Agile Investment Servicing Overview

Transcription

1 Agile Investment Servicing 2014 Overview

2 00

3 Table of Contents Message from our Chairman and CEO 02 Key figures 03 Our shareholders 03 Board of Directors 04 Executive Committee 05 Our mission & our services 06 Anticipating needs and providing a comprehensive service range 07 Recognised expertise in specialised segments 08 An international open platform 10 Agility & flexibility 12 01

4 Message from our Chairman and CEO Dear Sir, Madam, In 2014, regulatory changes and economic imperatives demonstrated the value of the EFA model, which combines economies of scale, high service quality and absence of conflicts of interest. EFA is Europe s largest independent fund administration company. In total we administer 2,433 investment portfolios worth billion euros. High touch service quality is fundamental to EFA s company strategy and corporate culture. For example, our new UCITS Risk and Key Performance Indicator reports scored high degrees of client satisfaction in our recent quality surveys. Regulatory changes continue to buffet the fund management industry. Our size and scale allow us to help our clients manage these changes well in advance of regulatory deadlines. Alongside our UCITS risk reports, we rolled out AIFMD risk reporting in time for the July 2014 implementation of the Directive. We also launched a service for depositary banks to help them satisfy new requirements for reconciliation and cash monitoring. FATCA challenges are made easier with EFA s fiscal services. By the end of 2014, we served more than 80 clients to help them save cost while becoming FATCA compliant. In France, following the successful integration of Oddo Group s fund administration activity, EFA is now a true alternative in the competitive, French fund administration market. Unseen by our clients, but nevertheless of critical importance, was the successful migration of our securities database onto a new, modern and functionallyrich platform. In October, we also moved our data center to a state-of-the-art facility, meaning that our two fully mirrored, hot, data rooms provide EFA clients with the information security and business continuity they require. Finally, EFA has continued to invest in order to ensure compliance with anti-money laundering and antiterrorist financing imperatives, to help our clients protect their image and meet regulatory requirements. EFA looks to the future with confidence. Our approach of scale economies, hi-touch and absence of conflicts of interest means that our model will continue to succeed over the coming years, benefitting existing clients and future partners. We take this opportunity to thank our clients, shareholders and employees for their loyalty, trust and support. New legislation on the registration of bearer shares led EFA in the Fall of 2014 to act as depositary and maintain the register of holders of bearer shares. Our EFAnet service is now used by over 90 clients 24 X 7 and received a significant upgrade in functionality during Rafik Fischer Chairman of the Board of Directors Thomas Seale CEO 02

5 Key figures 2,433 funds under administration billion Euro of assets under administration 220 clients 68 Management Companies working with EFA 57.7 million Euro turnover 24 million Euro of shareholders equity 99 depositary banks linked to EFA 481 Specialised Investment Funds (SIF) Our shareholders Banque de Luxembourg % Banque et Caisse d Épargne de l État % EFA Partners % KBL European Private Bankers S.A % Oddo & Cie 5.00 % 03

6 Board of Directors 1. Mr. Rafik Fischer, Chairman General Manager and Head of Global Investor Services, KBL European Private Bankers S.A. 2. Mr. Pierre Ahlborn, Vice-Chairman Chief Executive Officer, Banque de Luxembourg Mr. Rodolphe Belli Senior Vice President, Head of Secretary General, Banque et Caisse d Épargne de l État 4. Mr. Philippe Oddo Managing Partner, Oddo & Cie Mr. Serge D Orazio Head of Investment Funds & Global Custody Services, KBL European Private Bankers S.A Mr. Fernand Reiners Member of the Executive Committee, Banque de Luxembourg Mr. Thomas Seale Chief Executive Officer, European Fund Administration S.A. 8. Mr. Paolo Vinciarelli Senior Vice President, Head of Investment Funds Department, Banque et Caisse d Épargne de l État

7 Executive Committee 1. Mr. Thomas Seale CEO and Chairman of the Executive Committee 2. Mr. Frédéric Bilas Director Operations 3. Mrs Françoise Dumont Director - Finance and Risk Management Mr. John Glesener Director - Product & Strategic Development 5. Mr. Claude Hoffmann Commercial Director Mr. Emile Lutgen Director Human Resources, Legal Affairs and General Services 7. Mr. Jean-Marc Verdure Director Information Technology and Organisation

8 Our mission & our services Our mission As an independent company specialising in fund administration, our mission is to 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, with excellence the priority at all times. Our services Net Asset Value calculation, bookkeeping and portfolio valuation Middle-office and order management Transfer agent and registrar Fiscal data processing Compliance & risk management Performance measurement & attribution Domiciliation Reporting solutions Reconciliation and cash monitoring Bearer shares depositary On behalf of UCITS and UCIs 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 Depositary banks Management Companies 06

