communi- sovereign wealth funds, sovereign pension plans, gapore, particularly in the wealth management cation is fast and easy, with built-in failsafes for central banks and sovereign owned entities. sector. It has a great reputation amongst Asian if anything ever does go wrong. It has a highly high net worth individuals and there will cer- educated and motivated workforce, a low tax The new group will be led by Jai Arya, formerly tainly be flows in that direction. The other thing environment and a Western outlook when it head of client management in Asia-Pacific, who of course is that Singapore has the expertise comes to language and culture. will continue to be based in Singapore. Arya has to quickly gear up to large inflows, so when the been with BNY Mellon for over two years work- money does start to flow it will be ready.”. AST The Government has been open about its am- ing in India, Taiwan, Korea and Singapore. bitions to become the world’s leading hub for wealth management. It has a number of tax “With total sovereign wealth fund assets forecast Singaporean investment funds are now exemption and financial incentive schemes, to more than triple by 2020 to $20 trillion, sov- eligible for order routing, settlement and which, combined with a programme of public ereign institutions are critical to the continuing custody through Clearstream’s existing in- education, means investors are becoming in- health of the global financial system,” said Jim frastructure. The Singaporean funds are creasingly sophisticated when it comes to the Palermo, vice chairman of BNY Mellon and chief made available on the Clearstream order instruments they are using. Even though the executive officer of global client management. routing platform Vestima+ and its post-trade world’s financial markets have become relative- infrastructure for funds, the Central Facility ly cautious in recent years, Singaporean provid- “As sovereigns steadily diversify their portfolios for Funds, for settlement. Investment funds ers continue to innovate. through strategic overseas investments, BNY from other Asian jurisdictions will follow after Mellon is ideally placed to provide the asset regulatory approval. management and securities servicing solutions So it’s not surprising that most of the major global they need to help them seize new opportunities Philippe Seyll, member of the Executive financial players consider the country a key part and manage risk in the global markets.” Board of Clearstream and head of invest- of their servicing portfolio. Citi, HSBC, Northern ment funds services, said: “We are happy to Trust and others all have a significant presence, Hedge funds have also been making their mark include the first Asian funds on our systems bolstered by Asian specialists such as Standard in Singapore. At the start of the millennium, and to allow international investors easy ac- Chartered. This is backed up by the likes of BNP there was little activity in the mar- cess to these financial instruments. Through Paribas and State Street Global Investors, who ket, but several now have operations centres our order routing platform Vestima+, we may not have been in the market for long but have on the ground, bringing with them money from bring more than 82,000 investment funds to already established themselves as major players. Europe and the Americas, as well as attracting investors around the globe. We observe a local interest. tremendous appetite by Asian investors for Others have ramped up their offering in the investing into the funds that we hold on our country. In 2007 BNY Mellon launched a transfer It’s kind of a chicken and egg situation, but platform.” agency operation. Within months it had become a whether its as a result of the hedge funds’ inter- market leader in terms of quality and it didn’t take est or forward thinking by some of the bigger Clearstream and the Deutsche Börse cash too long for the client list to grow substantially. players means that there is now an innovative market Xetra recently launched the trading and all-encompassing service industry for their of mutual funds via stock exchange. The needs. Morgan Stanley, for example, has a new service is especially interesting for All of this has drawn the asset managers. While presence, as do Custom House, Swiss Finan- investors in non-European time zones as the likes of HSBC have traditionally viewed cial Services and many others. stock exchange execution will allow individ- Hong Kong as the main centre for their Asian ual funds units to be priced and monetized operations, many fund managers now consider immediately and not, as currently the case, Singapore to be at least equally important. Eu- China the next business day once the net asset ropean asset managers are building a footprint value of a funds share has been calculated. in the country, aiming to both benefit their home The shadow on the horizon in Asia is the market Once traded on stock exchange and pooled clients from the growth in the market and en- that everyone is waiting for: China. While many in the Clearstream systems, funds can also courage local investors to take advantage of experts have traditionally believed a base in be re-used as collateral. their global expertise. Hong Kong is the preferred option for prepar-

