End to End Solutions for Asset

Management and Fund Business

Processes

IMAS - SINGAPORE

July 06, 2009

2

AGENDA

• WHAT IS SWIFT

• WHAT VALUE FOR ASSET MANAGERS

• HOW TO CONNECT

3

SWIFT: the extranet for the financial

community

Platform

Non-profit

Cooperative

8600+

financial

institutions

Standards setting

body for electronic

financial messaging

(ISO standards)

SWIFTNet

Highly secure and resilient

4

• 209 countries

• 3.5 billion messages per year

• Average daily traffic 15.1 million messages

• Peak day of >16.5 million messages Sept 19h 2008

SWIFT in figures

5

SWIFT Reach: > 8600 financial institutions

Corporates

Investment Managers

ETC Providers

Payment Market Infrastructures

Brokers-dealers

Banks Custodians

Securities Market Infrastructures

Fund Administrators /

Registries

InsuranceCompanies

Fund Supermarkets

Pension providers

SWIFT

6

AGENDA

• WHAT IS SWIFT

• WHAT VALUE FOR ASSET MANAGERS

• HOW TO CONNECT

Investment managers on SWIFT

7

Investment Managers on SWIFT representing 76% of the global AUM

554

31

37

31

24

10

10

2,544

169

63

19

6

TOP401 and beyond

TOP201 to 400

TOP101 to 200

TOP51 to 100

TOP21 to 50

TOP11 to 20

TOP1 to 10

ON SWIFT NOT ON SWIFT

Investment Managers’ community on SWIFT

325382 414

457 491 698

2003 2004 2005 2006 2007 2008

AME33%

AP9%

EMEA58%

9

Investment Managers’Activity on SWIFT

1. Settlement & Reconciliation

2. Foreign Exchange

3. Payments & Money Market

4. Transfer Agency

5. Funds Distribution

6. Corporate Actions

7. Electronic Proxy Voting

8. Tax Reclamation (new)

Defining investment manager operations

10

Front office Middle office Back office

Investment manager operations

•Investment strategy & decisionsresearch & analysis

risk analytics

•Pre-trade compliancelegal & master agreements

regulatory requirements/limits

•Order managementtrading

•Client serviceaccount management

portfolio administration & development

fund administration and distribution

11

fro

nt

offic

e

Risk

management

Investment manager operations

QDII Workshop – 12 June 2009 – CONFIDENTIAL 12

mid

dle

offic

e

Risk

management

•Order managementtrade support

allocation processing

trade financing

•Post-trade compliancemaster agreement conformity

•Pre-settlement & settlementreference data management

trade matching, confirmation / affirmation

settlement instructions

exceptions & investigations

Payments & cash management

Investment manager operations

• Portfolio accountingfund & portfolio accounting

Reconciliation & net asset valuation

performance measurement & attribution

•Risk managementliquidity & collateral management

compliance & regulatory reporting

•Administrationtransfer agency

13

ba

ck

offic

e

Risk

management

14

SWIFTNet

Business

Applications

SWIFT

interface

STP challenges

Message

flowsTechnical

Adapters

Data

Formats

Business

Processes

SWIFT Solutions

•Investment strategy & decisionsresearch & analysis

risk analytics

•Pre-trade compliancelegal & master agreements

regulatory requirements/limits

•Order managementTrading (MT, FIX, MX)

•Client serviceaccount management (Funds MX)

portfolio administration & development

fund administration and distribution (Funds MT and MX, Lite)

15

fro

nt

offic

e

SWIFT Solutions

QDII Workshop – 12 June 2009 – CONFIDENTIAL 16

mid

dle

offic

e

•Order managementtrade support

allocation processing (MT and FIX)

trade financing (FX and payment arrangement)

•Pre-settlement & settlementreference data management

trade matching, confirmation / affirmation (MT, MX and Accord)

settlement instructions (MT and MX)

exceptions & investigations

Payments & cash management (MT and MX)

SWIFT Solutions

• Portfolio accountingfund & portfolio accounting (MT and MX)

Reconciliation (MT and MX) &

net asset valuation (MX)

performance measurement & attribution

•Risk managementliquidity & collateral management (MT and MX)

compliance & regulatory reporting (MX)

