2. Introducing Credit Suisse Group
Our qualities and key financial figures
Credit Suisse Group is a world-leading financial services company,
advising clients in all aspects of finance,
around the world, around the clock.
Credit Suisse is a client-focused and integrated bank,
focusing on complex client needs and value-adding businesses,
leveraging the global expertise of our three divisions,
Private Banking, Investment Banking and Asset Management.
Global bank headquartered in Zurich
We care about your business Total number of employees: 50,100 in more than 50 countries
Assets under management: CHF1'253bn
Return on equity: 14.4%
Top 3
Best Global Top Credit Agency Ratings:
Tier 1 Ratio
Bank in 2010 Aa2, A, AA-
(17.2%)
Department External Asset Manager
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3. Credit Suisse and External Asset Managers
Experience, breadth and depth enable excellence in execution and quality
Department of External Asset Managers (EAM):
Clients Wealth and Asset Managers
served by Multi-Family Offices
the
EAM desk Financial Planners and Advisors
Investment Fund Providers and Managers
Banking
EAM The EAM desk has over 250 employees
You Department 11 locations in 8 countries
Approximately CHF75bn Asset under Management
Asset Private booked by EAM at Credit Suisse
Facts &
Management Banking figures Relationship Managers, Investment Advisors and a
variety of specialists dedicated to your requirements
Unique access to all services within the integrated
bank, under the umbrella of Private Banking
Specialised in Integrated servicing of Combined services
B2B business provision all your business streams from PB, IB & AM
Department External Asset Manager
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4. Our fund expertise
Proven international track record for proprietary as well and white labelled funds
Credit Suisse overall Credit Suisse EAM Desk
Over CHF175bn in fund business is booked on Well balanced mix of on-/offshore
our platforms in Luxembourg or Switzerland jurisdictions
CS covers all asset classes (e.g. global equities Open platform approach, continuous
or mixed portfolios) and all kinds of funds review of new jurisdictions
(mutual funds, FoHF, all HF strategies, family
Onboarding of about 30 funds at the EAM
funds)
desk per annum
Labelled fund business accounts for around
Dedicated fund onboarding team consists
29% of the total volume
of 5 employees at the EAM desk
Distribution of fund investments Distribution of fund jurisdictions
1% 11%
11% Bahamas
18% Equities 22%
1% 2%
Bermuda
Fixed Income
BVI
Money Market 0% Cayman Islands
30% Germany
Alternative investments
31% Luxembourg
Fund of Funds
25%
39% Malta
9% Other
0% Other
Department External Asset Manager
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5. Your integrated partner for your fund structure
Broker Services by CS and partners Board of Directors
Brokerage Signs all relevant Integrated offering
Order execution documents for new
Done-away trades Investors subfund
of all services
Fulfills all regulatory and
compliance duties
Custodian Nominee Company (-ies)
Safekeeping Subscription and redemptions on behalf of
Payment transactions investors
Coupon collection Additional layer of confidentiality Auditor
Corporate actions Open platform
Financing Annual fund audit
Audit of financial approach
statements
Administrator Private Label Fund
Fund registration
Fund accounting Strategical and tactical allocation of
NAV- calculation fund assets to target investments Upgrade your
Legal Advisor
Representative function due diligence
Subscription and
Creation of legal fund by co-operating
redemptions
documents
management: Transfer
Ongoing legal advice
with a high-quality
Agent partner
Investment Manager Investment Advisor
Takes investment Non-discretionary advise
decisions to the Investment
Discretionary mandate Manager
Fields of your expertise
Department External Asset Manager
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6. Starting point: Service universe for funds
Incorporation services Brokerage services
Advisory on legal setup Investment products & advice
Project management Trading & execution services
Supervising launch of fund Research services
Prime Services
Administration services Custody services
Fund Solutions Fund accounting & NAV Depository bank services
calculation
Safekeeping/ accounts
Substance, compliance & risk
Settlement / asset servicing
management
Cash payments
Registration
Financing
Management company and
transfer agency Global reporting
One partner High and continuous Full guidance
who consolidates all fund investment in the through all aspects of
services in one division fund platform your structure
