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2
10 WAYS
TO MAKE THE MOST OF FUNDFORUM
INTERNATIONAL
1.	Prioritise and Plan Your Week: Look at the
entire week’s agenda o...
3
what do you think? #FFORUM14
The Magazine of FundForum On The People & Ideas Shaping The Future Of Asset Management
Inte...
4
9th Annual FundForum Asia
April 2015,
JW Marriott, Hong Kong
New Horizons For Asian Asset Management
+44 (0) 20 7017 720...
5
TABLE OF CONTENTS
FundForum International Editor-in-Chief: Jenny Adams
FundForward Editor: Amos Rojter
Editorial staff: ...
6
LEADERS ON THE
RECORD
Ultimately, the greater focus will be meeting
the social challenge of funding the increasing
propo...
Swiss Fund Data AG is 70%-owned by the Swiss Funds &
Asset Management Association and 30%-owned by the SIX Swiss
Exchange....
8
BIG IDEAS THINKTANK When asset managers invest in a particular
company or asset, they do so in anticipation
that the ass...
9
RISING STAR Women-owned SMEs face barriers to entry
and business growth that include access to
education and training, l...
10
REGULATION Collateral was always important when it came to
obtaining credit, but it is fast becoming the sole
determina...
11
bnymellon.com
Theseillustrationsdonotdepictactualclientsorinvestmentresults.Thevalueofinvestmentsandtheincomefromthemis...
12
FUTURESCOPE The fund management industry is at a crossroads
-- and companies risk becoming roadkill. Like
other industr...
13
THE FUTURE IS UPON US I sense the GFC has deepened the divide between
passive and active management, with the serial
di...
14
what do you think? #FFORUM14
Achieving this objective isn’t as simple as it may
seem and ineffective programs can cost ...
15
BIG IDEAS THINKTANK Over the last few years, we have seen many
mainstream financial institutions from across the
financ...
LONDON | CHICAGO | NEW YORK | LOS ANGELES
+44 (20) 7887-6000 | WWW.BACKSTOPSOLUTIONS.COM
It’s Time to Work Smarter.
Backst...
17
ECONOMIC REVIEW Alas, things are not so clear-cut.
First, there is the accuracy of expectations around
the rebasing of ...
18
ECONOMIC REVIEW
Razi Khan
Razia Khan is Standard Chartered Bank’s London-
based Head of Research, Africa, responsible
f...
19
FUND SELECTION
For fund selectors, to be able to react appropriately
to a fund manager departure one needs to
appreciat...
20
THE WHY, WHAT AND HOW
Why?
Why?ACCESS AFRICA
2.What are the main areas in which businesses
are engaged in Africa?
Over ...
21
Why?
How?ACCESS AFRICA cont /...
4. How are banks supporting activity in Africa?
Despite the continent’s rich diversity...
22
REGULATOR REVIEW Now imagine, Ariana has followed the advice of
wise people and has invested her money following
the ad...
23
what do you think? #FFORUM14
FUTURESCOPE Wireless spectrum is often licensed over large
areas, states or entire nations...
WhatmakesIrelandgreat,makesIrelandgreatforbusiness
Email:idaireland@ida.ie @IDAIRELAND
25
INDUSTRY
REFLECTION
LESSONS LEARNED IN ASSET
MANAGEMENT
what do you think? #FFORUM14
Retaining and building market shar...
21st September:
The Global Asset Allocation Summit
22nd - 23rd September:
Main Conference
The Ritz-Carlton DIFC, Dubai
www...
27
28
Get connected with MyFundForum
Enhance your experience at
FundForum International before,
during and after the event.
M...
29
FundForum International 2014
Welcome Drinks Reception
FundForum International 2014
Drinks Reception
FundForum Internati...
30
SPONSORS & EXHIBITORS
We are a pure asset management company and only manage
assets for third parties, allowing us to f...
31
SPONSORS & EXHIBITORS
BlackRock is a global asset manager that has built its offering
around its clients’ greatest need...
32
SPONSORS & EXHIBITORS
More than 500 customers in 17 domiciles are processing
domestic and cross-border transactions acr...
33
SPONSORS & EXHIBITORS
As a global leader in data-driven solutions for efficiency and
control for over 20 years, the ass...
34
SPONSORS & EXHIBITORS
Eurizon Capital SGR S.p.A is the asset manager company of
Intesa Sanpaolo Group specialized in pr...
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
FundForward International Edition 2014
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FundForward International Edition 2014

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FundForward edition 2 - published for FundForum International.

Property of ICBI. Edited by Amos Rojter.

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FundForward International Edition 2014

  1. 1. 2 10 WAYS TO MAKE THE MOST OF FUNDFORUM INTERNATIONAL 1. Prioritise and Plan Your Week: Look at the entire week’s agenda on the MyFundForum Networking Platform. Prioritise which high profile sessions, small group discussions, and structured networking you must attend, plus identify which individuals you need to meet. 2. Schedule Meetings with MyFundForum Check who’s around and set up meetings using MyFundForum on your mobile device. Visit the Digital Media Helpdesk at the event for more information. 3. Frame Your Future Arguments & Set Yourself Apart From The Crowd By absorbing the content-rich sessions with the key industry players & most influential professional buyers 4. Recalibrate Your Business Strategy with Ten Unique Global Insights That You Cannot Just Google: From China’s Sovereign Wealth Head to US Policy on Cyber-Freedoms and Cybercrime, what are the implications for you, your business, and your clients? 5. New Engaged Conversations Help You Fast Track New Business Relationships. See the Event Diary for our whole new programme of small group discussions and public & private peer-to-peer consulting sessions, running parallel to the Main Conference. 6. Collaborate on Future Strategy for the Asset Management industry. Building on the conclusions of the morning plenary sessions, join our professionally facilitated Leaders’ Action Plans, listed in the Event Diary. 7. Be Targeted. Make Sure You Sign Up For “Matchme” Supercharged Networking. This new format accurately targets and brings together selector needs and Fund Manager supply. This facilitated session will happen in the morning coffee break on the 24 th and 25th June. Places for Asset Managers are limited, so sign up first thing each morning at the Information Desk, and list your top three most interesting funds. 8. Become a Dinosaur & Ignore the Next Generation Customer: OR alternatively, make sure your business stays alive, and engage your clients by participating in our “Think Like Amazon” facilitated summit, held on Thursday 26th June. See the Event Diary for full details. 9. For Every Old Friend You Meet, Make A New One. Join the Bonhomie during our numerous fabulous Social Events. See the Event Diary for Full Details. But don’t just stick to people you know, go off-piste and start conversations with new contacts, you’ll be surprised at the relationships you can build. 10. Share, Comment, Follow! Social Media is strictly encouraged! Join the conversation on #FFORUM14. Not sure what to do or what all the fuss is about? See The Event Diary and attend our Social Media Surgery Sessions. JOIN THE BIGGER PICTURE FundForward is part of a wider programme bringing exclusive interviews & insights from exceptional people at the cutting edge of Asset Management, who will be speaking through-out the year in the FundForum Global Series. If you want to be part of the community, sign up to our FundForum Newsletters, which are delivered by email monthly. is.gd/FundForumNewsletter Join @FundForum on Twitter Top- Level Content, Conversations & Collaboration
  2. 2. 3 what do you think? #FFORUM14 The Magazine of FundForum On The People & Ideas Shaping The Future Of Asset Management International Edition Welcome to FundForward, the exclusive FundForum magazine - profiling some of the incredible practitioners and inspirational thoughtleaders speaking at FundForum International 2014 – and throughout the year in our Global Series. We promise you fresh ideas to challenge your thinking about the future of your business; what you do and how you do it? In our in- depth features we focus on some of the big themes that cut across the four content-and-networking intensive days of FundForum International 2014. On demonstrating the value of asset management, read a taster from Dr Ian Goldin, Oxford Martin School, Oxford University, on “The Role of Asset Managers in Thinking Long Term”; or take in former J.P. Morgan’s Global Head of Research, Nick O’Donohue, now CEO, Big Society Capital on “How Social Investment Opportunities Have Gone Mainstream”. Alternatively we profile Rising Star, Maxime Carmignac on her take on the future of asset management and also view the Chair of the G20/OECD Task Force on Financial Consumer Protection, Regulator Theodor Kockelkoren for a taste of things to come. Look out for ground-breaking stories of innovation that drive through FundForum International 2014. Whether from Australia from Danielle Press, CEO, Equipsuper on the practicalities of “Delivering Financial Adequacy In Retirement”or from Katie Koch, Goldman Sachs on @GS10kWomen and their cutting edge programme bringing credit to female entrepreneurs around the world. In our Future Scope series we profile the leader of our Special Focus Morning, Thursday 26th June on “Engaging The Next Generation of Customers”. Get a feel from Kenneth Cukier, Data Editor, The Economist on “Why You Must Think Like Amazon”. Come along to fantastic hands-on session where we will take you through the implications function by function. At the other end of the spectrum get the perspective from one of the world’s most prolific tech pioneers, Vanu Bose and his quest to “Connect the World’s Next Billon Customers.” After all that, flick to the second half of the magazine to see the FundForum International 2014 Event Guide for details on all the Sponsors and Exhibitors, four days of Social Events & Structured Networking Features and how to use the MyFundForum App. Looking forward to catching up with you all at FundForum International. With Very Best Wishes Jenny Adams Editor In Chief, FundForum International 2014 jadams@icbi.co.uk P.S Join me for the annual Survivor’s Run along the Coast Route des Douaniers, Thursday morning at 6.55am, just email me!
