Australia Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland

Transcription

1 FSC (Financial Services Council - Performance Analyst Group) Australia Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland Tab 14 Final March 2011 GIPS Country Sponsor Update Reports Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Yes - Attended 15 September meeting by teleconference. Over the years the FSC (P-Group) has participated in many council meetings and conference calls Participation is ongoing. As you are aware there is a very active GIPS community in Australia that FSC operates under the banner P-Group 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Last year (2010) we held meetings; -5 meetings of the Operating Committee which considered the 3 exposure drafts in late Nov 2010; -3 very well attended information sessions on GIPS specific topics like "GIPS 2010 are you ready"; - and a week of training courses the last week of August which resulted in training for 51 people. This will continue. Specifically, the 2011 Asia Pacific GIPS meeting will be hosted by the FSC held here in Sydney late September 2011 followed immediately by the P Group Training Courses, which will be held in Sydney September Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes. This will continue. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Not in the last 12 months Yes the P-Group is always keen to actively participate 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. Yes. This will continue. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Yes. The FSC replaced it's former website in June The new website which is being released in phases includes a P-Group website at significant cost. The 'old' information was migrated onto the new website and updated it for GIPS We have been working with the P-Group Operating Committee over 2010 and into 2011 to update the material on the website to ensure it future relevant and still retains historical information. This will continue. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. See responses to question 2. See responses to question 2. 8 Has Country Sponsor had any communication with local regulator? Please provide details. We have regular and ongoing contact with both Australian regulators. Over the years, many of their staff have been trained by the P-Group This will continue. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. N/A 10 Please explain how local market expertise is represented within your Country Sponsor Committee. The P-Group, within the FSC, has a formal Operating Committee who is always a managed mix of well qualified service providers and industry experts. The Chair is rotated every few years This will continue. 11 Please explain any additional activities not provided above. 1. The IFSA now, FSC, Guidance Note No. 26 Asset Valuation and Unit Pricing for Infrequently Valued Assets - Was updated and approved by the IFSA Board on 15th February The IFSA, now FSC, Guidance Note 1 - Global Investment Performance Standards was updated and approved by the IFSA Board in March N/A

2 OeVFA-Österreichischen Verreinigung für Finanzanalyse und Asset Management VÖIG-Vereinigung österreichischer Investmentgesellschaften Austria Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland 1 2 Please explain Country Sponsor activities in the following categories Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. March 2010 to March 2011 Planned for 2011 Yes - participation by Michael Schmid in the Lisbon EMEA RIPS Meeting in March and the EMEA RIPS Conference Call in October 2010 as well as participation in the Zurich EMEA RIPS Meeting scheduled for March 2011 by Mr. Mayer (deputy representative) Yes - comments on Verification-, Real Estate- and Private Equity Guidance Statements in November 2010 submitted Further continuous participation planned Further continuous participation planned Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Has Country Sponsor had any communication with local regulator? Please provide details. For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. Please explain how local market expertise is represented within your Country Sponsor Committee. 11 Please explain any additional activities not provided above. Yes - vote on Council Chair and EMEA RIPS Chair Yes - Michael Schmid was invited by Martin Schliemann to work on the regulator working group in September 2010 No No separate GIPS Website exists but GIPS is one bullet-point on the German Website of OeVFA and is mentioned on the VOeIG-Website OeVFA and VOeIG conduct a comprehensive course of lectures (ÖVFA-Lehrgang) which is one of the best known educational initiatives in the Austrian asset management business. GIPS is addressed within this programm in terms of historical development, objectives, rules, verification and organisation. Promotional activities and local newspaper advertisements are available on the German Website of OeVFA. VOeIG is in continuous communication with the Austrian financial authorities. With UCITS IV, a new local Investment Fund Act, new federal legislation on capital gains taxation being only heavy weights on the agenda communication was somewhat dominated towards these issues. Local market expertise is represented via the background of the two Austrian Sponsoring organisations. The Association of Austrian Investment Companies (Vereinigung Österreichischer Investmentgesellschaften, VÖIG) is the umbrella organisation for all Austrian investment fund management companies and all Austrian real estate investment fund management companies. VÖIG represents 100% of the fund assets managed by the Austrian investment fund management companies and real estate investment fund management companies and has thus access to investment specialists within the member companies. The objective of the Austrian Association for Financial Analysis and Asset Management (Österreichische Vereinigung für Finanzanalyse und Asset Management, ÖVFA) has been to promote the flow of information between listed companies and investors, to provide analysts, fund managers and other investors with a platform for sharing their experiences, to better acquaint domestic and foreign investors with Austria's role as a financial centre and to represent the interests of its members to the public at large and within the scope of economic policy initiatives aimed at fostering Austria's financial market. With corporate members from large listed companies an all relevant financial services groups ÖVFA has access to a vast pool of experts. Within the Country Sponsor Committee representatives from asset management, pension funds, verification, regulators and academics are represented. Further continuous participation planned Country sponsors are prepared to nominate individuals to serve on Subcommittees and Working Groups whenever relevant expertise can be provided - e.g. Risk Working Group in the past

3 Belgium Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland BEAMA (Belgian Asset Managers Association) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Participation at the March 2010 Lisbon meetings by the two official Belgian GIPS Representatives. Participation at the March 2011 Zurich meetings by one of the two official Belgian GIPS Representatives. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. BEAMA has forwarded by means of mailings in 2010 the following material to the Belgian Users' Group of GIPS: in Febr 2010 the full material of the 2010 edition of the GIPS Standards. Beginning July 2010 BEAMA announced the New GIPS Executive Committee members (start of 1 Sept). End of August 2010 BEAMA forwarded the news of Mr. Boersma on the GIPS_Guidance Statement Revisions concerning Private Equity, Real Estate and Verification. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. BEAMA participated in June for the voting on the GIPS Council Chair and the GIPS EMEA RIPS Chair (first and second round)? BEAMA participated also in November in the voting on the EC Nominations Committee. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Yes, BEAMA has appointed two Belgian GIPS Representatives. For details, see enclosure " GIPS_CountryReport_March 2011_StructureBELGIUM_BEAMA". 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. No position papers were transmitted by BEAMA in Note however that BEAMA is also a founding member of EFAMA, The European Fund and Asset Management Association. Some issues will be raised through that channel also. 6 7 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Yes, BEAMA has an own website (WWW. BEAMA.BE). On this website a dedicated number of pages is attributed to GIPS. Please note that due to the aftermath of the financial turmoil and the consequent economic crisis, there was no opportunity to raise enough interest for such a workshop or seminar. The website was renewed in The dedicated pages for GIPS remained. The 2010 Exposure on GIPS Standards (final text) was added with the press release of CFA as soon as it was published in January BEAMA organises at least one yearly meeting of the Belgian GIPS Community. 8 Has Country Sponsor had any communication with local regulator? Please provide details. BEAMA has very regular contact with the local regulators of the financial sector. Up till now, there has not been much demand about GIPS Standards from their side. We are also in touch with the European level via EFAMA (see item 5). Here there is more demand from e.g. CESR to have detailed information & coordination with GIPS Standards. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. Not applicable. 10 Please explain how local market expertise is represented within your Country Sponsor Committee. BEAMA represents the Belgian and foreign fund and asset managers as well as the investment firms, operating on the local market. We have amongst our members also the Belgian Private Banking Association. Through the major asset managers firms we have also close contact with the occupational pension funds industry. We are also part of the umbrella federation of the Belgian financial sector, Febelfin. 11 Please explain any additional activities not provided above.

4 Canada Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland CIPC (Canadian Investment Performance Council) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. We have participated in all activities for which we have been invited. This would include the March 2010 meetings in Lisbon, the July RIPS Conference call, the September RIPS meeting at the Annual Conference, as well as all EC open conference calls. We will continue to participate in all calls for the EC, as well as in all Americas RIPS calls. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Apart from the GIPS 2010, we have continued to monitor guidance and have provided as needed. The Chair of the CIPC is on the GIPS Interpretation sub-committee and has a direct way to provide feedback on guidance. We will continue to participate as opportunities arise. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes. We participated in the voting for the GIPS Council Chair and Nomination Committee. We will continue to vote as requested, with the Americas RIPS and GIPS Interpretation sub-committee voting forthcoming. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. We continue to seek participants willing to be involved for the CIPC as well as for any GIPS subcommittees and working groups. In an initiative with the USIPC, Jenny Tsouvalis of the CIPC is working to help bring the GIPS standards to pension plans. We did put forth Mike Lowry to be involved with a subcommittee on GIPS enforcement, but nothing further was noted. This is on-going and my objective in to invite more participants to join the CIPC, allowing our core members other opportunities to participate. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. None have been provided to the EC We will continue to identify opportunities and provided opinions as needed Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Has Country Sponsor had any communication with local regulator? Please provide details. Yes, we participate with the Canadian societies. This allows us to reach the same membership as the societies. We place information on the GIPS 2010 standards, as well as a link to the GIPS standards, minutes of our meetings, members as well as providing an opportunity for members to ask questions. We are looking to strengthen our website, and will reach out to the CFA Institute to help us on this. Yes, we have lead sessions in three cities, Montreal, Toronto and Vancouver, with the latest being on October 12. Each event has been well attended, with over 75 in attendance. They were saved as a webcast and can be viewed going forward. As well, we meet with Society Presidents twice a year at their meetings to better reflect the work we We plan to hold events with our societies, and plan to include Calgary in our rotation. have performed. One meeting is held in February and the second in September. We have held sessions with Deloitte The support we have received from the societies has been beneficial. and PWC, helping to promote the standards with their client base. Finally, a press release was issued jointly by Janine Guenther, PCR representative and Garvin Deokiesingh, highlighting the GIPS 2010 standards in the major presses in Canada. We continue to work with the main regulator, the Ontario Securities Commission, as they are observers to our monthly calls. They are willing to provide their perspective as necessary and we can inquire on their perspectives. We spoke at Canadian Regulators Annual Conference in September, and they were pleased with the work we had done to date in educating their people. This is important to us and will look to invite other provincial regulators to our meetings as well. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. This is not applicable for the Canada. No plans to translate in French. 10 Please explain how local market expertise is represented within your Country Sponsor Committee. We have a cross section of representatives, first, from major centres of the country, as well as by industry. Our of 7 members, we have representatives covering retail and institutional markets, system providers, compliance officers, verifiers, pension plans and auditors. We will have some rotation come September 2010, and are actively pursuing new members to enhance our team. 11 Please explain any additional activities not provided above.

5 Denmark Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland DSFA (The Danish Society of Financial Analysts) and CFA Denmark Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Yes, I attended the Lisbon meeting which was my first meeting representing Denmark and the EMEA RIPS call on October 28th Participate in in-person meetings and calls. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. No 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes, the Danish country sponsor voted on: EMEA RIPS chair voting, the EMEA RIPS run-off voting, GIPS council chair, and the EC Nominations Committee voting Continue to vote on all ballots 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. I, Lars Bjerre Hansen serve on the Promotion and Awareness committee since October 2010 Continue to serve on the Promotion and Awareness Committee 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. no 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. No, but the Danish society of Financial analysts and CFA Denmark is in process of launching a new website which will a GIPS website Launch net GIPS webpage on the new society website. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. GIPS is a common topic in the semi-annual meetings of the Danish Performance Measurement network Continue discussion GIPS at network meetings 8 Has Country Sponsor had any communication with local regulator? Please provide details. No. Try to reach out to local regulator 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. NA 10 Please explain how local market expertise is represented within your Country Sponsor Committee. The Country sponsor committee include performance measurement professionals from Pension managers, Asset managers and software vendors. 11 Please explain any additional activities not provided above. NA

6 France Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland FEGPPS (French Experts Group on Performance Presentation Standards) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. We have participated to the Lisbon Meetings in March We have attended the RIPS meeting, GIPS council Meeting and GIPS Executive Committee, We will attend the Zurich meeting. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes, we have voted for the RIPS EMEA election. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Yes, we have proposed Mr. Pagniez as a candidate to serve on the GIPS Management Working Group, Mr. Pagniez remains at the GIPS disposal if there are opportunities to participate in this Working Group. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Our Association's website has dedicated pages on the GIPS Standards and the issue of the performance calculation under the GIPS Norms. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. GIPS Standards have been integrated to the PRAM (the financial training courses delivered by our association). 8 Has Country Sponsor had any communication with local regulator? Please provide details. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. GIPS experts' working group have already raised the question whether to translate the GIPS Members agreed that the entire booklet be translated in case the decision to translate is reached. The issue will be discussed in our next meeting that takes place on the 22th of March Please explain how local market expertise is represented within your Country Sponsor Committee. We have a GIPS experts' working group that meets regularly. 11 Please explain any additional activities not provided above.

