Capita Financial Group – Ireland Paul Nunan

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Capita Financial Group – Ireland Paul Nunan

  1. 1. Capita Financial Group – Ireland Paul Nunan 3 rd July 2007
  2. 2. Capita Financial Group Ireland Introduction <ul><li>Irish Fund Servicing Industry & Growth </li></ul><ul><li>Irish Fund Structures </li></ul><ul><li>Industry Trends </li></ul><ul><li>Industry Challenges </li></ul><ul><li>Regulatory Update </li></ul><ul><li>Capita Financial Group in Ireland </li></ul>
  3. 3. International Funds Industry in Ireland Industry Statistics <ul><li>Irish Registered Collective Investment Schemes </li></ul><ul><li>Alternative Investment Funds 2003 - 2005 </li></ul>+5.4 ytd +25% +35% +20% +19% +7% +36% +39% Annual % Growth 4087 3798 3712 3507 3300 2870 2392 2392 No. of Funds +2.9% ytd +8% +2% +7% +6% +15% +20% +22% Annual % Growth 769 March 2007 730 2006 585 2005 435 2004 362 2003 304 2002 284 2001 208 2000 Net Asset Values (Eur Billion) Year End 354 3020 June 2005 +138% +43% % Increase 149 Net Asset Value 2113 Number of Funds (incl. Sub funds) March 2003
  4. 4. International Funds Industry in Ireland Industry Statistics <ul><li>Funds industry in Ireland </li></ul><ul><li>Over 1 Trillion euro in Assets under administration </li></ul><ul><li>Worlds largest centre for the servicing of alternative investment funds </li></ul><ul><li>Over 1/3 of AIF’s serviced in Ireland </li></ul><ul><li>8,323 people employed in Funds servicing industry at start of 2007 </li></ul><ul><li>Average length of service for middle management now stands at greater then five years </li></ul>
  5. 5. International Funds Industry in Ireland Why Ireland? <ul><li>Flexible but robust jurisdiction for regulated products </li></ul><ul><li>“Safe pair of hands” </li></ul><ul><li>Irish Stock Exchange (Irish and non-Irish Domiciled Funds) </li></ul><ul><li>Time Zones </li></ul><ul><li>Language </li></ul>
  6. 6. International Funds Industry in Ireland Main Categories of Irish Funds
  7. 7. International Funds Industry in Ireland Authorisation Procedure for Funds <ul><li>Irish Financial Regulator – Responsible authority for the authorisation of funds </li></ul><ul><li>Promoter and Investment Manager Approval </li></ul><ul><ul><li>Promoter / Investment Manager application Form </li></ul></ul><ul><li>Fund Structure Approval </li></ul><ul><ul><li>Detailed Fact Sheet – Key aspects of the proposed structure </li></ul></ul><ul><li>Funds Documents </li></ul><ul><ul><li>Prospectus </li></ul></ul><ul><ul><li>Custody Agreement </li></ul></ul>
  8. 8. International Funds Industry in Ireland Tax Implications of Irish Domiciled Funds <ul><li>Irish Domiciled Funds </li></ul><ul><li>UCITS and Non-UCITS are exempt from all sources of Irish Tax </li></ul><ul><li>Non-resident investors </li></ul><ul><li>Exempt from taxation on income and gains arising from their investments. </li></ul><ul><li>No WHT applies to any distribution of income or gains </li></ul><ul><li>The issue of shares in a fund is exempt from capital duty </li></ul><ul><li>Taxation of the fund’s assets </li></ul><ul><li>Double tax Treaties </li></ul>
  9. 9. International Funds Industry in Ireland Industry Trends <ul><li>Consolidation of Service Providers </li></ul><ul><li>State Street acquisition of IFS and IBT </li></ul><ul><li>Northern Trust & Barings </li></ul><ul><li>Citigroup and Bisys </li></ul><ul><li>Increase in service offering </li></ul><ul><li>“Middle Office” </li></ul><ul><li>Daily information </li></ul><ul><li>Growth in complex asset types and strategies </li></ul><ul><li>CDS, CDO, ABS Funds </li></ul>
  10. 10. International Funds Industry in Ireland Industry Challenges <ul><li>Capacity </li></ul><ul><li>Opening of other locations within Ireland </li></ul><ul><li>Outsourcers outsourcing, - India, Malaysia, Eastern Europe </li></ul><ul><li>Systems, Drive for more automation </li></ul><ul><li>Client Requirements </li></ul><ul><li>Risk Reporting </li></ul><ul><li>Performance Reporting </li></ul><ul><li>Daily P&L / NAV </li></ul><ul><li>Growth in complex asset types and strategies </li></ul><ul><li>Complex Pricing requirements </li></ul>
