Agile Investment Servicing. Service portfolio

Transcription

1 Agile Investment Servicing Service portfolio

2 As an independent fund administration specialist, we deliver a wide range of services - customised, traditional and add-on - to a demanding clientele. These services cover an equally wide range of products and vehicles, making excellence the priority at all times. Our services Net Asset Value calculation, bookkeeping and portfolio valuation Transfer agent and registrar services Middle-office and order management services Reconciliation and cash monitoring Fiscal data processing Compliance & risk management Performance measurement & attribution Domiciliation Reporting solutions On behalf of UCITS and AIFs from multiple EU and non-eu jurisdictions Hedge funds and funds of hedge funds Private equity and real estate funds Islamic funds Microfinance funds Specialised funds Pension funds Unit-linked life insurance products Management mandates Depositary banks Management Companies or Alternative Investment Fund Managers Proactivity in cutting-edge solutions One feature that sets EFA apart is our commitment to anticipating servicing requirements in sync with market trends and regulatory requirements. By closely tracking developments in both areas, we transform regulatory shifts into customised services that add value across the board. All information that you need when you need it Delivery of data and information of any kind, in any format, through multiple channels is of upmost importance to clients and their counterparts. EFA uses a dedicated data warehouse as a central data storage area for all fund accounting, NAV and transfer agency, investment compliance and risk data. EFA is providing clients and selected counterparts with a secured access to its interactive internet portal EFAnet TM. It is the single entry point to all our services allowing authorised users to continuously access, in pull mode, a large range of data and reports. EFA also developed a state-of-the-art report generation and dispatching engine for its fund administration and transfer agency activities to directly feed client applications with timely, complete and accurate reports and data files.

3 Fund Administration Services Trade management and middle-office Matching transaction confirmations from brokers and investment managers Assistance for automated investment compliance checks upon transaction receipt Sending SWIFT based settlement pre-instructions to custodian banks Upload trades for further processing to the accounting queue in line with agreed trading cutoffs Visualisation of trade management workflows through EFAnet TM portal Securities static data and pricing Set-up and maintenance of static data related to securities and derivatives Treatment of corporate actions Collection and control of valuation prices for securities, derivatives and spot/forward exchange rates Price selection in accordance with fund s pricing policy Large market coverage of asset classes and instruments guaranteeing high data quality and accuracy in controls Fund accounting & NAV calculation Multiple structures supported, including: pooled structures, multi-manager structures, masterfeeder Multi-share classes, share class hedging Multi-currency, Multi-GAAP Reconciliation of cash and securities NAV-File manager: electronic archiving and full availability of all accounting documents and data used in NAVs Performance fee calculation, including complex fee computations NAV validation by the management company Collateral accounting and collateral controlling Financial reports Audited annual reports (and semi-annual reports) for UCITS, AIFs and other funds Reporting to national supervisory authorities

4 Register Keeping and Transfer Agency Services EFA is one of the few industry players offering a full range of TA services combined with international fund distribution. Our services are flexible and tailored with a high focus on quality. Services offered to any types of investment vehicles, including UCITS, hedge funds, real estate and private equity funds, following various regulations, industry practices or prospectus requirements For any type of investors: nominees, institutionals, high net worth individuals or large scale retail investors Management of complex financial intermediary networks and set-up of multi-level distribution hierarchies Access to all markets and distribution patterns Open platform with connectivity to multiple banks, counterparts, platforms and intermediaries Innovative, robust and state-of-the-art technology Flexible management of commission and trailer fees Management of equalization factors and series of shares Anti-dilution methods, including anti-dilution levy, bid-ask pricing and swing pricing Savings and withdrawal plans, dividend reinvestment and checks minimum holdings Cash and securities payment/settlement instructions towards depositary banks, cash correspondents and clearing agencies

5 Compliance, Risk and Performance Solutions EFA designed a wide range of services for fund risk and compliance officers to help them ensure compliance with investment restrictions, monitor risks and perform supervision on delegated activities. Investment compliance and asset eligibility services Post-NAV checks with detailed reporting Pre-NAV checks performed on a trade by trade basis identifying potential investment breaches before the trade is effectively booked in the fund s NAV Complete set of pre-defined regulatory compliance rules Asset eligibility checks Powerful rules engine allowing to design complex and specific controls on demand A tool to monitor, control and follow-up breaches with a permanent access to investment rules details, transactions, portfolio holdings, Risk measurement services Market risk/global risk using the commitment approach and the VaR approach Level of leverage using gross and commitment approach Liquidity risk of assets and liabilities Concentration risk Counterparty risk and other risks KPI & MIS Key Performance Indicators (KPI) measuring the quality and efficiency of EFA s services Management Information Summary (MIS) providing statistical data on the fund s activity Performance measurement services EFA s performance measurement services have been designed to allow a detailed analysis of the performance of a fund s portfolio, including: Detailed return analysis performed using holding and transactional data Contribution/attribution analysis for equity and fixed income portfolios Web-access to analytical results and dynamic output ready to be used as investor reporting