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:cfacfY]bZcfaUh]cb.kkk"XV"Wca"H\]gUXjYfh]gYaYbh\UgVYYbUddfcjYXUbX#cfWcaaib]WUhYXVm8YihgW\Y6Ub_;fcidUbXUddYUfgUgUaUhhYfcZfYWcfXcb`m"H\YgYfj]WYgXYgWf]VYX]bh\]g UXjYfh]gYaYbhUfYdfcj]XYXVm8YihgW\Y6Ub_5;cfVm]hggiVg]X]Uf]YgUbX#cfUZZ]`]UhYg]bUWWcfXUbWYk]h\Uddfcdf]UhY`cWU``Y[]g`Uh]cbUbXfY[i`Uh]cb"8YihgW\Y6Ub_cdYfUh]cbg]b8iVU]UfYfY[i`UhYXVm h\Y8iVU]:]bUbW]U`GYfj]WYg5ih\cf]hmZfcah\Y8iVU]=bhYfbUh]cbU`:]bUbW]U`7YbhfY"5bmZ]bUbW]U`gYfj]WYgcfdfcXiWhgcZZYfYXVm8YihgW\Y6Ub_Zfcah\YWYbhfYUfYcb`mUjU]`UV`YhcW`]Ybhgk\cgUh]gZm h\YfY[i`UhcfmWf]hYf]UhcVYUdfcZYgg]cbU`W`]Ybh gYhcih]bh\Y5ih\cf]hmÇgfi`YgUbXh\]gWcaaib]WUh]cb]gX]fYWhYXcb`mUhgiW\dYfgcbg"7cdmf][\hœ&$%$8YihgW\Y6Ub_5;" IndustryEvents

17th Annual Industry Forum & Vendor Show Date: 27 - 30 Mar 2011 Location: The Renaissance Boston Waterfront Hotel Website: www.isitc.org Over 25 vendors will be on site to present and demonstrate their products and services to more than 400 representatives of investment manage- ment, global custodian, and broker/dealer firms.

Network Management ISLA 20th Annual European Clearing and 2011 International Securities Settlement Lending Conference

Date: 15-16 June 2011 Date: 28th-29th June 2011 Date: 29-30 June 2011 Location: Dubrovnik Location: Penha Longa (Lisbon/Sintra) Location: London Website: www.icbi-events.com/nema/ Website: www.afme.eu/isla2011 Website: www.icbi-events.com/ecs

With over 300 attendees from the Network Man- ISLA is pleased to announce the date and ven- An expected wave of European regulation; more agement and Securities industry in 2010, NeMa ue for its 20th International Securities Lending competition; pressure on costs and fees; a new has become the most important event of the Conference. The event will take place between focus on risk – all this and more will covered at year for the network management community - 28th and 30th June 2011 in Penha Longa (Lis- ICBI’s flagship 17th annual clearing and settle- bar none. bon - Sintra). ment event.