7 Germany Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland GAMSC (German Asset Management Standards Committee) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. We have attended RIPS meetings in 2010 as well as open EC-Calls and working group calls of the RIPS EMEA. We intend to continue our involvement as in Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. We have checked the changed Guidance Statements on Real Estate, Verification and Private Equity, which were open for discussion, and we approved the changes. Therefore we have not submitted comments. 3 4 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. We have participated in the calls for the election of subcommittee members and further RIPS EMEA related topics. We intend to continue our involvement as in We have nominated candidates for the election of the RIPS EMEA chair. We intend to continue our involvement as in Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. We are currently translating the GIPS 2010 into German language. We intend to continue our involvement as in 2010 and especially finish the translation work. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. We have conducted the yearly GIPS conference in We are planning the next German GIPS conference, which will take place in the 2nd quarter 2011 and we intend to continue our involvement as in Has Country Sponsor had any communication with local regulator? Please provide details. The member associations of the country sponsor are in frequent contact with the local regulator on various issues related to the investment industry. We intend to continue our involvement as in For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. We are currently translating the GIPS 2010 into German language and plan to finish this work in the second quarter of Please explain how local market expertise is represented within your Country Sponsor Committee. The German country sponsor consists of three organisations: BVI German Investment and Asset Management Association, DVFA Society of Investment Professionals in Germany, and GCFAS German CFA Society - with nearly 3,000 individual members representing over 400 investment firms and BVI' members include 82 investment firms. The German IPS consists of individuals that either work for investment companies or treasury departments (investor). Further members are verifiers and performance measurement service providers. We intend to continue our involvement as in Please explain any additional activities not provided above. The German Committee "Investment Performance Standards" founded working groups on issues like Assets under Management. We intend to continue our involvement as in 2010.

8 Greece Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland Hellenic CFA Society Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Participated in EMEA RIPS Meeting in Lisbon (March 2010) 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. No 3 4 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. - No 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. No Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Has Country Sponsor had any communication with local regulator? Please provide details. Yes (gips.gr) No No 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. Translation of GIPS Please explain how local market expertise is represented within your Country Sponsor Committee. Three members of the committee work for investment management firms. 11 Please explain any additional activities not provided above.

9 Hong Kong Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland HKSFA (The Hong Kong Society of Financial Analsyts Limited) Please explain Country Sponsor activities in the following categories 1 Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. March 2010 to March 2011 Planned for 2011 Yes, the Hong Kong Society has participated at RIPS, Council meetings and conference calls whenever invited. We will continue to participate. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. No. We will try to contribute whenever opportunity arises. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes. We will continue to vote again Has the Country Sponsor nominated individuals to serve on Yes, we have 1 committee member, Ms. Jenny Lor, serving on the Investor/Consultant GIPS Subcommittees and Working Groups? Please provide Subcommittee. details. Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide No. details. Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. We posted the current edition of GIPS Standards on the Society website. We will continue to have member(s) on subcommittee(s). We do not intend to participate in this aspect. We don't have any plan to create a GIPS website, but will continue post updated GIPS news on Society website. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Yes, a seminar on "GIPS An Update" was organised on 3 May Mr. Carl Bacon was invited to conduct this seminar and cover topics like: incorporation of risk, fair value, revised compliance statement, verification status and other changes. Our Committee member, Ms Jenny Lor has been invited to act as the moderator of the Panel Discussion on the topic "Assessing the necessary degree of transparency in risk and performance reports" at the Investment Performance Analysis & Risk Management Conference (IPARM) 2011 in January May consider to have to organise GIPS workshops in September Has Country Sponsor had any communication with local regulator? Please provide details. The Hong Kong Society will keep on having ongoing dialogues with Securities and Future Commissions The Hong Kong Society will continue the effort to update the regulators on latest development of GIPS Standards Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Please explain how local market expertise is represented within your Country Sponsor Committee. As English is the principal business language used in Hong Kong, we consider the information and materials provided by the CFA Institute in the English is the appropriate material to use for We will not involve in the Chinese translation of GIPS information and marketing purpose. The GIPS Committee of the Hong Kong Society consists of experts from different fields. It is also our effort to maintain an open dialogue for all GIPS stakeholders to ensure that there is an open channel for communication. We intend to expand the diversity of our GIPS Committee to increase our local market expertise. 11 Please explain any additional activities not provided above

10 Hungary Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland CFA Society of Hungary and Association of Hungarian Investment Fund & Asset Management Companies Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Mr. Miklós Farkas attended the Lisbon GIPS Council and EMEA RIPS meeting and participated in the EMEA RIPS conference call in November. Mr. Miklós Farkas is attending the Zürich meeting, and is planning to attend future meetings. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide We did not, unfortunately (but we agreed with the suggestions put forward by the EC). details. We definitely plan to do so in the future. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes. We have voted on the issues of GIPS Council Char, EMEA RIPS Chair and Nomination Committee member. We will continue to do so. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. No. The local industry is too small, and our committee has no pool of experts to nominate from. This will likely not change in the near future. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. No. None. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. We have registered both and The preparation of the GIPS website is under way, in the meantime and have GIPS related material (GIPS in Hungarian, conference details, etc.) We are planning to go ahead with the GIPS website this year. On the GIPS website the Standards would be available on-line, as well as presentations from previous GIPS conferences and related material. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. The country sponsors and the Hungarian Financial Supervisory Authority has been organizing an annual half-day conference on investment performance related subjects, especially GIPS for 5 years. There were a lot of major developments in the asset management market last year, which meant the organization of this year's conference was put on hold. BAMOSZ and the International Training Center for Bankers organize a regular asset management course, which includes as part of the basic course a lecture on performance measurement with a special GIPS focus given by Mr. Miklós Farkas. We are still planning to go ahead with this year s conference, once the developments in the pension markets have cleared, and it will hopefully be held in the Autumn. The asset management course, and the performance measurement lecture, will be held this year as well. 8 Has Country Sponsor had any communication with local regulator? Please provide details. The country sponsor committee used to include an observer from the Hungarian Financial Supervisory Authority (HFSA), and though our colleague left the HFSA last year, we still have good contact with the regulator. The good contact remains, and we will try to ask the regulator to send someone as an observer. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. The country sponsor has translated both the original and the Gold GIPS, and we are planning to translate GIPS 2010 as well. We are planning to start translating soon, and hope to have an endorsed version before the end of the year. 10 Please explain how local market expertise is represented within your Country Sponsor Committee. The most important achievement in 2009 was that the Association of Hungarian Investment Fund and Asset Management Companies (BAMOSZ) has joined the CFA Society of Hungary as joint Hungary Country Sponsors, and were endorsed by the GIPS EC in December The Hungarian GIPS Committee now includes members from both bodies, and our group of experts includes representatives from fund management companies, the association of asset management companies as well as independent experts, including a former chairman of BAMOSZ and a former director of the regulator. We have asked the members of both associations to join the local GIPS committee, and now we will have to work out how the new committee will operate. We will also ask the regulator to send an observer. After the committee is set up, we plan to evaluate how other parties (clients or verifiers) could be enlisted. 11 Please explain any additional activities not provided above. None None.

11 Ireland Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland IAIM (Irish Association of Investment Managers) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Attended GIPS council meeting in Lisbon in March, and "attended" Conference call in November Attending March meeting in Zurich 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Yes Country Sponsor continues to provide feedback and comment on the standards. Will continue to do so. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Yes Country Sponsor voted on election to GIPS council chair, among others. Will continue to do so. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Yes Country Sponsor is represented on the Interpretations Sub-committee by Joe Kavanagh and by Joe O'Donnell on the Investment Manager Sub Committee. Will continue to serve on these committees. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. Indirectly - as part of the members involvement on the GIPS Sub Committees. Will continue to do so. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Yes - in conjunction with CFA Ireland website. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Training initiatives involving GIPS 2010 content being pursued in conjunction with local CFA branch. Will continue to seek out opportunities re Promotion of Standards 8 Has Country Sponsor had any communication with local regulator? Please provide details. No 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. n/a 10 Please explain how local market expertise is represented within your Country Sponsor Committee. Investment Managers / Consultants / Verifiers involved 11 Please explain any additional activities not provided above.

12 Italy Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland IIPC (Italian Investment Performance Committee) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. No Resume participation 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. No 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. No 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. No 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. No Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Has Country Sponsor had any communication with local regulator? Please provide details. No Not exactly. There is something here: It will be updated accordingly No 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. No translation needed anymore 10 Please explain how local market expertise is represented within your Country Sponsor Committee. The sponsors represents asset managers, bankers, pension funds, financial analysts and audit firms 11 Please explain any additional activities not provided above. Plan to have more meetings at the local level + involve CFA Italy in a presentation of GIPS during of the 2012 asset management trade show

13 The Security Analysts Association of Japan (SAAJ) Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland Please explain Country Sponsor activities in the following categori March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. We attended the GIPS in person meetings, RIPS Asia Pacific Meeting, GIPS Counci Meeting, and GIPS EC meeting (observer) held in March 2010 in Lisbon. We also attended RIPS Asia Pacific telephone conference held on 15 September. We plan to attend all of the GIPS in person meetings as well as RIPS Asia Pacific telephone conference to be held in the future. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. We submitted comments on the exposure drafts of the Guidance Statements on Real Estate, Private Equity, and Verification in November 2010 based on the comments provided by the SAAJ IPS Committee members. We will make every effort to submit comments to all of exposure drafts required by the GIPS EC and other related parties. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. We casted votes for the election of the GIPS Council Chair and the GIPS Nominations Committee member representing the GIPS Council. We will make every effort to make votes to any issue required by the GIPS EC or other related parties. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Currently SAAJ sponsors 7 members to GIPS Subcommittees and Working Groups. However, we did not make new nomination during the said period. We plan to nominate the members to GIPS Subcommittees and Working Groups as much as possible. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. We submitted the Japanese Translation of GIPS 2010 edition in April 2010 to the GIPS EC and it was endorsed by GIPS EC on 19 April We plan to submit the Japanese Translation of the GIPS Guidance Satements on one by one basis for endorsement by the GIPS EC Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. Has Country Sponsor had any communication with local regulator? Please provide details. SAAJ has its own website and there is a section dedicated to the GIPS Standards. We conducted four GIPS Seminars for the purpose of explaining practical issues on the GIPS 2010 edition. Each seminar had about 100 participants, thus attracted about 400 audience from investment managers, consultants, verifiers, and pension sponsors. The four seminars are: 1. Fundamentals of the GIPS compliance-july GIPS compliance in global basis-sept Calculation of performance and fair value evaluation- Dec Real Estate and Private Equity- Feb 2011 We had a meeting with the local market regulator, Japanese Financial Services Agency (FSA), and explained about the major items of GIPS 2010 edition. We also sent Japanese Translation of GIPS to the FSA. We plan to upload the Japanese Translation of the GIPS Guidance Statements as soon as they are endorsed by the GIPS EC. We plan to continue holding about four GIPS Seminars a year for the purpose of explaining practical issue on the compliance with the GIPS Standards. The next seminar is planned to be held late April with the topic of practical issues of GIPS verification. We intend to keep regular contacts with the FSA. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. We have already translated the GIPS 2010 edition and had the endorsement by GIPS EC in April As mentioned above, we plan to translate the GIPS Guidance Statements on one by one basis. 10 Please explain how local market expertise is represented within your Country Sponsor Committee. We have 27 Committee members from local investment management firms, verifiers, consultants, and pension sponsors. We will continue to find best people in the industry as the members of SAAJ IPS Committee. 11 Please explain any additional activities not provided above. As a GIPS country sponsor in Japan, we respond to inquiries from local market on GIPS related issues. We will continue to provide initial guidance to inquiries from the local party in Japan.

