The document summarizes key findings from a study on the fund administration industry conducted for FIS by Longitude Research. It discusses the following main points: 1) The study surveyed 57 fund administrators and interviewed 15 industry experts. It found that 89% of administrators expect to need significant investments in new systems and technologies by 2020 to cope with changing regulations. 2) 82% of administrators believe new competition from other sectors is likely by 2020. 3) Currently 18% of administrators offer no data analysis tools, and over a third have no plans to do so in the next two years. The document concludes by outlining topics for discussion from the study, including managing margins, the technology imperative, and the need

1. Preparing for 2020: The Outlook
for Fund Service Providers

2. Suleman Din
Managing Editor, Money
Management Executive,
SourceMedia
Dan Houlihan
Executive Vice
President, Corporate
and Institutional
Services
Northern Trust Global
Fund Services
David Prosser
Financial Journalist and
Contributing Editor,
Longitude Research
Tony Warren
EVP, Head of Strategy
and Solutions
Management, Buy-Side
Solutions / Institutional
and Wholesale
FIS
Preparing for 2020: The Outlook for Fund Service Providers
The Moderator and Panel Participants:

3. The ensuing presentation and discussion points are based on a soon-to-
be-released study of the fund administration industry conducted by
Longitude Research and commissioned by FIS.
• Global survey of 57 fund administration executives
• 15 one-on-one Interviews with leading asset managers, fund
administrators, consultants, and other SMEs
• Regional Focus: Asia Pacific, Europe, North America, South
Africa
• Fund Types Administered: mutual funds, multi asset class,
hedge, private equity and others
Preparing for 2020: The Outlook for Fund Service Providers

4. 32%
30%
40%
49%
49%
49%
16%
16%
5%
4%
5%
5%
0%
0%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Processes
People and skills
Systems and technology
Significant change Moderate change Limited change No change Don't know / not applicable
89% of of fund administrators anticipate having to make
investments in new systems and technologies before 2020
To what extent do you anticipate having to adapt your systems and
technology, people and skills, and processes, in order to cope with
changing regulatory demands between now and 2020?

5. 82% of fund administrators believe competition from another
sector is somewhat or highly likely by 2020
To what extent do you expect new entrants to move into the fund
administration sector by 2020?
4%
0%
14%
49%
33%
0 10 20 30 40 50 60
Don't know
New competition from another sector is highly unlikely
New competition from another sector is somewhat unlikely
New competition from another sector is somewhat likely
New competition from another sector is highly likely

6. 18% say they currently offer no data analysis tools at all, and more
than a third have no plans to do so within the next two years
To what extent are you able to analyze and segment the data from the funds you administer?
9%
16%
18%
28%
30%
0 5 10 15 20 25 30 35
We don't currently have data analysis tools in place
We believe our tools are advanced enough in this area to act as a competitive
advantage for our firm
We don't currently have any data analysis tools in place but expect to add such
tools within the next two years
We have basic tools in place but expect to add more sophisticated tools within
the next two years
The tools we have in place are sufficient to meet out clients' demands over the
next two years

7. Preparing for 2020: The Outlook for Fund Service Providers
Topics for Discussion:
• Managing margins
• The threat from new entrants
• The technology imperative
• From service provider to business partner
• The need for speed

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