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David RussellRegional Head, Asia Pacific,
Securities and Fund Services,Global Transaction Services, Citi
Focusing on the Future of Wealth Management in Asia
Debashish Dutta GuptaManaging Director
Head of Investments, AsiaCiti
Cheeping YapHead, Hong Kong
Securities and Fund Services,Global Transaction Services, Citi
Overview of China/Hong Kong fund market and opportunities arising from closer integration between China and Hong Kong
Cheeping YapHead of Securities & Fund Services,
Hong Kong+852-2868-7306
Strictly Private and Confidential
25 March 2011
Fund industry in China/Hong Kong
China and Hong Kong combined is a $9.8 trillion fund market:
– China is a $8.2 trillion fund market - $7.2 trillion institutional market, $379 billion mutual fund market, $350 billion trust market, $182 billion alternative investment market and $125 billion pension market
– HK is a $1.6 trillion fund market - $1 trillion retail fund market, $40 billion pension market, $400 billion institutional market and $110bn alternative investment market
While China fund market is more than 5 times larger than that of Hong Kong, it is a very restrictive market to access. The value of market current that can be accessed by foreign market participants is $510 billion, which is 6% of the total market
Hong Kong fund industry is one of the easiest market to access in Asia, Hong Kong recognizes funds domicile in Dublin, Luxembourg, Cayman for distribution in Hong Kong, but is it a very competitive market with over 1,000 fund managers
1
Fund Segment in China (in $Bn)
40
110
400
1,000
MPFA Pension
AI Funds
Institutional
Mutual Fund
Fund Segment in Hong Kong (in $Bn)
CIS
QFII
Pension
AI Fund
Trust
Mutual Fund
Institutional
Non JV/QDII JV/QDII
($6,958 ; 259)
($198 ; 181)
($340 ; 10)
($149 ; 33)
($119 ; 6)
($0 ; 19)
($3 ; 0*)
(Local ; QDII)
Note: * The QDII segment for this product is relative new. No information is available on the total capital raised
**
** Mutual fund accessible by foreign participants include JV and QDII segments
Deep-dive into China Fund Segments (1/2)
2
Mutual fund
Description
• Market size amounted to $379 billion, 63 approved fund managers where 37 were JVs
• Top 5 fund managers make up 30% of total AUM
• 37 JVs make up 47% of total AUM• 169 new funds launched in 2010, average
fund size was $285million
What’s New
• China implementation of 1 JV policy, sale of ABN AMRO TEDA and SYWG BNP Paribas
• Insurance companies to form new JVs• Galaxy Securities to setup JV
Institutional
• Institution market amounted to $7.2 trillion where Commercial banks $3.3 trillion Central bank $3.1 trillion Insurance companies $400 billion Others $400 billion
• Insurance companies who used to manage QDII investment in-house changed to use external managers post financial crisis
• Interest in PE (primary and secondary) with a portion invest into overseas asset, ETF and direct investment into energy and resources sector
Trust• Estimated around $350 billion AUM• Trust fund in China target high net worth
segment
• 3 trust companies approved for QDII quota amounted to $10 billion
AI funds
• Total AI fund market is $182 billion PE funds: $152 billion AUM; there had
been more than 260 PE funds established
Hedge funds: $30 billion AUM, there had been around 600 hedge funds established
• Clear trend of China-related fund moving onshore• Qualified Foreign Limited Partner (QFLP) scheme• Setting up corporate JV to launch China futures
fund
What is QFLP scheme?
3
Overview What is the QFLP application process?
• QFLP is a new pilot program allowing foreign investors to invest in RMB denominated funds that invest in private equity in China
• Regulation issued by Shanghai FSO, MOFCOM and SAIC on Dec 24, 2010 as “pilot measures”
• Allows incorporation of foreign-invested equity investment enterprises (“FIEIE”) and foreign-invested equity investment management enterprises (“FIEIME”)
• FEIME can be company or partnership, requires min $2 million capital, have at least 1 investor and at least 2 senior officers with 5 or more years experience in equity investment and 2 or more years experience as a senior officer
• FIEIE must be partnership, requires $15 million and each partner must contribute at least $1 million and requires appointing a qualified custodian bank
• Shanghai FSO grants approval within 5 working days from receive of application, successful applicant must setup within 6 months or will need to re-apply
• Beijing and Tianjin also launching similar measures
Applicant
Partner
Corp.