14 Kazakhstan Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland AFIA (Association of Financial & Investment Analysts) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Took part in the committee meeting in November 2010 in Frankfurt am Main. At a meeting held consultations on current issues of development GIPS standards in Kazakhstan. Planned to attend the meeting and the PIPS committee in Oslo, Norway in November Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. Country Sponsor for Kazakhstan, as well as for Ukraine and Russia is very important to question the presence of the actual translation of GIPS standards into Russian. As well as marketing issues and GIPS standards. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. The conference on risk management conducted by the GIPS standards of section with a discussion of problems and issues. The conference speaker Michael Helving from the office of the audit company PWC in Zurich with the presentation of the use of GIPS standards in the practice of asset managers. As a result of the conference were published interviews and articles in local newspapers and magazine "World Monitor". Many thanks to Dimitri Senik for sending Michael to participate in the conference. 8 Has Country Sponsor had any communication with local regulator? Please provide details. With local control - Financial Supervision Agency regular meetings, a number of provisions of the GIPS standards have already been introduced prudential norms for asset managers and pension funds, such as a weekly market revaluation of assets and mandatory disclosure of financial results and asset managers of pension funds in the media. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. This issue is very important for Kazakhstan and treated in cooperation with Ukraine and Russia 10 Please explain how local market expertise is represented within your Country Sponsor Committee. In the framework of regular meetings between the association of asset managers with a discussion of current issues and discuss the regulations with the local regulator 11 Please explain any additional activities not provided above. Not very developed stock market of Kazakhstan does not allow to realize the full implementation of GIPS standards. For example, in Kazakhstan because of the lack of the required number of issuers can not build a composite, and accordingly make some calculations and qualifications.

15 Korea Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland KIPC (Korea Investment Performance Committee) Please explain Country Sponsor activities in the following categorie March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. 1) 2010 GIPS Executive Committee meeting : The representative of The Korea Country Sponsor, KIPC(Korea Investment Performance Committee) attended and made a report on KIPC's activities. 2) Conference Call : 1time 1) Draft of the Standards : KGC's opinion and comment on the exposure draft of the GIPS 2010 was submitted on 1 January ) Translation of the 2010 edition of GIPS : Korean Translation of 2010 GIPS had been finished and endorsed by the GIPS EC. The Korea Country Sponsor published the translation and provided it to the related industry persons and institutions. The Korean Translation of 2010 GIPS will be posted on the Korea GIPS Website. N/A 1) 2011 GIPS Council Meeting : The representative of the Korea Country Sponsor, KIPC(Korea Investment performance Committee) will attend 2) Conference Call : If any 1) KIPC would promote the 2010 edition of GIPS standards actively 2) When the revised Guidance statement following the 2010 edition of GIPS standards is introduced, KIPC will submit the comment and introduce it to Korean capital market industry. 3) If there is any other issues, KIPC will handle them in a positive way. 4 5 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. N/A N/A 6 7 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. KIPC has a GIPS Website but it is now under remodeling. After finishing the remodeling work, KIPC will make a use of this website for promoting the GIPS standards. For example, the investment performances of asset management companies are scheduled to be disclosed voluntarily and the materials related to GIPS would be posted on this website 1) 2010 GIPS Conference : KIPC hosted "2010 GIPS Conference" to promote and facilitate the GIPS standards in Korea. 2) Regular KIPC meeting : KIPC had monthly meeting and handled related issues. GIPS website and the disclosure system are scheduled to open and KIPC promote the voluntary disclosure of asset management companies. Regular KIPC meeting : same as Has Country Sponsor had any communication with local regulator? Please provide details. FSS(Financial supervisory service), Korean regulator planned the disclosure system of the investment performances of asset management companies on the Korean GIPS website and discussed it with KIPC. Fss and KIPC reached an agreement to the voluntary disclosure system and are preparing it. Besides the disclosure system, FSS and KIPC will collaborate to make the GIPS standards to be facilitated and applied in an effective way. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. The translation work of the 2010 version of the GIPS standards is already finished and published. The publications were already distributed to the related industry persons and institutions. KIPC is trying to promote the GIPS standards in order to make it facilitated more widely. 10 Please explain how local market expertise is represented within your Country Sponsor Committee. KIPC is composed of experts as follows : 1)A Risk management team manager in an asset management company, 2) A Risk Management executive in NPS, 3) Two Managing Director in Securities companies, 4) A Managing Director in asset management company, 5) An Executive in Fund assessment Company, 6) Persons in chare in Korea Financial Investment Association The policy will be kept that the KIPC is composed of experts of the capital market industry 11 Please explain any additional activities not provided above. N/A

16 LBA (Liechtenstein Bankers Association) Liechtenstein Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for 2011 Yes. 1 Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. March 2010: Attendance and participation at the GIPS Executive Committee (EC), GIPS Council and RIPS meetings in Lisbon. 28 October 2010: Participation at the EMEA Regional Investment Performance Subcommittee (RIPS) open conference call meeting on Friday 28 October 2010 at 9:00 a.m. ET for 1.15 hour. Attendance and participation at the future GIPS Executive Committee (EC), GIPS Council and RIPS meetings. Attendance and participation in conference calls 29 December 2010: Participation at the GIPS EC Open Conference Call open conference call meeting on Wednesday 29 December 2010 at 9:00 a.m. ET for one hour. Yes. 2 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. The country-sponsor has submitted comments. In general, Liechtenstein works closely with the GIPS Expert Group from Switzerland and gives therefore comments together with the Swiss colleagues (e.g., exposure drafts of the Guidance Statements on Private Equity, Real Estate and Verification for public comment). The cooperation with the GIPS Experts Group of the Swiss Banking Association is well established and will be carried on thoroughly. The cooperation with the GIPS Experts Group of the Swiss Banking Association is well established and will be carried on thoroughly. Yes. 3 Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. In May 2010 we voted for GIPS EMEA RIPS Chair and GIPS Council Chair. In November 2010 we voted for GIPS Standards Executive Committee 2011 Nominations Committee 4 Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Due to the very limited human resources, it is very difficult for Liechtenstein to nominate individuals to serve on GIPS Subcommittees and Working Groups. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. No. As mentioned above (point 2), Liechtenstein works closely with the Swiss Banking Association (e.g., Client Reporting, Valuation issues, the promotion of GIPS within the country etc.). 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. The LBA-Website has a separate Site for GIPS ( All presentations of our GIPS roundtables are being published there. The site refers also to the official GIPS-website ( and also to the corresponding Swiss website. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. On 24 June 2010, Liechtenstein Bankers Association organized the GIPS Experts Meeting in Vaduz. Dimitri Senik (PWC) held a very informative speech about "GIPS 2010 and new GIPS- Interpretations" and Adrian Doswald held also a very informative speech (LGT Capital Management) about "New GIPS-Logo and an example of use at LGT Capital Management AG. In November 2010 there was published an Interview with Adrian Doswald, GIPS Country Sponsor representative of Liechtenstein with the topic "GIPS an international Performance-Standard for Liechtenstein" The Liechtenstein Bankers Association organizes the annual GIPS Experts Meeting in June This will be the 7th GIPS event in Liechtenstein and will cover current and upcoming topics. 8 Has Country Sponsor had any communication with local regulator? Please provide details. We have an ongoing and constant dialog with the Liechtenstein Financial Market Authority (FMA) We have an ongoing and constant dialog with the Liechtenstein Financial Market Authority (FMA) 9 10 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. Please explain how local market expertise is represented within your Country Sponsor Committee. 11 Please explain any additional activities not provided above. We do not have a GIPS translation The members of the GIPS-roundtables are investment professionals of the member banks of the LBA. The cooperation with the GIPS Experts Group of the Swiss Banking Association is well established and will be carried on thoroughly. Creating and building up a GIPS Knowledge-Database on the LBA Intranet Creating and building up a GIPS Knowledge-Database on the LBA Intranet

17 Micronesia Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland APAFS (Asia Pacific Association for Fiduciary Studies) Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at RIPS, Council meetings, conference calls? Please provide details. Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Yes. Participated in RIPS conference calls. No. Yes. Yes. Nominated Louis Boulanger 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. No. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Yes. Information is posted on GIPS tab on our website. 7 Has Country Sponsor planned or conducted GIPS Seminars or Yes. We had Louis Boulanger as our featured luncheon speaker at our annual Manila investment conference with Workshops? Please list any press releases, media activity or other respect to GIPS; 2010 version of standards; and practical applications of GIPS for institutional investors. Attended by promotional activities institutional investors Has Country Sponsor had any communication with local regulator? Please provide details. For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. Please explain how local market expertise is represented within your Country Sponsor Committee. We have regular contact with local regulators at during our series of country conferences held during the year. NA Our Board of Governors is comprised solely of representatives of our institutional investor membership. 11 Please explain any additional activities not provided above. NA

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19 October 14 and 15, 2010 New World Hotel, Makati City, Philippines In association with FINANCIAL EXECUTIVES INSTITUTE OF THE PHILIPPINES (FINEX)

20 I N T R O D U C T I O N Schedule at a glance Thursday, October :00 AM Breakfast and Registration 8:45 AM Welcome Remarks 9:00 AM Session 1 10:00 AM Coffee and Refreshment Break 10:15 AM Session 2 11:15 AM Session 3 12:15 PM Featured Luncheon Speaker 1:15 PM Session 4 2:15 PM Session 5: Keynote Speaker 3:15 PM Coffee and Refreshment Break 3:30 PM Q&A with Keynote Speaker 4:00 PM Closing Remarks 4:15 PM End of Program Friday, October :00 AM Breakfast and Registration 8:30 AM Welcome Remarks 8:45 AM Session 1 9:45 AM Coffee and Refreshment Break 10:00 AM Session 2 11:00 AM Session 3 12:00 NN Featured Luncheon Speaker 1:00 PM Session 4 2:00 PM Session 5: Panel Q&A 3:00 PM Coffee and Refreshment Break 3:15 PM Raffle and Final Awarding 3:30 PM Closing Remarks Event Overview The annual Pacific Region Investment Conference (PRIC), envisioned to be the premier investment conference in the region, is designed to link training with regional understanding. Bridging Wall Street to the Asia Pacific region, it provides members with meaningful educational forums that cover the most current and fundamental understanding of their roles as fiduciaries, focusing on regional specific issues and needs. About APAFS The Asia Pacific Association for Fiduciary Studies (APAFS) was formed by representatives from public and private institutional funds from around the Asia Pacific Region. It is a non-profit educational association which aims to raise the level of understanding and standards of practice among fiduciaries. 10 th The Annual Pacific Region Investment Conference M A N I L A, P H I L I P P I N E S This provides members with current developments pertaining to the relevant tools needed to measure performance of investment managers, investment consultants and other service providers. With the Pacific Region Investment Conference, APAFS also serves as regional resource for Best Practices and industry developments, while providing valuable networking opportunities with other fiduciaries from the region. More than a sharing of knowledge and experiences, the Conference essentially becomes a venue for the recognition and appreciation of the richness of the cultures and practices that are unique to the Asia Pacific. APAFS advocacy in promoting prudent stewardship of entrusted funds is manifested through events and activities such as the Country Conference and PRIC. In 2010 s lineup of conferences, more institutional investors, financial regulators and public officials are anticipated to take part in discussing current issues relating to the 2010 edition of the Global Investment Policy Standards (GIPS), as APAFS recognize the vitality of improved consistency in the calculation and presentation of investment performances. Message from the Chairman Hafa Adai! APAFS warmly welcomes all the delegates to the 10 th Pacific Region Investment Conference. With this year s surprising odds in the global finance, leaders and finance professionals all over the world take initiatives on restoring stability of economies. For ten years, the PRIC has been a successful venue to collaborate with the world s finance experts to highlight the opportunities and outlook in the finance industry. The year 2000 marked APAFS initiative to prepare the region for the new millennium as the organization s pioneering conference dubbed Investing in the New Millennium addressed the century s investment issues and trends. On the following years, the annual conference addressed significant economic highlights such as Retirement issues, Outlook on the Asian Market, Funds Management, Equity Analysis, Global Investment, Economic Growth and Opportunities, the Government s Financial Role, and more relevant topics concerning the region s finance industry. We are glad to have Mr. Bud Conrad, Chief Economist of Casey Research and Keynote Speaker for this year s conference, to share his expertise in the economy and investment markets with us. We will also tackle topics related to the global equities and market trends during global financial crisis to guide us in our steps towards prudent stewardship. We trust that this year s conference will increase your knowledge and equip you to put into practice what you have learned and discovered from our speakers and new acquaintances and networks from the fiduciary industry. On behalf of the Association, thank you for your support! Gerard A. Cruz CHAIRMAN Message from the Executive Director Welcome to the 10th Pacific Region Investment Conference! As part of our efforts in providing a regional resource to educate the finance and investment industries on current financial issues and on exercising prudent stewardship, APAFS once again brings together key finance players for this year s conference. We are confident that this will be another successful endeavor on raising the level of understanding and standards of practice among regional fiduciaries. As the conference promises relevant insights and meaningful relations and networks, we are eager to reconnect with returning delegates and new attendees for two days of unique opportunities taking place under one roof. We thank you for your continued participation and we encourage you to invite more colleagues and business partners to take part in the sustained exchange of valuable knowledge and fiscal practices. We look forward to see you in the conference! Board of Governors CHAIRMAN Mr. Gerard Cruz Board of Trustees Government of Guam Retirement Fund VICE CHAIRMAN Mr. Patrick Tellei President Palau Community College SECRETARY Ms. Anna Mendiola President FSM Development Bank TREASURER Mr. David O Brien Vice President, Administration & Finance University of Guam GUAM Dave O Brien, V.P Finance & Administration, University of Guam (Current Treasurer) Gerard A. Cruz, Member, Board of Trustees, Gov. of Guam Retirement Fund (Current Chairman) Mary Okada, President, Guam Community College COMMONWEALTH OF THE N. MARIANA ISLANDS Phillip Mendiola-Long, Member, Board of Trustees, Marianas Public Land Trust Mark A. Aguon, Administrator, NMI Retirement Fund Vincente M. Babauta, Chairman, NMC Foundation REPUBLIC OF MARSHALL ISLAND Minister Jackson Ading, Ministyr of FInance Ron Cenicola, V.P. Finance, RMI Telecommunications Authority Benjamin Graham, Business Consultant, Graham Consulting FEDERATED STATES OF MICRONESIA Anna Mendiola, President, FSM Dev. Bank (Current Secretary) Alexander R. Narruhn, Administrator, FSM Social Security Administrator Andrew Yatilman, Satawal Trust Fund REPUBLIC OF PALAU Kerai Mariur, Vice President & Minister of Finance, Republic of Palau Patrick U. Tellei, President, Palau Community College (Current Vice Chairman) Mark U. Rudimch, Senate, OEK MULTI - NATIONAL Masa-Aki Emesiochl, Chairman, Board of Regents, College of Micronesia Land Grant Aren Palik, President, Pacific Islands Development Bank Sergie Ferrer, Treasurer, SDA Southern Asia-Pacific Division Daniel A. Roland, CIMA U.S. Mainland Raaj Kurapati, University of Alaska Executive Director th Annual Pacific Region Investment Conference