  11. 11. International Funds Industry in Ireland Regulatory Update <ul><li>Qualifying Investor Funds (QIF) </li></ul><ul><li>24 hour authorisation by Irish regulator </li></ul><ul><li>Non UCITS </li></ul><ul><li>Minimum Subscription of €250,000 </li></ul><ul><li>Investment Company, Unit Trust, LP or CCF </li></ul><ul><li>Attractive for Hedge Funds, Fund of Hedge Funds, Private Equity, Real Estate Funds </li></ul><ul><li>Investment Funds, Companies and Miscellaneous Provisions Act </li></ul><ul><li>Provides for segregation of liability between sub-funds of an Irish umbrella fund structured as an investment company </li></ul><ul><li>Permits cross investment between sub-funds of an umbrella </li></ul>
  12. 12. Capita Financial Group Capita Ireland <ul><li>Capita Financial Administrators (Ireland) Limited (CFAI) </li></ul><ul><ul><li>Administration company </li></ul></ul><ul><ul><li>Authorised under IIA on 12 July 2006 </li></ul></ul><ul><li>Capita Financial Managers (Ireland) Limited (CFMI) </li></ul><ul><ul><li>Management Company </li></ul></ul><ul><ul><li>Authorised under Management Company Directive on 12 July 2006 </li></ul></ul><ul><li>Experienced staff </li></ul><ul><ul><li>Hedge Funds and Alternative Investment Funds </li></ul></ul><ul><ul><li>Qualified Accountants at all management levels </li></ul></ul><ul><li>Systems </li></ul><ul><ul><li>Utopia Transfer Agency system </li></ul></ul><ul><ul><li>SunGard Invest One Fund Accounting System </li></ul></ul><ul><ul><li>Proven systems for Hedge and Alternative Fund Administration </li></ul></ul>
  13. 13. Capita Financial Group Capita Ireland – Services Provided <ul><li>Capita Financial Administrators (Ireland) Limited </li></ul><ul><ul><li>Fund Administration </li></ul></ul><ul><ul><li>Transfer Agency / Shareholder Servicing </li></ul></ul><ul><ul><li>Financial Statement Preparation </li></ul></ul><ul><ul><li>Corporate Secretarial Services </li></ul></ul><ul><ul><li>Tax Assistance – US Tax Reporting (PFIC, K1) and German Tax </li></ul></ul><ul><ul><li>Compliance monitoring of investment restrictions </li></ul></ul><ul><li>Capita Financial Managers (Ireland) Limited </li></ul><ul><ul><li>Corporate governance support </li></ul></ul><ul><ul><li>‘ Host’ management company </li></ul></ul><ul><ul><li>Board of directors </li></ul></ul>
  14. 14. Capita Financial Group Capita Ireland <ul><li>Operating model </li></ul><ul><ul><li>Client driven operating model </li></ul></ul><ul><ul><li>Single knowledgeable point of contact </li></ul></ul><ul><ul><li>Scalability/capacity </li></ul></ul><ul><ul><li>No legacy issues </li></ul></ul><ul><ul><li>Systems </li></ul></ul>
  15. 15. Capita Financial Group Capita Ireland – ‘Host’ Management Company <ul><li>Unique in Irish marketplace </li></ul><ul><li>Analogy with highly successful ACD business in the UK </li></ul><ul><li>Facilitates entry into the Irish market </li></ul><ul><ul><li>No suitably licensed management/investment management company </li></ul></ul><ul><ul><li>Tax/regulatory complications (e.g. Spanish based asset managers) </li></ul></ul><ul><ul><li>Speed to market </li></ul></ul><ul><li>Corporate governance assistance </li></ul><ul><ul><li>Some or all of the board of directors </li></ul></ul>
  16. 16. Capita Financial Group Capita Ireland – Sample Fund Structures <ul><li>UCITS III </li></ul><ul><li>Structured Products through UCITS platform </li></ul><ul><li>Fund holds one TRS tracking an underlying strategy </li></ul><ul><li>Capita acts as Manager, Investment Manager and Administrator (Client appointed as Investment Advisor) </li></ul><ul><li>Hedge Funds </li></ul><ul><li>Dublin Domiciled (QIF) </li></ul><ul><li>BVI domiciled </li></ul><ul><li>Cayman Funds </li></ul><ul><li>Other </li></ul><ul><li>Master / Feeder </li></ul><ul><li>Limited Partnerships </li></ul><ul><li>Umbrella Funds </li></ul>
  17. 17. Capita Financial Group Capita Ireland – 2007 / 2008 <ul><li>“ Middle Office” </li></ul><ul><li>Risk Reporting </li></ul><ul><li>Performance Reporting </li></ul><ul><li>Automation </li></ul><ul><li>Automated Trade interfaces with Client, Custodians and Prime Brokers </li></ul><ul><li>Automated Reconciliation Tool (Positions, prices, market Values) </li></ul><ul><li>Web Access </li></ul><ul><li>Client web access to Fund accounting system </li></ul><ul><li>Shareholder web access </li></ul>
  18. 18. Capita Financial Group Capita Ireland – Contact details <ul><li>1 Adelaide Court, Adelaide Road Dublin 2 </li></ul><ul><ul><li>+353 1 400 5300 (general) </li></ul></ul><ul><li>Paul Nunan </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>+353 1 400 5302 (direct) </li></ul></ul><ul><ul><li>+353 868553069 (mobile) </li></ul></ul>

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