CACEIS NEWS 39 EN

No. 39 - September 2014 - caceis news 3

Servicing clients in Ireland’s growing fund market

NEW BUSINESS

Boussard & Gavaudan Investment Management LLP Boussard & Gavaudan (Umbrella Fund PLC and BG Master Fund PLC) was one of the first of CACEIS Ireland’s clients to receive its AIFMD accreditation in July 2014. CACEIS BL Dublin Branch acts as Depositary to the Irish Fund. Boussard & Gavaudan required a service provider who had full knowledge of the alternative fund industry and the Irish requirements as well as an in-depth understanding of the many complex issues raised by AIFMD. CACEIS were able to inform Boussard & Gavaudan of the developing local regulatory framework and assist them in the drafting of legal contracts, specifically with regard to prime broker arrangements. Boussard & Gavaudan: “In our experience, CACEIS were proactive and had a sound understanding of the AIFMD legal and regulatory issues as well as product requirements. Through their ongoing engagement with the Central Bank of Ireland and industry associations, CACEIS provided invaluable information and were able to guide us in the setup of the post AIFMD Depositary- Prime broker arrangements. The ultimate arrangement put in place is based on the pre AIFMD Irish prime broker model, which involved the appointment of prime brokers as sub- custodians. This model enables us to operate efficiently with the prime broker community, and at the same time comply with the new AIFMD requirements.” CNP Assurances Following a request for proposal, CNP Assurances, France’s leading personal insurer, has reaffirmed its confidence in CACEIS, for a duration of 5 years, renewable up to 9 years, for the safekeeping of all its foreign and domestic assets, relating to its insurance business in France. The agreement covers €280 billion in assets. In addition to custody, the contract encompasses settlement bank services, registrar, general assembly meetings, selected back office processing of non-listed investments, management of collateral and processing of stock lending and repos Silver Time Partners Management company Silver Time Partners has selected CACEIS for its first Luxembourg UCITS SICAV, “Silver Time LOQ Equity SICAV”, launched on 5 September. CACEIS provides a wide range of services to Silver Time Partners: custodian and depositary functions, fund administration, foreign exchange, transfer agent and domiciliary agent for the SICAV. Listed derivative execution and clearing services are also provided. Olivier Nobile , CEO of Silver Time Partners, stated: “We have selected CACEIS as a partner to support the launch and international distribution of our first UCITS investment vehicle because of its vast experience of European markets. Its comprehensive service offering, from execution to custodian services, meets all our operational needs perfectly. Entrusting our business to a first-rate service provider is a hallmark of quality and of security for our investors.”

ANNIE BLOUIN

CLARA DUNNE

DAVID BAERT

PADDYWALSH

Head of Regional Coverage

Senior Country Officer,

Responsible for CACEIS entities in Ireland, North America & UK

Business Development Director

I Ireland, North America & UK

CACEIS Bank Luxembourg - Dublin Branch

for UK and Ireland

vices. CACEIS in Ireland is a key entity for the Group. As an increasing number of North American and UK Hedge Funds, Private Equity andReal Estatemanag- ers are shifting jurisdiction to Ireland, particularly those based in off-shore centres, having a fully-fledged office in Ireland to serve overseas clients' demands is essential. Authorities in Ireland took pre- emptive steps to update Irish AIF structures before the AIFMD was implemented with many enhance- ments facilitating Private Equity and Real Estate investment in particular. CACEIS in Ireland can help Private Equity and Real Estate managers take full advantage of AIFMD’s opportunities and launched regu- latory reporting services helping firms comply with the Directive. The Group’s considerable expertise in alternative investment servicing gives it a ranking among the premier global service providers for Private Equity and Real Estate funds. Private Equity & Real Estate ser- vicing (PERES) is an expert market where the right skills, experience and resources are vital to succeed. By combining specific private eq- uity & real estate services with the group’s solid custody and adminis- tration services, CACEIS gives man- agers the support they need to create new vehicles, thereby adding real value to their business. The Group’s dedicated PERES team is composed of real estate specialists in Germany, France, Ireland, Italy, Luxembourg, Switzerland, the United States and Canada, and services more than “CACEIS in Dublin is best positioned to provide full service offerings to alternative asset managers in the context of AIFMD. Utilising the Group’s global platformand operatingmodels, dedicated to the alternative space, combined with a strong local expertise, CACEIS Ireland delivers superior services fromexecution to custody. Additionally, the strong integration between CACEIS North America and CACEIS Ireland can help US investment managers to launch funds in Europe using Ireland as domicile."