21 SPEAKERS PROFILES Bud Conrad Keynote Speaker Bud Conrad, Casey Research s Chief Economist, will keynote this year s 10th Pacific Region Investment Conference. With his experience as a futures investor for 25 years, Bud is all set to fire up this year s conference and share valuable insights on why we should not take for granted the apparent financial calm as he talks about The Eye of the Storm, and where to make your investments. At Casey Research, Bud writes extensively for the firm s financial newsletters that focus on topics such as the economy, gold, mining stocks, energy, interest rates, agriculture, and foreign investments. Prior to his current stint, He has held positions with IBM, CDC, Amdahl, and Tandem. Bud graduated with an MBA in Harvard and an Electrical Engineering degree at Yale University. He is also a professor of graduate courses in investing at Golden Gate University. Bud s new book, Profiting from the World s Economic Crisis, has been recently published by John Wiley and has already gone to second printing in the first month. Catherine S. Woodruff, Ph.D., CFA Catherine Woodruff, Ph. D., CFA, has over 30 years of investment management experience. She is a founding partner at Houston Global Investors, LLC. Prior to her current stint, Dr. Woodruff was a Managing Partner and Director of Equities at Davis Hamilton Jackson & Associate. She was also a Senior Portfolio Manager at Citicorp Investment Management, and an Equity Analyst for Texas Commerce Bank. Dr. Woodruff holds a Chartered Financial Analyst designation, is a member of the CFA Institute, has been approved as a Chartered Investment Counselor, and is a former trustee of the Texas Growth Fund, where she served as Treasurer. She holds a Ph.D. in Finance from the University of Texas at Austin and M.S. and Bachelor of Arts degrees in Economics from Louisiana State University at Baton Rouge. Dr. Woodruff has been a featured speaker at various conferences on the topics of indices, global equity markets, and securities analysis. Daniel A. Roland, CIMA Daniel Roland is currently the Executive Director of Asia Pacific Association for Fiduciary Studies (APAFS), a non-profit educational association advocating for prudent fund stewardship, specifically focused on the Asia Pacific region. He is also the Senior Vice President for Wealth Management of Morgan Stanley Smith Barney, and Senior Institutional Consultant of MSSB. He joined MSSB in Washington D.C. in 1983 and relocated to Guam to open the Guam office in Dan received his Bachelor of Science in Finance at the University of Maryland and earned his Masters in Business Administration at the George Washington University. He also received his certificate in Investment Management Analyst at Wharton School of Business. David J. John David John is the President of ASC Trust Corporation, a Guam-based firm that specializes in the management of retirement plans and other employee welfare benefit plans. He holds a bachelor s degree in business administration with an emphasis in finance from the University of St. Thomas in St. Paul, Minnesota, and is also authorized to transact as an Investment Adviser in Guam. He has over twenty years of experience working with qualified retirement plans; over fifteen of those years spent in Micronesia. Mr. John is actively involved in the Profit Sharing Council of America the leading advocacy group for Defined Contribution plans in the U.S. He has spoken at two PSCA national conferences and is a member of the PSCA Editorial Committee. Mr. John has presented at each of the previous Pacific Region Investment Conferences, speaking on the state of retirement in the region. Gerard A. Cruz Gerard A. Cruz is Chairman of the Board of Governors of the Asia Pacific Association of Fiduciary Studies. In addition, he serves as Treasurer and a senior member of the Board of Trustees to the Government of Guam State Retirement Fund and as President and CEO of Community First Guam FCU, a full service financial institution. He has provided a number of financial related seminars and has presented lectures throughout the region. Mr. Cruz received a BA in Economics and an MBA in Finance from the University of San Francisco, and has attended the Pacific Coast Banking School at the University of Washington, Settle. Jack Lin Jack Lin is Co-Chief Executive Officer of Janus Capital International. He is primarily responsible for overseeing and growing Janus operations in Asia Pacific and Australasia, with its regional offices in Hong Kong, Tokyo, Singapore and Melbourne. Mr. Lin came to Janus after nine years with Franklin Templeton as managing director of its Asian institutional business. Prior to that, he served as Chief Executive Officer of Franklin Templeton s Shanghai-based asset management joint venture, which he helped establish in Mr. Lin holds a Bachelor of Arts degree in economics from Vanderbilt University, USA. He also holds a Juris Doctorate degree from the University of California at Los Angeles School of Law and a Master s in Business Administration from the Anderson Graduate School of Management at the University of California at Los Angeles. Mr. Lin has 16 years of financial industry experience. Jason Miyashita Jason Miyashita is Second Vice President and Senior Investment Management Specialist of Morgan Stanley Smith Barney. He has worked in the financial services industry for over 9 years in various locations to include New York and Honolulu. As a partner on the Asia Pacific Group Team based on Guam, he provides a full range of investment services to institutions, corporations, foundations, endowments, high net-worth investors and business owners, focusing on wealth management, investment management, managed money, estate planning, and retirement and education planning. Mr. Miyashita was born and raised on the island of Guam but also has family roots in Palau, Japan and the Philippines. He graduated from The Wharton School of Business at the University of Pennsylvania with concentrations in Accounting, Finance and Strategic Management. He holds the following designations: Chartered Retirement Plans Specialist (CRPS ) from the College for Financial Planning, Accredited Investment Fiduciary (AIF ) from the Center for Fiduciary Studies and Financial Planning Specialist (FPS). He is an active member of the Rotary Club of Tumon Bay Guam, Guam Chamber of Commerce, Saipan Chamber of Commerce and The Pacific Club in Honolulu, Hawaii. Jeff Detwiler Jeff Detwiler is a Fixed Income Portfolio Manager at Garcia Hamilton & Associates, L.P. (formerly, Davis Hamilton Jackson & Associates). He began his career in finance in 1996 as a financial planner and has worked at Franklin Templeton Investments in St. Petersburg, FL as well as INVESCO Funds Group in Denver, CO. Prior to these stints, Mr. Detwiler joined AIM Distributors, Inc. where he worked with a broad range of asset classes in the Financial Dealer Division. He also worked for the Cougar Investment Fund, LLC as an Analyst and a Portfolio Manager in Mr. Detwiler received a Bachelor or Science degree in Finance from University of South Florida and an M.S. in Finance from University of Houston s Bauer School of Business along with a Graduate Certificate in Financial Services Management. Mr. Detwiler obtained the Accredited Asset Management Specialist (AAMSSM) designation awarded by the College for Financial Planning. John Rice Mr. Rice is a partner at Robbins Geller Rudman & Dowd LLP and is a senior member of the firm s litigation team. In this role, he has prosecuted complex securities cases which led to millions of dollars in recoveries for investors. Prior to joining Robbins Geller, Mr. Rice was a federal prosecutor for over 15 years prosecuting a wide range of complex cases including public corruption and white collar crime cases. He served as a United States Attorney in the Southern District of New York and the Southern District of California. Mr. Rice has also worked in Micronesia where he served as the branch chief of the United States Attorney s Office for the Northern Mariana Islands and as the Chief Criminal Prosecutor in the Republic of Palau. Mr. Rice has taught for many years at the United States Department of Justice and currently serves as an adjunct professor at the University of San Diego School of Law. He graduated cum laude from Harvard University with a Bachelor of Arts degree in History and received his Juris Doctor degree from the University of Virginia. Jonathan W. Cangalosi, CIMA, Principal and Managing Director Mr. Cangalosi is a Principal of Golden Capital Management, LLC and serves as Managing Director, overseeing all marketing and client service initiatives. He is a member of the Investment Policy Committee and a voting member of the management team that since He has presented at numerous investment-related conferences and seminars designed for institutional and retail investors. Mr. Cangalosi graduated from Wake Forest University with a B.A. in Political Science. He is a holder of the Certified Investment Management Analyst (CIMA) designation, a CFA Level I candidate, and has 17 years of experience in the investment arena. Kamani Kuala au Kamani Kuala au joined Atalanta Sosnoff Capital, LLC, on August 16, 2010 as Senior Vice President of Sales and Marketing for the Western Pacific Region, Hawaii and the Western United States. Beginning his career in finance with Public Financial Management, he was also previously manager and senior trust officer of Institutional Client Services at Bank of Hawaii. Mr. Kuala au is also a trustee for the estate of King William Charles Lunalilo, Hawaii s 6th monarch providing a healthy and safe living environment for Hawaiin elders, serving those most in need. Kuala au is a graduate of Princeton University and Kamehameha Schools. Kenan J. Knieriem, CFA Kenan J. Knieriem, CFA, is a Senior Vice President Investments and Manager of the Merrill Lynch Institutional office in Honolulu. He has had 28 years with Merrill Lynch and spent 27 years at the Honolulu Office. He is also the Senior Relationship Manager for the Group s investment institutional relationships and is responsible for ensuring client satisfaction and spearheading the Group s external marketing and business development efforts. In addition to his management responsibilities, Kenan has oversight for the Honolulu Office s Institutional trading desk providing research sales coverage to the regional banks, trust companies, governments, and investment managers in the State of Hawai i and surrounding Pacific Region. He earned his CFA designation in 2004 and is a graduate of Merrill Lynch s Advanced Fixed Income program. He is a retired Captain from the U.S. Navy and graduated from the U.S. Naval Academy in Annapolis, MD with a Bachelor of Science degree in Engineering. Louis Boulanger, CFA Louis Boulanger is the founder and director of Louis Boulanger Now Limited (LB Now). He provides independent investment advice to private and institutional clients and sits on a number of investment funds governance boards as an independent expert. Prior to establishing the company, Mr. Boulanger worked for nine years with a global consulting firm based in Montreal, Canada. In New Zealand, he worked for another global consulting firm for 18 years, including as Chief Executive of New Zealand operations for five years. He has actively participated in the ongoing development of the Global Investment Performance Standards (GIPS) since 1995 and currently serves as the elected chairman of the global GIPS Council and a member of the GIPS Executive Committee. He is the founding President of the CFA Society of New Zealand and is an active speaker on the CFA Institute s Speaker Retainer Program. Mr. Boulanger holds a Bachelor of Science degree from Laval University in Canada and is a Fellow of the Canadian Institute of Actuaries and of the New Zealand Society of Actuaries. He lives in New Zealand with his wife and two sons. Mark J. Heath, CFA, CPA Mark J. Heath, CFA, CPA is a Senior Vice President and serves as a Portfolio/Relationship Manager with Metropolitan West Capital Management ( MetWest Capital ). Mr. Heath joined MetWest Capital in Previously, he served as Chief Financial Officer and Endowment Fund Administrator with the University of Guam, as Trustee and Investment Committee Chairman with the Government of Guam Retirement Fund and as Auditor with Peat, Marwick and Mitchell. He has been working in the investment management field since He earned a Bachelor of Science in Business Administration from West Texas A&M University and a Master of Business Administration from the University of Guam. Mr. Heath has been awarded the use of the Chartered Financial Analyst (CFA) designation by the CFA Institute. He is also a Certified Public Accountant (CPA). Simon Rudolph Simon Rudolph is an Executive VP & Portfolio Manager at Franklin Templeton Investments (Asia) Limited Hong Kong. He has research responsibility for the Asian real estate and REIT sectors, as well as country research coverage of India, Taiwan, Korea, Philippines, Thailand, Indonesia and Vietnam. He joined the Templeton organization in 1997 as a portfolio manager and research analyst and has been a securities analyst since Prior to joining Templeton, he was an Executive Director with Morgan Stanley and spent eleven years analyzing the continental European insurance industry. He manages global, international and regional Asia Pacific and Asian portfolios. Mr. Rudolph holds a Bachelor of Arts degree in Economic History from Durham University, England. He is a Chartered Accountant (ACA) and a member of the Institute of Chartered Accountants of England and Wales. Xavier Timmermans Xavier Timmermans is the Head of Balanced Solutions Investments Specialists of BNP Paribas Investment Partners. Prior to this position, Mr. Timmermans served as the head of Alternatives investment Specialists, Deputy Head of Euro Fixed Income at Fortis Investment, and Director of Investment at Fortis Investment France. Prior to joining Fortis, he was the head of Institutional Asset Management at FIMAGEN and head of Asset Allocation at Générale de Banque. He graduated from Solvay Business School, and is a Certified Financial Analyst from Belgium Association of Financial Analyst. MASTERS OF CEREMONIES Maiki Oreta Maiki Oreta is a business news anchor for the Philippine s largest television network, ABS-CBN. She anchors the Stock Market Live Updates daily, throughout the trading morning, from the floor of the Philippine Stock Exchange. She also anchors Business Nightly, which airs at 9pm; Monday Friday and features business and economic news from both the domestic and international fronts. Phillip Mendiola-Long In 2003, Phillip Mendiola-Long, an honor graduate of Portland State University, was designated as an Accredited Investment Fiduciary a title that makes him one of two people in the Pacific Region who can be accepted in court as an expert witness for Fiduciary responsibilities. In 2004, Phillip opened Fiduciary Resources, Inc., the first full-service fiduciary services firm in the Pacific Region, a subsidiary of Sherman worldwide. Mr. Long has conducted extensive Fiduciary Training Seminars. He is also on his second term as a trustee for Mariana s Public Land 4 Trust as well as the President of the Asian Pacific Region of Sherman Worldwide, LLC th Annual Pacific Region Investment Conference

