MOVING FUND SERVICES FORWARD TM

Transcription

1 MOVING FUND SERVICES

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3 ... CONTENTS 01 THE LEADER IN FUND SERVICES 03 WHY CITCO 05 STRENGTH IN PEOPLE AND TECHNOLOGY 07 OVERVIEW OF SERVICES 09 FUNDS OF FUNDS AND PRIVATE EQUITY 10 ON-LINE REPORTING 11 OUR COMMITMENT TO TECHNOLOGY 15 CITCO FUND SERVICES: A GLOBAL PRESENCE

4 A WORLDWIDEW GROUPROUP OF FINANCIAL SERVICEERVICE COMPANIES CORPORATE OVERVIEW The Citco Group of Companies is a worldwide group of independent financial service providers serving the world s elite hedge funds, private equity and real estate firms, institutional banks, Global 1000 companies and high net worth individuals. Citco companies service these sectors around the world by offering hedge fund administration, custody and fund trading, financial products and corporate and trust planning solutions. Citco is an independent group of companies which have focused on these specialized niche services for over 65 years. It is this focus that has helped us reach the position as global industry leader in our markets. With more than 4,000 staff in over 37 countries, and with our clients as partners, we will demonstrate this dynamic focus which has allowed us to excel in what we do best. We continue to dedicate substantial resources and energy to further enhance our proprietary working platforms so that we can meet and exceed your expectations in these industry segments.

5 .... PAGE 01 THE LEADER IN FUND SERVICES More than 40 years ago, Citco helped define the fund administration industry. Our commitment to our clients, recruiting qualified personnel and our investment in technology enabled Citco to become the global leader in hedge fund administration. Today, Citco Fund Services administers approximately 2,000 funds with more assets than any other hedge fund administrator. Our aim is to remain the pre-eminent alternative investment fund administrator. We seek to provide funds with a quality and scope of services beyond what is merely required. In other words, we are Moving Fund Services Forward.

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7 .... PAGE 03 WHY CITCO Fund administration is a core business for Citco. We are an independent service provider that is not allied to an investment bank, thus mitigating potential conflicts of interest. Our mission is to provide superior performance in the area of administration, delivered through our high level of responsibility, accuracy, responsiveness and continuity. This is made possible through experienced, highly qualified teams that have worked for some of the largest and most complex hedge funds in the world, which has enabled us to gain an intimate knowledge of the hedge fund industry. Our client management structure is designed to ensure that each fund has its own dedicated team. Start-ups receive the same quality service as the world s largest hedge funds. Our staff understand service level responsibilities and are committed to meeting client expectations and deadlines. We focus on building and maintaining the integrity of our relationships. All of our work is subject to a combination of automated checks and senior review. Controls have been developed specifically to meet industry requirements and are subject to compliance and internal audit protocols. Our systems are hosted in primary and secondary data centers under fully redundant Application Service Provider solutions. All Citco Fund Services companies are SAS 70 Type II certified. We have a long history of developing services and technology to meet the ever changing requirements of the alternative investment industry and it is this commitment to the industry that is constantly being recognized in surveys and awards.

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9 ... PAGE 05 STRENGTH IN PEOPLE AND TECHNOLOGY Established over 65 years ago, the Citco Group s track record and continuity of reputation is second to none in the industry. Today, we offer our clients the best quality of service through our commitment to meeting client expectations and the use of leadingedge information technology. Citco Fund Services draws upon a global team of experienced, knowledgeable and highly trained staff to ensure that each fund is supported appropriately and service quality standards are not only met, but consistently exceeded. Clients are supported by dedicated teams who are fully versed in the activities of a fund and staff who are familiar with complex legal structures and financial products. A relationship manager acts as the primary contact to ensure expectations are met and exceeded. We look for and employ staff who demonstrate an interest in understanding not only our business, but also our clients strategies and products, and who can formulate solutions that support our clients operations. We recognize the importance of our staff through career development initiatives and extensive training programs to ensure staff are equipped to handle the complexities of hedge funds. Such training ensures that staff understand capital markets, and remain informed of industry trends and developments across all relevant jurisdictions. Our extensive training programs are designed to also aid the career development of our staff and to help them grow with the company. The ability to transfer between offices and divisions also ensures that we maintain consistent levels of excellence and a well-rounded and experienced pool of personnel. Combined with the wealth of experience gained from working with hedge funds, our management and personnel have helped Citco Fund Services companies consistently maintain our ranking in independent surveys as the world s top rated provider of hedge fund administration services.