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9 PeopleMoves

Industry Appointments

Abel Aronovitz, director, institutional sales at Shakespeare commented: “I am very pleased to OneChicago and the company have parted be joining Kinetic Partners’ Grand Cayman office ways after two years, it at a time when the team and the firm is growing is understood Aronovitz and moving in an exciting direction. After five ASSETSERVICINGTIMES felt the time was right to years of great success, I relish the prospect of move on to the next step strengthening the firm’s achievements and ca- AST in his career, his next pabilities in liquidation and forensic services.” move is not known at Editor: Ben Wilkie Julian Korek, founding member of Kinetic Part- present. [email protected] ners, commented: “We are delighted to cel- Tel: +44 (0)20 3006 2710 This is the second recent ebrate our fifth anniversary in Grand Cayman by welcoming two valuable new members to Ki- departure; Don Horwitz, Marketing: Steven Lafferty general counsel and netic Partners’ liquidation and forensic services [email protected] chief regulatory officer at the exchange, has contingent. Jess and James will work closely also moved on. with their counterparts in our other locations as ongoing reform in financial services will contin- Publisher: Justin Lawson Daiwa Capital Markets Hong Kong, part of Daiwa ue the need for expertise in this area.” [email protected] Securities Group Inc. has announced the appoint- Geoff Varga, who leads Kinetic Partners’ corpo- Tel: +44 (0)20 8249 2615 ment of Joost Lobler as head of sales for Asia Fax: +44 (0)20 8711 5985 (ex Japan) for its Global Asset Services product. rate recovery service offering in Cayman and New York, also noted that “these additions are Global Asset Services offers fund administration, just further examples of our continued growth Published by Black Knight Media Ltd custody, trusteeships and a range of financial and focus in the distressed funds arena. Fur- services to the alternative investment industry. thermore, by utilising our firm’s global team 16 Bromley Road Joost will be based in Hong Kong and will be re- approach to formal and informal liquidation Beckenham sponsible for developing the client base in Asia. mandates, involving both onshore and offshore Kent entities and structures, we have been able to BR3 5JE Karl McEneff, managing director at Daiwa said: continue to propel ourselves as a key provider UK “The fast growing Asian markets offer tremen- of solutions in the space.” dous opportunities for Daiwa. The Group is Company reg: 0719464 determined to expand its services to the alter- Stuart Hendel will join Bank of America Merrill Copyright C 2011 native investment funds and we will no doubt Lynch as managing director and head of global Black Knight Media Ltd. benefit of the experience and network of Joost prime brokerage. All rights reserved. Lobler” In this role, Hendel will be responsible for lead- To subscribe please visit Lobler has 20 years of experience from vari- ing the continued expansion of the company’s www.assetservicingtimes.com ous senior roles in investment banking and glo- prime brokerage businesses on a global basis. ERS executive Larry Jensen as chief risk officer, bal fund services. He most recently served as Hendel, who is expected to join the company in a new position created to improve the pension head of sales for Europe and Asia at Butterfield June, will be based in New York and report to fund’s overall risk management programme. Fulcrum. Before that he was global managing Tom Patrick and Mike Stewart, co-heads of Glo- director of Equity Fund Services (rebranded to bal Equities. Additionally, the Global Futures and Jensen has been interim chief risk officer since Custom House Global Fund Services, part of the Derivatives Clearing Services group will report to October 1, 2010, when he was appointed to Equity Trust Group). Joost has spent 16 years Hendel and Denis Manelski. Manelski will also head the new Office of Enterprise Risk Man- at Fortis, where he held several roles in Holland continue as head of Global Short Rates Trading. agement and to independently assess risk for and abroad, most recently as chief commercial CalPERS. He oversees four primary functions: officer for Fortis Prime Fund Solutions. “Financing and prime brokerage services are an Enterprise Risk Management, Enterprise Com- integral part of our client offering, and we have pliance, Enterprise Privacy and Security, and Kinetic Partners has announced two new hires made substantial progress adding clients and Business Continuity/Disaster Recovery. to strengthen its insolvency and forensic serv- balances in the last several years,” said Mike ices practice. Stewart. “Under Stu’s leadership, we look to ag- “Larry Jensen has done an excellent job in his gressively build on that success and establish interim role,” said CalPERS chief executive officer Jess Shakespeare joins Kinetic as a director the industry’s leading prime brokerage platform.” Anne Stausboll. “He’s very familiar with CalPERS and is a Cayman qualified insolvency practi- operations and has extensive experience in eval- tioner with extensive experience gained work- “A well-respected industry veteran with out- uating administrative and fiscal operations, pen- ing with investment funds and in the insurance standing client relationships, Stu has a proven sion, health and investment programmes.” and banking industries in the Cayman Islands. track record of managing and expanding global Previously, he acted as a director to numerous prime brokerage businesses,” said Tom Patrick. Jensen reports to Steve Kessler, deputy execu- investment funds and structured finance vehi- “We are very pleased to welcome him as a tive officer for operations; Chief Executive Of- cles, provided administration services to unit member of our leadership team.” ficer Anne Stausboll; and the CalPERS Board. trusts, and acted as a liquidator in hundreds of Hendel began his financial career at Morgan Prior to his interim appointment last year, Jensen voluntary liquidations of such entities. Stanley, where he held a number of leadership served as the assistant executive officer for the Ad- James Plowright joins Kinetic Partners from roles before moving to multi-strategy hedge fund ministrative Services Branch since January 2010. Worrells Solvency and Forensic Accountants Eton Park in 2004, where he was a founding part- He joined the CalPERS Office of Audit Services in in Australia, where he gained comprehensive ner. In 2007, he returned to Morgan Stanley as glo- June 1995 and became chief auditor in 2002. experience in negotiation of the sales of as- bal head of Prime Brokerage, and since 2009, he As chief risk officer, Jensen will serve as an inde- sets and businesses, voluntary administrations has been head of Global Prime Services at UBS. pendent adviser and consultant to the Board’s Ad and liquidations, corporate and non-corporate Hoc Risk Committee. He will oversee risk intelligence receiverships and litigation support. He is CPA The California Public Employees’ Retirement Sys- gathering to support decision-making and help eval- and IPA qualified. tem recently announced the appointment of CalP- uate executives’ risk management performance. 10