SAIC decides whether to accept within 5 business
days
SFDSC
SAIC makes decision whether
to register within 5 business days
Applicant applies for foreign exchange
registration with SAFE Shanghai
Branch
Application for Incorporation
MOFCOM Shanghai decides whether to accept within 5 business
days
MOFCOM Shanghai makes decision whether
to approve within 5 business days
Consult for opinion within 5 business
days of acceptance
Written feedback within 10 business
days
Applicant to register with SAIC
within 1 month
Deep-dive into China Fund Segments (2/2)
4
Description What’s New
QFII
• 106 foreign institutions have been approved to participate in the QFII scheme
• Total investment amounted to $19.4 billion• Total $3.2 billion of QFII quota was awarded
in 2010• 13 new institutions obtained QFII quota in
2010 of $1.9 billion. The size of quota ranged from $100 million to $200 million
• 9 existing institutions obtained incremental quota of $1.3billion. The size ranged from $50 million to $250 million
• China approved less new QFII in 2010 versus 2009, 13 new licenses versus 19 in 2009
• Preference for applicants from new markets and long-term investors
• QFII quota used for ETF clarified and allowed• Clamp down on use of p-note, impact on new
application and application for incremental quota
Collective Investment
Scheme
• $3 billion AUM, CIS is primarily offered by Chinese securities and fund mgmt companies
• Require fund management and managed account licenses to manage CIS
• SMA QDII offer opportunities to partner with Chinese securities firms and fund managers for institutional mandates
Pension
• The total pension fund market : $125 billion
• NSSF: $82 billion• Corporate annuity fund: $43 billion
• Require fund management license to manage Corporate annuity fund
• NSSF selected 8 additional managers to manage its pension asset in December 2010, bringing the total to 18 among which 8 were JV
• The percentage of stock and fixed income holding for corporate annuity funds will be raised to 30% and 95% from 20% and 50% respectively on May 1, 2011
Deep dive into Hong Kong Fund Segments
One of the easiest market to access in Asia, Hong Kong recognizes funds domicile in Dublin, Luxembourg, Cayman for distribution in Hong Kong
$1.6 trillion fund market* - $1 trillion retail fund market, $40bn pension market, $400bn institutional market, and $111bn alternative fund market
In 2010, 102 new fund managers setup in Hong Kong
– We saw several global names setup in Hong Kong in 2010, among them T Rowe Price and AMP Capital
– 9 new Chinese managers and 2 new Korean managers entered Hong Kong
5
Institutional segment is easiest to assess but often long sale cycle and is very crowded
Retail segment is the largest, but breaking through to the top 3 distribution banks, i.e. Citibank, Standard Chartered and HSBC, may not be easy and often require a rethink of marketing strategy
Small IFA market, but growing dominance from private banks
Note: * Excludes private placement funds
Historical Hong Kong Fund Industry Trend
1077
628927
448
355
356
116
145
11141
27
34
0
200
400600
800
1000
12001400
1600
1800
2007 2008 2009
Year
AU
C (
Bn
US
$)
Retail Institution AI Funds Pension
RMB capabilities will be important to access HK market
RMB Deposit Growth
RMB Bond Issuance
Description
Deposit RMB deposit in HK grew from RMB12 billion in 2004 to RMB315 billion by end of 2010, YoY growth in 2010 was 400% which was higher than historical CAGR of 59%
RMB deposit reached RMB371 billion in January 2011
RMB Bond RMB bond issued in HK was RMB73.8 billion as of December 2010; RMB bond issuance was led by Chinese state owned banks in 2007 and was later expanded to foreign institutions in 2009
Tenor ranges from 2–10-years with coupon between 2.25% to 3.40%
In the first two months of 2011, the RMB bond issuance reached RMB7.8 billion
RMB Bond Fund Five RMB bond funds were launched since August where two funds were SFC authorized, and other three were privately placed
The management fee ranged from 0.75–1.20%
Structured Deposit and CD
12 institutions offered FX-linked deposit and CD, primarily for retail investors
Tenor ranges from 3–24 months with maximum payout ranges from 1.5–3.5%
RMB Life Insurance 13 RMB denominated life insurance products were launched in Hong Kong since March of 2010. Most products are settled in HKD
6
12 23 23 3356 63
315
371
0
50
100
150
200
250
300
350
400
2004 2005 2006 2007 2008 2009 2010 2011(Jan)
Year
RM
B D
epos
it (R
MB
bn)
10.012.0
16.0
35.8
7.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2007 2008 2009 2010 2011 (Feb)
Year
Bon
d Is
suan
ce (
RM
B b
n)
CAGR: 59%
CAGR: 38%
Building distribution platform in Hong Kong
7
Differentiation is Key
Description
Leverage alternative distribution
• New entrants with significant home advantage will find HK to be a level playing field
• Differentiation is key to attract distribution
• Relying on one distribution channel or partnership is risky in a competitive market like HK
Employ effective
marketing strategy
• Comprehensive market strategy is critical to be successful in a competitive market like HK
Effective Strategy Less Effective Strategy
• Design product that is required in HK/North Asia
• Willing to customized product for specific distributor
• “Rare” and first to market sells, e.g. first true China A-share BRIC fund/ETF
• Replicate strong product from HQ• “Me too” product, e.g. another
Gold ETF• One size fit all product for
distributors
• Explore multiple distribution channels, e.g. bank, IFAs, private banks, stock exchange (ETF), institutional mandates etc.
• Start small, establish track record and move up to larger distributor
• Use HK as gateway to distribute product globally, e.g. through private banks
• Focus only on institutional mandates first
• Focus only on penetrating the big 3 banks for fund distribution
• Focus only on HK distribution
• On-the-ground marketing team• Comprehensive investors
awareness program, e.g. monthly breakfast briefing
• Actively engage distributors to provide product update/training
• Leverage on partners such as Citi to develop relationship with distributors
• Only focus on advertising• Sporadic market effort in terms of
publicity and/or client events
Upcoming opportunities from closer integration between HK/China
8
Description
1. Further expansion of RMB business
• First RMB IPO expected in Q2 2011• First RMB denominated private equity fund, may or
may not be under the QFLP scheme• More RMB bond funds, 6-8 new funds to be
launched by Q2 2011• More Chinese corporate to issue RMB bond in HK
given the widening of interest rate differential between RMB funding in HK and China
• Mini-QFII to link RMB offshore and onshore, HK as gateway for RMB liquidity offshore
2. First China financial futures index fund launch by foreign hedge fund manager
3. Implementation of QFLP scheme
Opportunities
• Diversification of RMB products in the market to raise AUM
• Capitalize on China large financial futures market
• Capitalize on China private equity market
Appendix
Appendix 1: QFII Investment in China
• The major industries that QFII focused are financial services, household electronics, machinery, transportation and bio-medical industry.
• SSE Composite Index and SZSE Component Index increased by 5.7% and 8.6% in the Q4 2010.
• China’s GDP growth reached 9.8% in Q4 2010, YoY growth of 10.3%
Amount in 100 million RMB
A-Share Market Capitalization
SSE Composite Index and SZSE Component Index
10
17
• In Q4 2010, CSRC approved 7 new QFIIs:
- Hong Kong Monetary Authority
- Legg Mason Investments (Europe) Ltd
- Fubon Securities Investment Trust Co. Ltd.
- Capital Securities Investment Trust Co. Ltd.
- Bank Julius Bear & Co.,Ltd
- KTB Asset Management Co.,Ltd
- BMO Investments Inc.
• In 2010, total of 13 new QFIIs were approved versus 19 in 2009
• The 4th approved quota information is pending for official release by SAFE.
QFII License/Quota Approval Updates
Appendix 1: What’s New in China QFII
• HKEx appointed Ms Yang Qiumei as Senior Vice President, Deputy Head of Market Development and Head of the Market Development Division’s Mainland Development Department. She joined HKEx in October 2010.