  3. 3. 4 9th Annual FundForum Asia April 2015, JW Marriott, Hong Kong New Horizons For Asian Asset Management +44 (0) 20 7017 7200 www.fundforumasia.com 6th Annual FundForum USA 2014 27 – 29 October 2014, Mandarin Oriental, Boston The Only Event To Bring Together The U.S. & Global Asset Management Industry +44 (0) 20 7017 7200 www.fundforumusa.com 8th Annual FundForum Middle East 2014 The MENA Investment Management Forum 21 – 23 September 2014, Ritz-Carlton DIFC, Dubai The Middle East’s Most Prestigious Investment Management Conference +44 (0) 20 7017 7200 www.fundforumme.com 7th Annual FundForum Latin America 2 - 3 December 2014, Sofitel Santa Clara, Cartagena, Colombia The Most Renowned Asset & Wealth Management Conference In South America +44 (0) 20 7017 7200 www.fundforumlatam.com FUTURE ICBI FUNDFORUM EVENTS INCLUDEFUTURE EVENTS
  4. 4. 5 TABLE OF CONTENTS FundForum International Editor-in-Chief: Jenny Adams FundForward Editor: Amos Rojter Editorial staff: Amos Rojter, Rachel Lewis, Karen Taylor Sponsorship Team: Helen Lowe, Rustum Bharucha, Edward Jones Design Team: LockOn Productions Print Team: Trio Offset Artistic director: Chris Shields, LockOn Productions Cover credit: LockOn Productions Print run: 1000 copies EXPLORING THEMES OF 2014 Join @FundForum on Twitter Page 6 LEADERS ON THE RECORD: Danielle Press – Lessons From Australia: How To Deliver Financial Adequacy In Retirement Page 8 BIG IDEAS THINKTANK: Ian Goldin - Revaluing The Future: The Role Of Asset Managers In Thinking Long Term Page 9 RISING STAR: Katie Koch – Giving Credit where Credit is Due: Supporting Women Entrepreneurs Page 10 REGULATION: Nadine Chaker - Navigating the New Collateral Landscape Page 12 FUTURESCOPE: Kenneth Cukier - Why You Must Think Like Amazon to Win the Next Generation of Customers Page 13 THE FUTURE IS UPON US: Maxime Carmignac - The Future Of Asset Management Page 14 SHARE CLASS HEDGING: Jay Moore - Every Basis Point Counts Page 15 BIG IDEAS THINKTANK: Nick O’Donohue – Social Investment Opportunities Goes Mainstream Page 18 ECONOMIC REVIEW: Razia Khan – Nigeria enters the Global League Page 19 FUND SELECTION: Andrew Summers - A Maverick Selector’s View Of The World Page 20 ACCESS AFRICA: - Barclays – The Why, What and How Page 22 REGULATOR REVIEW: Theodor Kockelkoren - Ariana’s Needs - Where Does One Invest? Page 23 FUTURESCOPE: Vanu Bose - Connecting the World’s Next Billon Customers Page 25 INDUSTRY REFLECTION: Edward Bonham Carter: Lessons learned in Asset Management Page 27 EVENT GUIDE
  5. 5. 6 LEADERS ON THE RECORD Ultimately, the greater focus will be meeting the social challenge of funding the increasing proportion of our communities entering retirement. Like other funds, Equip has a specific remit to provide members with financial adequacy in retirement. We have been modelling a retirement product, being launched in Australia this month, that delivers a predictable and reliable level of income for members while optimising the longevity of their savings. Called Equip MyPension, it is mainly targeted at the more than 70% of members who choose not to seek professional financial advice as they plan their retirement. But delivering financial adequacy in retirement involves much more than developing product solutions. In Australia, people aged 60 or more can withdraw all their benefit in a lump sum, tax-free if they wish. There is nothing to stop them cashing in as they retire, spending all their savings and/or paying off debts, then living off the government Age Pension although, as balances increase, this is becoming less common. Equip is allocating substantial resources to promoting and delivering financial education and advice to members to bring about the behavioural change we believe is necessary to support retirement adequacy. Thankfully, after years of investment and the establishment of a subsidiary financial planning business about six years ago, we are seeing the benefits of this. Over 16% of our total assets are now managed for members under advice. MULTI-FACETED STRATEGIES NEEDED TO DELIVER FINANCIAL ADEQUACY IN RETIREMENT Australia’s superannuation system is widely admired, with our retirement savings pool of over AUD 1.7 trillion ranking us the 4th behind the United States, United Kingdom and Japan. This has been an outstanding achievement for an economy ranked 17th in the world based on GDP. The principal driver of the Australian system is that almost every working Australian must contribute a mandated 9.25% of their salary into super with current government policy set to gradually increase this to 12% by 2023. Compulsory contributions were introduced at 3% of salary in 1993. However, there is a range of other factors that have contributed to the sustained growth of the Australian retirement pool. Among these are: • Very strong investment market performance relative to other countries • The strong regulatory framework for the national financial services system; • The competitive superannuation environment; • A vibrant and innovative not-for-profit (or ‘mutual’) funds movement that has remained focused on the best interests of members; and • The move to fee-for-service across the financial planning sector and the demise of commissions, particularly counter- productive trailing commissions. That is not to say that the system is perfect. Even some of its strengths have created challenges, in particular in areas of board and investment governance and effective conflict management. The government and its regulator, the Australian Prudential Regulatory Authority (APRA) are engaged with the industry in evolving the governance structures of funds. These are important issues and will be resolved through accommodation of political, regulatory and industry discussion. Danielle Press, CEO, EQUIPSUPER Danielle Press was appointed Equipsuper’s Chief Executive Officer in 2010. She has wide experience in financial services and investments in Australia, the USA, Europe and Asia. subscribe to the FundForum Newsletter http://is.gd/FundForumNewsletter
  6. 6. Swiss Fund Data AG is 70%-owned by the Swiss Funds & Asset Management Association and 30%-owned by the SIX Swiss Exchange. Its activities are exclusively in the service of the fund industry and, as a service provider for the financial services indus- try as a whole, it enjoys a high level of trust and renown – this is true for both institutional clients and professional investors as well as fund providers with above-average quality expectations and qualified private investors. With its comprehensive database and a website recognized by FINMA as an official electronic pub- Serving the fund industry lication medium, Swiss Fund Data AG offers a wide variety of professional services. As a one-stop-shop for fund information, it plays a key role as a data and marketing hub for the entire fund industry and maintains direct connections to data vendors, authorities, media and fund providers. A non-profit organisa- tion, Swiss Fund Data AG aims to keep operating costs as low as possible so that its clients enjoy the lowest possible subscrip- tion fees. At the same time, it continuously invests in innovations that benefit all market participants. Broad range of professional services The services offered by Swiss Fund Data are presented in brief as follows: • Electronic publication of fund data, legal notices and fund documents via a close, established network. • The website of Swiss Fund Data AG is the medium for the publication of • data (master data, TER/PTR, fund prices, tax figures). • all legal fund documents (fund agreement, articles of incorporation, prospectus, annual and semi-annual reports, KIID). • all marketing documents and legal notices to investors. • All documents and notices for ETFs and listed funds are forwarded to the SIX Swiss Exchange and published on its website. • In the case of legal notices published on the website, a confirmation of the publication is created automatically and e-mailed to the client. • Various online platforms, such as nzz.ch, letemps.ch and cash.ch, access selected fund data and documents directly from Swiss Fund Data AG. • The publication of legal notices in the SOGC can be com- missioned via Swiss Fund Data AG and costs at least 40% less than publishing directly in the SOGC. • The daily NAV data is forwarded on an hourly basis to more than 38,000 recipients in all key countries via the affiliated data vendors (e.g. SIX Telekurs, Reuters, VWD, FT Interac- tive Data, Swissquote). • Swiss Fund Data AG compiles monthly statistics on the Swiss fund market with the relevant market commentary in collaboration with Morningstar and SFAMA. • Swiss Fund Data AG has a cooperation with the Swiss Federal Tax Administration (FTA) for the electronic submis- sion of annual reports. • In cooperation with SIX Financial Information, the flat-rate withholding tax data for the UK and Austria is delivered to the Swiss paying agents. The One-Stop-Shop for • Fund Prices • Performance Data • Comparisons of Funds • Market Data • Documents • Legal Notices • Funds and ETF News Commodity Real Estate Other Alternatives Mixed Assets Money Market Bond Equity 37.4% 33.5% 11.2% 9.3% 4.4% 2.9% 1.1% 0.1% All figures in % December 2013 Asset Allocation in the Swiss Fund Market Your complete information platform for the funds and ETFs approved for sale in Switzerland. Swiss Fund Data AG offers investors easy access to data, notices, documents and other information, and thereby increases transparency in Swiss fund market. www.swissfunddata.ch
  7. 7. 8 BIG IDEAS THINKTANK When asset managers invest in a particular company or asset, they do so in anticipation that the asset will enjoy positive performance over the coming years or indeed decades. It is therefore inherently in asset managers’ interest to build a bridge from the short to long term, for it is the long-term evolution of the markets that will determine the redemption value of investments. The Oxford Martin Commission for Future Generations, convened by the Oxford Martin School at the University of Oxford, brought together a group of international leaders concerned about the increasing short-termism which pervades governments and business cultures. Our report, Now for the Long Term, was launched in October 2013 and outlines a number of recommendations to advance the interests of future generations and promote resilient, inclusive, and sustainable growth. One of our key messages is that it is not only governments that need to take the longer-term view; the corporate sector, too, must shoulder greater responsibility. The Commission calls for investors and regulators to give greater priority to long- term ‘health’ and look beyond daily or quarterly reporting cycles; ultimately, this will require smarter regulation, remuneration tied to long- term performance, and voting structures that reward long-term growth. Some prominent pension funds are leading the way in calling for the prioritisation of the long term, as are individuals such as Dominic Barton, Managing Director of McKinsey & Company, and Mark Wiseman, President and CEO of Canada Pension Plan Investment Board. The asset management community has a particularly important role to play in the pursuit of long-term thinking; not only do asset managers possess a fundamental interest in looking ahead, but businesses alone do not have the power to lobby against the mark-to-market accounting, quarterly earnings, and short-term incentive bonuses that currently exist. Given that the underlying interests of much of asset management are inherently long term, asset managers could play a more significant role in championing longer term thinking and investment across the corporate sector, revaluing the future for the benefit of all. Professor Ian Goldin Director, Oxford Martin School UNIVERSITY OF OXFORD REVALUING THE FUTURE: THE ROLE OF ASSET MANAGERS IN THINKING LONG TERM what do you think? #FFORUM14
  8. 8. 9 RISING STAR Women-owned SMEs face barriers to entry and business growth that include access to education and training, legal and cultural barriers and infrastructure-related challenges. Access to finance is typically identified as a critical constraint. While financing is almost always a challenge for SMEs, the difficulties are often intensified by gender-related factors, including women’s lack of collateral, weak property rights and discriminatory regulations, laws and customs. The International Finance Corporation estimates that as many as 70% of women-owned SMEs in the formal sector in developing countries are unserved or underserved by financial institutions – a financing gap of around $285 billion. We assess the potential impact that closing this credit gap for women-owned SMEs can have on economic development, estimating the link between credit to SMEs and growth in income per capita. Our results suggest that closing the credit gap for women-owned SMEs in the BRICs and N-11 countries over the next few years could boost real income per capita growth rates in those countries by around 85bp on average. If the credit gap is closed by 2020, incomes per capita could be on average around 12% higher by 2030 across the BRICs and N-11, relative to our baseline scenario. Closing the credit gap for women-owned SMEs across the developing world as a whole could boost income per capita growth rates by over 110bp on average. While eliminating the whole gap is a tall order, the impact on growth could be dramatic. Initiatives to expand SME financing exist, but few have a gender-specific component. As a result, targeting women-owned SMEs in the developing world represents a significant financing opportunity. Solutions should tackle both the supply side (such as policy bias, discrimination and misconceptions about female credit risk) and the demand side (such as women’s reluctance to apply for loans). Adding business training and mentoring will help to ensure productive use of capital. Because improved access to credit is most impactful when coupled with strong institutional environments, efforts should be made to establish more robust institutions and favorable business conditions. Against a backdrop of a weaker growth trajectory in emerging markets, the substantial growth premium that can result from investing in women- led SMEs should matter deeply to policymakers, corporates and asset owners around the world. HOW CLOSING THE CREDIT GAP FOR WOMEN-OWNED SMALL- AND MEDIUM- SIZED ENTERPRISES CAN DRIVE GLOBAL GROWTH Katie Koch Head of Global Portfolio Solutions International, GOLDMAN SACHS ASSET MANAGEMENT Download the whitepaper: http://is.gd/KatieKoch Join @FundForum on Twitter Investing in women and girls is one of the highest return opportunities available in the developing world, as a wide range of economic research shows. Our own work has demonstrated that bringing more women into the labor force can significantly boost per capita income and GDP growth. Our research has also shown that women’s higher propensity to use their earnings and increased bargaining power to buy goods and services that improve family welfare can create a virtuous cycle: female spending supports the development of human capital, which fuels economic growth in the years ahead. Given these significant benefits, we look at the role of women-owned small- and medium-sized enterprises (SMEs) in raising labor force participation and boosting economic growth in emerging markets. Only one-third of the world’s SMEs in the formal sector are currently run by women, with a wide variation across countries and plenty of scope for growth.
