Custody Risk European Awards 2011 – Fund Administrator of the Year, Luxembourg: RBC Dexia Investor Services

RBC Dexia Investor Services uses its global expertise to develop local solutions in fund administration. This has proved a winning formula across all of the markets in which the group operates, but particularly so in the complex and competitive Luxembourg market. In 2011, the group gained business on the depth of its knowledge in individual asset classes, such as property, and for its broad distribution reach and quality of service.

Despite the difficult global economic climate, the group has continued to grow assets under custody and assets under administration (AUA) during the year. From the end of June 2010 to the end of June 2011, the group grew AUA by 23.1% to €2.23 trillion. The group’s client numbers in Luxembourg increased by 1.4% over the year.

Part of its strength has been its global presence. The group has 18,000 distributors in 100 countries on its system. Its experience in cross-border distribution has helped clients move into new jurisdictions and adapt their fund ranges for local markets. 

During the year, RBC Dexia has further developed its proposition for clients and has recently updated its transaction functionality for its technology platform. The platform now incorporates a personalised ‘My Transactions’ workspace. The group’s system – RBC Dexia Online – now offers a single access point in every time zone, region and business sector. 

The group also rolled out its pan-Asian automated transfer agency platform in recognition of the increasing importance of Asia to many of its clients. For example, it is the only global platform that meets Thailand’s transfer agency requirements and it now offers a single transfer agency system across European and Asian jurisdictions. The system is available in six languages across 12 locations around the world, providing multi-currency, multilingual, multi-share class and multi-promoter functionality for both retail and institutional investors. 

During the year, the group enhanced its collateral management service, including more sophisticated management of segregated collateral accounts. It also launched a new passive foreign exchange hedging service designed to protect clients’ investments against currency translation risk. The group expanded its securities lending services to include Denmark and Italy.

Looking forward, RBC Dexia hopes to capitalise on the opportunity presented by the movement of alternative investment managers to Luxembourg in response to the Alternative Investment Fund Managers directive. Luxembourg is expected to be the domicile of choice for those managers looking to register onshore. RBC Dexia will be well positioned – it already has expertise in over-the-counter derivatives and hedge fund strategies in addition to its long-only capability, and its global operating model supports virtually every investment vehicle. It is also poised to implement a global derivatives platform.

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