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11 ... PAGE 07 OVERVIEW OF SERVICES ACCOUNTING AND VALUATION We maintain the accounting records of a fund on an independent basis. We price the portfolio using, where available, recognized data vendors, and calculate all fees and accruals. We calculate the net asset value and prepare financial statements. We coordinate the audit process and meet stock exchange reporting requirements. Alternative investment instruments and products are our specialty and we are experts in concepts unique to the industry such as new issues, equalization, and partnership allocations. FRONT-TO-BACK SERVICES Our front-to-back service offering Æxeo is the first straight through processing solution for hedge funds. Æxeo combines the use of our proprietary technology platform with middle and back-office support services. Æxeo is implemented on the fund manager s desktop and provides order capture, real-time P&L, and active portfolio reporting. The middle office groups offer daily trade and position break reporting, flash P&L, and portfolio pricing. The back office groups provide full-fledged fund administration. INVESTOR RELATIONS Investor records are captured and maintained in Æxeo Investor which is integrated with all core Æxeo products. We maintain share and partnership registers for the funds we administer and communicate with investors on-line as well as by traditional means. We process all investor-related transactions, including capital call activity and distributions for private equity funds and respond to investor enquiries. We verify each investor, ensuring compliance with applicable KYC and anti-money laundering requirements in each jurisdiction in which we operate. We offer tax reporting to U.S. investors, including tax estimates and K-1 preparation. Our bank provides cash accounts for subscription, redemption and operational purposes. VALUATION AND RISK SERVICES The Valuation and Risk group is responsible for independently valuing OTC derivatives for Citco clients globally. The valuation service includes price verification as well as independent pricing of client portfolios. We subscribe to standard pricing models for valuation of plain vanilla derivatives and use customized models for valuing complex securities. We also calculate sensitivities like DV01, Duration, Credit DV01, Delta and Vega of various OTC derivative instruments. Valuations are typically performed on a month-end basis, however, valuations can be provided on a more frequent basis when required. All pricing and risk numbers are archived and are available for any future reference.

12 PAGE 08 FUND SETUP Our legal and operational staff provide proactive and practical advice and assistance in the structuring and domiciliation of a fund. We review all documentation and liaise with the investment manager, legal counsel, brokers, custodians, auditors and directors. We coordinate the establishment of the operational procedures, communication flows and information exchange disciplines, and ensure that all accounts are open and activated in preparation for the first day s operations. CORPORATE SERVICES Our corporate services groups, located in each jurisdiction, provide company secretarial and, where relevant, registered office services to funds including: maintaining all minute books and the statutory records, filing annual returns and other local regulatory filings, arranging for payment of annual fees to local registrar/regulators, arranging for the execution of Board resolutions, and attending Board Meetings as company secretary and taking minutes. FINANCIAL REPORTING Our dedicated Financial Reporting Group can prepare fiscal year end and interim financial statements for clients. This team consists of qualified accountants, all possessing IFRS and GAAP knowledge with financial statement preparation expertise. We can support a variety of regulatory filings from internal sources and engage with the core client servicing team, the client, auditors and regulators in planning prior to reporting periods.