•Administrationtransfer agency & settlement

17

ba

ck

offic

e

Risk

management

IMAS - July 2009 18

SUMMARY: SWIFT’s Securities offering

IBEI, CIVIC (Q408)

SSI (TBD)

IBEI, CIVIC (Q408)

SSI (TBD)

IBEI, CIVIC(Q408)

SSI (TBD)

IBEI, CIVIC(Q408)

SSI (TBD)

IBEI, CIVIC(Q408)

SSI (TBD)

IBEI, CIVIC (Q408)

SSI (TBD)Reference data

Corporate actions(now)

Market claims(TBD)

Proxy voting (now)

Portfolio recon.(now)

Clearing (now)

Trade confirms(now)

Hedge funds processes (2009)

Allocations (2009)

Transaction reporting (now)

Trading FIX (now)

Trading FIN (now)

Listed derivatives

Cash settlement and reporting (now)

Exception management (now)

Payment initiation(now)

Payments

Cash mgmt

Corporate actions (now)

Market claims (TBD)

Proxy voting (now)

Portfolio recon. (2009)

Lending & borrowing (now)

Repos (now)

Settlement processing, reconciliation and exceptions (now)

Trade confirms (now)

Hedge funds processes(2009)

Allocations (2009)

Transaction reporting (now)

Trading FIX (now)

Trading FIN (now)

Equities

Fixed income

Cash settlement and reporting (now)

Portfolio recon.(2009)

Trade confirms + matching

(now)

Hedge funds processes

(2009)

Allocations(2009)

Trade capture(Q308)

FX, MM

Cash settlement and reporting (now)

Portfolio recon.(2009)

Trade confirms + matching

(now)

Hedge funds processes

(2009)

Allocations(2009)

Trade capture(2009)

Commodities

Cash settlement and reporting (now)

Syndicated loan maintenance (2009)

Portfolio valuation(2009)

Portfolio recon.(2009)

Novation (2009)

Trade confirms + matching (now)

Hedge funds processes (2009)

Allocations (2009)

Trade capture

(2009)

OTC derivatives

Asset servicing& administrat.

Clearing &

Settlement

Post-trade / pre-settlem.

Pre-trade /

trade

IBEI, CIVIC (Q408)

SSI (TBD)

IBEI, CIVIC (Q408)

SSI (TBD)

IBEI, CIVIC(Q408)

SSI (TBD)

IBEI, CIVIC(Q408)

SSI (TBD)

IBEI, CIVIC(Q408)

SSI (TBD)

IBEI, CIVIC (Q408)

SSI (TBD)Reference data

Corporate actions(now)

Market claims(TBD)

Proxy voting (now)

Portfolio recon.(now)

Clearing (now)

Trade confirms(now)

Hedge funds processes (2009)

Allocations (2009)

Transaction reporting (now)

Trading FIX (now)

Trading FIN (now)

Listed derivatives

Cash settlement and reporting (now)

Exception management (now)

Payment initiation(now)

Payments

Cash mgmt

Corporate actions (now)

Market claims (TBD)

Proxy voting (now)

Portfolio recon. (2009)

Lending & borrowing (now)

Repos (now)

Settlement processing, reconciliation and exceptions (now)

Trade confirms (now)

Hedge funds processes(2009)

Allocations (2009)

Transaction reporting (now)

Trading FIX (now)

Trading FIN (now)

Equities

Fixed income

Cash settlement and reporting (now)

Portfolio recon.(2009)

Trade confirms + matching

(now)

Hedge funds processes

(2009)

Allocations(2009)

Trade capture(Q308)

FX, MM

Cash settlement and reporting (now)

Portfolio recon.(2009)

Trade confirms + matching

(now)

Hedge funds processes

(2009)

Allocations(2009)

Trade capture(2009)

Commodities

Cash settlement and reporting (now)

Syndicated loan maintenance (2009)

Portfolio valuation(2009)

Portfolio recon.(2009)

Novation (2009)

Trade confirms + matching (now)

Hedge funds processes (2009)

Allocations (2009)

Trade capture

(2009)

OTC derivatives

Asset servicing& administrat.

Clearing &

Settlement

Post-trade / pre-settlem.

Pre-trade /

trade

19

AGENDA

• WHAT IS SWIFT

• WHAT VALUE FOR ASSET MANAGERS

• HOW TO CONNECT

20

SWIFTNet

Business

Applications

SWIFT

interface

STP challenges

Message

flowsTechnical

Adapters

Data

Formats

Business

Processes

21

How to connect to SWIFTNet?

