How to interact with tomorrow’s investment clients

Odyssey Perspective

Agenda

The industry- what is it?

Current landscape

Tomorrow- never comes?

What do Clients want?

How can Odyssey provide it?

The Wealth & Asset Management Industry

Key business characteristics by Market Segment

Cascade effect: sophistication trend from right to left

Private WealthWealth Management

Professional clientsAsset management

HNWI/Private BankingMass Affluent/Retail Institutional/Funds Mgr

Low end client segment Medium/High end client segment Regulatory constraintsProduct standardisation Ad’hoc portfolio management Global BusinessLow sophistication High sophistication Very high sophisticationHigh Volumes Medium Volumes Low VolumesEase of use End Client Services “Excel” mindedBasic products Wide spread of Instruments Sophisticated InstrumentsDomestic Off-shore & Domestic Shorter time scale to actSales orientated

•Globalisation of the markets•Implementation of Hubs•Cross border clients•Need for an effective global STP•Risk Management is crucial•Incresed regulatory scrunity

Client centric services

Asset centric services

•Multi-asset portfolios and strategy based management•More complex portfolios holding more complex assets•Proliferation of model portfolios •Issues in getting the business to scale

Shared characteristics

Change Forces

Wealth Management

Industry

Legal RegulatoryFrame

Market

Clients

Products and Services

Globalization

•MIFID/Reg NMS•Anti Money Laundering•EU Savings Tax•Qualified Intermediaries•Basle II

•Declining loyalty•Increased client expectations•Limited error tolerance•More demanding clients paying reducing fees

•Risk Management•Importance of product innovation•Open architecture to select “best-of-breed” products

•Stringent customer segmentation as key for success

•Shorter window for new products

•Strong international competition•Emerging markets•Global Risk•One brand approach•Cross border clients

•Consolidation of thebanking sector

•WM divisions forming again•Drive on costs•More competition drives differentiation

The Wealth & Asset Management industryThe challenging Wealth environment

How will the Market change going forward?

• Sophistication of supply and demand will increase• Clients require a view into disparate systems – Derivatives,

Equities, Bank Accounts• Clients require greater analysis on the current data- Attribution,

Benchmarking• Compliance and regulation will increase

• The regulation dictates many more processes• Could be used as a competitive advantage?

• Globalisation & Standardisation• Standardised approach to reports and interaction

Servicing Client Expectations – What do Private wealth managers want?

•Mass rebalancing of portfolios to models and benchmarks

•Ability to incorporate all instrument types- technically and in a business sense

•KYC & MiFID drive suitability engines and traceability

•Need to incorporate personal constraints to be able to personalise the service and investments

•Reporting across the whole picture

•Web access is key at the mass affluent end

•Graphical output

•Real time

•Ease of use in front of clients

Private WealthWealth Management

Professional clientsAsset management

UHNWI – HNWIPrivate Banking

Mass Affluent Institutional Fund

Configured Solutionbased on

Configured Solutionbased on

Configured Solutionbased on

Odyssey Wealth & Asset Management ProductsA Consistent, Performant Delivery Platform

CRMInvestment

AdvisoryPortfolio

Management

Compliance

Risk

EnterpriseData Management

SO

A

Client-centric services Asset-centric servicesClient-centric services

Reporting & MIS

Composite Application Framework

ConfigurationStudio

Data Integration Framework