• Mr. Tang Xiaodong 汤晓东 (Tony) replaced Ms Yang as the Deputy Director-General in the Department of Investment Fund Supervision at CSRC, where Mr. Tang is in charge of supervising fund management companies and matters related to QFII and QDII.
• Mr. Tang had 9 years of experiences on Wall Street, worked for several international financial institutions and accumulated profound knowledge on derivative product and risk management of global markets.
Leadership Change in CSRC QFII Division
• In Q4 2010, CSRC approved two new QFIIs from Taiwan, Fubon Securities Investment Trust Co. Ltd. and Capital Securities Investment Trust Co. Ltd.
• Top life insurance companies in Taiwan are all preparing for the QFII applications. By the end of Dec 2010, several have submitted their applications to CSRC.
• Based on Citi’s observation, CSRC still adopts the same review process for Taiwan QFII applicants.
New Application from Taiwan
11
No. QFII NameQFII License
Approval DateQFII Quota($100 MM)
1 UBS AG 5/23/2003 8.00
2 Nomura Securities Co.,Ltd 5/23/2003 3.50
3 Morgan Stanley & Co. International Limited 6/5/2003 4.00
4 Citigroup Global Markets Limited 6/5/2003 5.50
5 Goldman, Sachs & Co. 7/4/2003 3.00
6 Deutsche Bank Aktiengesellschaft 7/30/2003 4.00
7The Hongkong and Shanghai Banking Corporation Limited
8/4/2003 4.00
8 ING Bank N.V. 9/10/2003 4.00
9 JPMorgan Chase Bank, National Association 9/30/2003 1.50
10 Credit Suisse (HongKong) Limited 10/24/2003 5.00
11 Standard Chartered Bank (HongKong) Limited 12/11/2003 0.75
12 Nikko Asset Management Co.,Ltd 12/11/2003 4.50
13 Merrill Lynch International 4/30/2004 3.00
14 Hang Seng Bank Limited 5/10/2004 1.00
15 Daiwa Securities SMBC Co.,Ltd. 5/10/2004 0.50
16 Lehman Brothers International (Europe) 7/6/2004 2.00
17 Bill & Melinda Gates Foundation 7/19/2004 3.0018 INVESCO Asset Management Limited 8/4/2004 2.5019 ABN AMRO Bank N.V. 9/2/2004 1.7520 Société Générale 9/2/2004 0.5021 Barclays Bank PLC 9/15/2004 4.0022 Dresdner Bank Aktiengesellschaft 9/27/2004 0.7523 Fortis Bank SA/NV 9/29/2004 5.0024 BNP Paribas 9/29/2004 2.0025 Power Corporation of Canada 10/15/2004 0.5026 Calyon S.A. 10/15/2004 0.75
No. QFII NameQFII License
Approval DateQFII Quota($100 MM)
27 Goldman Sachs Asset Management International 5/9/2005 5.00
28 Martin Currie Investment Management Ltd 10/25/2005 1.20
29Government of Singapore Investment Corporation Pte Ltd
10/25/2005 3.00
30 AIG Global Investment Corp 11/14/2005 0.50
31 Temasek Fullerton Alpha Investments Pte Ltd 11/15/2005 3.00
32 JF Asset Management Limited 12/28/2005 2.75
33 The Dai-ichi Mutual Life Insurance Company 12/28/2005 2.00
34 DBS Bank Ltd. 2/13/2006 1.00
35 AMP Capital Investors Ltd. 4/10/2006 3.00
36 The Bank of Nova Scotia 4/10/2006 1.50
37 KBC Financial Products UK Limited 4/10/2006 1.00
38La Compagnie Financierr Edmond de Rothschild Banque
4/10/2006 1.00
39 Yale University 4/14/2006 1.50
40 Morgan Stanley Investment Management Inc. 7/7/2006 4.50
41 Prudential Asset Management (Hongkong) Limited 7/7/2006 3.00
42 Stanford University 8/5/2006 1.00
43 GE Asset Management Incorporated 8/5/2006 3.50
44 United Overseas Bank Limited 8/5/2006 0.50
45 Schroder Investment Mangement Limited 8/29/2006 2.00
46 HSBC Global Asset Management (Hong Kong) Limited 9/5/2006 3.50
47 Shinko Securities Co.,Ltd 9/5/2006 0.50
48 UBS Global Asset Management (Singapore) Ltd 9/25/2006 2.00
49 Sumitomo Mitsui Asset Management Company, Limited 9/25/2006 3.50
50 Norges Bank 10/24/2006 7.00
51 Pictet Asset Management Limited 10/25/2006 1.00
52The Trustees of Columbia University in the City of New York
3/12/2008 1.00
18
Source: CSRC & SAFE website
Appendix 1: List of QFII with Approved Investment Quota
Note: No. 47 Shinko Securities Co. Ltd has been renamed to Mizuho Securities Co. Ltd
106 QFIIs had been approved with a total investment quota of USD 19.37 billion (as of Dec 2010)
12
No. QFII NameQFII License
Approval DateQFII Quota($100 MM)
81Lloyd George Management (Hong Kong) Limited
5/27/2009 0.50
82 Templeton Investment Counsel, LLC 6/5/2009 2.0083 BEA Union Investment Management Limited 6/18/2009 1.0084 The Sumitomo Trust & Banking Co., Ltd. 6/26/2009 0.5085 Korea Investment Trust Management Co., Ltd 7/21/2009 1.0086 Baring Asset Management Limited 8/6/2009 2.0087 Ashmore Investment Management Limited 9/14/2009 2.00
88BNY Mellon Asset Management International Limited
11/6/2009 pending
89Manulife Asset Management (Hong Kong) Limited
11/20/2009 2.00
90 Nomura Asset Management CO., LTD 11/23/2009 2.0091 Tongyang Asset Management Corp. 12/11/2009 1.0092 Royal Bank of Canada 12/23/2009 1.0093 Aviva Investors Global Services Limited 12/28/2009 pending94 Ivy Investment management Company 2/8/2010 1.0095 DIAM Co., Ltd. 4/20/2010 1.0096 OFI Asset Management 5/21/2010 pending97 Aberdeen Asset Management Asia Limited 7/6/2010 2.0098 KB Asset Management Co., Ltd. 8/9/2010 1.00
99Fidelity Investments Management (Hong Kong) Limited
9/1/2010 pending
100 Legg Mason Investements (Europe) Limited 10/8/2010 1.00101 Hong Kong Monetary Authority 10/27/2010 pending102 Fubon Securities Investment Trust Co. Ltd. 10/29/2010 pending103 Capital Securities Investment Trust Co. Ltd. 10/29/2010 pending104 BMO Investments Inc. 12/6/2010 Pending105 Bank Julius Bear & Co.,Ltd 12/14/2010 pending106 KTB Asset Management Co.,Ltd 12/28/2010 Pending
Source: CSRC & SAFE website
Note: Société Générale Asset Management SA returned its QFII License to CSRC in Jan 2010 due to M&A and re-organization and returned the $100MM QFII quota in June 2010
No. QFII NameQFII License
Approval DateQFII Quota($100 MM)
53 Prudential Asset Management Co.,Ltd. 4/7/2008 0.7554 Robeco Institutional Asset management B.V. 5/5/2008 1.5055 State Street Global Advisors Asia Limited 5/16/2008 0.5056 Platinum Investment Company Limited 6/2/2008 1.5057 KBC Asset Management N.V. 6/2/2008 1.5058 Mirae Asset Global Investments Co., Ltd. 7/25/2008 2.5059 ACE INA International Holdings, Ltd. 8/5/2008 1.5060 Quebec Deposit and Investment Fund 8/22/2008 2.0061 President and Fellows of Harvard College 8/22/2008 2.00
62Samsung Investment Trust Management Co., Ltd.