Alliance LiteSimplified, Internet based,

secure Apps

SWIFTNet

Users

Internet

Private

infrastructureSWIFTNet connectivity

infrastructure owned and

operated by the customerApps

SWIFTNet

Users

VPN LL and Internet

Shared

infrastructureSWIFTNet connectivity

infrastructure owned and

operated by third party

Apps

SWIFTNet

Users Shared infra

provider

VPNVPN

22

The only thing

you need to

connect to

SWIFT

In order to achieve full automation, your institution should notBall park Figures – Private & Shared Connectivity

SWIFTNet Access Kit (SAA) 50,000 19,400

SWIFTNet Entry Kit (SAE) 24,700 14,400

SWIFTNet Gateway Kit (SAG) 22,150 13,550

SWIFTNet Link Kit (SNL) 9,200 11,000B

IC/D

ocu

me

nta

tio

n

Ce

rtific

ate

s

Se

cu

rity

ha

rdw

are

Inte

rface

so

ftw

are

( *)

Co

mm

un

ica

tio

n

So

ftw

are

( *)

One time

fee

(EUR)

Annual

fee

(EUR)

SWIFTNet Remote Kit 17,100 5,500

SWIFTNet Essentials Kit 1,525 2,725

Ne

two

rk

Co

nn

ectio

n

QDII Workshop – 12 June 2009 – CONFIDENTIAL 24

Integrator Information

Add SWIFTNet

Header

and send to

SWIFTNet

Receive from

SWIFTNet

Integration Features

SWIFT

Messaging

SWIFT

Messaging

Transform,

validate

and route

Capture Business

data

Transform,

validate

and

route

Dispatch

Business

Data

Process Management

Reference Data

An integration framework for SWIFTA

llian

ce

Acce

ss

Business

data

Business

data

Busin

ess a

pplic

atio

n(s

)

Relationships with vendor

Pre

Tra

de

/Tra

de

FIX engines

Javelin

Financial Fusion

Cameron

Fujitsu

LineData

SolutionForge

OMS buy-side

McGregor

DST

Charles River

Advent

SunGard

EzeCastle

LineData

OMS sell-side

SunGard

S1

Bloomberg

GL Trade

NYFix

RoyalBlue

EAI

CheckFree

Financial Fusion

SunGard

Tibco

WebMethods

Core STPS

ETC

Thomson

FMC

DTC

ISMA

Reconciliation

Smartstream

SunGard

Accurate

CityNetworks

Post T

rade

Se

ttle

me

nt

Back office IMI

Thomson

SunGard

OAMS

DST

Simcorp

Trema

Princeton

Back office B/D

GL Trade

Misys

ADP Wilco

RoyalBlue

Back office Custodian

Vermeg

TCS/TKS

SunGard

SDS

EAI

CheckFree

SunGard

Bravura

Singularity

SeeBeyond

SwissRisk

IBM

Reconciliation

Smartstream

SunGard

Accurate

CityNetworks

Se

rvic

ing

CA application

Vermeg

Tata

Smartstream

Xcitek

Mondas

EAI

WebMethods

CheckFree

Singularity

Smartstream

Trace

FTI

ADP

CheckFree

Trace

Relationships with key Industry Body

Name Who Region

EFAMAEuropean Funds and Asset Management Association

Target to consolidate position as key supporters of ISO20022 for fundsEurope

PIMAPEP & ISA Investment Managers Association

Target to assist in the lobbying of UK government for dematerialisationEurope

ISITCInternational Securities Association for Institutional Trade Communications

Target to drive forwards operational efficiency with large US/Global firmsN America

IFIAIrish Fund Industry Association

Target to agree ISO20022 as the standard for hedge fund administrationEurope

ALFIAssociation of the Luxembourg Funds Industry

Target to lobby cross border fund distributors to adopt ISO20022 for fundsEurope

AFACAsian Fund Automation Consortium

Target to lobby Asian fund distributors to adopt ISO20022 for fundsAsia

SIFMATBC

Target to drive forward initiatives & relationship with important new bodyN America

DTCCDepository Trust & Clearing Company

Target to agree to work together in derivatives, hedge & mutual fund sectorsN America

27

Thank you