Global Fund Distribution

Global Fund Distribution Opportunities & Challenges
Tuesday, September 20, 2011
The Cornell Club-New York, 6 East 44th Street, New
York, NY 10017
Global Fund Distribution Opportunities & Challenges
Global markets offer real opportunities to asset
managers, yet also pose significant challenges. Our
distinguished panel of experts will provide valuable
insights into the unique characteristics of key
international markets.
CONTENTS
Global Fund Distribution - Opportunities & Challenges
Agenda………………………………………………………………………………………………1
Speaker Biographies………………………………………………………………………… 2
Presentations…………………………………………………………………………………….9
AGENDA
07.30 – 08.00
08.00 – 08.30
08.30 – 09.15
09.15 – 10.00
10.00
Registration and Breakfast
Global Fund Distribution: Opportunities and
Challenges
Panel 1: How to Build a Cross–Border Fund
Business
Panel 2: Unlocking Global Distribution Channel
Close
Hosted by KB Associates with contributors from:
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Allfunds Bank
Citi Private Bank
Greenwich Associates
Harding Loevner LP
Hermes BPK Partners LLP
Southeastern Asset Management, Inc.
Third Avenue Management
The agenda will cover the following topics:
• opportunities that exist in key overseas markets
• consultant and investor requirements
• the views of managers engaged in global fund distribution
1
KB Associates Speakers
• Mike Kirby
Managing Principal, KB Associates
• Jill Paitchel
Executive Director, KB Associates
America
Consultant, KB Associates
• Ross Allen
Guest Speakers
• Borja Largo Landeta CIO, Allfunds Bank
• David R. Bailin
• Patrick Mc Nelis
• David R. Loevner
• Josh Hall
• Andrew McCarroll
• Erik Kleinbeck
Managing Director & Global Head of
Managed Investments, Citi Private Bank
Managing Director & Partner, Greenwich
Associates
CEO & Co-Founder of Harding Loevner LP
Partner & Head of U.S. Operations, Hermes
BPK Partners LLP
General Counsel & Principal, Southern
Asset Management, Inc.
Managing Director & Head of Sales, Third
Avenue Management
2
KB Associates Speaker Biographies
Mike Kirby
Managing Principal, KB Associates
Mike is Managing Principal at KB Associates a Dublin, London and New York
based consulting firm which advises leading asset managers and investment
banks on a range of fund governance, operational and compliance issues. He has
previously held senior positions at Bank of New York where he was responsible
for the establishment and management of its Dublin operations. He also held
senior positions in the custody and fund administration businesses of JP Morgan
in London and Daiwa Securities in Dublin.
Jill Paitchel
Executive Director with KB Associates America
Jill has been involved in the offshore fund business since 1989. She has held
senior positions with a number of leading asset managers and has been an
independent consultant to both asset managers and their service providers.
Prior to joining KB Associates Jill founded JP Global Funds Consulting to advise
asset managers and the service providers which support them. She focused on
providing strategic advice to firms seeking to grow their global distribution
capability. Previously she was President of Janus International at Janus Capital
Group where she was responsible for the company’s business activities outside
the United States. Jill also worked with Citigroup Asset Management as
Managing Director, Head of Retail & High Net Worth Asset Management for
Europe, Middle East & Africa. In addition, Jill has served as a Director of a
number of UCITS investment funds.
3
Ross Allen
Consultant, KB Associates
Ross is responsible for fund distribution services with KB Associates. He has
extensive knowledge of the international fund marketplace and of the practical
issues relevant to the cross border distribution of funds.
Prior to joining KB Associates, Ross was at Bank of America Merrill Lynch.
Previously he spent a number of years with HSBC Securities Services Ireland
where he was responsible for the administration of hedge funds and funds of
hedge funds.
4
Guest Speaker Biographies
Borja Largo Landeta
CIO, Allfunds Bank
Borja is Allfunds Bank CIO. Under his responsibility fall the activities of analysis
and funds selection, asset allocation, risk management and operational due
diligence. Borja began his career as an analyst of international investment funds
Banif BSN. In 2000 he was part of the founding team of Allfunds Bank and has
continued his work as a specialist in international investment funds, from the
initial analysis department and to his current responsibilities as Chief
Investment Officer since 2007. Allfunds Bank is the largest UCITS fund
distributor in Europe with more than 80 bn USD under distribution.
David R. Bailin
Managing Director & Global Head of Managed Investments,
Citi Private Bank
David is Managing Director and Global Head of Managed Investments for Citi
Private Bank. His primary responsibilities include the development and
oversight of all Alternative and Traditional Managed Investments, including due
diligence, manager selection, portfolio allocation and end to end client service.
He is also responsible for managing the Tailored Portfolio Group.
Citi Private Bank provides investing, banking, lending and wealth advice to more
than 25,000 of the world's most successful and influential families from offices
located in over 25 countries worldwide.
5
Patrick J. Mc Nelis
Managing Director & Partner, Greenwich Associates
Patrick is a Managing Director and Partner of Greenwich Associates, he consults
with the firm's strategic consulting group and investment management practice
clients globally. Prior to joining the firm, Patrick was Head of Global Distribution
and Client Service at Pyramis Global Advisors where he implemented best-inclass strategies for distribution, client service, consultant relations, marketing,
and product development as well as establishing the company's first globally
integrated business model. He previously held similar roles at Principal Global
Investors and Citigroup Asset Management.