8/25/2008 3.00
63 Alliance Bernstein Limited 8/28/2008 1.5064 Oversea-Chinese Banking Corporation Limited 8/28/2008 1.50
65First State Investment Management (UK) Limited
9/11/2008 1.20
66 DAIWA Asset Management Co. 9/11/2008 1.0067 Shell Asset Management Company B.V. 9/12/2008 1.0068 T. Rowe Price International, Inc. 9/12/2008 1.1069 Credit Suisse AG 10/14/2008 2.0070 UOB Asset Management Ltd 11/28/2008 0.5071 ABU Dhabi Investment Authority 12/3/2008 2.0072 Allianz Global Investors Luxembourg S.A. 12/16/2008 1.0073 Capital International, Inc. 12/18/2008 1.0074 Mitsubishi UFJ Securities Co., Ltd. 12/29/2008 1.00
75Hanwha Investment Trust Management Co., Ltd.
2/5/2009 0.70
76 Emerging Markets Management, L.L.C. 2/10/2009 0.5077 DWS Investment S.A. 2/24/2009 2.0078 The Korea Development Bank 4/23/2009 1.0079 Woori Bank Co., Ltd 5/4/2009 0.5080 Bank Negara Malaysia 5/19/2009 2.00
Appendix 1: List of QFII with Approved Investment Quota (Cont’d)
13
20
Appendix 2: QDII Investment in China
• Fund Manager segment is the largest QDII segment with USD 11.05bn AUM followed by insurance companies, banks and securities firms. We expect the fund manager QDII segment continue to grow and dominate QDII segment in China.
• Most of the QDIIs funds had positive growth on NAV. Average NAV of QDII funds launched by fund managers was 0.776 by the end of 2010, an average increase of 3.6% from Q3.
• Due to the positive growth of QDII funds NAV, 95% QDII funds had experienced large redemption rate in Q4, reflecting investors’ desire to secure the positive return.
• Securities firms’ QDII funds’ NAVs have experienced a drop in Q4. Of which, CICC’ QDII fund dropped 19.6% from Q3 to 0.998 at the end of 2010, and Guotai Junan’s fund also dropped 3% to 0.97.
Estimated Total QDII Size in China
NAV of QDII Segments*
* NAV and AUM of insurance and bank sector QDII are not publicly available, NAV and AUN are estimated from some publicly released information
Source: Publicly released information
0.400
0.500
0.600
0.700
0.800
0.900
1.000
1.100
1.200
1.300
Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10
Securities Firm Fund Managers Bank
14
21Source: Discussion with market players and regulators, publicly released information
• SAFE’s newest approved QDII quota data will be updated accordingly once data become available.
• 9 QDII funds have been launched by fund management companies between Oct 2010 and Jan 2011. Of which, the fund launched by Lion fund management co. had reached the initial fund raising size of USD484 million, marks the first time the FM’s QDII fund had collected big fund size since Feb 2008.
• The size of the newly released funds have increased on average comparing to the funds launched in the previous quarters. These new QDII funds and their initial fund sizes are as follows:
Penghua Global Discovered Equity Fund - USD 79 million
Fullgoal Global Bond Fund - USD 124 million
Huatai-PB Asia Leader Equity Fund – USD 44 million
Yinhua Anti-Inflation Fund – USD105 million
Zhongzheng China Southern Bric Index Fund – USD 97 million
Citic Prudential Bric Active Allocation Equity Fund – USD 60million
Lion Global Gold Equity Fund – USD 484 million
HFT Great China Selected Value Fund – USD 125 million
China International Global Emerging Market Value Fund – USD53 million
• China Banking Regulatory Commission (CBRC) has signed the MOU with India and South Africa, brings the total number of countries and territories that had MOU with China CBRC in place to 42. Bank QDIIs in China are now eligible to invest in Indian and South African securities markets.
New regulatory developmentApproval of QDII Funds
• Further to the launching of Separately Managed Account (SMA) QDII scheme for fund management companies in 2009, China Securities Regulatory Commission (CSRC) also opens up 1 to 1 SMA QDII business for securities firms, allowing qualified local securities firms with QDII license and SAFE’s QDII quota approval to offer SMA services and invest in overseas securities markets.
• China Insurance Regulatory Commission (CIRC) published the Notice of Adjusting Insurers’ Investment Policy in August 2010. The notice has revised the permissible investment scope for the domestic securities market.
• At the same time, the CIRC’s notice has kept Chinese insurers’ total foreign investment ratio at 15% of their total assets. Product range has been adjusted to be the publicly offered bonds, securities investment funds and stocks in overseas capital markets.