Department External Asset Manager
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7. Additional offering servicing your sophisticated needs
A wide range of enhanced services that you can choose from
Financing
Besides the basic
Lombard loans Specialized advice
fund services, CS
can provide you Securities Investment advisory
many other fund lending & Direct access to Reporting
related services borrowing trading floor (DAC)
Hedge fund advisory Statement of investments
Set-up support Performance calculation
Customized reports
We support you in
choosing the PLF Investment products
adequate services Stocks, Bonds, Funds
for your fund
Structured products
Alternative investments
eTools
By choosing single Credit Suisse Research EAM Net / Net Home
services you can Investment Banking Invest Net
tailor the – primary research Portfolio Net
solution that best Automated interface to
Private Banking
suits your needs portfolio management
– secondary research systems
Department External Asset Manager
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8. Fund structuring and setup services
Our open platform approach enables a solution tailormade to your needs
The foundation of a fund is a significant and important step for your company. A to Z:
As a partner, we would like to support you with our knowledge and our network End-to-end
to ensure we jointly do it in the right way to grow your business. coverage
of your projects
Advisory Process
Needs analysis Fund design Due diligence Implementation Life-cycle
Focus on the
Because every we tailor a compliant with where we take on
acquisition of
client is different ... custom structure ... global standards ... the project lead. your clients
(We do the rest to
Project Management & Incorporation Services get it started)
Complete Process Management Coordination of all involved parties
Reliable Project Management Dedicated
specialists and
Planning, Reporting & Control Ensuring proper documentation
project managers
Supervising launch of Fund Overlooking initial subscriptions in CH, Lux,
UK & Singapore
Department External Asset Manager
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9. Our global choice of jurisdiction
Spectrum of jurisdictions is huge, yet the choice is highly dependent on your needs
Topics to consider about the fund jurisdiction
Structuring flexibility Costs
Supervision & regulation Distribution
Reputation Investment strategy
Quality and availability of Investor profile
local service providers Setup time
Taxation
Operational jurisdiction
Bahamas Guernsey
British Virgin Islands Jersey
Jurisdictions Cayman Islands Luxembourg
Germany Malta
Gibraltar Switzerland
Global coverage Advice on the Range from
of all major fund selection of your highest flexibility to
jurisdictions fund domicile full supervision
Department External Asset Manager
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10. Selected Fund jurisdiction
Cayman Islands summary
Properties
Common legal forms:
– Exempted Company
(most common form)
– Unit Trust
– Exempted Limited Partnership
– Segregated Portfolio Company
(SPC)
Cayman Islands
Regulated by the Cayman Islands
Monetary Authority (CIMA)
No public offering; restricted to
Taxation qualified (minimum investment of
USD 100'000) and/or institutional
No taxation on fund level
investors
Licensing Fee USD 7'000
Full freedom to
Highest flexibility regarding Straight-forward
select service providers
your investment strategy implementation procedures
from abroad
Department External Asset Manager
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11. Selected Fund jurisdiction
Luxembourg summary
Properties
Common legal forms:
– SICAV is a corporate vehicle with
variable
share capital
– SICAF is a corporate vehicle with fixed
share capital
– SICAR is a corporate vehicle which
deposit its funds in risk assets
Luxembourg
– FCP’s are contractual type vehicles
(such as unit trusts)
Taxation
Regulated by the Commission de
Surveillance du Secteur Financier (CSSF) One-time capital duty of EUR 1250.-
High regulations tend to provide lower Annual subscription tax (tax
structuring flexibility d'abonnement) of:
Public offering possible – 0.01% for SIF
– 0.05% for all other structures
Highest regulatory
Biggest fund Clear sign of quality
environment with
jurisdiction in Europe for your investors
best reputation
Department External Asset Manager
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12. Administration & management company services
Administration is the"heart of a fund". Rely on the quality servicespersonal service of a
Our and the
Swiss premier bank to ensure best day-to-day processing of your fund.
