RETHINKING DISTRIBUTION

Message from the authors

PwC Luxembourg

CACEIS Investor Services

For the third consecutive year we are proud to partner with CACEIS to examine the future of our industry within the context of the major trends which are currently asserting themselves. When our industry faces such a maelstrom of change, it is not enough to simply react. We must take the time to actively consider what our future may hold in store. We must exercise our imagination and combine it with our knowledge of the industry as it stands to make informed assumptions that will allow us to more effectively weigh the value of our longer term objectives. It is not an easy task. With such an array of forces affecting our industry – an industry which is itself complex and sophisticated – it would be tempting to adopt a ‘wait and see’approach. In this report we have tried to resist this temptation. Although nobody can predict the future of fund distribution, we do have broad trends that can guide us. Utilising these trends, we have defined a number of potential scenarios for the next five to ten years. Some will materialise, some will not. The value of each scenario lies in the critique that we can individually bring to it after considering the factors involved and weighing the arguments objectively. This will certainly help the reader to navigate through uncertain times. We trust you will find this report useful, informative and most of all, thought provoking. We hope that you will contribute to the debate at www.rethinkingdistribution.com and we look forward to discussing your views in the future.

With today’s increasingly globalised economy and the emergence of new economic and political powers, the long-term ramifications of any global crisis can only be more pronounced. However, despite the coordinated intervention of global institutions, which seem to be steering the financial industry on a more stable course, the true and enduring consequences of the crisis remain less than clear. CACEIS, in association with our long-term research partner, PwC Luxembourg, have undertaken to analyse the growing field of international fund distribution, identifying the drivers of change and speculating on the possible outcomes in this post-crisis environment. We sought to focus research efforts on a limited number of the most common scenarios faced by industry players. And for each scenario, we have determined the most probable direction of distribution developments and the best course of action to achieve a successful commercial venture. As a leading service provider in the global fund distribution arena, CACEIS cannot limit itself to simply performing an analysis of current market trends. We strongly believe that we have a responsibility to our clients, be they fund distributors, institutional investors or asset managers, to understand andmake preparations for the future environment in which they will do business. It is through these attempts to gain a deeper understanding of the intricacies of the markets in which our clients operate that we are able to remain a frontrunner, offering innovative services in an increasingly complex fund distribution environment.

We trust you will find this publication both enlightening and compelling.

Marc Saluzzi PwC Luxembourg, Financial Services Leader

François Marion CACEIS, Chief Executive Officer

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