• Specifically for the stocks and bonds investment in Hong Kong market, Chinese Insurers are allowed to invest within the following scope:
Stocks that are publicly offered and main-board listed
Bonds that are publicly offered and issued by companies listed on the main-board or large state-owned Chinese enterprises
• CIRC is still in the process of reviewing the existing “Detailed Implementation Rules of Provisional Administration Measures on Overseas Investment of Insurance Funds” .
Appendix 2: What’s New in China QDII Q4 2010
15
Other Consideration
• Total of 52 new funds have been launched in Q4 and the total initial funds raised for these new funds were USD20.1bn. The average initial fund size has increased 7.5% to RMB2.57bn (USD0.39bn) in Q4 from RMB2.39bn (USD 0.36bn) in Q3.
• Total of 169 new funds have been launched in 2010, including 121 equity funds, 34 bond funds, 6 money-market funds and 8 hybrid funds. The total NAV of the funds investing in China securities market were USD371bn as at 31 December 2010, dropped USD25.7bn comparing to the total NAV from end of 2009.
• Shanghai Financial Services Office (“Shanghai FSO”), Shanghai Municipal Commission of Commerce (“MOFCOM Shanghai”) and Shanghai Administration for Industry & Commerce (“SAIC Shanghai”) have jointly issued the Implementation Measures for Pilot Projects of Foreign- invested Equity Investment Enterprises in Shanghai (the “Pilot Measures”) on Dec 24, 2010, which would become effective thirty days from its issuance.
• Shanghai and Beijing would be approved to be the pilot cities to implement Qualified Foreign Limited Partner (QFLP) and each city would be approved with a total QFLP quota of USD3bn.
• NCSSF has planned to expand its offshore investments from the current scope of stocks and bonds to first include FOF investments, and then gradually also include PE funds and direct equity investments.
• PING AN-UOB Fund Management Company Limited obtained regulatory approval from CSRC on Dec 29, 2010 to be allowed for official establishment in mainland China. PING AN-UOB FM is a subsidiary of Ping An Trust Company Ltd and a joint venture with UOB Asset Management Ltd and Sanya Yingwan Tourism Co., Ltd Co Ltd. Together, they have sponsored the establishment of a joint venture fund company headquartered in Shenzhen with a registered capital of RMB300 million, which is currently the highest registered capital of other funds management company in China. Among them, Ping An Trusts holds 64% of the shares, while UOBAM and Sanya Yingwan hold stakes of 25% and 11%, respectively.
• CSRC has restarted the approval process of establishment of new fund management companies since the last approval in Oct 2008. A total of 3 new FMCs have been approved by CSRC in 2010, including BNY Mellon Western Fund Management, ZheShang Fund Management and PING AN-UOB Fund Management. These have now brought the country's officially approved fund management companies to a total of 63.
22
Appendix 2: What’s New in China QDII (cont’d)
Source: Discussion with market players and regulators, publicly released information16
Net Asset Value of by Types of Funds in 2009
1
2
7
50
74
75
249
470
0 100 200 300 400 500
Hedge funds
Guaranteed funds
Fund of funds
Other funds*
Index funds
Money market funds
Bond funds
Equity funds
Ty
pe
s o
f F
un
ds
Net Asset Value (US$ billion)
• Equity and bond funds made up 78% of the unit trust and mutual fund industry in Hong Kong
• Money market funds and index funds made up 16% of the fund industry
• The remaining 6% of the market is shared between FOFs, guaranteed, hedge funds and other funds*
Source: Securities and Futures Commission
• Equity funds grew 7% over the period of 2005-2009 while bond funds grew 14% annually during the same period
• Index funds had experienced high annual growth of 70% over the 2005-2009 period
• We saw negative growth in Money market, guaranteed and hedge fund over the 2005-2009 period
*Other funds include futures & options funds, leveraged funds and diversified funds
Equity funds
Bond funds
Money market funds
Index funds
Other funds*
Fund of funds
Guaranteed funds
Hedge funds
Compound Annual Growth Rate of Period 2005-2009
-10%
-44%
5%
6%
70%
-5%
14%
7%
-60% -40% -20% 0% 20% 40% 60% 80%
Compound Annual Growth Rate (%)
Appendix 3: Retail fund managed in Hong Kong is $1 trillion
17
Appendix 3: Gross and net fund sale was USD15bn and USD3bn
* Other funds include warrants, futures & options, leveraged and balanced/managed funds. Note the other funds included different set of funds from the one on the previous page because data came from different sources
Source: Hong Kong Investment Funds Association
Gross Sales of Retail Fund Market by Fund Types in 2009
0.01
0.03
0.05
0.26
0.77
0.90
4.10
8.85
0.00 2.00 4.00 6.00 8.00 10.00
Guaranteed funds
Hedge funds
Fund of funds
Index funds
Other funds*
Money market funds
Bond funds
Equity funds
Typ
e o
f fu
nd
s
Gross Sales (US$ billion)
Net Sales of Retail Fund Market by Types of Fund in 2009
-1.15
0.01
-0.05
0.05
0.06
-0.26
2.05
1.92
-1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50
Net Sales (US$ billion)
Equity funds
Bond funds
Money market funds
Other funds*
Index funds
Fund of funds
Hedge funds
Guaranteed funds
• Equity and bond funds made up 86% of the unit trust and mutual fund gross sale in 2009 with a total of USD 12.9bn
• Despite 2009 being a quiet year for index and hedge funds, we begin to see a lot of market activities on index funds/ETFs and hedge funds in 2010
• In 2009, net sale for equity and bond fund totaled USD3.97bn
• We also saw significant reduction on guaranteed fund with negative net sale of USD1.2bn following the market impact of Lehman mini-bond issue in Hong Kong
18
Appendix 3: Asia/emerging market orientated funds attracted the most gross sales
Source: Hong Kong Investment Funds Association
• Equity and bond funds totaled USD13bn in 2009
• Equity sales in Hong Kong is primarily Asia focused amounting to USD5.4bn of which USD3.2bn focus on Greater China.
