Delivering Customisation:

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Delivering Customisation Slight of Hand and
Other Magic Tricks for Pan-European
Portfolios 14 September 2006
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Table of Contents
Whats happening in the European markets Whose
ready for innovation? What does it take to be
successful in managing and delivering
products? Who are the key partners? How
FundQuest is bringing the pieces
together FundQuests tailor made investment
programs FundQuests modular approach What
lessons are to be learned?
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Whats happening in the European Markets

• Assets ... Now You See It ... Now You Dont

• Luxembourg - Highest growth within European
  markets for 2Q 2006 -- 87 of total net inflows
• Most of Europe suffered outflows within domestic
  funds - particularly in equities
• Equity and Balanced Funds continued to attract
  money in several markets
• Balanced products were the big winners in
  volatile markets!

Source EFAMA
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Whose ready for Innovation?

• Pulling Wrap and SMA programs of the Hat
• Fund Wrap and SMAs are not new products
• Why talk about them if they arent new?
• Markets and clients are maturing
• However Wrap and SMA programs are not always
  profitable
• Too customised
• Too cumbersome to support
• Not sufficiently performant
• Boils down to
• Too many choices ... Too little time
• And too many tasks

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What does it take to be successful in managing
and delivering products?

• The Technology Slight of Hand in Managing
  Portfolios
• What accoutrements does the manager need to meet
  the clients needs
• Good research analytics
• On-line trading and management tools (STP to
  avoid errors)
• Performance reporting
• Flexible access to and delivery of products

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What does it take to be successful in managing
and delivering products?
?
IFA
Private Portfolio Manager
Trailer Fee
Fund Platform
Broker/Bank/Custodian
Transfer Agent 1
Transfer Agent 2
Trailer Fee
Fund Group B
Share X
Fund Group A
Fund Group C
Share Y
The challenge of delivering product in one market
is multiplied by each additional market entered
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Who are the key partners?
IFA
Private Portfolio Manager
Global Multi-Manager
Market Clearing Structures
BNPSS
Clearstream
Euroclear
Share X
Fund Group A
Share Y
Fund Group B
Fund Group C
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How FundQuest is bringing the pieces together
Client ( Investment Consultant)
Portfolio Management
Manager Research
Implementation Services
FQ Managed Program
FQ Advisory Program
BPSS Administration/ Clearing Support
FQ Manager Select Program
FQ Separate Account Program
Global expertise applied market by market
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FundQuests tailor made investment programs

• Complete outsourcing of portfolio management
  activities and investment communication needs

FQ Managed Program

• Customised diversified separate account portfolio
  management

FQ Separate Account Program

• Multi-manager selection and monitoring advisory
  program

FQ Advisory Program

• Selection and monitoring of sub-advisory
  relationships

FQ Manager Select Program
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FundQuests modular approach
A coordinated offering of investment expertise
and administrative support with BPSS
Institutional Advisory Program Distributor
Advisory Program
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What are the lessons to be learned?
There is no magic solution for a global
approach Complexity is the friend of
multi-managers, private wealth managers, IFAs and
fund companies Technology is maturing
Administration/settlement is the next
frontier Regulation and taxation is still a
challenge in Europe Flexibility and clever
partnerships are critical Embrace the challenge
and look to add value by focusing on a key
portion of the value chain