9 Anticipating needs and providing a comprehensive service range Regulation remains a key driver in the investment fund industry. One feature that sets EFA apart is our commitment to anticipate regulatory changes leading to the timely development of value-added services. AIFM regulatory reporting services After the adoption of the AIFM Directive, EFA became one of the first industry players to offer Alternative Investment Fund Managers (AIFMs) registered or authorised a comprehensive reporting solution covering all types of AIFs. Our solution can either be fully integrated with our fund administration and risk computation processes, or it can be interfaced with any other external data source, providing ample flexibility in the set-up of AIFM reporting. This allows us to produce reports whether or not these funds are administered by EFA, allowing the AIFM to minimise its own workload and centralise report production with a single provider. Risk measures for illiquid assets Conventional quantitative risk measurement methods are often not suitable to monitor relevant risks for Private Equity and Real Estate (PERE) funds. Leveraging on our pool of risk experts and dedicated PERE accounting specialists, EFA has designed customised risk indicators for PERE clients, providing both quantitative and qualitative analyses. Reconciliation and cash monitoring EFA developed a suite of reconciliation and cash monitoring services to help depositary banks fulfil their new regulatory obligations under the AIFM Directive. FATCA & tax evolution To ensure that our clients meet legal obligations under FATCA, we have developed a range of dedicated services designed to help funds become fully compliant with their chosen FATCA status, and to identify US investors during the subscription process. New services will be added to this offering in the months ahead, including reporting to tax authorities. More generally, EFA will closely monitor tax changes, in particular concerning the implementation of standardised Exchange of Information between tax authorities, as well as possible further changes in the European Savings Directive. 07

10 Recognised expertise in specialised segments Reflecting our positioning as an open, agile and independent platform, we served 220 promoters and 68 Management Companies in We maintain operational flows with 99 depositary banks and 11 prime brokers. In 2014, EFA is among the leading service providers in Specialised Investment Funds (SIF), Unit-Linked portfolios and other highly specialised segments, such as Responsible Investing. During the year, micro-finance, environmental, impact finance and Sharia investment funds showed a steep rise, reaching over one and a half billion euros in assets under administration. EFA Private Equity Our dedicated service offering for private equity and real estate funds 11.0 billion Euro assets under administration EFA Private Equity, our business line specialising in private equity and real-estate funds, provides tailor-made solutions to 74 sophisticated investment structures. In 2014, total assets administered rose 9.1%, making EFA one of Luxembourg s top administrators of private equity and real-estate funds. At 31 December 2014, this business accounted for over 11 billion in assets under administration. growth 74 investment structures 9.1 % EFA actively supports LuxFlag 08

11 EFA Hedge Fund Services At the end of 2014, our Hedge Fund Services business unit looked after 199 sub-funds under administration, representing 11.6 billion in total. This volume, along with our long experience in both hedge funds and funds of hedge funds, makes EFA one of the leaders in this field billion Euro assets under administration 199 sub-funds 64 investment structures 09

12 An international open platform One of the pillars of EFA s strategy is our commitment to strong, sustainable growth in international markets. During 2014, EFA migrated 137 French funds worth 10 billion euros onto our integrated, multi-domicile platform. At year-end, our Paris branch administered 223 funds representing over 13.8 billion in assets. Growth potential exists in France as the EFA model of separation between the manager, the depositary bank and the valuation agent guarantees neutrality for clients and adds checks and balances from a regulatory perspective. In addition to Luxembourg and French funds, and building on our identity as an open platform, EFA also services funds domiciled in Sweden, Guernsey, Malta, Australia, the Cayman Islands and the British Virgin Islands. 10

13 13.8 billion Euro assets under administration for European Fund Administration S.A. - France 223 funds administered by European Fund Administration S.A. - France 11

14 Agility & flexibility Client prerequisites are becoming more diverse and complex. We continuously adapt our work-flows, IT infrastructure and services to ensure that we meet these requirements. In this context, we have adapted our core processes to cover complex pooling structures, and have enhanced our night shift capabilities to meet specific processing deadlines. EFAnet Our portal offers a single personalised entry point to all services, reports and information. Significant upgrades and functionalities were implemented in Clients are now able to validate NAVs online and can access current and archived reports through an improved and extended library. In addition, a notification alert system ensures that users are kept informed in real time of any status changes. Bearer shares In Luxembourg, a new law requires that units and shares issued, or to be issued, in bearer form, including investment funds, must be deposited with a professional depositary. EFA developed a service offering whereby we act as depositary, enabling our clients to meet the requirements arising from this regulation. +90 clients EFA awarded ICT Team of the Year The prize rewarded our Enterprise Content Management (ECM) program which has improved the distribution of documents and information providing fluidity in our production lines and reducing our printing and paper costs. 12

15 Within its 2014 year-end greeting cards project, EFA provided support to Médecins Sans Frontières in its fight against Ebola. The choice of the origami theme for EFA s 2014 Overview illustrates our agility, expertise and know-how. Origami art requires these abilities and is based on creating an infinite number of shapes from a square sheet of paper. The square sheet of paper represents EFA s logo.

16 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: services.clients@efa.eu European Fund Administration S.A. All rights reserved