• While equity sales is dominated with Asia home bias, bond sales in Asia is primarily based on global bond, comprising 39% of total bond fund gross sale
• Emerging market equity and bond funds made up third highest gross sale in 2009
• In 2009, net sale for equity and bond fund totaled USD3.9bn
• Asia, global and emerging market equity and bond funds all experienced high net sales in 2009 with minimal net sales in Europe and North American bond and equity fund
Equity/Bond Gross Sales
0.33
0.10
0.99
1.59
1.05
0.06
0.22
1.53
1.73
5.35
0 1 2 3 4 5 6
North America
Europe
Emerging Market
Global
Asia
Fu
nd
Seg
men
ts
Gross Sales (US$ billion)
Equity
Bond
Equity/Bond Net Sales
-0.03
0.05
0.55
0.76
0.01
-0.03
0.49
0.44
0.950.68
-0.2 0 0.2 0.4 0.6 0.8 1
Net Sales (US$ billion)
Equity
Bond
Asia
Global
Emerging Market
Europe
North America
19
Appendix 3: Total NAV of MPF was USD41bn
Compound Annual Growth Rate from 2005-2009
9%
26%
10%
15%
17%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Money Market Fund
Bond Fund
Guaranteed Fund
MPF Conservative Fund
Equity Fund
Mixed Assets Fund
Fu
nd
Typ
e
CAGR
• Mixed assets and equity funds made up 76% of the MPF market in Hong Kong
• MPF conservative and guaranteed funds made up 22% of the fund industry
• Bond and money market fund made up the last 2% of the industry
• Mixed assets funds have consistently attracted the most investments since the inception of the MPF Scheme
• The market enjoyed an overall 21% CAGR over the past 5 years
• High risk funds including equity and mixed assets funds enjoyed 24% CAGR from 2005-2009
• Low risk funds including MPF conservative, guaranteed, bond and money market funds grew by 13% from 2005-2009
Net Asset Value by Fund Type in 2009
0.1
0.6
4.0
5.0
12.8
18.1
0.0 5.0 10.0 15.0 20.0
Money Market Fund
Bond Fund
Guaranteed Fund
MPF ConservativeFund
Equity Fund
Mixed Assets Fund
Fu
nd
Ty
pe
NAV (US$ bn)
20
Appendix 3: Top 10 institution investors had USD356bn
• Hong Kong Exchange Fund, which is administrated by Hong Kong Monetary Authority, dominated 60% of the institutional investor market where most of its assets are invested in highly liquid short term US dollar denominated debt securities
• Excluding the Hong Kong Exchange Fund, the rest of 9 top institutional investors had USD147bn under management where around 80% was managed by 3 commercial banks
Rank Institution 2009 Asset Size ($BN) Category1 Hong Kong Exchange Fund 209 Central Bank2 Bank of China (HK) 85 Commercial Bank3 Bank of East Asia 21 Commercial Bank4 Hang Seng Bank 15 Commercial Bank5 Grant/Subsidised School Provident Funds 8 Pension Fund6 Hospital Authority Retirement Scheme 5 Pension Fund7 Hong Kong Jockey Club 4 Endowment8 Housing Society 3 Official Institution9 Hong Kong University 3 Endowment
10 West Kowloon Cultural District Authority 3 EndowmentTotal 356
Source: Asianinvestor
Note: A portion of institutional funds may be invested in the SFC authorized funds21
Appendix 4: List of RMB Bond Issued in Hong Kong
IssuerIssuance Amount
(RMB Bn)Coupon Rate p.a.
Issuing Date
Tenor (years)
Underwritter
Ministry of Finance 8.00 1.00%,1.60%,1.80% or 2.48% Dec-10 2,3,5 or 10Bank of China (HK) Ltd Bank of Communication Co., Ltd HK Branch ICBC (Asia)
Ministry of Finance 6.00 2.25%,2.70% or 3.30% Oct-09 2,3 or 5Bank of China (HK) Ltd Bank of Communications Co., Ltd HK Branch
China Development Bank 5.00 3.00% Jul-07 2Bank of China (HK) Ltd HSBC
Bank of China 5.00 2.65% or 2.90% Sep-10 2 or 3Bank of China (HK) Ltd Ban of China International
China EXIM Bank 5.00 1.95% or 2.65% Nov-10 2 or 3Bank of China (HK) Ltd HSBC Standard Chartered Bank (HK) Ltd
Bank of East Asia (China) 4.00 2.80% Jul-09 2Bank of China (HK) Ltd The Bank of East Asia Limited
Sinochem Offshore Capital Company Ltd 3.50 1.80% Jan-11 3Citic Securities International Co. Ltd Deutsche Bank
China EXIM Bank 3.00 3.40% Aug-08 3Bank of China (HK) Ltd Citic Securities International Co. Ltd HSBC
Bank of China 3.00 3.25% or 3.40% Sep-08 2 or 3Bank of China (HK) Limited Bank of China International
Bank of Communication 3.00 3.25% Jul-08 2
Bank of China (HK) Ltd Bank of Communication Bank of Communication International (Asia) Ltd HSBC
China Construction Bank 3.00 3.24% Sep-08 2China Construction Bank (Asia) Ltd China Construction Bank International Standard Chartered Bank (HK) Ltd
Bank of China 3.00 3.15% or 3.35% Sep-07 2 or 3Bank of China (HK) Ltd Bank of China International
China Development Bank 3.00 2.70% Oct-10 3Bank of China (HK) Ltd HSBC Standard Chartered Bank (HK) Ltd
Sinotruk 2.70 2.95% Oct-10 3Bank of China (HK) Ltd CICC ICBC (Asia)
China EXIM Bank 2.00 3.05% or 3.20% Aug-07 2 or 3Bank of China (HK) Ltd Citic Securities International Co. Ltd HSBC
China Resources Power Holdings Company 2.00 2.90% or 3.75% Nov-10 3 or 5Bank of China (HK) Ltd Goldman Sachs HSBC
HSBC Bank (China) 2.00 2.60% Sep-09 2 HSBC
China Development Bank 2.00 2.45% Aug-09 2Bank of China (HK) Ltd HSBC
China Development Bank 2.00Shanghai Interbank Offered Rate + 10 b.p.