13 ... PAGE 09 FUNDS OF FUNDS PRIVATE EQUITY AN INTEGRATED PLATFORM Citco has developed a complete Funds of Hedge Funds solution that includes banking and custody, a comprehensive research-enabling trading platform, complete fund administration and a tailored reporting service. Each of these services is provided by a separate regulated entity and is delivered across secure web-based platforms. The result combines unprecedented efficiency with the robustness and security for which Citco is known. A SINGLE INTERFACE Fund Managers can research and trade thousands of hedge funds on a single electronic platform, CitcoFunds.Net. Instead of coping with a mass of trading clearing and settlement data both electronic and on paper operations receive verified data through a single interface. Best-of-breed custody, offered alongside award-winning fund administration, allows for easy and accurate portfolio reconciliation. Online reporting gives fund managers and any external designated party an accurate realtime portfolio view. TAILORED FUNDS OF HEDGE FUNDS SOLUTION Citco offers a package of Funds of Hedge Funds services that support the complex needs of the front, middle and back offices of the managers of these alternative investment vehicles. When dealing in alternative investments, those complexities increase as more sophisticated investment structures are created in less regulated environments where information is often less accessible. Citco s tailored Funds of Hedge Funds solution allows managers to trade, execute, settle, reconcile and report Hedge Fund holdings through a single platform. Capacity constraints are eliminated, the cost of change and accessibility to the latest technologies are minimised, leaving management to concentrate on investment decisions and on the growth of the business. OUTSTANDING RANGE OF SERVICES Drawing on our premier, industry leading private equity technology, we are able to offer an outstanding range of private equity fund administration services globally. These services include Fund Accounting and Administration Support, Investor Reporting Services, Tax and Audit Services and SPV Administration Services. LEADING TECHNOLOGY Our private equity accounting and investor relationship software application assists in organising, automating and simplifying private equity, limited partnerships and alternative legal structures. REPORTING SOLUTIONS In addition, we offer a variety of reporting measures and analytics tailored to the requirements of the general partner and the investors. Our suite of standard reports includes Financial Reports such as balance sheet, P&L statement and schedule of investments, Investor Reports such as capital call account statement, allocation report and call and distribution notices as well as Supporting Schedules such as cash reconciliation schedule, performance and interest tracking reports. We are also able to develop reports tailored to client and investor specific requirements.

14 .... PAGE 10 ON-LINE REPORTING Our web portal, allows Fund Managers and Investors to view all their fund information, reports and statements in one location. CitcoOnline.com is a single portal that provides sophisticated information that meets the needs of the key stakeholders in a fund. Fund Managers can view all of the reports Citco prepares as part of its administration services, and Investors can track the status of their subscription and redemption activities, and check valuations and returns. Clients are able to access their information via Citco s exclusive website, which allows investment managers and investors instant access to our network to obtain information relevant for their needs. The website has been operational for over five years and is protected by stringent security mechanisms to admit only authorized users. Publishing reports on the Internet allows clients around the globe to view, print and export the reports they need through their own personal computer. INVESTORS CitcoOnline allows investors on-line access to all their holdings, pending transactions and transaction history in all Citco administered funds in which they have investments. CitcoOnline is updated daily. Investors in a Citco administered fund can also obtain information about their incentive fees and equalisation balances wherever applicable, together with a complete net asset value and performance history of a fund. Citco s website offers features that are tailored to the unique needs of investment managers and distributors. FUND MANAGERS CitcoOnline provides investment managers with instant access to on-line reports. The selection of reports includes financial statements, portfolio reports, P&L and supporting schedules. Investment managers can use CitcoOnline as their archive for all financial data and all reports can be downloaded to the client s environment.

15 PAGE 11 OUR COMMITMENT TO TECHNOLOGY The Citco Group of companies has dedicated Information Technology Group is responsible for maintaining and monitoring all software and hardware configurations and for network support. The group also maintains Citco s exclusive database of security information, Citco Data Source, providing prices and corporate actions for U.S. and non-u.s. securities with integrated, cross-referenced identification codes, through multiple vendors. ACCOUNTING SYSTEMS The Citco Group of companies offers the most sophisticated global portfolio accounting software to the alternative investment community. Our systems are multi-currency with fully integrated general ledger capabilities. Our systems handle a full range of investments, including equities, fixed income, options, futures, forward currency contracts, and complex derivatives. These systems offer various accounting treatments (average cost, FIFO, HIFO, LIFO, etc.), unlimited consolidation features and have fully integrated corporate actions. PFIC and tax layering features for U.S. Investors in non-u.s. funds and U.S. partnerships are built into the system. Citco also offers other portfolio accounting and partnership taxation packages. Seamless electronic interfaces with major brokerage firms, vendors as well as highly automated reconciliation tools have eliminated time consuming and error prone manual processes. We are continually updating our systems to meet our clients requirements and take advantage of new market developments.

