CACEIS NEWS SIBOS 2013

september 2013 - sibos supplement - caceis news 3

Solutions for Sovereign Wealth Funds CACEIS offers a full range of services for Sovereign Wealth Funds, meeting the needs of a variety of investment strategies by providing a solid, stable and secure framework.

vincent beaujeu-Dumontel, Business Development Manager, MENA and Asia clients, CACEIS

C ACEIS, Europe’s premier depositary bank and fund administrator backed by Crédit Agricole, a leading banking group, meets Sovereign Wealth Funds criteria in terms of credit rating, financial performance and operational efficiency. CACEIS is present in Europe, in North America and in Asia, and has built up a vast wealth of experience in its centres of excellence, allowing it to deploy its global asset servicing offer across all international financial markets. CACEIS’s commercial teams are organised by geographical area and client type, with Business Development Managers specialising in sover- eign institutions based in Middle East, North Africa and Asia. They are entirely familiar with the specific needs of Sovereign Wealth Funds and build relationships of trust over the long term to provide them with global custody, cash management, securities lending, Middle Office, derivatives services and support for investment in real estate and private equity funds. Awide range of global custody services CACEIS provides Sovereign Wealth Funds with access to more than 80 markets across all asset classes. Its specialists inform them on the various local regulations, tax regimes, settle-

ment procedures and foreign exchange restric- tions. CACEIS has the infrastructure to ensure that transactions are processed on any market within an agreed timeframe and in full security. Through the OLIS client website, fund manag- ers have access to consolidated reporting updat- ed in real time on their instructions, portfolios and cash positions. Enhance returns through securities lending programs and liquidity solutions A dedicated contact in the CACEIS’s dealing desk team provides support to clients to help them meet their strategic objectives, preserve capital and optimise revenue, whilst at the same time minimising risk. Sovereign Wealth Funds are structural lenders and their stock of securities represents a source of revenue which, if properly managed, can cov- er the institutions’ operating costs. Such a ser- vice can only be provided if there is an exact fit with the investor’s risk profile. The service takes account of the nature of the securities held, regulatory constraints, the collateral guarantees required and the expected rates of return. Lend- ing operations never interfere with the client’s portfolio management activities: securities can be sold at any time. Collateral investment solu-

tions can be offered to help optimise revenues. Furthermore, CACEIS provides assistance in developing an effective cash management strategy and offers deposits, repos, bonds and notes in most currencies. Its experienced FX desk brings clients analysis to develop their currency strategy. They benefit from services that include spots, forwards, swaps, NDFs, NDSs, options and structured FX products. Tailored Middle-Office services A bespoke service for processing UCITS orders, extended to include offshore funds, covers monitoring, reconciliation, associ- ated cash and forex management and, sub- ject to Sovereign Wealth Funds agreement, outsourced investment management, of pre- determined amounts, in a selection of funds. With CACEIS, clients have control over the two main risks associated with listed and OTC derivatives: counterparty risk and op- erational risk. From a single account, they benefit from the integration of their transac- tions in portfolio valuations and reporting. This consolidation of transactions is accom- panied by a service covering the entire chain of back office and middle office functions. A complete range of listed and OTC derivatives services

Extensive services for investment in real estate funds and private equity CACEIS provides clients with assistance and customised solutions for a broad spectrum of structures, strategies, sectors and countries of investment, from the initial plan to set up a fund, through to its daily administrative needs, including cash management and bespoke re- porting to meet the specific needs of Sovereign Wealth Fund managers. CACEIS has been providing services to Sov- ereign Wealth Funds for many years. Major funds have placed their trust in CACEIS, and benefit from services that perfectly match their requirements in terms of confidentiality, risk control and bespoke reporting ■

Performance and risk analysis is essential for sovereign institutions to compare and measure performance, track risk exposure and finally take decisions. This is also a way to strengthen risk management, improve transparency and establish quality control over the entire investment process. Interactive performance and risk analysis online

ment, contribution analysis, and performance alloca- tion. This range of options helps clients understand the value added by their various investment processes. In addition to the reports outlined above, CACEIS as- sesses portfolio risks and potential losses due to market change. VaR estimations and stress-tests are computed by our team of specialists using various methods (his- toric, Monte Carlo, Parametric etc.) and extreme sce- narios. Consolidated data are produced by portfolio to enable management of a “risk budget”. ▷ Interactive web-based performance reporting In addition to traditional monthly financial reporting, CACEIS offers a full range of performance analysis in- dicators on its OLIS client website. Managers can select the criteria of their choice, such as maturity, country or economic sector, which are updated in real time, and get immediate results in the form of detailed tables and graphs. For example, as part of an analysis of performance al- location and contribution, as well as the top-down al- location analysis, it is possible to model a bottom-up al- location, analyse asset allocation and identify the main effects of exclusion or over- or under-weighting relative to the benchmark. Reports are produced in English and can be downloaded whenever required. CACEIS’s powerful performance attribution and risk management tools are just one of the many aspects of CACEIS’s full service offering that is designed to add value to your portfolio and increase the operational ef- ficiency of your day to day business transactions. For more information, please contact our dedicated MENA business development team who can help you understand the benefits for sovereign institutions of working with a leading global asset servicing ■

▷ A powerful data warehouse of high-quality informa- tion Thanks to its industrial-scale valuation platform, CACEIS has a genuine data warehouse of standardised data. This open platform gathers external data flows from the main market data providers. CACEIS specialists enhance and track information on indexes and individual financial instruments to ensure that they are standardised and reliable. As a consolida- tion platform that is unique in terms of its broad scope, it offers a wide range of on-line portfolio analysis cri- teria. ▷ Consolidated asset valuation CACEIS capitalises on experienced operational teams with advanced tools and interfaces with major fund administrators enabling us to gather portfolios valua- tions from third parties. When investments are made through intermediate vehicles, CACEIS provides sover- eign funds with timely access to fund holding positions and analysis reports from a single source and in a stan- dardised format. ▷ Prime report: performance & risk analysis CACEIS offers a wide range of performance analysis indicators, based on market standard methods suitable for all investment strategies. Clients using the turnkey Prime Report solution can choose from a range of fea- tures: asset allocation tracking, performance measure-

gilles de foucault, Product Manager, CACEIS

As a world-leading partner in asset servicing, CACEIS of- fers sovereign institutions a single technology platform that incorporates a powerful data warehouse, asset valuations, calculation engines and online reporting. CACEIS’s dedicat- ed Prime Report solution fully answers clients’ requirements and allows the measurement of performance, contribution, attribution and risk. Our high-quality, industrialised, yet flexible reporting solutions give our clients a significant de- gree of comfort, security and cost optimisation .