  9. 9. 10 REGULATION Collateral was always important when it came to obtaining credit, but it is fast becoming the sole determinant of institutions’ ability to engage in financial transactions in the cash or derivative markets. Collateral needs on both the buy and sell-side span multiple asset classes and are global in scope. The inexorable shift from cash to non-cash collateral continues to gather pace. New regulations, heightened risk sensitivity and fast-changing market dynamics are combining to make collateral management solutions more critical than ever. Both the buy-side and the sell- side are being confronted with new challenges and complexities in a changing global economy. Buy-side compliance to post is a particular focus, with these market participants facing significant change. If the predicted ‘collateral crunch’ has yet to materialise – though there remains a strong sentiment in the market that such a shortfall remains a clear possibility – the ability to optimise your collateral , to transform idle assets to actively use as part of an overall investment strategy, remains key. Even if there is sufficient collateral in the system to meet overall requirements, it will still be critical for firms to properly mobilise it. Where is your collateral? How quickly can you access it? How liquid is it? These are important considerations moving forward. Looking to the future, balance sheet management, liquidity and more effective financing are emerging as key challenges alongside risk and cost efficiencies. With the advent of Basel III, financial institutions and intermediaries are looking for new and efficient ways to collateralise and to fund liquidity. In addition, concerns around liquidity and repo shortages are prevalent on both the buy and sell side. Demand for collateral segregation is also on the rise, particularly among institutional asset managers, and new capabilities are now coming online around the aggregation and optimisation of collateral as providers look to service the full gamut of those emerging needs. What in the past has been commonly referred to as quad party is today better understood and defined as full physical segregation, and this remains another key focus. NAVIGATING THE NEW COLLATERAL LANDSCAPE Nadine Chakar Executive Vice President, Global Collateral Services, BNY MELLON subscribe to the FundForum Newsletter http://is.gd/FundForumNewsletter Given the regulations now coming online to address risk and transparency concerns arising from the financial crisis, alongside new market requirements focused on capital rules, liquidity and collateral eligibility requirements, institutional investors are having to take a hard look at how better to utilise and manage their collateral.
  10. 10. 11 bnymellon.com Theseillustrationsdonotdepictactualclientsorinvestmentresults.Thevalueofinvestmentsandtheincomefromthemisnot guaranteedandcanfallaswellasriseduetostockmarketandcurrencymovements.Whentheinvestmentissoldtheamount receivedcouldbelessthanthatoriginallyinvested.Pastperformanceofanyinvestmentisnotindicativenoraguaranteeoffutureresults. If distributed in EMEA,this advertisement is a financial promotion for Professional Clients only.This is not investment advice.BNY Mellon is the corporatebrandofTheBankofNewYorkMellonCorporationandmayalsobeusedasagenerictermtoreferencetheCorporationasawholeorits varioussubsidiaries.Productsandservicesmaybeprovidedundervariousbrandnamesandinvariouscountriesbythesubsidiaries,affiliatesand joint ventures of The Bank of New York Mellon Corporation where authorised and regulated as required within each jurisdiction.Not all products and services are offered in all locations. This material is not intended, and should not be construed, to be an offer or solicitation of services or productsoranendorsementthereofinanyjurisdictionorinanycircumstancethatiscontrarytolocallaworregulation.IssuedbyTheBankofNew York Mellon Corporation with respect to services other than investment management.Issued in EMEA,with respect to investment management, by BNY Mellon Investment Management EMEA Limited, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Conduct Authority. BNY Mellon Investment Management EMEA Limited is ultimately owned byThe Bank of NewYork Mellon Corporation.©2014The Bank of NewYork Mellon Corporation.All rights reserved. The ocean gets warmer. The Peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed, and beef. for a university endowment. The endowment funds the work of a brilliant marine biologist. She studies the Peruvian anchovy. Proving small fish can lead to big insights. Invested in the world. We turn global insights like these into powerful investment strategies
  11. 11. 12 FUTURESCOPE The fund management industry is at a crossroads -- and companies risk becoming roadkill. Like other industries facing digital transformation, it is harder to sustain old business models. Amid such unpredictability, the best way forward is to learn from a winner of a similar battle in another industry, retailing. And the undisputable victor is Amazon. The American online retailor succeeded by doing things that fly in the face of the “rulebook” of how a company should act. For example, instead of trying to scale offerings to the largest number of customers, Amazon engineered its systems to offer a personalized, tailored experience to every shopper. Instead of looking for big improvements in efficiency, Amazon scoured every nook and cranny of its operations to look for tiny, incremental gains. More striking still, Amazon took a pro-consumer approach at every turn. At times when it faced a choice between doing something that benefited its business partners and suppliers or benefited the customer, it chose the end-user. When it wanted to sell used books alongside new ones, publishers screamed. A bookstore would never do that! But Amazon did it anyway because it provided value to the consumer. Most importantly -- and most relevant for the fund management industry -- Amazon’s success is not built on thick margins. Rather, the company is a powerhouse because at every turn, it has shaved margins to the bone. It squeezed its suppliers as much as it squeezes itself. Its thin margins let it be more competitive and win the loyalty of consumers. (Yes, it barely makes a profit -- but this is simply because it reinvests its earnings into information-technology in order to enter new businesses, from ebook readers to cloud-computing.) And the linchpin of Amazon’s success? Big data. The company uses data at every step to measure, learn, improve, implement and respond. In many respects, the fund management industry and financial services sector seems a long way off from the internet-inspired precision-engineering of Amazon. But it need not be. All it takes is a shift in mindset -- the vision and leadership -- for today’s fund executives to think in a fresh, data-driven way. If not, their companies may resemble the booksellers of yesteryear, that are today out of business. Kenneth Cukier Kenneth Cukier is the data editor of The Economist and the co-author of “Big Data: A Revolution That Will Transform How We Live, Work, and Think” a New York Times Bestseller translated into 20 languages. WHY YOU MUST THINK LIKE AMAZON TO WIN THE NEXT GENERATION OF CUSTOMERS what do you think? #FFORUM14
  12. 12. 13 THE FUTURE IS UPON US I sense the GFC has deepened the divide between passive and active management, with the serial disappointments delivered by so many active managers since 2008 making matters that much worse. What’s more, this market shift has by no means run its course. According to PWC estimates, passively managed strategies should grow from $7 trillion in 2012 to $23 trillion in 2020, doubling their share to 22% of global assets. In my opinion, this search for alpha will also lead to a fascinating convergence between the long only and the alternative investment spaces. Following the market abuses that were responsible, in part, for the GFC and the subsequent wave of public distrust of all things financial, the authorities have been above all concerned with protecting the end investor. Since April 2013, the UK has been living through the retail distribution review (RDR), whose main purpose is to raise industry standards and eradicate distributor rebates to end clients. Similar changes are ongoing in the Netherlands and Switzerland. The question in my view is not whether this approach will spread to all European markets, but when. The asset management industry is becoming as heavily regulated as the pharmaceutical industry. More importantly, the huge pressure now weighing on sovereign finances has prompted the unpleasant realisation among end clients that when it comes to retirement savings, it’s every man for himself now – time for self-medication, if you will. This is a structural shift, driven by demographics and exacerbated by the GFC, but one that can give asset managers a critical role to play. My belief is that a stable, family-owned asset manager, with a proven ability to generate returns independent of market cycles and to attract top talent, will help clients navigate this new reality. I am convinced that the future of asset management will require flexibility, focus, transparency and trust – and an avowedly long-term perspective. My aim, and indeed my company’s, is to deliver on these values to our clients the world over in the seconds, minutes, hours, days, weeks, months and years to come. Maxime Carmignac MD, London, CARMIGNAC GESTION In today’s global financial marketplace, information travels at such speed that opinions must be formed in a matter of hours, decisions taken in a matter of minutes and trades placed in a matter of seconds. An inter-connected world means that we can find out what’s happening on the other side of the globe in real time – just by checking our mobile devices. While such progress has brought tremendous gains to our industry, it can also make equally tremendous losses happen much faster: witness the GFC, i.e. the Global Financial Crisis of 2008. The resulting scars are still healing and the subsequent repercussions of the GFC may well change our industry for good. March 17, 2008 – the day Bear Stearns, the 85-year-old American investment bank, collapsed – coincided with my first day working for a New York-based hedge fund. They say confidence is a drug on the way up and a virus on the way down. Well, this was never more evident than in the succeeding months, which saw Lehman Brothers go bankrupt, followed shortly thereafter by the Madoff scandal. I could go on, but suffice it to say that the 60% fall in the MSCI World between July 2007 and March 2009 affected everyone, either directly or indirectly. The GFC has radically changed our industry paradigm and triggered major reforms in the investment, regulatory and distribution environment. Join @FundForum on Twitter THE FUTURE OF ASSET MANAGEMENT
  13. 13. 14 what do you think? #FFORUM14 Achieving this objective isn’t as simple as it may seem and ineffective programs can cost investors millions over time. It is important to ask yourself the following questions: 1) Are your program parameters well defined? Effective passive hedging programs rest on clear rules-based processes. These rules must be properly defined to balance the trade-off between tracking error and costs. Critical hedging parameters include forward contract tenor, rebalance frequency, trading filters and execution timing. The calibration of these parameters will significantly influence a fund’s performance and ultimately drive how competitive your offering is relative to your peers. 2) Is your FX process operationally efficient? Although a set of well-calibrated parameters will ensure precise design, the day to day success on the program will depend on how robust your operational process is. Most managers use customized spreadsheets to perform daily hedge calculations. Although such an approach may provide a short-term solution, the long-term risks of these models are often overlooked until it’s too late. 3) How do you ensure you’re achieving effective trade execution? Defining effective execution for FX hedging does not always follow conventional thinking. Depending on what’s driving the trading decision (investor flows or underlying NAV valuation changes), appropriate execution timing may differ. It’s important to understand the accounting methodologies and availability of exposure data when making trading decisions and measuring execution. 4) Is there room for increased transparency? Both operational and execution decisions cannot be measured for appropriateness without transparent reporting. The ability to demonstrate the “why” and “why not” of your operational decision process is as important to internal risk teams as the transparency of performance is to your investors. Detailed reporting will ensure all aspects of the hedging program are well presented and promote better decisions. SHARE CLASS HEDGING Jay Moore, from Brown Brothers Harriman’s Foreign Exchange Team looks at the importance of Share Class Hedging If given the choice, for any given asset class, investors prefer not to be constrained to managers within their currency borders. After all, what are the chances the best managers across all asset classes are within your home currency? Share class hedging is a valuable tool for managers to distribute their funds cross border while preserving every basis point possible of the performance they so painstakingly strive to achieve. The objective of share class hedging is to replicate the manager’s performance with as little tracking error as possible regardless of currency denomination. Chris Gothard, from BBH’s Foreign Exchange team will be at FundForum International 2014. For more information please contact Chris.Gothard@bbh.com This article is provided by Brown Brothers Harriman & Co. and its subsidiaries (“BBH”) to recipients, who are classified as Professional Clients or Eligible Counterparties if in the European Economic Area (“EEA”), solely for informational purposes. This does not constitute investment advice and is not intended as an offer to sell or a solicitation to buy securities or investment products. This material does not comprise an offer of services. Any opinions expressed are subject to change without notice. Unauthorized use or distribution without the prior written permission of BBH is prohibited. This publication is approved for distribution in member states of the EEA by Brown Brothers Harriman Investor Services Limited, authorized and regulated by the Financial Conduct Authority (FCA). BBH is a service mark of Brown Brothers Harriman & Co., registered in the United States and other countries. © Brown Brothers Harriman & Co. 2014. All rights reserved. May 2014. BBH is not affiliated with Fund Forum magazine. EVERY BASIS POINT COUNTS