16 ... PAGE 12 FRONT AND MIDDLE OFFICE SYSTEMS Using Æxeo s single unified database for all functions, Citco s offering allows all users to work from the same accurate real-time data to monitor positions, obtain P&L, execute trade allocations and generate real-time custom reports on the fly based on a wide variety of parameters. This cross-product solution is able to handle trades across a wide array of asset classes and markets. Connections to prime brokers third party order management systems, risk systems, and realtime market data feeds are fully supported. Available as part of our premier business solution, our technology combines complete administration services, full Application Service Provider services and 24x7x365 technical support. To ensure business continuity, we maintain a fully redundant, highly secure network, including two state-of-the art Data Centers in separate geographic locations. This premier technology virtually eliminates a fund s need to invest in technology and in-house operations, providing a comprehensive technology and support infrastructure that is regularly updated to maintain cutting-edge status. ÆXEO TECHNOLOGY ASP SERVICES SU PPO RT SERVICES ONECONTINUOUSDATABASE FRONT OFFICE BACK OFFICE MIDDLE OFFICE PEO PLE PRO CESS TECH N O LO G Y AD D ITIO N AL SERVICES CO N N ECTIVITY

17 ... PAGE 13 INVESTOR RELATIONS Combining the knowledge of our clients and their needs with the depth of experience within our organization, Æxeo Investor has been built to meet the high standards of quality and control expected from the top-rated provider of hedge fund administration services. Æxeo Investor uses the latest technology for our shareholder record keeping and transfer agency. The system is multi-user and real time, and handles share, unitized and partnership record keeping. It reports the performance fees attributable to individual investors by deploying approaches unique to hedge funds such as equalization and multi-series calculations. Our platform enables us to track each stage in the subscription, redemption and transfer process including the various stages in the document gathering process for anti-money-laundering purposes. Standard reports are generated for each investor and in an aggregated form. ÆXEO DATA WAREHOUSE The Æxeo Data Warehouse is a web based decision support tool designed to provide clients with the power to take control over their operational reporting. This product is a self-service tool which allows the end user to access data, create or modify reports, and perform data extracts to meet their business needs. The warehouse contains over 400 data elements which are accessible to the end user to build a wide variety of reports. BUSINESS CONTINUITY AND CONNECTIVITY Our core systems are covered by sophisticated business continuity processes. Systems are deployed in primary data centre locations with full redundancy provided at a second disaster recovery site. All hosted applications are subject to 24x7x365 support. Recovery centers are located in Europe and North America. Where systems are deployed on servers in Citco offices, full data backup procedures and recovery processes are in place. DAILY CASH/PORTFOLIO RECONCILIATIONS Automatic cash, portfolio and trade reconciliation programs have been developed to reconcile electronic data received from managers to that received from prime and clearing brokers. Using these programs, the data is automatically reconciled, and any anomalies in quantity, price or market value will be detected and evaluated. Automated price comparison reports facilitate the sophisticated analysis of a fund s pricing methodology.

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19 ... PAGE 15 CITCO FUND SERVICES: A GLOBAL PRESENCE THE CITCO GROUP The Citco Group of companies provide an array of administrative, fiduciary and financial services around the world. Founded more than 65 years ago, Citco Group companies operate in over 40 countries and offer three core products: hedge fund services; banking and custody; trust and corporate management. CITCO FUND SERVICES Companies within Citco Fund Services offer fund administration services to hedge funds, fund of funds, private equity funds and managed accounts. Services include legal and corporate services, investor relations, accounting and net asset value calculations, and transfer agent services. CITCO BANKS The Citco Banks, in Europe and the Americas, combined with Citco Financial Products, offer all banking activities including electronic trade execution of investments into hedge funds, custody, different types of financing, foreign exchange and other treasury services. The Banks are leading providers of specialized trade execution and custody of hedge fund holdings for other financial institutions and Funds of Funds. CITCO CORPORATE & TRUST Citco Trust offers the establishment and management of trusts, corporations and foundations for institutions, individuals and their advisers. CITCO FINANCIAL PRODUCTS Citco Financial Products (CFP) business unit was established to serve the Citco Group of companies Fund-of-Hedge-Fund (FoHF) clients with financial services that are directly relevant to their business. With an in-depth understanding of the requirements of investment managers, CFP has developed products and tools to help managers efficiently bridge, hedge and structure their portfolios. CITCO TRANSPARENCY PLATFORM Citco Transparency Platform (CTP) was created as a result of the unprecedented market conditions recently and the desire of investors for enhanced hedge fund reporting. CTP offers transparency solutions for Hedge Funds and Hedge Fund Investors such as attribution, counterparty and investment guideline reports, as well as portfolio aggregation and risk management. All the services are delivered via the CTP web portal.