22 PROGRAM DETAILS Thursday, 14th of October 2010 Master of Ceremonies: Maiki Oreta News Anchor, Business Nightly ABS-CBN News Friday, 15th of October 2010 Master of Ceremonies: Phillip Mendiola-Long President - Asia Pacific Region Sherman Worldwide, LLC 7:00 AM Breakfast and Registration 7:00 AM Breakfast and Registration 8:45 AM Welcome Remarks Intro to the 10th PRIC and Welcome Guests APAFS Representative 8:30 AM Welcome Remarks Recap of First Day and Intro to Day 2 Phillip Mendiola-Long 9:00 AM Session 1 Outlook for Asian Equity Markets Simon Rudolph Franklin Templeton Investments (Asia) Limited 8:45 AM Session 1 ALM, LDI and Risk Allocation Xavier Timmermans BNP Paribas 10:00 AM Coffee and Refreshment Break 9:45 AM Coffee and Refreshment Break 10:15 AM Session 2 The Case for the Global Mandate Catherine Woodruff Houston Global Investors 10:00 AM Session 2 Active & Passive Management Jason Miyashita Morgan Stanley Smith Barney 11:15 AM Session 3 The New Growth Dividend Opportunity Jack Lin Janus Capital 11:00 AM Session 3 DC Plans Updates David John ASC Trust 12:15 PM Featured Luncheon Speaker Corporate Governance Issues Facing Investment Fiduciaries John Rice Robbins Geller Rudman & Dowd LLP 12:00 NN Featured Luncheon Speaker GIPS Highlights and Updates Louis Boulanger, CFA Chairman of GIPS Council 1:15 PM Session 4 Let s Talk About Bullion Louis Boulanger, CFA Louis Boulanger Now Limited (LB NOW)/ Bullion Management 1:00 PM Session 4 Fixed Income Markets Update Jeff Detwiler Garcia Hamilton & Associates, LP 2:00 PM Session 5 The Eye of the Storm Bud Conrad Keynote Speaker 2:00 PM Panel Q & A International Developed Equity Mark Heath, CFA, CPA Metropolitan West Capital Management Large US Equity Kamani Kuala au Atalanta Sosnoff Capital, LLC 3:15 PM Coffee and Refreshment Break US Small/Mid Equity Jonathan W. Cangalosi, CIMA Golden Capital Management, LLC Equity Panel Moderator Kenan Knieriem, CFA Merill Lynch 3:30 PM Q&A with Keynote Speaker 3:00 PM Coffee and Refreshment Break 4:00 PM 4:15 PM Closings Remarks Daniel Roland, CIMA APAFS Executive Director End of Program 3:15 PM Raffle and Awarding 3:30 PM Closings Remarks About APAFS and Plans for the future Gerry Cruz Chairman, Asia Pacific Association for Fiduciary Studies th Annual Pacific Region Investment Conference

23 S P O N S O R S PLATINUM SPONSORS Income Research & Management Income Research & Management (IR&M), which has been providing investment advisory services for 21 years, focuses on the fixed income arena, specifically concentrating on the US investment grade markets. IR&M s investment philosophy de-emphasizes macro bets such as interest rate calls and focuses on uncovering value through diligent, rigorous bottom-up security selection in niche areas of the market. They take pride in providing solid, consistent investment results and exceptional client service with the goal of building fruitful, long-standing client partnerships. Metropolitan West Capital Management LLC Metropolitan West Capital Management LLC is an independent, SEC-registered investment management firm based in Newport Beach, California. The firm also has offices in Guam and Morris Plains, N.J. MetWest Capital manages Value-oriented Equity, Balanced, International and Global portfolios for individual and institutional clients. Its team of senior-oriented investment professionals have been working together since 1992 to manage long term portfolios for their base of US and international clients. Morgan Stanley Smith Barney A global leader in wealth management, providing a range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, credit and lending, cash management, annuities and insurance, retirement and trust services. For further information about Morgan Stanley Smith Barney, please visit The Asia Pacific Group of Morgan Stanley Smith Barney s Guam Office provides institutions and high net worth individuals with customized economic, investment and asset allocation strategies based on their individual financial objectives. Additional information may be found at fa.smithbarney.com/ asiapacificgroup. Gold Sponsors ASC Trust Company ASC Trust Corporation is a leader in retirement plan consulting services in the Asia Pacific Region. Founded in 1990 with the objective to service the private sector during a time of unprecedented growth, it later pioneered the design of a retirement plan system that would be supported locally. It currently manages plans in excess of $500 million, representing over 50,000 plan participants of 385 employers with a client base consisting of large multinational corporations, small regional, local companies, as well as government and non-profit organizations. ASC is based on Guam with offices in Manila and Saipan. Atalanta Sosnoff Atalanta Sosnoff is an independent registered investment advisor that provides investment advisory services on a discretionary basis to corporations, tax exempt funds such as pension and other plans, charitable organizations such as endowments and foundations, Taft-Hartley funds, governmental entities, broker sponsored wrap programs and high net worth individuals. Founded in 1981, Atalanta Sosnoff is defined by their proprietary investment research, dedicated client service and high standards on corporate ethics. Silver Sponsors Louis Boulanger Now Limited (LB NOW) / Bullion Management Group (BMG) Louis Boulanger Now Limited (LB NOW), founded and directed by Louis Boulanger, is a private company in the business of giving private investment or financial advice. Bullion Management Group (BMG) was initially formed in November of 1998 to offer Canadian investors a convenient and affordable way to invest in precious metals bullion. Today, BMG provides physical bullion-based products (both bullion funds and bullion bars) for investors globally who are seeking innovative and tax-efficient ways to diversify, grow and preserve their wealth. LB NOW is an authorized bullion dealer of BMG. Renaissance Investment Management The Renaissance Group LLC, Renaissance Investment Management was founded in 1978 and is a registered investment advisor located in the Greater Cincinnati, Ohio area. Renaissance is a majority owned affiliate of Affiliated Managers Group (AMG), a Boston-based holding company. It offers U.S. domestic and international strategies covering the entire range of market capitalization. Renaissance has managed assets in the Asia Pacific region these past 20 years. bronze Sponsors BNP Paribas BNP Paribas, present across Europe through all its business lines, is a European Leader in Global Banking and Financial Services. As one of the six strongest banks in the world according to Standard & Poor s, BNP Paribas has one of the largest international networks. BNP Paribas has four domestic retail banking markets in France, Italy, Belgium and Luxembourg. Its key positions are based in its three core businesses: Retail Banking, Corporate & Investment Banking, and Investment Solutions. Golden Capital Management, LLC Golden Capital Management, LLC located in Charlotte, North Carolina, provides investment management expertise to both institutional and high net worth clients worldwide through several core equity strategies. The firm provides clients with a consistently applied and objective based investment management process that combines the attributes of fundamental research with quantitative execution. This approach has led to the development of several strategies whose main goal is to provide a return pattern greater than the market while minimizing downside risk. Currently, the firm offers seven investment strategies: Large Cap Core, Mid Cap Core, SMID Cap Core, Small Cap Core, All Cap Core, Enhanced Large Cap, and a 130/30 Equity strategy. Merrill Lynch Founded in 1914, Merrill Lynch Managed Solutions Group is a wholly owned subsidiary of Bank of America. Merrill Lynch is among the largest investment firms in the country, providing investment consulting services and specializing in performance measurement and evaluation endowment, public, private and jointly trusteed plans for over 35 years. The firm continually develops and refines techniques to produce state-of-the-art performance evaluation and portfolio planning services. Currently, Merrill Lynch monitors the performance of over 3, 000 portfolios with total assets of over $70 billion. Milliman Milliman, founded in Seattle in 1947, is among the world s largest independent actuarial and consulting firms. It is owned and managed by senior consultants whose selection is based on their technical, professional and business achievements. Through consulting practices in employee benefits, healthcare, investment, life insurance and financial services, and property and casualty insurance, Milliman serves the full spectrum of business, financial, government, union, education, and non-profit organizations. It operates according to the guiding principles of their founders, Wendell Milliman and Stuart Robertson. Robbins Geller Rudman & Dowd LLP Robbins Geller Rudman & Dowd LLP is a 180-lawyer law firm with 8 offices located throughout the United States. Robbins Geller represents more institutional investors, including public and multiemployer pension funds and domestic and international financial institutions, in securities and corporate litigation than all other securities-fraud firms combined. For over 25 years, their attorneys have achieved unmatched success recovering funds for defrauded shareholders. Richmond Capital Management Richmond Capital Management is an independent fixed-income only investment advisory firm. Founded in 1982, the firm serves public, corporate and Taft-Hartley retirement funds as well as insurance companies, endowments and foundations throughout the United States and the Pacific region. It focuses on value, using a disciplined process and team approach. Sherman Consulting, LLC Sherman Consulting is the region s premier Fiduciary Services Firm providing Fiduciary Education Training, Third Party Fiduciary Representation, Fiduciary Practice Reviews and Fiduciary Audits for boards, trusts, investment funds and island Governments. The firm is led by Phillip Mendiola-Long who is an Accredited Investment Fiduciary and Registered Master Trustee. Through Mr. Mendiola- Long, Sherman Consulting is also registered with the US Securities and Exchange Commission as an accredited investment fiduciary providing fiduciary services professionally. In association with the Asia Pacific Association of Fiduciary Studies, Sherman Consulting is the official Fiduciary Education Trainer for all APAFS members throughout the Pacific Region. For more information, please visit: www. ShermanPacific.com Featured Luncheon Sponsor Bernstein Litowitz & Berger & Grossman, LLP Bernstein Litowitz Berger & Grossmann LLP ( BLB&G ) prosecutes class and private actions nationwide on behalf of individual and institutional clients. Since their founding in 1983, they have obtained many of the largest monetary recoveries in history and achieved precedent-setting corporate governance reforms on behalf of our clients. BLB&G is widely recognized as the leading law firm worldwide advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation. Other Sponsors Gabelli Funds, Inc. GAMCO Investors, Inc. is a well-known diversified asset manager and financial services company. The company s investment services are primarily offered through its subsidiary GAMCO Asset Management Inc, which manages separate accounts for high net worth individuals, institutions, and qualified pension plans, and through the Company s role as advisor to a family of Mutual Funds. The company s asset management businesses are supported by Gabelli & Company, Inc., an institutional broker/dealer that distributes the mutual funds managed by Gabelli Funds and publishes investment research which is one of the key elements of GAMCO Investors, Inc. s success. Official Airline Partner Continental Airlines Continental Airlines is the fourth-largest airline in the US based on revenue passenger miles. It is a United States certificated air carrier which is based in Downtown Houston, Texas. Since 1998, Continental s marketing slogan has been Work Hard, Fly Right and as such, the company has grown. Continental operates flights to destinations throughout the U.S., Canada, Latin America, Europe, and the Asia-Pacific 8 Fisher Investments Fisher Investments (FI) is a global equity manager with headquarters in the San Francisco Bay Area. Fisher Investments is 100% Fisher family and employee-owned. The firm s competitive advantages are the stability of its Investment Policy Committee and its unique investment process. Fisher Investments portfolios provide meaningful diversification benefits in a multi-manager platform and have outperformed their benchmarks in a variety of market conditions Franklin Templeton Investments (Asia) Limited Franklin Resources, Inc. is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over USD603 billion in assets under management as of April 30, Garcia Hamilton & Associates, L.P Garcia Hamilton & Associates (formerly Davis Hamilton Jackson & Associates) is an institutional asset management firm founded in The firm is now 100% employee-owned with almost 75% owned by ethnic minority and women partners. In addition, the firm name is changing to Garcia Hamilton & Associates and will discontinue the use of the old name by January 1, The firm manages Large Cap Equity, Fixed Income and Balanced strategies utilizing high quality equity and fixed income securities. Its diversified client base includes public funds, universities and endowments, Taft-Hartley plans, religious organizations and corporations.. Houston Global Investors, LLC Houston Global Investors, LLC is a registered investment advisor focusing on global, domestic and international equity management for institutional and high net worth clients. All of their equity products are managed with a global perspective and common stock selection process and they focus on companies with sound strategies and a proven ability to respond to change and exploit opportunity. Janus Capital Group Janus Capital Group provides access to three experienced and highly specialised asset managers - Janus, INTECH and Perkins - each with distinctive investment approaches. Janus Capital Management seeks to identify strong businesses with sustainable competitive advantages while INTECH, founded in 1987, offers highly disciplined and risk-managed, mathematical investment strategies that attempt to achieve longterm excess returns, while reducing the risk of significant underperformance. Perkins Investment Management is an established a leading value investment firm through a combination of industry experience, thorough research and careful consideration for risk. Together, the firm has a singular focus on investment management and seeks to underpin investment excellence with the highest levels of servicing and support to its clients. regions. Together with its subsidiaries it has more than 4,000 daily departures, serving 133 domestic and 132 international destinations and has 43,246 employees. 9

