Portfolio Oversight from StatPro

PORTFOLIO OVERSIGHT Sometimes.. What you see isn'talways the reality or the complete picture Sometimes it's difficult to really see where performance and risk is coming from Sometimes there may be an unhealthy link within a fund, generating a conflict of interest Regulators require you to use an independent tool to monitor fund management 66 The need to have a holistic overview of portfolios, performance and risk Oversight within the investor community is: 99 conll cll cal col cl Entities such as: ACDS Board of Directors AFMS Series Trusts and trustees are responsible for protecting the interests of investors. 51% Only 51% of boards have increased their focus on risk management in 2012 (1) PORTFOLIO OVERSIGHT NEEDS TO GET HIGHER ON THE AGENDA Funds unchecked can lead to investor detriment and potential fines Over the past two years the FSAS penalties 'amounted to £270,405,595: £58,125,100 of this related to poor oversight (3) In 2012 SEÇ penalties ordered or agreed to amounted to $1.53 BILLION (4) 140 entities and individuals were charged The FSA carries out regular risk assessments on a cycle of one to four years (5) - if you're "on the radar" they could raise your collateral requirements thus increasing your resources and costs Now UCITS IV and AIFMD are tightening the regulations to manage oversight too They include requirements for stress testing to evaluate the effects of sudden extremes such as the Lehman's collapse which resulted in: 26,000 people losing their jobs RESUMÉ RESUME HOW WILL YOU GET A CLEAR GRASP OF EXPOSURE AND RISK? Have you heard about.. statpro REVOLUTION Analytics for the People Online portfolio analytics allows for all stakeholders to see what's really going on for only $100 per portfolio per month Identify areas of over exposure with timely and accurate analysis See all levels of risk using visual dashboards Check and ensure funds are allocated correctly Share analysis securely and improve communication CORGa Find out more at statpro.com/oversight (1) "Progress in financial services management - a survey of major financial institutions" published by Ernst and Young 2012 (2) Financial Services Authority based in the UK On April 2, 2013 the FSA will change its name to the Financial Conduct Authority (FCA). For more information visit http://www.fsa.gov.uk/about/what/reg_reform (3) http://www.fsa.gov.uk/about/media/facts/fines (this figure also includes payment schemes) (4) http://www.sec.gov/spotlight/enf-actions-fc.shtml (5) http://www.fsa.gov.uk/pages/doing/regulated/supervise/index.shtml (1-4 for medium and high-impact firms but low-impact firms are only required to send regulatory reports twice a year.) (6) http://www.cbsnews.com/8301-18560_162-57491089/the-case-against-lehman-brothers/