Administration & processing services
NAV calculation, fund accounting, financial
Assets under Administration Assets under
reporting, tax services, payment services
(in bn CHF) administration:
Transfer Agency CHF 146.7 bn
120
Issue / redemption of units
Number
Supply/publishing prices of funds:
80
Distribution support services 264
Registrar services, stock exchange listing 109.1
40
Investment compliance
49.6
Investment control, compliance reporting
0
Management company &domiciliation CS labelled 3rd party
Liaison with auditor & regulators
Efficiency and Proof of concept:
Private Banking is fully
less reconciliation: Your fund would run on
committed to the
Administration & Custody same platform as our own
administration business
out of one hand funds
Department External Asset Manager
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13. International custody solutions
Market leader through superior flexible solutions across all custody services
Best
Global Custody
& Best Private
Banking Services
in 2010
Custody services
Several Booking Centers Custodial services offered Local presence
available to white-labelled funds in all major
fund jurisdictions
Switzerland Cash management Payments
Gibraltar Compliance monitoring Prime Brokerage
Guernsey Corporate actions Proxy voting
Luxembourg Coupon collection Safekeeping
Singapore Depository bank control Being a
Securities accounting
Private Bank,
Hong Kong Investment reporting Tax reimbursement claim
strong history
London
as Custodian
Department External Asset Manager
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14. Overview on Investment & Transactional Services
Unique market access and service depth ...
... through access to our Swiss-based comprehensive advice and best
execution platform, in the Private Banking Divison in Switzerland
... or through access to our award winning algorithmic execution platform
and the listed derivatives clearing and execution platform, in our
Investment Banking Division based in London
... with provision of a first-class global research universe
Large Scale Private Banking product
platform capable of handling the high Best people (very low fluctuation rate)
volumes
Comprehensive operational excellence in
Large long-term, continous IT investments
front to back processing (low error rate)
Access to more than Dedicated investment Coverage of all markets:
80 markets and advisor providing From opening in HK
all asset classes best execution to closing in NY
Department External Asset Manager
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15. Spectrum of Prime Services
Prime Financing Global Fixed Income & FX Prime Securities
Prime brokerage and portfolio Specialist expertise integrated Acting as a bank and a
swaps across asset classes within Prime Brokerage broker-dealer
Prime Capital Prime Technology Prime Execution
Access to capital across all Access to the firm’s Technological solutions of
PRIME SERVICES investment strategies award-winning infrastructure order execution
Reporting capabilities Prime Risk Prime Research &Analytics
Leading-edge, multi-product, Cross-product margining Customizable company and
multi-asset class platform across capital structure market analysis capabilities
Best Prime Broker & Multi-asset integration: Industry leadership:
Best Overall Trading Group One of the best integrated Active involvement with
in 2010 Prime Brokers regulatory bodies
Department External Asset Manager
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16. Technology platform
Innovative services to support you in managing portfolios, investments and products
Competitive advantages
Comprehensive functionality, from a powerful transaction
platform to high-end-client reporting
EAM Net
Home
Global information
Easy-to-use applications, that are used internally within
portal
Private swift Formalities Credit Suisse
Network Application
Connectivity with
portfolio management
systems
Relationship opening
Real-time connectivity, compatible with many Portfolio
EAM Net
Management Systems
Positions, portfolio
&transaction
Portfolio FOREX
Net Trading Multi-national technology approach for all booking centers
Reporting & performance
calculation FX deals world-wide
INVESTNet
Portfolio analysis & Direct market access via FIX protocol
investment proposals
Interfaces to multiple front-end providers (Bloomberg,
Reuters, TradingScreen (recommended), etc)
Flexibility: No more reconciliation: Flexible front-end:
24 hrs access Automated data feed Connect your own
through CS technology to your PM system trading system with CS
Department External Asset Manager
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17. We tailor our services to your needs
Providing a holistic support to you
We can offer
Setup support from A to Z: from first advice over legal setup to technology
Flexible creation of structures: from single funds to umbrella structures
Open platform approach: from the fully integrated solution to Custody or