24 THE MILESTONES Short testimonials from Participants Taking time from their busy schedules, the participants found that they have invested well in this seminar that broadened and updated their knowledge of the global economy. I thoroughly enjoyed and felt that the conference was worthwhile and that the venue and speakers were appropriate and well versed, says Mr. Ronald Cannoles, Executive Vice President & Pacific Islands Division Manager of the Bank of Hawaii. Shares Mr. Ian Fish, Board Advisor for Banco de Oro, I think the recent 9th Conference was well organised, the staff were helpful, the check in process at the site was quick and easy. Venue and food was all good. Handing out CDs with the speeches at the end of the last day good. Mr. Mark Heath of Metropolitan West delivered a talk on the Basics of Bonds and notes that Everything seemed to go well. I did not hear any complaints from the participants or the speakers. From Mr. Louis Boulanger, The PRIC is great conference, bringing people from all over a region together to learn more about investing. It s very well organized and the people managing the conference are always looking happy and glad to help. Everyone attending seems to enjoy the event. Mr. Boulanger also delivered a lecture on Protection Against the Risk of a Systematic Financial Meltdown. A Decade of Investment Conferences Envisioned to be the premiere investment conference in the region, the Pacific Region Investment Conference has come a long way since the first conference in 2000 that welcomed the new financial landscape with the theme Investing in the New Millennium and was well attended by international delegates. The second investment conference addressed topics such as the state of retirement plans in the region, tax law changes affecting retirement, the transformation from defined-benefit plans to defined-contribution plans, future obstacles and market trends under the umbrella theme Empowering Employees to Save for Retirement. Each year, the Pacific Region Investment Conference features world-class speakers who continue to bring to fore the visions and goals for educating and uniting global finance experts in their quest to be accountable and prudent stewards of public funds. Some of the past speakers have included Dr. Fareed Zakaria, Rear Admiral Tom Fellin, Mr. Joe Hideo Morita, Mr. Tommy Remengesau, Jr., Mr. Louis Boulanger, Mr. David Cohen, Mr. Fransisco Ed. Lim, Dr. Marc Faber and Mr. Mark Mobius. More than a sharing of knowledge and experiences, the Conference essentially becomes a venue for the recognition and appreciation of the richness of the cultures and practices that are unique to the Asia Pacific region. Over the past 10 years, the Conference has been held in key countries such as Guam, Palau, the Mariana Islands and the Philippines th Annual Pacific Region Investment Conference

25 10 th PRIC Secretariat Leigh De Armas Tel. No.: (+632) Fax No.: (+632) Capital Plaza Building, 120 Father Duenas Avenue Suite 102, Hagåtña, Guam Any public or private benefit fund; endowment or foundation; or any other fund deemed appropriate by the Executive Directors, may apply to become an Institutional Member. Any corporation or organization wishing to be allied with the Association with an interest in supporting the goals of the Association may apply to become an Allied Member. Benefits - Representation on the Board of Governors - Right to request mini-conferences in local jurisdiction on pertinent topics - Access to APAFS website and links INSTITUTIONAL MEMBERSHIP Name: Title: Company: Address: City, State: Country: Telephone: Fax: Website: Note: Benefits - Right to post relevant services offered on APAFS website and through links - Post approved articles and publications on pertinent topics on website - Inclusion in database for speakers at annual and mini-conferences ALLIED MEMBERSHIP $200 $2500 Name: Title: Company: Address: City, State: Country: Telephone: Fax: Website: Note: IN ASSOCIATION WITH: Association of Development Financing Institutions in Asia and the Pacific ADFIAP has currently 105 member-institutions in 41 countries. ADFIAP is also a founding member of the World Federation of Development Financing Institutions composed of regional associations in Africa, Asia-Pacific, Latin America and the Middle East. ADFIAP is an NGO in consultative status with the United Nations Economic and Social Council. CFA Society of the Philippines The Chartered Financial Analyst (CFA) Institute is a global, non-profit member organization of financial analysts, portfolio managers, and other investment professionals. The CFA Philippines, or CFAP, promotes ethical and professional standards within the investment industry, encourages professional development through the CFA Program, and facilitates the open exchange of information and opinions. Financial Executives Institute of the Philippines The Financial Executives Institute of the Philippines (FINEX) is a non-stock, non-profit, non-political association. It was formed in response to the need for a professional association devoted to the development of financial management techniques and efficiency in business enterprises. Through the years, FINEX has continuously given its members the latest in concepts, programs and policies of business finance and management. Philippine Stock Exchange The Philippine Stock Exchange (PSE) is the sole stock exchange in the Philippines and is among the largest in Southeast Asia. The PSE Composite Index (made up of 30 stocks) is the key indicator of share price movement in the market s six sub indices: Financials Index, the Industrial Index, the Holding Firms Index, the Property Index, the Services Index, and the Mining & Oil Index. Trust Officers Association of the Philippines The Trust Officers Association of the Philippines (TOAP) is one of the oldest professional associations in the financial industry. TOAP s primary objective is to unite, professionalize and promote the Philippine Trust and Investment Management Industry. TOAP is the biggest association of Investment Professionals with over 220 individual members coming from 47 banks and investment houses. Media Partners: Organized By: 6/F Room 610 VGP Center (formerly The Manila Bank Center Bldg.), 6772 Ayala Ave., Legaspi Village, 1229 Makati City, Philippines Telefax or

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35 GIPS Standards Today 2010

36 What Are Global Investment Performance Standards? Voluntary standards governing the calculation and presentation of investment performance based on the ethical principles of fair representation and full disclosure. The goal of the GIPS Executive Committee is to have all firms adopt the GIPS standards as the standard for investment firms to present historical investment performance information 2 Global Investment Performance Standards

37 Objectives Ensure accurate and consistent data Obtain worldwide acceptance of standards for calculating and presenting performance Promote fair, global competition among investment firms Promote industry self-regulation on a global basis 3 Global Investment Performance Standards

38 Benefits of the GIPS Standards Enhanced ability to compare performance between firms and strategies Consistency in calculation and presentation of performance results, such as frequency of valuation, treatment of large cash flows and handling of accruals Full disclosure of important details on performance data presented, such as fees, composite construction criteria, dispersion of returns, etc. Firms recognized for adherence to industry best practice Strengthened internal processes and controls; improved risk management 4 Global Investment Performance Standards

39 Who Benefits from the GIPS standards? Investors Plan sponsors High-net-worth investors Retail investors Investment Managers Including equity, fixed income, hedge fund, private equity, and real estate investment management firms Intermediaries Consultants 5 Global Investment Performance Standards

40 Evolutionary Approach of the GIPS Standards 1. Extending the scope of the GIPS standards to adequately address: Additional investment vehicles and strategies (e.g., private equity, hedge funds) Technical areas (e.g., fees, derivatives) 2. Evolving the Standards: By providing on-going guidance and interpretations By reviewing the entire contents of the GIPS standards periodically (2010, 2015, etc.) 3. Endorsing translations of the GIPS standards and partnering with GIPS Country Sponsors 6 Global Investment Performance Standards

41 GIPS Governance Structure CFA Institute Executive Director GIPS Council Chair GIPS Council Investor/ Consultant Chair RIPS Americas Chair Interpretations Chair GIPS Executive Committee RIPS EMEA Chair Investment Manager Chair RIPS Asia Pacific Chair Verification/ Practitioner Chair Positions appointed by CFA Institute Positions elected by Country Sponsors

42 Status of GIPS Adoption Countries that have adopted the GIPS standards Countries with interest in adopting the GIPS standards Revised as of April Global Investment Performance Standards

43 Current Translations of the GIPS Standards Endorsed translations of the 2005 edition Dutch French German Greek Hungarian Italian Japanese Korean Russian Simplified Chinese Spanish Ukrainian 9 Global Investment Performance Standards

44 Provisions of GIPS Standards 0. Fundamentals of Compliance 1. Input Data 2. Calculation Methodology 3. Composite Construction 4. Disclosure 5. Presentation and Reporting 6. Real Estate 7. Private Equity 8. Wrap Fee/Separately Managed Accounts (SMA) Portfolios 10 Global Investment Performance Standards

45 Current Guidance Statements Error Correction Performance Examinations Record Keeping Calculation Methodology Composite Definition Definition of Firm Performance Record Portability Treatment of Carve-Outs Treatment of Significant Cash Flows Use of Supplemental Information Verification Country-Specific Taxation Issues Verifier Independence Wrap Fee/Separately Managed Account Fees Provisions Private Equity Real Estate Impact of Euro Conversion 11 Global Investment Performance Standards