  14. 14. 15 BIG IDEAS THINKTANK Over the last few years, we have seen many mainstream financial institutions from across the financial services spectrum get involved in social investment. As a result, there are an increasing range of products now available, particularly funds that can be aligned with investors’ personal values in areas such as education, health and social care. Some leading examples are: • Threadneedle’s UK Social Bond Fund was launched in partnership with Big Issue Invest earlier this year, the first product of its kind. The fund is similar to a corporate bond fund, with daily liquidity, but is focused on providing much needed credit to charities and other social organisations, such as building affordable homes or funding a university to build a medical research centre. • After its first close in December 2013, Impact Ventures UK, launched by LGT Venture Philanthropy and Berenberg is now investing in enterprises that create strong positive social impact for disadvantaged people and communities. • Cheyne Capital recently announced that they are planning a £300m impact property fund in the UK. The fund will buy or build properties and rent them to social services organisations that are providing affordable housing for individuals in need. Social investment provides a new and exciting opportunity for financial institutions of all kinds to be involved - from private banks recognising the demand from their high net worth clients, to pension consultants showcasing the range of funds in the sector and actively engaging their clients to become social investors or asset managers launching new social investment funds to meet investor demands. The UK is at the forefront of its development, and for those interested in cutting-edge investments and using part of their portfolio to do good, this is just the beginning. Nick O’Donohoe Chief Executive, Big Society Capital Making money and doing good isn’t something you would usually expect to go together. But the advent of social investment means the two needn’t be mutually exclusive. Where before you might have one pot of money for investments, and a separate pot for your philanthropy, a new range of opportunities are available to investors that deliver financial returns and tackle some of our most challenging issues in the UK, from youth unemployment to dementia care. THE EMERGENCE OF REAL OPPORTUNITIES TO GET INVOLVED IN SOCIAL INVESTMENT
  15. 15. LONDON | CHICAGO | NEW YORK | LOS ANGELES +44 (20) 7887-6000 | WWW.BACKSTOPSOLUTIONS.COM It’s Time to Work Smarter. Backstop's highly-integrated software is purpose-built for institutional investors. Our functionality allows you to efficiently manage relationships, communicate with clients and monitor multi-manager portfolios. With all this in one centralised database,you'llhavethetoolsyouneedtomakebetterbusiness and investment decisions, reduce risk and retain capital.
  16. 16. 17 ECONOMIC REVIEW Alas, things are not so clear-cut. First, there is the accuracy of expectations around the rebasing of GDP. Ghana’s experience in 2010 – ‘discovering’ an economy that was 60 per cent larger than previously thought when rebasing its GDP after 17 years – has done much to shape expectations. But Ghana is not Nigeria, and there is no reason why one country’s experience should mirror that of another. Second, oil prices play a big role in determining estimates of Nigerian GDP, and prices may be volatile. If global oil prices fall, we would have to change our thinking about the size of Nigeria’s GDP. Examining a range of micro-level indicators, there is little evidence that Nigeria’s economy might be as significant as South Africa’s, despite Nigeria’s population being three times larger. While South Africa’s financial markets and its banking sector are easily on par with some developed markets, Nigeria’s financially developing status means that it does particularly badly on these metrics. This also holds true for revenue collection. South Africa’s tax take compares favourably with developed markets – with a revenue-to-GDP ratio of 28 to 29 per cent. Nigeria, by contrast, is overly- dependent on oil, which contributes more than 70 per cent of consolidated government revenue. If Nigeria’s GDP is rebased, its non-oil revenue tax collection ratio may fall to less than four per cent of GDP, much lower than most regional peers. For developing countries, it isn’t so much the size of current GDP, as the potential of the economy to continue to grow that should matter. Here, Nigeria’s metrics may be problematic, and the rebasing of GDP is likely to draw greater scrutiny to what is missing. The country’s over-dependence on oil revenue suggests that the government enjoys a degree of autonomy from tax-raising that may weaken political accountability. One of the early achievements of post-apartheid South Africa was success in revenue collection, but, despite the shift to more accountable forms of governance after 1999, Nigeria has made little progress in mobilising enough non-oil revenue – at least when measured against GDP. Worse still, despite significantly weak infrastructure, which will require years of public and private sector investment to remedy, Nigeria has accumulated little long-term oil savings. In the event of an oil-revenue shock, there is no financial cushion and capital expenditure may have to be cut back. cont /... The year 2014 will go down as a milestone in Nigeria’s history, the moment when the country achieves global scale. For months statisticians have been working to recalculate Nigeria’s gross domestic product (GDP), an exercise which is likely to dramatically increase the size of its economy. Countries typically ‘rebase’ their GDP statistics every five years – using new information from household and other surveys to shed light on neglected or under-reported economic sectors – but Nigeria has not done so since 1990. Some suggest that as early as this year Nigeria’s economy may emerge as the largest in sub- Saharan Africa, with estimates of the likely upward revision to GDP running from 20 per cent to 60 per cent. What we tend to think of as a USD290 billion economy may in fact be closer to USD400 billion, a bit larger than South Africa’s and substantially bigger than Hong Kong’s – or so the argument goes. Even before the new GDP statistics are released, Nigeria has been named alongside Mexico, Indonesia and Turkey as one of the MINTs – the four countries seen as the next generation of developing economies that will achieve great importance. Nigeria – which doesn’t export much besides oil – will not benefit from a big export-led surge in production, as other emerging economies may have done. However, when it comes to demographic growth, Nigeria outpaces most. Already the world’s seventh most populous economy, UN projections suggest that Nigeria will be the fourth most populous by 2035, after India, China and the United States. As more of its population reaches working age, Nigeria should experience a boost to growth. Even given the challenges of job creation, consumption should rise. The investment arguments in favour of Nigeria appear compelling: so many people, so much opportunity, and its economy getting bigger still. NIGERIA ENTERS THE GLOBAL LEAGUE
  17. 17. 18 ECONOMIC REVIEW Razi Khan Razia Khan is Standard Chartered Bank’s London- based Head of Research, Africa, responsible for providing in-depth analysis on African economies to the Bank’s clients. As well as advising key multinational corporations and funds with African interests in Europe, the US, Asia, and the Middle East, Razia is a frequent visitor to Africa, sharing her insights on African economies with clients and policy makers. A frequent media commentator, Razia is often called on to provide analysis of African markets in key local and international media, and has been acknowledged as the leading analyst on African economies. Razia is a graduate of the London School of Economics with a BSc Hons degree in Economics and an MSc (Econ) in Development, including Monetary Economics and International Trade Law. Bigger is not necessarily better. Post-rebasing, Nigeria’s average per capita income, currently estimated by the International Monetary Fund at USD1,725 a year, is likely to see a substantial lift. But the proportion of Nigerians who live on a dollar a day, estimated at 63 per cent in 2011, is unlikely to change very much. In effect, GDP rebasing will reveal an even deeper problem of income inequality. Despite a decade of growth averaging seven per cent per year in real terms – which allows an economy to double in size every ten years – survey evidence suggests that Nigerian poverty, whether measured in relative, absolute or even subjective terms, has increased. The rebasing of GDP is unlikely to change this. In highlighting even greater inequality, it may reveal why so many Nigerians feel poor, and the attendant risk to political stability. The fact that Nigeria’s middle class is growing is not refuted by these statistics. Important gains have been made, but most likely only within certain pockets of the economy. The challenge for Nigeria, both pre and post-rebasing, is to ensure that conditions that support economic transformation, not just headline growth, are in place. Growth needs to be made meaningful and prosperity needs to be shared more evenly. NIGERIA ENTERS THE GLOBAL LEAGUE CONT /... This material has been prepared by Standard Chartered Bank (SCB), a firm authorised by the United Kingdom’s Prudential Regulation Authority and regulated by the United Kingdom’s Financial Conduct Authority and Prudential Regulation Authority. It is not independent research material. This material has been produced for reference only and does not constitute an invitation or recommendation to enter into any transaction. Information contained herein has been obtained from sources believed by SCB to be reliable. Any opinions or views of third parties expressed in this material are those of the third parties identified, and not of SCB or its affiliates. While all reasonable care has been taken in preparing this material, SCB and its affiliates make no representation or warranty as to its accuracy or completeness, and no responsibility or liability is accepted for any errors of fact, omission or for any opinion expressed herein. SCB or its affiliates may not have the necessary licenses to provide services or offer products in all countries or such provision of services or offering of products may be subject to the regulatory requirements of each jurisdiction. You are advised to exercise your own independent judgment (with the advice of your professional advisers as necessary) with respect to the risks and consequences of any matter contained herein. SCB and its affiliates expressly disclaim any liability and responsibility for any damage or losses you may suffer from your use of or reliance on the information contained herein. You may wish to refer to the incorporation details of Standard Chartered PLC, Standard Chartered Bank and their subsidiaries at http://www.standardchartered.com/en/incorporation-details.html. This material is not for distribution to any person to which, or any jurisdiction in which, its distribution would be prohibited. © Copyright 2014 Standard Chartered Bank. All rights reserved. All copyrights subsisting and arising out of these materials belong to Standard Chartered Bank and may not be reproduced, distributed, amended, modified, adapted, transmitted in any form, or translated in any way without the prior written consent of Standard Chartered Bank. As Nigeria moves closer to elections next year, caught up in the hype of being a MINT – with the rebasing of GDP just one event in a rushed political timetable – the risk is the country will miss an opportunity to take stock and look more closely at the deeper messages behind the headlines.