Brokerage services only
One of the best brands in the industry
Strong platforms for Custody, Brokerage and Administration
Tailored solutions State-of-the-art technology solutions
Highly motivated people
... improve the quality ... manage your portfolio ... speed up your
of your fund and let us take care investments through
by partnering with us of the rest our power platforms
Finally, you can
... access your portfolio ... fully implement your ... access a variety of
realtime and place order strategy due to add-on services through
wherever you are our market coverage one point of contact
Department External Asset Manager
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19. Luxembourg's UCITS, UCI, SIF
Comparison
UCITS UCI SIF
Invests in listed securities Generally flexible Reserved for qualified
and/ or other liquid regarding investment investors
financial assets vehicles and fund Minimum investment is
Open-end vehicle structure EUR 125'000 or
Public offering possible Use of derivatives very assessment from
restricted qualified financial
Very restricted use of
Supervision of specified actor
derivatives
eligible securities Broad range of assets
Supervision of specified
Must not publicly promote investable
eligible securities
fund for capital raising in Complies with the
Fund structures Fund manager with
EU (ex Luxembourg) general principle of
specific license required
Shares of which, under risk diversification
Investor profile: open
their constitutional Rapid approval
No direct investment in documents, may only be process and thus
real estate, commodities sold outside the EU quickly launched
or hedge funds
Public offering only in Existing Umbrella
Existing Umbrella Luxembourg possible structure: Expert
structure: White Fleet Investor
Existing Umbrella
structure: Maestro
Department External Asset Manager
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20. UCITS III: Basic information and advantages
Undertakings for Collective Investments in Transferable Securities
UCITS III – an overview Advantages of a UCITS III
A European fund standard with a national Open investor profile: As a public fund, an
implementation: The UCITS standard is defined UCITS may be sold by all types of clients,
on a European level, however, the concrete including retail investors. UCITS funds therefore
implementation is done by the respective offer the possibility to approach a large potential
country. investor basis.
Investment flexibility: The range of assets eligible Public offering possible: As a fund with a
for an UCITS is restricted. An UCITS may invest European passport, the UCITS benefits of a
in listed securities and / or other liquid financial simplified approval process for public offering in
assets. No direct investments in real estate, various EU countries.
commodities or hedge funds are allowed.
Excellent reputation: Originally considered as a
Regulation: All involved service providers are European fund product, UCITS III has acquired
obliged to fulfill high regulatory requirements, brand qualities, and the UCITS III label is now
therefore contributing to a high standard and seen as a sign of quality all over the world.
reputation of UCITS funds. The Investment
manager for example needs to be supervised Efficient tax regime: No taxation on fund level,
and regulated by the respective regulatory For institutional share classes, a reduced taxe
authority (CSSF, FINMA, FSA or equivalent). d'abonnement of 0.01% is applied.
Department External Asset Manager
Slide 20
21. Specialized Investment Fund (SIF)
SIF – an overview Investments
Investors
Institutional investors A broad range of assets are eligible such as
derivatives, real estate, hedge funds, private
Professionals investors
equity
Any individual investor who has been declared
The offering memorandum of the SIF defines
informed, and is investing at least €125,000, or
the policy and limits, including the limits for
has an appraisal from a credit institution, an
borrowing (no other restrictions regarding
investment company or a management company
borrowing in place)
certifying their ability to invest in the fund
Risk spreading:
Maximum of 30% of assets in similar securities
Service Provider
issued by the same body unless the issuer is
Depositary Bank: Luxembourg bank or an EU subject to equivalent risk spreading rules or the
branch approved by the CSSF issuer is an OECD Member State or one of its
Central administration: must be located in public institutions
Luxembourg Short selling, derivatives and OTC transactions
Broker / Prime Broker: No specific requirement are subject to similar risk spreading rules
(residency, honorability, etc.)
No promoter required
Department External Asset Manager
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22. Credit Suisse's existing Umbrella Structure for your benefit
Broker CREDIT SUISSE OTHER BANKS
Credit Suisse AG, Zürich Investors
Investors Investors ... Investors ...