46 What New Provisions Are Effective Now? From the 2005 edition of the GIPS Standards For periods beginning 1 January 2010: FIRMS MUST: 1.A.3 Value PORTFOLIOS on the date of all LARGE EXTERNAL CASH FLOWS 1.A.4 Value PORTFOLIOS as of the calendar month-end or the last business day of the month COMPOSITE returns MUST: 2.A.6 Be calculated by asset weighting the individual PORTFOLIO returns at least monthly CARVE-OUT returns: 3.A.7 Are not permitted to be included in single asset class COMPOSITE returns unless the CARVE-OUTS are actually managed separately with their own cash balances The Error Correction Guidance Statement is effective 1 January Global Investment Performance Standards

47 Quick Reminder on GIPS Reports All GIPS compliant presentations contain two key parts: Presentations of data Required disclosures about how the data were compiled and calculated A report is NOT compliant with the Standards unless it contains both parts 13 Global Investment Performance Standards

48 What Is a GIPS Report? This report does not necessarily contain all required disclosures GIPS-compliant presentations are based on unique situations of firms and composites. XYZ Asset Management Company Equities World BM MSCI Active Mandates Direct Reporting Currency CHF Creation Date 01 July 1999 MSCI World Total Total (ri) in CHF Number Composite Composite Percentage Return Benchmark of Dispersion Assets of Firm Period (%) Return (%) Portfolios (Range) (millions) Assets (%) < <5 N/A <5 N/A 62.8 < <5 N/A 16.1 <0.1

49 ...What is a GIPS Report? XYZ Asset Management Company Equities World BM MSCI Active Mandates Direct Compliance Statement Sample 2 Asset Management Company has prepared and presented this report in compli ance with the Global Investment Performance Standards (GIPS ). Definition of the Firm Sample 2 Asset Management Company is an independent investment management firm established in Sample 2 Asset Management Company manages a variety of equity, fixed income, and balanced assets for primarily Swiss and European clients. Additional information regarding the firm s policies and procedures for calculating and reporting performance returns is available upon request. Benchmark Sources of foreign exchange rates may be different between the composite and the bench mark. Fees Performance figures are presented gross of management fees, custodial fees, and with holding taxes but net of all trading expenses. List of Composites A complete listing and description of all composites is available on request. Verification Sample 2 Asset Management Company has been verified by an independent verifier on an annual basis from 1998 through Fee Schedule The standard fixed management fee for accounts with assets under management of up to CHF50 million is 0.35% per annum. Minimum Account Size The minimum portfolio size for inclusion in Equities World BM MSCI composite is CHF1 million. 15 Global Investment Performance Standards

50 Regulators Awareness of GIPS Compliance Switzerland FINMA, the Swiss regulator: - mandates independent asset managers to adhere to standards customary in the industry and to FINMA code of conduct guidelines, implicitly recognizing the GIPS standards - endorses the Swiss Funds Association performance calculation and publication guidelines for investment funds, based on the GIPS standards 16 Global Investment Performance Standards

51 United States Regulators Awareness of GIPS Compliance Securities & Exchange Commission, U.S. regulator: - False claims of GIPS compliance are often cited as a misrepresentation of performance - The SEC comments on the performance sweep conducted. Some details regarding this were included in a Compliance Alert that the SEC issued in June 2007 See 17 Global Investment Performance Standards

52 SEC Cited Top 10 Deficiencies Carve-out disclosures missing Number of portfolios and amount of assets in composite disclosures Fee schedules not included Method used to allocate cash to carve-outs not explained Availability of list and description of composites not indicated Total firm assets missing Failure to abide by the rule that all fee-paying accounts be in at least one composite Website claim of compliance needed details Firm claimed compliance in only some advertisements Insufficient or no policies & procedures 18 Global Investment Performance Standards

53 GIPS Research Survey Results as of 1 January 2008 Responses from: 20 Country Sponsors 806 Stakeholders Worldwide: Industry: 63% Investment Managers 9% Consultants 6% Verifiers 5% Investors 1% Regulators Geographic: 33% United Kingdom 31% United States 10% Japan 19 Global Investment Performance Standards

54 GIPS Research Survey Stakeholder Response Profile of Respondents: Job Function (N=806) Verifier, 6% Investor (client/asset owner), 5% Regulator, 1% Consultant, 9% Other, 16% Investment manager, 63% 20 Global Investment Performance Standards

55 GIPS Research Survey Verification Data provided helpful guidance to GIPS Executive Committee in developing Verification Statement proposal GIPS 2010 Review Data instrumental in decisions regarding future effective dates and current recommendations Data provided to Interpretations and Verification/ Practitioner Subcommittees Ongoing Analysis and Review of Survey Data Local data from Stakeholders provided to Country Sponsors to facilitate further discussion 21 Global Investment Performance Standards

56 GIPS Research Survey Key Findings Most important topics identified to be developed for inclusion in the GIPS standards (not necessarily 2010): Country Sponsors Risk Measures Benchmarks Alternative Investment Vehicles and Strategies Leverage Fund of Funds Stakeholders Alternative Investment Vehicles and Strategies Leverage Performance Fees Benchmarks Risk Measures 22 Global Investment Performance Standards

57 So What Is GIPS 2010? The 2010 edition of the Standards that will be effective 1 January 2011 To maintain global relevance the GIPS Executive Committee is committed to a review of the Standards every five years Presentations that include results for periods beginning on or after 1 Jan 2011 must be prepared in accordance with the revised standards These will lead to changes in Guidance Statements and Q&As A compliant firm must consider all guidance and not just the Standards themselves Expect to see updated documents throughout Global Investment Performance Standards

58 Key Changes in GIPS 2010 Compliance Statement As part of the GIPS compliance statement, investment firms will be required to disclose whether their firm has or has not been verified. Fair Value The Standards require firms to report portfolio performance based on a fair value methodology. Risk Disclosures As part of the composite description, firms will be required to disclose sufficient information to allow a prospective client to understand the relevant risks of the composite strategy. Verification The scope and purpose of verification, as well as the required verification procedures that must be followed by verifiers have been clarified in Section III in order to increase the understanding and consistency of verification. 24 Global Investment Performance Standards

59 Key Changes in GIPS continued - Standard Deviation Investment firms will be required to present the three-year annualized ex-post standard deviation of the composite and benchmark. Prospective Client Newly defined as any person or entity that has expressed interest in one of the firm s strategies and qualifies to invest in the composite. Benchmark Description Firms must disclose the benchmark description to include key features of the benchmark, or the name of the benchmark for a readily recognized index or other point of reference. 25 Global Investment Performance Standards

60 Verification Verification is the review of an investment management firm s performance measurement policies and procedures by an independent third party, testing: That the firm complies with all the composite construction requirements of the GIPS standards on a firm-wide basis That the firm s policies and procedures are designed to calculate and present performance results in compliance with the GIPS standards Applies to entire firm not specific composites Firms report that verification not only provides a marketing advantage, but improves the firm s internal policies and procedures 26 Global Investment Performance Standards

61 Verification in GIPS 2010 (Effective 1 January 2011) Verification Requirement to disclose (within the claim of compliance) whether a firm has been verified or not and prescribed text describing what is and is not covered by verification Clarifications: That the minimum period for which verification can be performed is one year (or from firm inception through year end) The scope and purpose of verification The tests a verifier must perform The firm must provide to the verifier the firm s GIPS policies and procedures Verification does not provide assurance that specific composite returns are correctly calculated and presented 27 Global Investment Performance Standards

62 Real Estate in GIPS 2010 (Effective 1 January 2011) Real Estate As of 1 Jan 2012, real estate investments must be externally valued at least once every 12 months or as per client agreement at least every 36-months Closed-end real estate funds would be required: To present an annualized, net-of-fees, since-inception internal rate of return for each year end (in addition to the current time-weighted component returns) To disclose, as of each period end presented: Paid-in Capital ( PIC ) Cumulative invested capital Cumulative distributions Total value to PIC Cumulative distributions to PIC PIC to committed capital Residual value to PIC Required to calculate income and capital component returns separately (no longer able to derive one from the other) 28 Global Investment Performance Standards

63 Private Equity in GIPS 2010 (Effective 1 January 2011) Firms must calculate annualised Since Inception Internal Rates of Return (SI-IRR) using daily cash flows as of 1 Jan 2011 (rather than the current monthly OR daily cash flows) For primary funds, all PE investments must be included in a composite defined by vintage year AND investment mandate, objective or strategy For fund-of-funds, all PE investments must be included in a composite defined by fund-of-funds vintage AND/OR investment mandate, objective or strategy 29 Global Investment Performance Standards

64 Why Is GIPS Important to Hedge Fund Managers and Their Investors? Compliance with the Global Investment Performance Standards (GIPS ) is coming for hedge funds Strongly Agree Agree Neutral Disagree Strongly Disagree 0% 10% 20% 30% 40% 50% 60% Source: The Glass Hammer / Stone House Consulting Survey of Buy-Side Industry Trends, September / October Used with permission. 30 Global Investment Performance Standards

65 Why Is GIPS Important to Alternative Investment Firms and Their Investors? Improved view of the firm s track record Many alternative firms have started managing separate accounts Current and potential investors can compare performance results between the hedge fund and any separate accounts following the same strategy Due diligence GIPS-compliant hedge fund managers have adopted many best-practice policies and procedures that can reduce operational risk 31 Global Investment Performance Standards

66 Why Is GIPS Important to Alternative Investment Firms and Their Investors? Consistency Ensure the same standard of care is applied to the selection and review of alternative investment managers as that applied to traditional managers Transparency The Standards provide for key data and disclosures to be provided to investors 32 Global Investment Performance Standards

67 Forthcoming Guidance Alternative Investment Strategies Risk Performance Reporting to Existing Clients Q&As specific to the 2010 edition of the GIPS Standards 33 Global Investment Performance Standards

68 Future Focus Extend Evolve Engage Evaluate Expand Educate 34 Global Investment Performance Standards

69 Interpretations & Support The GIPS standards website: Complete list of Guidance Statements Q&A database Helpdesk alert list GIPS Executive Committee GIPS Country Sponsors around the world 35 Global Investment Performance Standards

70 The Netherlands Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland VBA (Beroepsvereniging van Beleggingsprofessionals) Has the Country Sponsor attended and actively participated 1 at RIPS, Council meetings, conference calls? Please provide details. Has the Country Sponsor submitted comments on the 2 exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Has the Country Sponsor voted on issues/topics put forward 3 to Country Sponsors? Please provide details Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. March 2010 to March 2011 Planned for 2011 VBA participated in the GIPS council meeting. Unfortunately, the VBA wasn't able to participate in the RIPS EMEA conference call. They provided a nominee for the RIPS EMEA Chair We have provided comments on the standards. Mainly via the interpretations committee (RE & Private equity) Yes the VBA voted on the Chair of RIPS EMEA Yes the VBA nominated Mark van Eijk for the nominations committee We have raised issues concerning performance measurement issues in the Netherlands. The vba-ipm committee VBA will participate in he RIPS and GIPS council VBA continues to actively contribute to the Standards. VBA continues to actively contribute to the Standards. To our knowledge there are no new positions available at this time. When positions become available will check with our network for candidates VBA continues to actively contribute to the Standards. The vba-ipm committee Has Country Sponsor planned or conducted GIPS Seminars We've organized a Dutch Performance Roundtable. More than 30 participants of or Workshops? Please list any press releases, media activity We have planned a Dutch Performance Roundtable the Investment Industry or other promotional activities. Has Country Sponsor had any communication with local 8 We didn't have communication with the regulator on GIPS. regulator? Please provide details. For those Country Sponsors with a GIPS translation, please 9 explain plans, if any, for translating the 2010 version of the We haven't translated GIPS 2010 GIPS standards. 10 Please explain Country Sponsor activities in the following categories 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. Please explain how local market expertise is represented within your Country Sponsor Committee. 11 Please explain any additional activities not provided above. Participation with investment professionals working for Asset Management firms, Verifiers, consultants. Covering approximately 65% of the Asset Management market. If performance issues arise, we will contact the regulator in The Netherlands We haven't planned to translate GIPS We have some interviews planned for new participants.