  18. 18. 19 FUND SELECTION For fund selectors, to be able to react appropriately to a fund manager departure one needs to appreciate its impact on what matters – relative performance: Firstly, truly understand what organisational traits drive a fund’s relative performance. Is it the fund manager (personality, experience, investment style)? Is it the depth of the analyst pool? Is it idea generation that stems from the way the team is structured or remunerated? Is it the broader resources of the company, such as research or superior risk management capabilities? Secondly, know the portfolio and how it might be impacted by substantial redemptions. Even if you decide to remain invested, plenty of other people won’t. Thirdly, know the alternatives. Don’t remain invested just because it’s the easiest thing to do. Wait and see can be a perfectly valid, so long as it’s a proactively determined decision rather than the default response. From a fund management house’s perspective succession planning should be taken seriously, it should be open and honest and it should be expansive. Serious succession planning means fund houses should have a clear long-term plan in place. Having a “reliable number two” might be sufficient only for holiday cover and not as a long term solution to a manager departure. It should be open insofar as fund houses should engage with investors about what they are considering. If the solution to a manager leaving would be to replace him or her externally, that should be clear to all. Honesty is crucial: no marketing of a “star manager” until he or she leaves at which point the fund “has always been run by a team”. Finally succession planning requires considering all repercussions of a manager exit, such as the impact on the current funds run by a manager who is promoted to replace a departed manager on another fund. Given personnel mobility is a fact of life, it is surprising how unprepared many fund management houses and fund selectors are when the inevitable happens. Whilst preparing for every possible scenario is impractical, there are ways for both sides to mitigate the risks. Andrew Summers Head of Fund Research and Collectives, INVESTEC WEALTH & INVESTMENT A MAVERICK SELECTOR’S VIEW OF THE WORLD Over the past year we have seen a large number of high profile fund manager changes. This has taught both fund selectors and fund management houses several important lessons. From both parties’ perspective the easiest fund manager change is when a fund manager leaves the industry (providing no alternative vehicle to consider moving to) and smoothly hands over the reigns to an impressive deputy already well known to investors (allowing us to be comfortable staying invested). However, few of the recent manager moves have been this simple and already difficult situations have been exacerbated by unforced errors made by fund management houses and have revealed flaws in fund selectors’ due diligence.
  19. 19. 20 THE WHY, WHAT AND HOW Why? Why?ACCESS AFRICA 2.What are the main areas in which businesses are engaged in Africa? Over recent years, the African economy has undergone a number of seismic changes; less reliance on agriculture has been paired with increasing importance being placed on service sectors, particularly the financial sector. While investors from emerging market countries in Latin America and Asia have already seized the opportunity to invest in Africa, Germany and other European companies have been taking a more risk-conscious approach. Geographically, interest has expanded from a fairly narrow focus on South Africa to now span the continent, particularly as other economies develop and reach the stage where consumers and institutional investors have the liquidity and sophistication to look for enhanced returns. Nonetheless, economic performance still varies significantly across the region. Looking to the immediate future, much of the attention is focused on those countries where new resource discoveries (particularly oil and gas) may help transform their economies (including Mozambique, Kenya and Tanzania), and where a continued push on energy and transport infrastructure may be able to unleash economic potential in a different way (such as Nigeria and South Africa). There are a growing number of infrastructure funds and other closed-ended vehicles which are focusing on providing investors and pension funds with meaningful exposure to the large infrastructure and investment programmes in course throughout Africa. Fund managers such as Inframed, Helios, Harith Partners, Actis have been at the forefront, often partnering with development and government agencies to help shape and benefit from these opportunities. In terms of asset classes, we have seen a rapid growth in the currency, rates and equities markets and, most recently, also in the issuances of sovereign credit. Dollar-denominated Eurobonds are rapidly gaining favour as they offer investors low-risk entrance into the market, and equity investments are steadily becoming more attractive to investors when compared with other investment types including debt. As the markets develop and the liquidity increases in countries outside of South Africa and Nigeria, this trend will continue to grow. CONT /... Join @FundForum on Twitter 1. What is about Africa that appeals to Fund and Asset Managers? Africa’s growth story cannot be overlooked: the IMF forecasts that by 2017, 11 of the 20 fastest-growing economies will be in Africa. The six largest countries (South Africa, Nigeria, Egypt, Algeria, Angola and Morocco) alone are a $1.3 trillion economy and, according to the IMF (2013), Sub-Saharan Africa is the second fastest growing region in the world after Asia. As a result, increasingly, the emphasis of conversations is shifting from “why” Africa, to “where” and “how.” Many African countries benchmark well on key risk factors relative to other emerging markets. Upswings in governance and political stability, an enabling environment that encourages investments, coupled with a trend of growing populations and urbanisation, are all combining to produce a very positive risk/reward relationship in Africa, particularly for companies with robust risk management strategies. Looking specifically at the funds industry, the RisCura-AVCA-SAVCA LP survey (April 2014) found that 85% of investors surveyed were expecting to increase their allocations to African private equity in the next two years, while 70% said returns from Africa would outperform other emerging markets (although, admittedly, the survey is somewhat biased on a small pool of investors who are already interested in the region). The fundraising stats paint a similar picture: Africa-focused funds raised nearly $2 billion in total last year, according to PEI’s Research & Analytics division, about twice as much as the previous year.