Brokerage & Order execution
Custodian Nominee Company Nominee Companies
Credit Suisse (Luxembourg) S.A. Credit Suisse Other Banks
Request subscriptions and
Safekeeping redemptions on behalf of investor
Coupon collection & Corporate
actions
Payment transactions Board of Sign all relevant
Umbrella documents for
Directors new subfund,
Administrator Expert Investor SICAV
Credit Suisse Fund – SIF, UCI, UCITS by Credit Suisse e.g. account
documents
Services (Luxembourg) S.A. Luxembourg Fulfill all
Subscriptions regulatory and
and redemptions mgmt Sub-Fund compliance
Other duties
Fund registration <Your Name>
Representative function
Fund accounting Assets Sub-Fund
NAV-calculation
Supply/publishing prices
Auditor
PwC
Investment Manager Other
Annual audit <Your Firm> Investment Manager
Takes investment decisions
Department External Asset Manager
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23. Advantages of a CS umbrella solution
CS umbrella solution in Luxembourg
Advantages
Cost sharing between sub-funds
(Board of Directors / Management Company,
Auditor, Legal Advisor) CS Fund Solution in Luxembourg
Appointment of Board of Directors can be avoided
Reduction of administrative efforts, as processes in SIF solution: Expert Investor SICAV-SIF
the existing structure already defined UCI solution: Maestro SICAV (Luc)
Well–rehearsed network of established partners UCITS solution: White Fleet (Lux)
Fund Promoter provided if legally required
Each portfolio is segregated for bankruptcy or
liquidation purposes
No incorporation needed unlike for a dedicated
fund company
Cost reduction Administrative efficiency Reduction of complexity
Department External Asset Manager
Slide 23
24. Possible Umbrella Fund Structure in Luxembourg
Comparison of the White Fleet, Maestro SICAV and Expert Investor SICAV-SIF (I/II)
White Fleet Maestro SICAV Lux Expert Investor SICAV-SIF
Jurisdiction Luxembourg
Part I of the Luxembourg Part II of the Luxembourg Law Specialized Investment Fund
Law of 2002 for of 2002 for Undertakings of Law 2007
Law
Undertakings of Collective Investments
Collective Investments
UCITS fund - open-ended UCI fund - open-ended SICAV SIF fund - open-ended
Fund structure SICAV structure structure SICAV structure
One or more sub-fund(s) of an existing umbrella fund structure
Minimum No minimum subscription No minimum subscription EUR 125’000 for private
subscription applies applies investors
Fund management Mulit Concept Fund N.a.
company Management S.A
Fund Administration Credit Suisse Asset Management Fund Services (Luxembourg) S.A., Luxembourg
Custodian Credit Suisse (Luxembourg) S.A., Luxembourg
Investment Manager To be determined according to the regulatory provisions
Auditor PWC, Luxembourg
Regulatory authority CSSF, Luxembourg
Department External Asset Manager
Slide 24
25. Possible Fund Structure in Luxembourg
Comparison of the White Fleet, Maestro SICAV, and Expert Investor SICAV-SIF (II/II)
White Fleet Maestro SICAV Lux Expert Investor SICAV-SIF
UCITS funds have the UCI funds have a higher level of SIF Law provides a lower level
highest level of regulation regulation of regulation as lower level of
Level of regulation due to possible retail protection is needed for
distribution qualified investors
Time to market 2-3 months 2 months 1-2 months
Low flexibility (e.g. regulation Lower flexibility (e.g. acceptance Higher flexibility (e.g. no
of investment manager and in of the investment manager and in regulation of the investment
terms of possible investments terms of possible investments => manager and in terms of
Flexibility => to comply with strict lower restriction level ) possible investments => very
UCITS III investment high investment flexibility)
restrictions)
The investment manager The investment manager needs The investment manager
needs to be regulated by the accepted by the CSSF does not need to be
CSSF or by a equivalent According to AIFMD must be regulated by the CSSF or a
financial market authority regulated by the CSSF or by a CSSF equivalent financial
Investment Manager abroad equivalent financial market market authority abroad
authority abroad According to AIFMD must be
regulated by the CSSF or by a
equivalent financial market
authority abroad
Public distribution possible Limited public distribution possible No public distribution possible
Public distribution where registered (e.g. (e.g. Luxembourg registration (private placements only)
Switzerland, Germany, etc.) possible)
Department External Asset Manager
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