6 Reconciliation and Cash Monitoring Services Supporting depositary banks in their monitoring obligations EFA s reconciliation and cash monitoring services is a solution specifically built to support depositary banks in their effort to fulfil control duties when appointed as depositary for authorised AIFs and UCITS. Cash flow monitoring The AIFM Directive and the UCITS V Directive impose a monitoring of the fund s cash flow on a daily basis to be performed by the depositary bank. EFA provides cash flow monitoring services through the delivery of a comprehensive set of reports enabling to identify on a daily basis all pending cash movements on accounts, which are opened in the name of the fund. Inventory of assets The depositary bank receives a daily list of all assets held by the fund, categorised according to the regulatory guidelines, with an indication of the reconciliation status for each asset. A view on key events of the previous months concerning reconciliation and cash monitoring is made available to clients using this service.

7 Domiciliation and Corporate Services EFA provides a comprehensive range of domiciliation and corporate services in accordance with the Luxembourg law of 31 May 1999 on the domiciliation of companies that includes: Provision of a legal address for investment funds Ensuring compliance with statutory requirements for ongoing maintenance including the filing with the Luxembourg trade register and the CSSF Safekeeping of all relevant original documents and data Organisation of regular board meetings, preparation of board packs and drafting resolutions Holding of annual general and extraordinary general meetings (AGM/EGM) Filing of income tax and VAT declarations Handling of fund related invoices Liaison with directors EFA also offers domiciliation services for Luxembourg Special Purpose Vehicles (SPVs) and corporate services for funds domiciled in other jurisdictions (Cayman Islands, BVI, Malta,... ).

8 Tax Services Fund and investor tax services Fund and investor tax services are designed to support investment funds in the distribution of their shares/ units to an international investor base. EFA performs the calculation and publication of all relevant tax reports and figures, as required by the different tax authorities of countries into which the fund is distributed. The reported tax figures will allow the end investor to report tax in compliance with the requirements of its country of tax residence. The calculation of relevant tax figures encompasses international tax regimes or local tax requirements, when applicable to investment vehicles. VAT services Luxembourg investment vehicles are subject to VAT declarations to the Luxembourg VAT office. The service provided allows the funds to be Luxembourg VAT compliant. Provision of a detailed invoice data file Preparation of VAT return forms Exchange of information under CRS and FATCA regulations EFA s service offering allows the fund to minimize its involvement in the complex matter of FATCA and CRS regulations, covering: Fiscal due diligence of pre-existing and new account holders Control of account holders eligibility against the fund s CRS/FATCA status Reporting to tax authorities FATCA sponsoring entity services where EFA will perform on behalf of the sponsored funds, all due diligence, reporting and other requirements that a fund would have to fulfil

9 Regulatory Reporting Services EFA developed complete regulatory reporting solutions to help its clients be compliant with European and local regulations. AIFM regulatory reports EFA markets a solution for all AIFMs, covering all types of reports. The scope of EFA s AIFM regulatory reporting services includes: Supervision of the overall process and guidance on key issues Data gathering and data management Production of all required reports for all types of AIFs / AIFM Calculation of key risk measures to be disclosed in the regulatory reports Monthly monitoring of assets under management and fund s leverage Our regulatory reporting team takes care of the production process of the reports keeping the workload for the client at a minimum. The service is based on existing data processed within EFA s fund administration and risk computation systems. Clients therefore benefit from integrated operational processes and high data integrity. KIID services Our KIID service offering is designed to help management companies in their efforts to become and remain compliant with these requirements. EFA s dedicated team of KIID specialists takes care of the overall KIID production process. Assistance and advice in the definition of the adequate set-up for funds Provision of calculated data, including complex SRRI Monitoring of calculated data with all underlying data available online Production of KIIDs based on customised branded templates Dissemination and publication Filing with CSSF The KIID services are also available for funds not administered by EFA. Other regulatory reports Luxembourg regulatory reports to be provided to the CSSF and the BCL and other supervisory authorities.