  20. 20. 21 Why? How?ACCESS AFRICA cont /... 4. How are banks supporting activity in Africa? Despite the continent’s rich diversity and opportunities for growth, it remains a complex entity, placing responsibility on banks to drive financial inclusion. Urbanisation and increased formal employment will aid this process to some extent, as will the advances in mobile technology across the continent. Banks can target new market segments by creating products which lend themselves to straight-through-processing and volume transacting. These new products, supported by innovation in mobile payment services, are aimed at the previously unbanked, cash-rich community and don’t require individual bank accounts. Where these products have been most successful is where they have been supported by large education programmes explaining the product and its benefits. On a corporate and institutional level, banks play a pivotal role in providing insights into local practices and customs as well as sector expertise. To find out more about how Barclays can support your success in Africa, contact: Phil Bowkley, Head of Funds and FinTech, Corporate Banking, Barclays E: philip.bowkley1@barclays.com T: +44 207 116 9363 Pieter Venter, Head of Funds and FinTech (Africa), Corporate Banking, Barclays Africa E: pieter.venter@absacapital.com T: +27 219 276 440. Join @FundForum on Twitter 3. What are the main hurdles for fund managers looking to establish operations in Africa? Despite the growth forecast in the region, perceptions of a lack of ease of doing business and widespread corruption remain. According to Ernst & Young’s 2013 ‘Doing business in Africa’ report, there are several features of the continent that make it a difficult place to operate, including infrastructure gaps, bureaucratic bottlenecks and undeveloped consumer demand. In our experience, the biggest mistake one can make is to think of Africa as one homogeneous entity. If there is one word to describe Africa’s 50+ countries, it is “diversity.” There are strong differences moving from north to south and east to west across the continent, and exchange controls and a lack of liquidity are barriers to moving funds across jurisdictions. For us, we see that the key for fund and asset managers operating in the region is to educate their investors on the risks/returns associated with Africa, giving their managers the flexibility to innovate and grow. Furthermore, understanding the local perspectives and regulations is fundamental when setting a strategy for entering a market. To support this, working with a partner with strong local knowledge and presence will prove a decisive factor in tapping into the African opportunity. Figure 1: Africa’s Risk and Opportunity matrixSource: E&Y Africa by Numbers report, Doing business in Africa 2013
  21. 21. 22 REGULATOR REVIEW Now imagine, Ariana has followed the advice of wise people and has invested her money following the advice of her local bank. Advice here means the bank has asked Ariana to fill in a questionnaire of roughly 30 questions after which the bank hacs proposed an asset allocation. In her case the bank has also recommended a number house funds fitting her proposed asset allocation. Periodically, Ariana receives a report indicating whether she is within limits of the proposed asset allocation. For this service, Ariana again is charged 80 to 100 bp. The annual performance report Ariana receives shows how much return is has made in the previous year. Yet, no comparison to a benchmark is made. No effort is made to show performance over a longer period of time – even if Ariana already invests with her bank for over 10 years. Also, no effort is made to indicate what risk return trade-off Ariana has made in her portfolio. At the same time, Ariana is utterly insecure whether she is doing the right things. Especially if her portfolio has tanked, but even if things have grown a bit she questions what could happen and whether she is not exposed too much. Reading a bit about the investment industry, Ariana wonders what she is really paying her fund managers as well as all the gentlemen involved in the rest of her “investment value chain”. On a rainy weekend, she invests some serious time to find out. She is quite outraged when she discovers she can’t. A fair amount of the costs, it seems, cannot be found anywhere. She is particularly outraged because experience as well as research show her costs matter a great deal – contrary what her banks seems to implicitly tell her. Finally, when Ariana makes another effort towards rational investing and tries to identify superior funds, she fails utterly. Research shows her superior funds, consistently outperforming the benchmark do exist – be it in small numbers. At the same time, there are no objective reliable indicators to identify those funds. It seems finding these funds is an art in itself. Questioning her bank she is astonished to learn that in fact they are not much better than she is. At that point she puts the matter to an end and moves to low cost index funds only. I think, Ariana’s story points to a number of potential improvements the industry would be wise to put their energy to. Theodor Kockelkoren Board Member, AFM Chairman, Task Force on Financial Consumer Protection, OECD ARIANA’S NEEDS – WHERE DOES ONE INVEST? What would a customer look for? Say, a customer like most of in the ‘Retail Space’ aspiring to build a bit of wealth for his or her old age, let’s call her Ariana. Ariana would like to invest rather than put all her money in a saving account. She would love to have low cost support in making the right investment decisions. She is longing to gain some level of comfort after having made these decisions. Having thought about her decisions looking back and forward, she is craving better information, especially on all the costs involved in her decisions as well as on the added value her fund managers really managed to create for her. Currently, the reality in most countries is deeply disappointing to Ariana. First of all, it is easy to overpay for the support services she is receiving. Imagine, Ariana has invested through an internet platform in a number of investments funds. What Ariana may or may not know (as the information is not easily accessible) is that she is paying easily 80 to 100 bp on her invested money annually for something as meagre as an execution service. Quite an outrageous pricing proposition
  22. 22. 23 what do you think? #FFORUM14 FUTURESCOPE Wireless spectrum is often licensed over large areas, states or entire nations. The carriers with the licenses focus their build-outs on the profitable population centers, often building minimal rural coverage only to meet government requirements. If it were possible for a local entrepreneur to gain access to spectrum on a village by village basis, local entrepreneurs would be incentivized to build coverage that provide a reasonable return. The U.S. passed a secondary markets ruling which allows spectrum to be sold, leased or loaned the third parties. Similar legislation for rural areas in developing countries would open up the opportunities for building micro-cellular coverage. The technology and spectrum licensing schemes must be coupled with a complimentary financing scheme. New technology innovation can make running rural cellular networks cost effective, the regulatory changes would make it feasible for entrepreneurs to build local networks, and the availability of micro-finance for local wireless netreprenuers would enable rural coverage to become a reality. Finally it is worth noting that this approach has benefits in the developed countries as well. The U.S., due to geography and population actually has the second lowest percentage of the rural population covered of any region, trailing only Africa. There are far fewer people without coverage in the U.S, but the problem for coverage of the last 5% is just as daunting. CONNECTING THE NEXT BILLON Bringing cellular communications to rural areas increases the opportunity earning power of the rural population. Every 10 percentage-point increase in mobile-phone penetration in developing countries yields an extra 0.81 percentage points of annual economic growth, according to a 2009 World Bank study GSMA has estimated that each 10% increase in broadband connectivity results in up to a 1.4 percentage in village GDP. But connecting the next billion is not as straight forward as connecting the last billion. The last billion was connected by building cellular network in urban centers of countries like Indian and China. These urban centers have the skilled labor, power and telecommunications infrastructure required to build cellular networks in very much the same way they were built in the west. The next billion will come from rural areas in India, China, Africa, Asia and Latin America. These areas to do have the power, skilled labor or telecommunications infrastructure, and the traditional method of building cellular networks is practical or cost effective. To cost effectively build networks in these areas requires an innovative approach in technology, regulation and financing. The focus of technology innovation must be moved from the developing market focus of higher data rates and more spectrum efficiency, to reducing power consumption, physical footprint and simplifying maintenance and operations. Where SOFTWARE Meets the Spectrum Vanu Bose President & CEO, VANU INC Speaking 23rd June, Emerging & Frontier Markets
  23. 23. WhatmakesIrelandgreat,makesIrelandgreatforbusiness Email:idaireland@ida.ie @IDAIRELAND
  24. 24. 25 INDUSTRY REFLECTION LESSONS LEARNED IN ASSET MANAGEMENT what do you think? #FFORUM14 Retaining and building market share in the asset management sector is increasingly challenging, with the rise of passives and regulation adding to the competitive pressures. In my view, active fund managers need to remember what they exist to do – to seek to outperform net of all fees over the medium-long term and to meet the fund objectives. Our industry is still bloated with too many mediocre funds not delivering. We need to keep things simple, focus on what we are good at and ditch the rest, remembering that scale alone in asset management does not bring success – a focus on excellence is in my opinion more important. Our people are a critical part of success in what remains, in the active space, a people business. Increasingly, good people want to work for organisations that enable them to use their talents and skills to their best advantage. This is partly about remuneration structures and aligning employees’ interests with those of clients but it is also about creating the right environment where people can thrive, excel and deliver. We are only at the start of enormous structural change in the savings industry as countries with ageing populations give individuals more responsibility to manage their financial futures. In the UK this has led to the government removing the requirement for retirees to buy an annuity, giving the asset management sector a significant opportunity to create innovative products that can attract significant assets. It is those who pay greatest attention to the above factors that will have the best chance of winning in this brave new world. Notes: The value of investments and the income from them can fall as well as rise and may be affected by exchange rate variations, you may get back less than originally invested. The views expressed are those of the Vice Chairman at the time of writing and may change in the future. Jupiter Asset Management Limited, registered address: 1 Grosvenor Place, London SW1X 7JJ is authorised and regulated by the Financial Conduct Authority. Edward Bonham Carter Vice Chairman, JUPITER FUND MANAGEMENT PLC. Having stepped down from my role of Chief Executive of Jupiter Fund Management plc in March, it is a good point at which to reflect on some of the lessons learned from my 14 years at the helm. When I took over as joint CEO of Jupiter in 2000, equity markets were at the start of a savage bear phase lasting three years. It was the first of two bear markets through which I steered the business, the second being the financial crisis that started in 2007. I have always been surprised by the number of businesses that repeatedly made the same mistakes during the economic cycle – becoming overly bloated during upturns then slashing staff numbers and marketing budgets in downturns to find themselves at a competitive disadvantage when the cycle turns. A much better way, in my view, is to avoid getting excited during bull markets by aggressively expanding your cost base and then be wary of cutting back in downturns as it is during difficult times that you build your advantage.