“CACEIS’ multi- jurisdictional offering brings a competitive advantage that firms

in Ireland, including unit trusts and public limited companies, which are the country’s most popular struc- tures for funds. The ICAV will be a new corporate vehicle designed for Irish investment funds, providing a tailor-made corporate fund vehicle for both UCITS and alternative in- vestment funds (AIFs). The ICAV will have a number of benefits over the existing Irish corporate structure including dispensing with Annual General Meetings in specific cir- cumstances, more streamlined au- dited accounts and constitutive documents. Another important fea- ture of the ICAV will be its ability to elect its classification under the US check-the-box taxation rules to benefit from favorable tax treat- ment. Up to 100 new funds record- ing more than €10bn in assets are set to be launched in Ireland using the country’s forthcoming corporate fund structure, with most of these funds re-domiciling from rival ju- risdictions, according to the Irish Funds Industry Association. TAKE FULL ADVANTAGE OF AIFMD’S OPPORTUNITIES CACEIS is a well-established cus- todian and fund administrator in Ireland, servicing corporate and in- stitutional clients’needs worldwide and providing depositary, custody and fund administration to tradi- tional and alternative funds, includ- ing private equity and real estate funds. The group has been active in the Irish market since 2000 and clients have access to the full range of services offered by the CACEIS Group, including capital market ser- adding industry-leading reporting, we can provide a service that handles their administrative needs and enables them to focus on generating investor value." “Recent market events and increased reporting requirements from institutional investors are compelling private equity real estate firms to reassess their back office operations in terms of cost effectiveness. By expanding our PERES offering - fromaccounting and administration to custody and cashmanagement - and

“With 76% of US players and 79% of UK firms listing Ireland as their top three preferred domicile, CACEIS Ireland is and will continue to be a strategic entity for the Group."

operating only domestically find hard to compete with. Our staff in Ireland, like in our other entities is highly skilled and keen to seek out cross-selling opportunities. We have built up a large network of clients in the US, the UK and mainland Europe, and that has opened many doors for CACEIS in Dublin”.

Asset managers with CACEIS in Ireland benefit from extensive

€96 billion in assets under deposi- tary. The teams have gained ex- tensive expertise in the PE and RE industry over the past decades, pro- viding effective support to managers investing directly or indirectly via local vehicles. CACEIS’ alternative investment servicing business is based on a powerful servicing platform that combines cutting edge technology and outsourcing services to support the specific administrative needs of hedge funds, private equity and real estate investment companies 9.5% rise in net assets of Irish domiciled funds during 2013 Ireland saw a 9.5 percent rise in net assets of Irish domiciled funds during 2013 to reach €1.34 trillion. Largest hedge fund administration centre in the world with over 40% of global hedge funds serviced. Ireland is a leading domicile for cross-border fund distribution with 19%market share. (See statistics page 8)

O n 29 July, the Irish govern- ment made public the bill in- troducing the Irish Collective Asset management Vehicle (ICAV), which is Ireland’s first tailor-made corporate vehicle. The Bill is now due to pass through the next stages of the Irish legislative process and it is anticipated that it will be enacted during the third quarter of 2014. In a speech to the Irish Funds Industry Association conference in Dublin earlier this year, Irish Prime Minister Enda Kenny said: “This legislation will open up the Irish investment fund market to new participants, providing new solutions for managers. It would help to make Ireland’s regulated fund structures the most accessible, inno- vative and sophisticated in the EU”. Ireland is already a European domi- cile of choice for investment funds, and is well-positioned to attract a growing share investment from the world fund industry. THE BENEFITS OF THE ICAV Asset managers can currently use a variety of structures to set up funds service capabilities for traditional and alternative fund structures as well as the new ICAVs.