71 New Zealand Country Sponsor Update Report March GIPS Council Meeting Zurich, Switzerland CFA Society of New Zealand Please explain Country Sponsor activities in the following categories March 2010 to March 2011 Planned for Has the Country Sponsor attended and actively participated at Yes. Asia Pacific RIPS and GIPS Council meeting in person Lisbon, Portugal, March 2009 Active participation in RIPS, Council meetings, conference calls? Please provide details. 2 3 Has the Country Sponsor submitted comments on the exposure drafts of the Standards, Guidance Statements, or other issues? Please provide details. Has the Country Sponsor voted on issues/topics put forward to Country Sponsors? Please provide details. None required. Active participation in Yes. EC Chair vote May EC Nominations Committee vote November 2010 Active participation in Has the Country Sponsor nominated individuals to serve on GIPS Subcommittees and Working Groups? Please provide details. Yes. Mike Gibbs-Harris for the Investment Manager Sub-committee. 5 Has the Country Sponsor submitted any working papers or raised any other issues with the GIPS EC? Please provide details. Yes. Input sought (and received) from GIPS staff for response to Ministry of Economic Development (MED) scoping paper on regulations for retail KiwiSaver schemes in August See below. 6 Does the Country Sponsor have a GIPS Website? Please provide examples of GIPS marketing materials. GIPS material is accessed via a link on the CFA Society of New Zealand home page. 7 Has Country Sponsor planned or conducted GIPS Seminars or Workshops? Please list any press releases, media activity or other promotional activities. There was considerable inter-action with the media over the lead-up to the release of the MED Scoping paper regarding the GIPS provisions, what the Australian regulations require and their applicability to New Zealand. 8 Has Country Sponsor had any communication with local regulator? Please provide details. Yes. Louis Boulanger and local investment managers met with the Government Actuary and MED staff (New Zealand regulator) in July The Country Sponsor submitted on the MED Scoping document : Draft Disclosure Regulations for Retail KiwiSaver Schemes in August A copy of the submission is attached. MED has issued a discussion paper: Periodic Reporting Regulations for Retail KiwiSaver Schemes dated November 2010 and has sought input on a number of reporting issues including applicability of GIPS. Submissions close 11 March. The country sponsor intends to provide a submission. 9 For those Country Sponsors with a GIPS translation, please explain plans, if any, for translating the 2010 version of the GIPS standards. NA 10 Please explain how local market expertise is represented within your Country Sponsor Committee. There is a group of local market participants whose views are sought on issues on an ad-hoc basis. Views of the directors of the CFA Society of New Zealand are also sought. 11 Please explain any additional activities not provided above. A second New Zealand investment manager, Gareth Morgan Investments, became GIPS compliant in 2010 (press release attached. A further major player HSBS has indicated it intends to be GIPS compliant with respect to New Zealand offerings. (press release attached) Continue to work with the New Zealand investment community, particularly likes of HSBC, to have more managers become compliant.

72 THE PRESS, Christchurch Saturday, September 4, 2010 BUSINESSDAY C19 ALLIED FARMERS Alloway resignation shock Tim Hunter Former Allied Farmers chairman John Loughlin said he was as surprised as anybody t the sudden resignation of managing director Rob Alloway with the company s finances still in dire straits. I ve got no idea what s happening in the company, he told BusinessDay yesteray, two weeks after his own resignation. I haven t spoken to anybody. All I do is read the papers. Alloway announced yesterday morning he would quit as chief executive in December but would remain on the Allied Farmers board. He had iven notice to allow a timely search for a new CEO nd a measured handover of the business. Explaining his decision, Alloway said a restructuring process at Allied Farmers was oming to an end. And [with] everal asset realisations likely in the short term, the ompany will be in a different position in December when I tep down. My key goal was to stablish a more stable financial platform and normalise the company s bankng and other commercial rrangements. Allied Farmers, 98 per cent owned by former Hanover Finance investors after a stock for shares swap last year, is in talks with banker Westpac over debts of $16.9 million after several extensions were granted on repayment terms. The latest talks follow the receivership of Allied s finance subsidiary Allied Nationwide on August 20, which meant the company could not meet agreed terms for repayment. Loughlin said appointing receivers was the only decision the company could take. I resigned when Allied Nationwide tipped over, he said. I d been chairman through the time the finance company was expanded and I felt the need to take responsibility for the losses that are owed from that. Allied Nationwide owed its investors about $130m when it collapsed, but its debts were covered under the government s retail deposit guarantee scheme. Alloway said at the time it was better to call in receivers than use Allied s assets to support the finance company. Those assets were mainly Dire straits: An investors asks a question of Hanover co-owner Mark Hotchin, Allied Farmers chairman John Loughlin and managing director Rob Alloway, who yesterday announced he was resigning. Photo: JOHN SELKIRK loans and property acquired from Hanover Finance, but subject to devastating writedowns since the controversial deal last December. Murdoch says global economy is uncertain News Corp chief executive Rupert Murdoch says the global economy is still in an uncertain state and the media ndustry is going through a fundamental transformation that is unpredictable. I do not believe we are out f the turmoil yet. Sovereign ebt pressures, soaring eficits and unacceptable US unemployment levels are key bstacles to the global econmic recovery, said Murdoch, whose comments ame in a letter to shareholders in his company s nnual report published yesterday. Others may see more positive signs, but I believe until these issues are ddressed, markets, governments, currencies and conumer behaviour will be unpredictable, he said. Murdoch was bullish I am only half joking when I wonder if there is anyone left on this planet who has yet to see Avatar. about how his company which owns the Fox TV networks, newspapers like the Wall Street Journal and Hollywood studio Twentieth Century Fox had navigated both the difficult economic environment and the threat from web-based services. He highlighted successes for the company including the record-breaking 3D movie Avatar, now the biggestselling movie of all time. I am only half joking when I wonder if there is anyone left on this planet who has yet to see Avatar. Rupert Murdoch News Corp chief executive Murdoch described the 700 pence per share offer for the 61 per cent of BSkyB it does not already own as attractive and a logical and disciplined plan. Under Murdoch s drive, News Corp units have been pushing to seek new business models that embrace technology. Companies that do not innovate will struggle to survive, Murdoch said. Shares of News Corp have fallen around 3.4 per cent since the start of the year. Reuters From a paper value of $396.2m when the Hanover deal was done, the underlying assets have since been written down to just $94.3m. Allied is yet to report its results for the year to June, due last Monday [August 30]. However, it has received a stock exchange waiver until September 10 to supply the results. Its shares were unchanged yesterday at 2.4c, valuing the company at $49m. THINKING CACTUS Startup software recognised A small Christchurch startup has had a brush with Sci-Fi fame with its animation software used in an Emmyaward winning Star Wars remake. Software firm Thinking Cactus animation software Voovees Director was used in one of hundreds of usergenerated scenes tacked together to crate Star Wars Uncut, by animation firm Pineapple Pictures. Last Friday, the film, which is available only online, won an award for Outstanding Creative Achievement in Interactive Media for Fiction at the Emmy Awards. Star Wars Uncut is the genesis of New York software developer Casey Pugh, who used user-generated content to recreate an animated version of the first Star Wars film. Contributors were asked to submit 15-second animated version of Star Wars scenes. INVESTMENT PERFORMANCE REPORTING Third funder gives Gips thumbs up Romy Udanga Momentum for global investment performance standards (Gips) compliance appears to be building, as the fund management industry seeks a best-practice investment performance reporting standard to adopt. HSBC announced at the launch of its New Zealanddomiciled World Selection Funds in Wellington this week that it intends for its subsidiary HSBC Investments New Zealand to be Gips compliant, as other subsidiaries are elsewhere in the world. Gips allows investors to compare the performance of their investment apple-withapple with those of most funds in Britain, the US and Australia that are reporting based on the platform. The standard has yet to gain ground in New Zealand despite about 95 per cent of British managers, 85 per cent in the US and 60 per cent in Australia complying with it, and Kiwi fund managers saying it will help make KiwiSaver schemes transparent and comparable. HSBC Private Bank head Glen Tonks said the multimanager, multi-asset portfolio World Selection Funds, which are a New Zealand first, are feeder funds to HSBC Global Asset Management products managed out of Luxembourg. They [global asset funds] are Gips compliant. So it makes absolute sense that we [HINZ] become Gips compliant as well. For New Zealand, if we want to become an international financial hub, it makes absolute sense, particularly with what the governments on both sides of the Tasman are doing under the proposed mutual recognition regime. It makes sense that we look at some common reporting, Tonks said. HINZ becomes the third New Zealand fund manager to align with Gips, after Gareth Morgan Investments, whose KiwiSaver fund became compliant last month and Wellington-based niche international investment manager Mike Gibbs-Harris Asset Management which became compliant in MGH director Mike Gibbs- Harris said HSBC s announcement is a very good piece of news for Kiwi investors. You have to wonder whether the government will stick to its plan to wait for ISI to produce something, given how long they have dragged their feet, he said. National industry body Investment Savings and Insurance Association is still progressing work on developing a standard for reporting the performance of managed funds. It commissioned PricewaterhouseCoopers last month to prepare initial draft proposals for a standard suitable to New Zealand s retail market that it hopes will be passed into law. PWC has recommended to further develop the Australian investment performance standards, based on Gips but amended for the Australian retail market. JUST WATER INTERNATIONAL Clearwater turns murky as red ink runs Tony Falkenstein Andrea Fox Just Water International (JWI) will not pay a dividend, after reporting a $19 million annual loss, from 2009 s $1.804m profit. JWI said yesterday it had taken its Australian business off the market and, after reform of the subsidiary s cost structure, it expected a turnaround in The trans- Tasman water cooler provider s pre-tax loss was $19.4m, after writing down $18.3m in goodwill on its Australian subsidiary Clearwater Filter Systems, after sale negotiations were unsuccessful. Revenue fell 3 per cent to $35.4m. Chief executive and company founder Tony Falkenstein said JWI was offered about NZ$10m for the business, which was on its books for NZ$28m. The $18m was all goodwill so we took the hit on it, he said. Buying Clearwater was JWI s passport to Australia s market in With buyers out there, the firm thought it could get a good price, he said. The directors decided against a dividend to focus on repaying debt, put at $25.5m. No payout was expected for the 2011 year. ZR AA Commercial/Industrial Sales and Leasing Chris Harding Craig Goodland GRENADIER REAL ESTATE LTD MREINZ Licensed AGENT REAA 2008 BUYING OR SELLING LARGER BUSINESSESS It s proven performance & results that count. 17 years and over 500 completed transactions. DAVID WELLS AREINZ. BA. Dip R.E. REINZ Accredited Business Broker Experienced. Qualified. Professional david.wells@naiharcourts.co.nz CHIEF EXECUTIVE OFFICER REAL ESTATE INSTITUTE OF NEW ZEALAND A critical role as the face of a high profile industry organisation The Real Estate Institute of New Zealand (REINZ) represents the interests of industry members and has a proud heritage of more than 90 years. After seven years of stable leadership, the Board seeks a new CEO who will be a highly professional person to drive the Institute forward. With a strong membership base the Institute is in an excellent position to move to a new level in this new environment of transparency. Experienced Commercial Valuers Darroch is New Zealand s leading independent professional property services business, and we re recruiting nationwide for Senior Commercial Valuers to join our team of experts, and be part of an exciting period of growth. You ll be joining a 100% Kiwi owned company, with a proud history of success in property services. Critical to our success is our high quality independent advice, which enables our clients to make the best decision for their business. Sitting alongside your obvious commercial experience; we re looking for people with energy and enthusiasm, and a genuine desire to do the best job for our clients. At Darroch, this is what we do. For more information about these nationwide opportunities, please call Rob Hutchison, General Manager Valuations on (09) To apply, please your CV and a cover letter to recruitment@darroch.co.nz. Applications close Monday, 13th September Real estate is very dear to the hearts of New Zealanders and an important part of our economy. One of the Institute s responsibilities is to represent members and provide intelligent and influential commentary on this industry and its economic dynamics. The Institute plays a vital role in industry training and the communication of statistical data; runs an Industry Training organisation; with shared ownership in and an insurance services business. The CEO must present a credible profile in the eyes of the membership and public and be also able to develop solid relationships with key stakeholders. With exceptional communication and influencing skills, the ideal candidate will be a highly competent individual with a strong leadership track record and well rounded commercial background that demonstrates an ability to deliver results and front an organisation. The ability to understand statistics and direct research is important and a legal/financial background would be advantageous. Please send your resume in confidence to Penelope@jpasearch.com to register your interest. For any specific enquiries, please call Penelope Peebles at John Peebles Associates on AA

73 SCOPING PAPER: Draft Disclosure Regulations for Retail KiwiSaver Schemes Feedback from CFA Society of New Zealand August 2010