  25. 25. 21st September: The Global Asset Allocation Summit 22nd - 23rd September: Main Conference The Ritz-Carlton DIFC, Dubai www.fundforumme.com Join 300+ Key Stakeholders From The Middle Eastern Asset Management Community Institutional Investors, Family Offices, Insurance Companies, Wealth Managers & Investment Consultants Perspectives From 80+ Influential Speakers One Third Of Each Day Dedicated Structured Networking Co Sponsors Associate Sponsor For the latest agenda and to register please visit: www.fundforumme.com or call: +44 (0) 20 7017 7200 or email: info@icbi.co.uk Quote VIP code: FKN2394FFRWD
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  27. 27. 28 Get connected with MyFundForum Enhance your experience at FundForum International before, during and after the event. MyFundForum features include: • Final Event Programme • Full Attendee List • Secure Messaging System • View Asset Managers & Fund Selectors • Search attending Fund Selectors • Schedule Meetings Online • View Speaker List With Bios • View Sponsors • Download MyFundForum on iOS and Android via QR Code The App is available two weeks prior to event through to one week after and is exclusively available to Main Conference attendees only. LOG ON OR VISIT Http://is.gd/MyFundForum NEED HELP? Visit the Digital Networking stand for help using the networking platform, and accessing the information. MyFundForum sponsored by
  28. 28. 29 FundForum International 2014 Welcome Drinks Reception FundForum International 2014 Drinks Reception FundForum International 2014 Gala Evening 18.30 – 20.30, Monday 23rd June 2014 Casino Terrace, Monte Carlo Casino His Excellency the Minister of State of the Principality of Monaco requests the pleasure of your company at a Welcome Drinks reception on the occasion of the FundForum International 2014 At the Casino Terrace, Casino Square (In case of bad weather, the cocktail will be held in the Atrium of the Casino) 18.00 – 20.00, Tuesday 24th June 2014 Le Meridien Beach Plaza, Pool Terrace The drinks will be held at the Le Meridien Beach Plaza, 22 avenue Princesse Grace MC 98 000 Monaco. World Cup 2014 Live Matches Being Shown! NB Entry Strictly Restricted To FundForum Main Conference Badge Holders Only 19.30 – 21.30, Wednesday 25th June 2014 Monte Carlo Bay Hotel NEW Venue for 2014! The gala evening will be held at Monte Carlo Bay Hotel 40 Avenue Princesse Grace 98000 Monaco. Buffet dinner, drinks and entertainment NB Entry Strictly Restricted To FundForum Main Conference Badge Holders Only Hosted by Hosted by Hosted by SOCIAL EVENTS
  29. 29. 30 SPONSORS & EXHIBITORS We are a pure asset management company and only manage assets for third parties, allowing us to focus solely on their needs. We now manage €226.2 billion of third party assets, as at 28 February 2014. Our clients access our investment from equities, fixed income, property, as well as tailored solutions. We package our skills in the form of segregated and pooled products across borders. We invest worldwide and follow a predominantly long-only approach, based on fundamentally sound investments – we do not chase market fads. Our investment teams are based in the markets or regions in which they invest. Clients understand our process and portfolios because they are transparent. accelerando associates is a leading European fund distribution consultancy founded in 2004 with offices in Frankfurt, London and Valencia. We provide bespoke advisory services to specialist and mainstream asset management firms around the globe. Our international team combines cutting-edge experiences from investment sales, investment management and consulting from four European countries, whilst speaking five European languages. Based on our vast experiences and insights we have built an unparalleled platform on European fund distribution intelligence. We help asset management firms to develop and to optimise European fund distribution in a smart, practice focused and cost efficient manner. Amundi ranks first in Europe1 and ninth worldwide1 in the asset management industry with AUM of over €770 billion worldwide2 . Located at the heart of the main investment regions in more than 30 countries, Amundi offers a comprehensive range of products covering all asset classes and major currencies. Amundi has developed savings solutions to meet the needs of more than 100 million retail clients worldwide and designs innovative, high-performing products for institutional clients which are tailored specifically to their requirements and risk profile. The group contributes to funding the economy by orienting savings towards company development. 1. Source IPE « Top 400 asset managers active in the European marketplace » published in June 2013. 2. Amundi Group figures as of 31 December 2013. AssetLogic offers the finance industry the Fund Information Network. A revolutionary web-based service that combines the security and privacy of a financial application with the ease-of-sharing found in social networks. Increasing regulations and investor demands for transparency have significantly increased the amount of information that must be aggregated and shared between asset managers, investors, service providers and many others. However, this data is stored in proprietary systems that don’t communicate with one another. Members of the Fund Information Network collect, share and report on data and documents contributed by their trusted partners. The increased efficiency, data integrity, accountability and transparency enable the industry to trust its information and meet the ever-increasing data management and compliance demands. Aviva Investors is a global asset management business dedicated to building and providing focused investment solutions for clients which include pension funds, wholesale and retail banks, insurance companies, private wealth managers, charities and local government organisations. We are the asset management arm of Aviva plc, the UK’s largest general insurer and one of Europe’s leading providers of life and general insurance. We employ over 1,000 people in 19 locations and 15 countries and have assets under management of £241 billion* across a range of real estate, fixed income, multi- asset and equity funds. Above all, we aim to deliver sustainable investment strategies and returns that meet our clients’ objectives. Our investment strategies include: • Long-only and absolute return global fixed income strategies • Multi-asset investments to address our clients’ diverse needs • Direct and indirect global real estate • Global, regional and style equity strategies * as at 31 December 2013 BLME is the largest Islamic Bank in Europe. BLME Asset Management is a dynamic organisation that combines industry experience and financial market expertise to offer innovative investment solutions across a range of asset classes. Our experienced team is dedicated to delivering client- focused investment solutions tailored to your specific requirements. We offer a wide range of distinctive products and solutions that are designed to cater for the individual investment needs of an investor. Barclays moves, lends, invests and protects money for customers and clients worldwide. With over 300 years of history and expertise in banking, we operate in over 50 countries and employ over 140,000 people. We provide corporate banking solutions to businesses with an annual turnover of more than £5 million in the UK, and to large local companies, financial institutions and multinationals in non-UK markets. We support the success and growth of our clients by providing lending, risk management, cash and liquidity management, trade finance, and asset and sales financing. Our clients also benefit from access to the breadth of expertise across Barclays. We’re one of the largest financial services providers in the world, and are also engaged in retail banking, credit cards, investment banking, and wealth management. www.aberdeen-asset.com www.accelerando-associates.com www.amundi.com www.asset-logic.com www.avivainvestors.com www.blme.com www.barclayscorporate.com
  30. 30. 31 SPONSORS & EXHIBITORS BlackRock is a global asset manager that has built its offering around its clients’ greatest needs: providing breadth of capabilities and depth of knowledge - across active and passive strategies, including iShares(r) ETFs. This is combined with a singular focus on delivering strong, consistent performance and an ability to look across asset classes, geographies and investment strategies to find the right solutions. With deep roots in every region across the globe, some 100 investment teams in 27 countries share their best thinking to gain the insights that can change outcomes. And, with a passion to understand risk in all its forms, BlackRock’s 1,000+ risk professionals dig deep to find the numbers behind the numbers and bring clarity to the most daunting financial challenges. That shapes and strengthens the investment decisions that BlackRock and its clients are making to deliver better, more consistent returns through time. BlueBay is a specialist manager of fixed income credit and alternative products. Based in London, with offices in the US, Luxembourg, Hong Kong and Japan, we manage over US$57.8 billion (as at 31 December 2013) for institutions and high net-worth-individuals. BlueBay Asset Management LLP is a wholly-owned subsidiary of Royal Bank of Canada (RBC) and part of the RBC asset management division, RBC Global Asset Management group of companies. BNP Paribas has a presence in 80 countries with nearly 190,000 employees, including more than 145,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas enjoys top positions in Europe, a strong presence in the Americas and solid and fast- growing businesses in Asia-Pacific. Its Securities Services business is a leading global custodian with a local presence in 34 countries across five continents. It provides integrated solutions to all participants in the investment cycle including the buy side, sell side, corporates and issuers. BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of March 31, 2014, BNY Mellon had $27.9 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon. BRAM – Bradesco Asset Management was launched in Sao Paulo in 2001 following the merger of Bradesco´s asset management businesses bringing together over 40 years of investment expertise in the LatAm market. With US$ 130 billion AUM, BRAM plays a key role in the LatAm market. The team boasts broad reach and agility to deliver sustainable risk adjusted returns over the long term. Most group heads have been working together since 2001 and have fine tuned a robust, fundamental investment process which relies on a detailed and constant screening, modeling as well as monitoring of the investment universe by the investment research team. BRAM offers international investor the opportunity to invest in LatAm through its equity and fixed income SICAV funds, locally listed funds in specific markets and tailored/managed accounts for select partners and institutional clients. Brown Brothers Harriman (BBH) is a privately-held financial institution serving the most sophisticated institutions and individuals across three business lines: Investor Services, Investment Management, and Private Banking. Our culture of accountability fosters deep and lasting relationships built on commitment, adaptability and trust. We are independent, selective and specialised in our approach. BBH Investor Services, the firm’s largest business line, provides cross-border custody, accounting, administration and related services in close to 100 markets for many of the world’s leading asset managers and financial institutions. With approximately $3.7 trillion in assets under custody1 BBH, is consistently ranked among the world’s top global custodians, asset administrators, foreign exchange, and securities lending providers.2 For more information about our differentiated approach, please visit www.bbh.com. 1 As of December 31, 2013. 2 As measured by results in major industry surveys CACEIS is the asset servicing banking group of Crédit Agricole dedicated to institutional and corporate clients. Through offices across Europe, North America and Asia, CACEIS offers a broad range of services covering depositary and custody, fund administration, middle office outsourcing, derivatives clearing, forex, securities lending, fund distribution support and issuer services. With assets under custody of €2.5 trillion and assets under administration of €1.3 trillion, CACEIS is one of the world market leaders in asset servicing and the largest depositary bank and the premier fund administrator in Europe (figures to 31 December 2012). www.blackrockinternational.com www.bluebayinvest.com www.bnpparibas.com www.bnymellon.com www.bradesco.com.br www.bbh.com www.caceis.com
  31. 31. 32 SPONSORS & EXHIBITORS More than 500 customers in 17 domiciles are processing domestic and cross-border transactions across Calastone’s multi-award winning transaction network. Fund managers, distributors and transfer agents around the world are joining Calastone’s network to transact their orders, benefiting from the cost and risk reduction opportunities transaction automation can offer – a single connection to a fast-growing network for the global fund community. Calastone’s goal is to increase efficiency through reducing cost and risk via our fully automated STP transaction network. We remove all the technical barriers to automation of fund transactions through our interoperability, network and service. Any party involved in the production, distribution or management of funds, of any size, located around the world using Calastone is able to transact electronically over Calastone’s global transaction network. Calastone has offices in London, Luxembourg, Hong Kong, Taiwan, Singapore and Australia. Calypso Technology is a premier global capital markets platform provider, serving financial institutions of all types with a full range of integrated cross-asset front-to-back office solutions for treasury and derivatives including trading, risk, processing, clearing, collateral, cash management, liquidity, accounting and reporting. The Calypso platform is steadily emerging as a global standard for capital markets businesses and serves as an ideal foundation for innovation and future growth. Capita Asset Services has over 40 years proven fund administration experience providing fund administration and professional services solutions across a wide range of asset classes and funds. We currently service over 70 investment managers and provide a range of services to around 300 funds. Capita Asset Services also provides corporate, private client, treasury, debt administration, shareholder and employee solutions, with 2,500 professional staff dedicated to making delivering service excellence and creating efficiencies for our clients. Our operations are based in the UK, Ireland, the Channel Islands and Europe, with representative offices in the US and Asia – holding over 4,000 multi-national and UK based clients and relationships. We are part of Capita plc, a FTSE 