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21 AMERICAS EUROPE Citco Fund Services (USA) Inc. 350 Park Avenue, 29th Floor New York, NY USA Phone: Fax: Citco Fund Services (USA) Inc. 701 Brickell Avenue, 26th Floor Suite 2600 Miami, FL USA Phone: Fax: Citco Fund Services (San Francisco), Inc. 560 Mission Street, 26th Floor San Francisco, CA USA Phone: Fax: Citco Fund Services (Malvern) Inc. 83 General Warren Boulevard Suite 200 Malvern, PA USA Phone: Fax: USA Toll Free: (866) Citco (Canada) Inc. 2 Bloor Street East, Suite 2700 Toronto, Ontario M4W 1A8 Canada Phone: Fax: [email protected] Citco (Canada) Inc George Street Halifax, Nova Scotia B3J 1M5 Canada Phone: Fax: [email protected] Citco Fund Services (USA) Inc. Harborside Plaza 10, 3, Second Street 6th Floor Jersey City, NJ USA Phone: Fax: Citco Fund Services (Bahamas) Limited One Montague Place, 1st Floor East Bay Street, P.O. Box N-4906 Nassau Bahamas Phone: Fax: [email protected] Citco Fund Services (Bermuda) Limited Mintflower Place, 8 Par-La-Ville Road 4th Floor Hamilton, HM08 Bermuda Phone: Fax: [email protected] Citco Fund Services (BVI) Ltd. Wickhams Cay, P.O. Box 662 Road Town, Tortola British Virgin Islands Phone: Fax: [email protected] Citco Fund Services (Cayman Islands) Ltd. 89 Nexus Way, 2nd Floor, Camana Bay P.O Box Grand Cayman KY Cayman Islands Phone: Fax: [email protected] Citco Fund Services (Curaçao) N.V. Kaya Flamboyan 9, P.O. Box 4774 Willemstad, Curaçao Netherlands Antilles Phone: Fax: [email protected] Citco Fund Services (Europe) B.V. Telestone 8, Teleport, Naritaweg BW Amsterdam The Netherlands or: P.O. Box JE Amsterdam The Netherlands Phone: +31 (0) Fax: +31 (0) [email protected] Citco Fund Services (Ireland) Limited Custom House Plaza Block 6 International Financial Services Centre Dublin 1 Ireland Phone: +353 (0) Fax: +353 (0) [email protected] Citco Fund Services (Ireland) Limited Tellengana House Blackrock Road, 3rd Floor Cork Ireland Phone: +353 (0) Fax: +353 (0) [email protected] Citco Fund Services (Jersey) Limited Le Masurier House, La Rue Le Masurier St. Helier JE2 4YE Jersey, Channel Islands Phone: +44 (0) Fax: +44 (0) [email protected] Citco Fund Services (Guernsey) Limited 3rd Floor, Nat West House, Le Truchot St. Peter Port GY1 1WD Guernsey, Channel Islands Phone: +44 (0) Fax: +44 (0) [email protected] Citco Fund Services (London) Limited 7 Albemarle Street London W1S 4HQ United Kingdom Phone: +44 (0) Fax: +44 (0) [email protected] Citco Fund Services (Luxembourg) S.A. Carré Bonn, 20, rue de la Poste L-2346 Luxembourg Luxembourg or P.O. Box L-2012 Luxembourg Luxembourg Phone: Fax: [email protected] ASIA AND AUSTRALIA Citco Fund Services (Hong Kong) Limited 15th Floor, 100 Queen s Road Central Central Hong Kong Phone: Fax: [email protected] Citco Fund Services (Singapore) Pte. Ltd. 10 Changi Business Park Central 2, #05-01 HansaPoint Singapore Phone: Fax: [email protected] Citco Fund Services (Australia) Pty. Ltd. Level 22, 45 Clarence Street Sydney, NSW 2000 Australia or P.O. Box R1825 Royal Exchange, NSW 1225 Australia Phone: +61 (0) Fax: +61 (0) [email protected]

22 Citco Fund Services (Holdings) Ltd. All rights reserved. Citco, the Citco logo, and Moving Fund Services Forward are trademarks or registered trademarks of Citco Group Limited or its affiliates. Æxeo Technology is a trademark and service mark of Æxeo Technology Limited.