David R. Loevner
CEO & & Co-Founder of Harding Loevner LP
David is Chief Executive Officer of Harding Loevner LP, an investment advisory
firm that he co-founded in 1989. Harding Loevner manages $15 billion of global
equities for institutional and individual clients, including US and European
mutual fund families. David spent the prior nine years in the Rockefeller family
offices, in New York and Hong Kong, managing investment and financial
counseling programs, and subsidiary businesses, including the Rockefeller
Insurance Company. Earlier, he worked for the World Bank in Washington D.C.
as its country economist for Brazil.
6
Josh Hall
Partner & Head of U.S. Operations, Hermes BPK Partners LLP
Josh is a Partner and Head of U.S. Operations of Hermes BPK Partners LLP. Prior
to joining the firm in October 2008, Josh was a Senior Operational Due Diligence
Analyst at Pioneer Alternative Investments in New York and was responsible for
analysing and assessing the operational risks of all targeted investments for the
fund of hedge funds’ portfolios. Previously Josh worked within the private equity
division at Strategic Value Partners, LLC. Earlier he served as the Controller of
the Private Equity Fund of Funds at Swiss Re Private Equity Advisers, Inc. Josh
began his career as an Auditor at Deloitte & Touche LLP where he focused on
hedge funds and private equity funds.
Andrew R. McCarroll
General Counsel & Principal,
Southeastern Asset Management, Inc.
Andrew is a General Counsel and Principal of Southeastern Asset Management,
Inc. As General Counsel, Andrew has been involved with the legal and structural
aspects of the firm’s expansion into overseas markets. Southeastern has offices
in Memphis, London, Singapore and Tokyo, and manages $37.5 billion in assets
for institutional and individual clients, including US and European mutual funds.
Andrew is a Director of the Longleaf Management Company in Ireland, which
oversees the operation of a UCITS fund Southeastern launched in January 2010.
7
Erik Kleinbeck
Director of Sales, Third Avenue Management
Erik is a Director of Third Avenue Management. He heads the institutional sales
and client servicing team and is responsible for strategic planning, as well as for
identifying business and product development opportunities globally. Since
joining Third Avenue in 2007, Erik has been integral in expanding the
Company’s overseas business, especially with institutional investors based in
Europe, the Middle East and Latin America. Prior to joining Third Avenue, he
was a managing director at SPARX Investment & Research, the U.S. advisory arm
of SPARX Asset Management, one of Japan's oldest independent investment
boutiques. Earlier Erik worked at Credit Suisse Asset Management and Warburg
Pincus Asset Management, where he held posts in both Tokyo and New York.
8
Presentations
9
KB Associates
Global Fund Distribution Opportunities and Challenges
September 20, 2011
Global Fund Assets
2011:Total Fund
Assets €22 trillion
2011
Source: EFAMA March 2011
2003: Total Fund
Assets €11 trillion
2003
Europe –Assets by Domicile
Total Fund
Assets €8.1 TR
Source: EFAMA Mar 2011
Europe
Source: EFAMA Handbook 2010 (estimated to Mar 2011-KBA)
Europe
Source: Lipper 2010
Europe
Source: Lipper 2011: Retail Market % (estimated market value- KBA)
Investment Strategies
Source: Lipper 2011 as at Dec 2010
Investment Strategies
MKT size:
€1.8TR
MKT size:
€765BN
Source: Lipper 2011 *totals exclude Fund of Fund assets
MKT size:
€1.5TR
MKT size:
€550BN
Target Countries
Source: PwC/Lipper 2011
Target Countries: Asia
Source: PwC/Lipper 2011
Target Countries: LATAM
Source: PwC/Lipper 2011
Distribution Channels: Europe
Source: Lipper 2009
Distribution Channels: Asia
Source: Lipper, PwC
Who invests?
Source: EFAMA 2011
Types of investors
Source: EFAMA 2011
Distribution- Key Considerations
Investment Strategy: Equity, Bond, Mixed, Money Market
Target country: Openness to foreign funds, investor appetite
for investment strategy
Investor type: Retail, Institutional, Insurance, Family office,
Pension
Channel: How to get the fund to market: Retail bank, Private
bank, IFA?
KB Associates
Thank you
KB Associates
Global Fund Distribution Opportunities and Challenges
Jill Paitchel
KB Associates
London Dublin New York
September 20, 2011
How to Build a CrossBorder Fund Business
Andrew R. McCarroll – Southeastern Asset Management, Inc.
David R. Loevner – Harding Loevner LP
Erik Kleinbeck – Third Avenue Management
Unlocking Global
Distribution Channels
Borja Largo Landeta – Allfunds Bank
David R. Bailin – Citi Private Bank
Josh Hall– Hermes BPK Partners LLP
Patrick J. Mc Nelis – Greenwich Associates
KB Associates
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info@kbassociates.ie
www.kbassociates.ie
260 Madison Ave
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New York, NY 10016
USA
Tel: +1 646 216 2106
42 Brook Street
London
W1K 5DB
United Kingdom
Tel: +44 203 170 8811
Fleming Court
Fleming’s Place
Dublin 4
Ireland
Tel: +353 1 668 7684
Fax: +353 1 668 7696
260 Madison Ave
8th Floor
New York, NY 10016
USA
Tel: +1 646 216 2103
info@kbassociates.ie
www.kbassociates.ie