100 and the UK’s leading provider of business process outsourcing and integrated professional support solutions. Capital Group is one of the world’s largest and most experienced investment managers with around $1.3 trillion under management. Founded in the US in 1931, Capital Group has been singularly focused on delivering superior, consistent results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. Capital offers 19 long-only Luxembourg domiciled funds, which are based on our traditional, research intensive investment process. Our investment process is designed to enable our experienced investment professionals to act on their highest convictions, while limiting the risk associated with isolated decision-making. A disciplined, multi-layered governance structure oversees the system’s operation. Managers are rewarded for their results, not the level of assets they manage. As a private firm with an independent charter, we are focused on doing what’s right for investors over the long term. Founded in 1992, Cerulli Associates specializes in worldwide asset management and distribution analytics. Headquartered in Boston, Cerulli also has offices in London and Singapore. Cerulli Associates blends original research and data analysis to bring perspective to current market conditions and forecasts for future developments. Via a suite of research publications and an interactive data platform, we provide financial services firms with guidance in strategic positioning and new business development. Our U.S. practices covers manufacturing and distribution issues across core areas including managed accounts, intermediary, retirement, annuities, retail investor, and retail and institutional asset management. Our international practice covers asset management and distribution trends globally and in 45 countries worldwide (20 primary markets and 25 secondary markets). Our Asian practice examines trends in retail and institutional asset management across Asia and in specific countries. Citi Investor Services provides a complete investment services solution for today’s diversified investor, combining specialized expertise, comprehensive capabilities and the power of Citi’s global network to help our clients meet their performance objectives across asset classes, strategies and geographies. Citi provides complete investment services for institutional, alternative and wealth managers, delivering middle office, fund services, custody, and investing and financing solutions that are focused on our clients’ specific challenges and customized to their individual needs. Citi offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 95 countries, Citi Investor Services holds, on average, $14.2 trillion in assets under custody. Clearstream is a global leader in post-trade securities services and with more than €12 trillion in assets under custody, one of the world’s largest settlement and custody firms for domestic and international securities. As a specialised fund custodian, Clearstream delivers state of the art solutions to standardise fund processing and to increase efficiency and safety in the investment funds sector. Our global investment funds processing platform Vestima provides a single point to investment funds of all types - from mutual funds to exchange-traded funds (ETFs) and hedge funds – offering order routing, DVP settlement, safekeeping and asset servicing for over 8 million trades per year. With more than 125,000 investment funds from 34 jurisdictions, Vestima is the world’s largest cross-border fund processing platform. The key objective is to absorb market complexity and deliver efficient, secure and flexible solutions for the investment funds industry. www.calastone.com www.calypso.com www.capitaassetservices.co.uk www.thecapitalgroup.com www.cerulli.com www.transactionservices.citigroup.com www.clearstream.com
  32. 32. 33 SPONSORS & EXHIBITORS As a global leader in data-driven solutions for efficiency and control for over 20 years, the asset management industry relies on Confluence to solve the industry’s toughest data management, automation and regulatory challenges for managed investments. Innovative and scalable, the Confluence unified platform enables asset managers to consolidate and leverage data across business operations. The platform features solutions to support a variety of fund types – including UCITS, alternative investments, U.S. ’40 ACT mutual funds, and contemporary fund structures such as ETFs. Headquartered in Pittsburgh, PA, Confluence serves the fund industry with key locations in Dublin, London, Luxembourg and San Francisco. Dassault Systemes, the 3D Experience Company, provides Financial Services solutions designed to drive business execution for accelerated product innovation, customer intelligence, advanced analytics and regulatory insight. With proven reductions in implementation time, our solutions deliver real time business value faster and with less complexity than traditional approaches. Today Dassault Systemes service 170,000 companies worldwide across 12 industries including Financial Services. Our business solutions platform is on premise, on line and on the cloud and we are recognized by our customers across 140 countries and, recently by Forbes magazine, as one of the world’s most innovative companies. Dassault Systemes is majority shareholder controlled by Dassault Groupe. In 2012 our revenues were over €2 billion with an operating margin of above 30%. Sal. Oppenheim stands for exclusive services in the comprehensive management of private and institutional assets for more than 220 years. We offer individual advice focusing on continuity in conjunction with the range of services of a modern asset management company. Sal. Oppenheim Luxembourg operates under “Deutsche Fund Platforms” as the White Label fund platform within Deutsche Bank’s Asset & Wealth Management Division globally. “Deutsche Fund Platforms” in Luxembourg offers an integrated service model with an in-house administration and in-house custodian, offering all kind of Luxembourg fund structures, ranging from traditional UCITS products all the way to complex Alternative Investment structures that include the wrapping of hedge funds, private equity, real estate, ships and aircrafts. Sal. Oppenheim is a licensed Alternative Investment Fund Manager. DIFC is the financial and business hub connecting the region’s emerging markets with the developed markets of Europe, Asia and the Americas. Since its launch in 2004, DIFC has been committed to encouraging economic growth and development in the region through its strong financial and business infrastructure. Currently, DIFC’s client base comprises almost 1,039 active registered firms, including 22 of the world’s top 30 banks, six of the top 10 insurers, seven of the top 10 law firms, 11 of the world’s top 20 money managers and seven of the top 10 consultant companies in the world. Around 15, 000 employees operate in an open environment, complemented by international legal and regulatory standards through the DIFC Courts and Dubai Financial Services Authority (DFSA) respectively. DIFC offers its member companies 100 per cent foreign ownership, zero per cent tax rate, with no restriction on capital convertibility or profit repatriation. Website: www.difc.ae , or follow us on Twitter @DIFC. East Capital is a leading emerging and frontier market asset manager specialising in Eastern Europe and Emerging Asia. The group manages USD 4bn and the product offering contains a wide range of country and regionally focused funds including the flagship strategies, the award-winning East Capital Eastern European Fund, East Capital Russian Fund and East Capital Emerging Asia Fund. The investment strategy combines diligent market research and fundamental analysis with frequent company visits by the investment teams, which consist of 30 investment professionals. East Capital is headquartered in Stockholm with offices in Hong Kong, Kyiv, Luxembourg, Moscow, Oslo, Paris and Tallinn. Eastspring Investments, part of Prudential Corporation Asia, is Prudential plc’s asset management business in Asia. We are one of the region’s largest asset managers, with operations in 14 markets (including offices in the US and Europe) and about US$99.3 billion (about £60 billion) in assets under management (at December 31, 2013). In Asia, Eastspring Investments operates in Japan, Malaysia, Singapore, South Korea, Taiwan, Hong Kong, the United Arab Emirates, Vietnam and Indonesia, and has joint venture operations in India, China and Hong Kong. About one-third of Eastspring Investments’ total assets are sourced from third party clients including a wide range of retail and institutional investors. We also manage the assets of life and pension products sold by Prudential Group in the UK, the US and across Asia. ETF Securities is the world’s largest independent provider of commodity exchange traded products (ETPs)1 and also provides a wide range of equity, alternative and currency ETPs. The company listed the world’s first physically-backed gold ETP in 2003 and now offers over 300 different ETPs covering a wide range of commodity, currency and equity exposures listed on major exchanges around the world. At the end of April 2014, worldwide assets invested in ETF Securities ETPs stood close to US$19.2 billion. 1 Based on number of listed products worldwide at end 2012. Source: Bloomberg, issuer websites, ETF Securities Global Commodity ETP Quarterly January 2013. www.confluence.com www.3ds.com www.oppenheim.lu www.difc.ae www.eastcapital.com www.eastspringinvestments.com www.etfsecurities.com ®
  33. 33. 34 SPONSORS & EXHIBITORS Eurizon Capital SGR S.p.A is the asset manager company of Intesa Sanpaolo Group specialized in products for retail and institutional clients. With AUM of around 193 billion euros*is one of the largest Italian asset managers. Eurizon Capital offers a wide range of tailored products, featuring different management styles and providing investment solutions for various client needs. It interprets asset management through specific business lines: - multi-asset, multi-style and multi-product portfolios; - LTE (Limited Tracking Error) products; - structured products based on quantitative methods. Eurizon Capital SGR comprises: - Eurizon Capital S.A., specialized in managing Luxembourg domiciled mutual funds; - Epsilon SGR, joint venture between Eurizon Capital SGR (51%), and Banca Imi (49%). Beside Luxembourg, Eurizon Capital is present abroad: - in China, with a 49% shareholding in Penghua Fund Management; - in Eastern Europe , through a network of asset management companies controlled by Eurizon Capital S.A. * Source: Assogestioni – 4th Quarter of 2013. European Fund Administration S.A. (EFA) is an independent third-party administrator specialising in services to investment funds, unit-linked insurance products, private equity funds, real estate funds, hedge funds and funds of hedge funds. EFA leads the outsourcing market in Luxembourg, Europe’s largest fund center. EFA’s service range includes Net Asset Value calculation, bookkeeping and portfolio valuation, transfer agent and registrar services, fiscal services, compliance and risk management, performance measurement and attribution, domiciliation and reporting solutions. EFA is present in Luxembourg and Paris (via European Fund Administration S.A - France). As one of the leading professional services organizations to the wealth & asset management industry, EY provides innovative services to global and domestic asset management clients. Our considerable knowledge, experience and commitment to excellent service provide you with a seasoned and qualified team that is highly responsive to the needs of your organization. Our global wealth & asset management network encompasses key financial centers in the Americas, Asia- Pacific, EMEIA and Japan. Globally, we have more than 13, 500 professionals focused on serving the asset management industry. Our combination of talent and resources gives us the ability to anticipate and adapt to the rapid and accelerating changes of today’s global economy. FE is an award-winning provider of ratings, investment research, data, software and performance analysis to the financial services industry. Our products and services are designed to interpret and analyse data, helping financial advisers and private investors make sound investment decisions. Respondents to a 2013 survey by The Platforum voted FE and FE Trustnet the most influential data providers in the marketplace. We also provide tools and software for fund managers and other financial services firms, including research, modelling, reporting, sales, marketing and presentation materials. Our core products include the FE Analytics online fund research database and finXL, Webtools, Datafeeds, and Fund Document Production including Key Investor Information Documents from Kii Hub. Latest innovations include FE Precision – a transparent fund dissemination management solution for asset managers and the Mercer Manager Analysis Portal (MAP”) – a collaboration with Mercer which uses FE data and technology to provide institutional quality research to the Wealth Management sector. Fitch Ratings is a leading provider of credit ratings, commentary and research. Dedicated to providing value beyond the rating through independent and prospective credit opinions, Fitch Ratings offers global perspectives shaped by strong local market experience and credit market expertise. Fitch Group is a global leader in financial information services with operations in more than 30 countries. In addition to Fitch Ratings, the group includes Fitch Solutions, Fitch Learning, and Business Monitor International. Fitch Group is jointly owned by Paris-based Fimalac, S.A. and New York-based Hearst Corporation. Headquartered in San Mateo, California, Franklin Resources is a global organization known as Franklin Templeton Investments. Our common stock is listed on the NYSE under the ticker symbol BEN, and is included in the S&P 500 Index. Investment management is our core business and for over 65 years, investors around the world have looked to us as a trusted partner in asset management. Along the way, we have continuously broadened our expertise and become a firm with considerable worldwide presence. Today we employ over 8500 employees, maintain offices in over 35 countries and serve investors in over 150 countries. A globally diversified asset manager with USD 879.7 billion in AUM (as of Dec 13), we offer over 350 investment solutions to clients worldwide. With the expansion of our global footprint, vast cross-border distribution business in over 50 countries, on-the-ground research capabilities and trading network, we have continued to build our local presence within the domestic fund management industry of individual markets as diverse as Brazil, Japan, China, India, United Kingdom, Australia, and Korea. www.eurizoncapital.com www.efa.eu www.ey.com/wealthassetmgmt www.financialexpress.net www.fitchratings.com www.franklintempleton.com

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