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  • 1. Capita Financial Group Ireland Paul Nunan 3 rdJuly 2007

2. Capita Financial Group Ireland Introduction

  • Irish Fund Servicing Industry & Growth
  • Irish Fund Structures
  • Industry Trends
  • Industry Challenges
  • Regulatory Update
  • Capita Financial Group in Ireland

3. International Funds Industry in IrelandIndustry Statistics

  • Irish Registered Collective Investment Schemes
  • Alternative Investment Funds 2003 - 2005

+5.4 ytd +25% +35% +20% +19% +7% +36% +39% Annual % Growth 4087 3798 3712 3507 3300 2870 2392 2392 No. of Funds +2.9% ytd +8% +2% +7% +6% +15% +20% +22% Annual % Growth 769 March 2007 730 2006 585 2005 435 2004 362 2003 304 2002 284 2001 208 2000 Net Asset Values (Eur Billion) Year End 354 3020 June 2005 +138% +43% % Increase 149 Net Asset Value 2113 Number of Funds (incl. Sub funds) March 2003 4. International Funds Industry in Ireland Industry Statistics

  • Funds industry in Ireland
  • Over 1 Trillion euro in Assets under administration
  • Worlds largest centre for the servicing of alternative investment funds
  • Over 1/3 of AIFs serviced in Ireland
  • 8,323 people employed in Funds servicing industry at start of 2007
  • Average length of service for middle management now stands at greater then five years

5. International Funds Industry in Ireland Why Ireland?

  • Flexible but robust jurisdiction for regulated products
  • Safe pair of hands
  • Irish Stock Exchange (Irish and non-Irish Domiciled Funds)
  • Time Zones
  • Language

6. International Funds Industry in IrelandMain Categories of Irish Funds 7. International Funds Industry in IrelandAuthorisation Procedure for Funds

  • Irish Financial Regulator Responsible authority for the authorisation of funds
  • Promoter and Investment Manager Approval
    • Promoter / Investment Manager application Form
  • Fund Structure Approval
    • Detailed Fact Sheet Key aspects of the proposed structure
  • Funds Documents
    • Prospectus
    • Custody Agreement

8. International Funds Industry in IrelandTax Implications of Irish Domiciled Funds

  • Irish Domiciled Funds
  • UCITS and Non-UCITS are exempt from all sources of Irish Tax
  • Non-resident investors
  • Exempt from taxation on income and gains arising from their investments.
  • No WHT applies to any distribution of income or gains
  • The issue of shares in a fund is exempt from capital duty
  • Taxation of the funds assets
  • Double tax Treaties

9. International Funds Industry in IrelandIndustry Trends

  • Consolidation of Service Providers
  • State Street acquisition of IFS and IBT
  • Northern Trust & Barings
  • Citigroup and Bisys
  • Increase in service offering
  • Middle Office
  • Daily information
  • Growth in complex asset types and strategies
  • CDS, CDO, ABS Funds

10. International Funds Industry in IrelandIndustry Challenges

  • Capacity
  • Opening of other locations within Ireland
  • Outsourcers outsourcing, - India, Malaysia, Eastern Europe
  • Systems, Drive for more automation
  • Client Requirements
  • Risk Reporting
  • Performance Reporting
  • Daily P&L / NAV
  • Growth in complex asset types and strategies
  • Complex Pricing requirements

11. International Funds Industry in Ireland Regulatory Update

  • Qualifying Investor Funds (QIF)
  • 24 hour authorisation by Irish regulator
  • Non UCITS
  • Minimum Subscription of 250,000
  • Investment Company, Unit Trust, LP or CCF
  • Attractive for Hedge Funds, Fund of Hedge Funds, Private Equity, Real Estate Funds
  • Investment Funds, Companies and Miscellaneous Provisions Act
  • Provides for segregation of liability between sub-funds of an Irish umbrella fund structured as an investment company
  • Permits cross investment between sub-funds of an umbrella

12. Capita Financial Group Capita Ireland

  • Capita Financial Administrators (Ireland) Limited (CFAI)
    • Administration company
    • Authorised under IIA on 12 July 2006
  • Capita Financial Managers (Ireland) Limited (CFMI)
    • Management Company
    • Authorised under Management Company Directive on 12 July 2006
  • Experienced staff
    • Hedge Funds and Alternative Investment Funds
    • Qualified Accountants at all management levels
  • Systems
    • Utopia Transfer Agency system
    • SunGard Invest One Fund Accounting System
    • Proven systems for Hedge and Alternative Fund Administration

13. Capita Financial Group Capita Ireland Services Provided

  • Capita Financial Administrators (Ireland) Limited
    • Fund Administration
    • Transfer Agency / Shareholder Servicing
    • Financial Statement Preparation
    • Corporate Secretarial Services
    • Tax Assistance US Tax Reporting (PFIC, K1) and German Tax
    • Compliance monitoring of investment restrictions
  • Capita Financial Managers (Ireland) Limited
    • Corporate governance support
    • Host management company
    • Board of directors

14. Capita Financial Group Capita Ireland

  • Operating model
    • Client driven operating model
    • Single knowledgeable point of contact
    • Scalability/capacity
    • No legacy issues
    • Systems

15. Capita Financial Group Capita Ireland Host Management Company

  • Unique in Irish marketplace
  • Analogy with highly successful ACD business in the UK
  • Facilitates entry into the Irish market
    • No suitably licensed management/investment management company
    • Tax/regulatory complications (e.g. Spanish based asset managers)
    • Speed to market
  • Corporate governance assistance
    • Some or all of the board of directors

16. Capita Financial Group Capita Ireland Sample Fund Structures

  • UCITS III
  • Structured Products through UCITS platform
  • Fund holds one TRS tracking an underlying strategy
  • Capita acts as Manager, Investment Manager and Administrator (Client appointed as Investment Advisor)
  • Hedge Funds
  • Dublin Domiciled (QIF)
  • BVI domiciled
  • Cayman Funds
  • Other
  • Master / Feeder
  • Limited Partnerships
  • Umbrella Funds

17. Capita Financial Group Capita Ireland 2007 / 2008

  • Middle Office
  • Risk Reporting
  • Performance Reporting
  • Automation
  • Automated Trade interfaces with Client, Custodians and Prime Brokers
  • Automated Reconciliation Tool (Positions, prices, market Values)
  • Web Access
  • Client web access to Fund accounting system
  • Shareholder web access

18. Capita Financial Group Capita Ireland Contact details

  • 1 Adelaide Court, Adelaide RoadDublin 2
    • +353 1 400 5300 (general)
  • Paul Nunan
    • [email_address]
    • +353 1 400 5302 (direct)
    • +353 868553069 (mobile)