Oct-10 3Bank of China (HK) Ltd HSBC Standard Chartered Bank (HK) Ltd
Galaxy Entertainment Group 1.38 4.63% Dec-10 3
Bank of America Merrill Lynch Bank of China International HSBC UBS
Hopewell Highway Infrasturcture 1.38 2.98% Jul-10 2 Bank of China (HK) Ltd
RKI Finance (2009) Ltd., BVI 1.30 6.00% Feb-11 3DBS J.P. Morgan
As of Feb 2011
22
Appendix 4: List of RMB Bond Issued in Hong Kong (Cont’d)
IssuerIssuance Amount
(RMB Bn)Coupon Rate p.a.
Issuing Date
Tenor (years)
Underwritter
Asia Development Bank 1.20 2.85% Oct-10 10Bank of China (HK) Ltd Deutsche Bank AG Hong Kong Branch
BECL Investment Holding Ltd 1.15 4.75% Feb-11 3Deutsche Bank HSBC
VTB Capital S.A., Luxembourg 1.00 2.95% Dec-10 2HSBC VTB Capital Plc
Caterpillar Financial 1.00 2.00% Nov-10 2 Goldman Sachs
HSBC Bank (China) 1.00Shanghai Interbank Offered Rate + 38 b.p.
Jun-09 2 HSBC
China Development Bank 1.00Shanghai Interbank Offered Rate + 30 b.p.
Aug-09 2Bank of China (HK) Ltd HSBC
China Power International Development Ltd 0.80 3.20% Dec-10 5 Standard Chartered Bank (HK) LtdPCD Stores (Group) Ltd 0.75 5.25% Feb-10 3 HSBCChina Merchant Holdings HK 0.70 2.90% Nov-10 3 Bank of China (HK) LtdInt'l Bank for Reconstruction and Development 0.50 0.95% Jan-11 2 HSBC
YFY Cayman Co. Ltd 0.30 3.10% Feb-11 3ICBC International SinoPac Securities (Asia)
ANZ Bank 0.20 1.45% Dec-10 2ANZ Bank HSBC
UBS AG, Hong Kong 0.20 2.50% Nov-10 2 UBSMcDonald's Corporation 0.20 3.00% Aug-10 3 Standard Chartered Bank (HK) LtdSvanska Handelsbanken AB (Publ), Sweden 0.17 1.40% Feb-11 2 HSBCInternational Finance Corp. 0.15 1.80% Jan-11 5 HSBC
As of Feb 2011
23
Citi believes that sustainability is good business practice. We work closely with our clients, peer financial institutions, NGOs and other partners to finance solutions to climate change, develop industry standards, reduce our own environmental footprint, and engage with stakeholders to advance shared learning and solutions. Highlights of Citi’s unique role in promoting sustainability include: (a) releasing in 2007 a Climate Change Position Statement, the first US financial institution to do so; (b) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of renewable energy, clean technology, and other carbon-emission reduction activities; (c) committing to an absolute reduction in GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (d) purchasing more than 234,000 MWh of carbon neutral power for our operations over the last three years; (e) establishing in 2008 the Carbon Principles; a framework for banks and their U.S. power clients to evaluate and address carbon risks in the financing of electric power projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.
Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.
efficiency, renewable energy & mitigation
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Focusing on the Future of Wealth Management in Asia
Group Photo and Break
Unlocking Costs Throughout the Asset Management Industry
Paul EganManaging Director, Asia PacificSecurities and Fund Services
Global Transaction Services, Citi
Optimising the Execution of Investment Strategies
March 2011
Optimising Investment Costs
Portfolio Mgmt ExecutionExecution Middle /
Back Office
Middle / Back Office
Custody & Fund Admin
Custody & Fund Admin
Optimising Execution
Max
imis
ing
Retu
rns
Trade Life Cycle Broker Commission - Tip of the Iceberg
Broker Fees
Exchange Fees
CSD
Bid / Offer Spread
Order Size
Transparency
Liquidity Foreign Ownership Limits
Volatility
Depth of Market
Stamp Duty
Execution Venue
Accessibility
Front Running
Anonymity
Regulations
VWAP
HFT Order Type
Lot SizeTick Size
Opportunity Cost
Market Impact
Length of Trade Horizon
Latency
Domestic Market Policy Efficient Market Policy
Equities Trading, Clearing and Settlement Industry Structure
Trading(Exchange)
Clearing(CCP)
Depository
Trading(Exchange)
Clearing(CCP)
Depository
Trading(Exchange)
Clearing(CCP)
Depository
Trading(Merged Exchange)
Trading(MTF)
Trading(Exchange)
Clearing(CCP)
Depository
Trading(Merged Exchange)
Trading(MTF)
Trading(Exchange)
Clearing(CCP)
Depository
Clearing(CCP)
Clearing(CCP)
DepositoryDepository
Protection through regulation ASEAN exchanges linkup Emergence of AEV’s
Proliferation of AEVs Cross-border mergers of exchanges Emerging multi-market CCPs and CSDs
MTFs proliferation then consolidation Cross-border mergers of exchanges Centralized, user-owned CCP & CSD
Technology, competition and regulation have significantly changed the trading, clearing and settlement landscape.
Single Market Policy
Execution…“Anytime, Anyplace, Anywhere”
Burgundy Quote
NORDICS
Tra
din
g V
en
ues
Cen
tral
Cou
nte
rpart
yD
ep
osit
ary
/A
gen
t
POTENTIAL FUTURE CONFLICTS?
MERGER DISCUSSIONS
ACQUISITION AGREED
TRADITIONAL EXCHANGESApprox 55% market volume share
ALTERNATIVE EXECUTION VENUESApprox 45% market volume share
~US$3.2 BN Broker Spend in Asia – What Am I Getting For My Money?
Liquidity
1 Turnover velocity ratio’s in Asia show low liquidity compared to markets in other regions
Alternative Execution Venues bring in new sources of liquidity and deeper markets
Anonymity
2
Market Access
3
Dark Pools allow investors to place large orders anonymously, reducing market impact.