10 Distribution Support Services Targeted to support management companies and all intermediaries to respond to increasing regulatory and tax challenges: Immediate access to main European, Asian and South American markets through pre-defined operating models Ready-to-use interfaces Existing operational partnerships between EFA and local providers, following local standards, best practices and in line with legal obligations Connectivity to a large number of distribution platforms Provide dedicated investment products to adhere with specific practices of home markets (e.g. saving plans, reinvestment plans, specific retail processing of orders) Set-up and maintenance of distribution networks, commission and fee retrocession models, according to distribution and fee agreements as entered into by the management company, the fund and/or its main/sub distributors Calculation of trailer fees and retrocessions according to commission models and distributor hierarchies (up to 10 levels) Production of sales reports, statistics and overviews to the governing bodies of the fund and to distributors Regular legal reporting to local authorities in various distribution countries Customised reporting to investors in different languages, covering specific local requirements or information Access to online information through EFA s secured internet portal EFAnet TM Personalised client services: the strong experience in the fund industry and the multilingual capacities of our client relationship managers will ensure you the highest level of services

11 Valuation Services Price monitoring services As part of its price quality controls, EFA provides a report with key information on prices used in the NAV and allows to control the representativeness of prices, the independence of the price source as well as to detect stale prices. EFA also applies and provides an inventory of all specific pricing instructions requested and received from the governing bodies of the fund in relation with any pricing anomalies escalated. EFA also provides its clients with the description of the pricing policy applied to select a price as agreed with the management company or the AIFM. Complex pricing for OTC and illiquid instruments The increasing regulatory requirements combined with the ever evolving complexity of financial instruments lead fund governing bodies to ensure a constant use of fair valuation principles in their fund portfolios. EFA s complex valuation services aim at providing fair valuation and independent pricing solutions to its clients for OTC, illiquid and non-independently priced financial instruments. Our solution is specifically designed to provide funds governing bodies with fair valuation and independent pricing in line with regulatory guidelines. EFA s team of experienced quantitative analysts offers two levels of services, each based on validated and documented pricing models, relying on full transparency in the provision of results, calculation methods and market data. Fair Value Challenging: EFA challenges prices received from non independent pricing providers or any other sources, at any required frequency. Fair Value Calculation: EFA calculates fair prices for official portfolio valuations.

12 Portfolio Management Services Cash forecast services EFA provides the investment manager with immediate information on future cash inflows and cash outflows in a sub-fund and/or share-class permitting to initiate portfolio investment or disinvestment as early as possible. Future cash flows can be related to subscriptions and redemptions received from investors as well as cash flows linked to corporate actions and fee payments. Pooling techniques EFA supports a number of investment techniques generally used by investment funds to optimise the portfolio management of multiple investment funds or to combine multiple investment strategies for a given fund. Multi-manager: a fund which appoints several external managers with specific expertise to independently manage separate portions of the fund s assets Asset pooling: techniques that allow the comanagement of the assets of different funds through the creation of pools of assets. Participating funds hold units in the pool. The value of these units depends on the net asset value of the pool s portfolio Master-feeder: similarly to asset pooling techniques, master-feeder funds enable strategies in view of pooling the funds assets and achieve economies of scale. The master-feeder technique combines assets into a single legal vehicle as opposed to a virtual pool (asset pooling) While offering the asset managers the possibility to leverage on these investment optimisation schemes, EFA perfectly manages all the specificities linked to the pooling management techniques ensuring also that middle-office, investment compliance, fund accounting and financial and regulatory reporting, as well as tax figures are adequately processed throughout the production chain.

13 Solvency Data Set Services Solvency II (Directive 2009/138/EC) has introduced obligations for insurance undertakings which include: Calculation of Solvency Capital Requirements using a risk-based approach (SCRs) (Pillar 1) Implementation of new requirements in terms of governance, supervision and risk management (Pillar 2) Introduction of a new set of Quantitative Reporting Templates (QRTs) (Pillar 3) Insurers need to follow a look-through approach of the underlying assets of the fund in which they invest in order to identify and report the ultimate assets. In this context, funds will have to regularly provide their insurer clients with a detailed transparency reporting on the fund s assets, including some data specific to Solvency II (CIC, NACE, LEI, duration). In order to help management companies gather this specific data, EFA produces a Solvency data set enabling insurers to feed their regulatory reporting and their risk management tools. The EFA Solvency data set is available in 2 versions: Data set built on the EIOPA s (European Insurance and Occupational Pensions Authority) regulatory QRTs format S inventory report detailing all the assets held by the sub-fund S report containing information on the underlying assets of derivatives Data set built on the tripartite template, previously known as the Ampere file, completed with the QRTs data and other standard accounting data

14 European Fund Administration S.A. 2, rue d Alsace P.O. Box 1725 L-1017 Luxembourg Tel: Fax: client.services@efa.eu European Fund Administration S.A. France 17, rue de la Banque F Paris Tel: Fax: service.clients@efa.eu European Fund Administration S.A. All rights reserved