Caters for institutional investor needs
Increasingly, markets in Asia are focused on foreign institutional investors
Components of Best Execution
(1) Source: TowerGroup Research
Technology
4
Infrastructure
5
Provides flexibility
Enables complex trading strategies
Regulations & legacy technology increase frictional trading costs
Importance Accorded to the Brokers by the Buy Side1
Best Execution Drives an Efficient Capital Market – Benefits All
More Trading =
More Liquidity
1
Tighter Bid / Offer Spreads
2
Transparency
3
Low
er Im
plic
it Co
sts =
Bette
r Ret
urns
4
Deeper Financia
l
Markets5
Select APAC Markets – Turnover Velocity (Feb 2011)1
14.5%
24.1%
34.2%
46.9%
49.8%
51.4%
74.6%
75.7%
100.1%
113.7%
138.0%
139.6%
214.2%
Philippine SE
Indonesia SE
Bursa Malaysia
Singapore Exchange
Hong Kong Exchanges
National Stock Exchange India
Australian SE
The Stock Exchange of Thailand
Taiwan SE Corp.
Tokyo SE Group
Shanghai SE
Korea Exchange
Shenzhen SE
Asia markets have historically had more retail participation as compared to the US and Europe,
which may distort attractiveness for
Foreign Institutional
Investors(1) Source: WFE; Turnover velocity calculated as ratio between the turnover of domestic shares and their market capitalization
Conflicting Priorities
Capital MarketsPriorities
Buy-SidePriorities
Where is Asia Heading?
ECNs required to register as broker/exchange
ECNs Proliferation
MiFID came to effect MTFs proliferation T2S3 initiated
1975 1996US
2000 2006 2007 20101998
Stock Exchange Consolidation and M&A
Europe
ECNs gained access to NASDAQ
National Market System
Asia
MTFs emerging ASEAN Link up markets underway Deregulation in some markets
Publicly Displayed
Dark Pool
Players What’s Going to Happen? Implications
Alte
rnati
ve T
radi
ng V
enue
sTr
aditi
onal
Exc
hang
es
Broker Crossing Networks
Partnership despite regulatory protectism
Upgraded technology
Nationally derived solutions, e.g. ASEAN Link
Broader and deeper capital markets
Better execution
More flexible trading
Entry of additional AEVs with better technology and lower latency
Pan Asian infrastructure
Buy-side owned execution venue?
Increased, more open competition – lower national barriers to entry
Offshore trading
Competition at the execution venue reduces trading costs
© 2011 Citigroup Global Markets Inc. Member SIPC. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2011 Citigroup Global Markets Limited. Authorized and regulated by the Financial Services Authority. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2011 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
© 2011 Citigroup Inc. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
Any term s set forth herein are intended for d iscussion purposes on ly and are subject to the fina l term s as set forth in separate defin itive w ritten agreem ents. This presentation is not a com m itm ent to lend, syndicate a financing, underw rite or purchase securities, or com m it cap ita l nor does it obligate us to enter into such a com m itm ent. N or are w e acting in any other capacity as a fiduciary to you. By accepting th is presentation, subject to applicable law or regulation, you agree to keep con fidentia l the existence of and proposed term s for any Transaction.
Prior to entering in to any Transaction, you should determ ine, w ithout reliance upon us or our affilia tes, the econom ic risks and m erits (and independently determ ine that you are able to assum e these risks) as w ell as the legal, tax and accounting characterizations and consequences of any such Transaction. In th is regard, by accepting th is presentation, you acknow ledge that (a) w e are not in the business of provid ing (and you are not re lying on us for) legal, tax or accounting advice, (b) there m ay be legal, tax or accounting risks associated w ith any Transaction, (c) you should receive (and re ly on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior m anagem ent in your organization as to such legal, tax and accounting advice (and any risks associated w ith any Transaction) and our d iscla im er as to these m atters. By acceptance of these m ateria ls, you and w e hereby agree that from the com m encem ent o f d iscussions w ith respect to any Transaction, and notw ithstanding any other provision in th is presentation, w e hereby confirm that no partic ipant in any Transaction shall be lim ited from disclosing the U .S . tax treatm ent or U .S. tax structure of such Transaction.
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Any prices or leve ls contained here in are prelim inary and indicative on ly and do not represent b ids or offers. These ind ications are provided so le ly for your in form ation and consideration, are subject to change at any tim e w ithout notice and are not intended as a solic itation w ith respect to the purchase or sa le of any instrum ent. The inform ation conta ined in th is presen tation m ay include resu lts o f analyses from a quantitative m odel w hich represent potentia l future events that m ay or m ay not be realized, and is not a com plete analysis of every m ateria l fact representing any product. Any estim ates included herein constitute our judgm ent as of the date hereof and are subject to change w ithout any notice. W e and/or our affilia tes m ay m ake a m arket in these instrum ents for our custom ers and for our ow n account. Accord ingly, w e m ay have a position in any such in strum ent a t any tim e.
A lthough th is m ateria l m ay conta in publicly available inform ation about C iti corporate bond research, fixed incom e strategy or econom ic and m arket analysis, C iti po licy (i) prohib its em ployees from offering, d irectly or ind irectly, a favorab le or negative research opin ion or o ffering to change an opin ion as consideration or inducem ent for the receip t of business or for com pensation and (ii) proh ib its analysts from being com pensated for specific recom m endations or view s conta ined in research reports. So as to reduce the potentia l for conflicts of interest, as w ell as to reduce any appearance of conflicts of interest, C iti has enacted policies and procedures designed to lim it com m unications betw een its investm ent banking and research personnel to specifically prescribed circum stances.
In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.
Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.
efficiency, renewable energy & mitigation
Sanjiv SawhneyManaging Director, Global Head of Funds
Securities and Fund ServicesGlobal Transaction Services, Citi
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1 Citi Investor Services
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5 Citi Investor Services
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Administration
Auto FX
Prime Custody
Private Equity
Administration
Portfolio Accounting
Voluntary Corporate
Actions
Fund of Fund Custody
Commission Recapture
SMA Order Generation
Post Trade Compliance
Collateral Management
Attribution
Custody
Corporate Actions
Fund Accounting
Fund Administration
Transfer Agency
Proxy
Securities Lending
Citi Product Enhancement Focus
Outsourcing of non-core back- and middle-office activities has required service providers to develop tailor-made service solutions as well as standardized offerings.
6
Strictly Private & Confidential
Citi Investor Services
Unlocking Costs Throughout the Asset Management Industry
Closing Remarks
Cocktails
