pointof viewM A R k e T S I T R e n d S I A n A Ly S I S

MARCh 2011 - ApRIL 2011

ConTenTS :

Editorial ...................................... 2

Focus ............................................3 •PicturesoftheYearInternational •Whatmakesagoodphoto? •Contest

Interview ..................................... 4

Lipper .......................................... 6

Navigation Regulation in Luxembourg ............................7

TheKpoints .................................7

Events(Past&Upcoming). .............. 8

pictUReS of the YeaR iNteRNatioNaL

2011 Award Winners

editoRiaLweLcoMe to the SecoNd iSSUe of poiNt of view.In the last few months, you may have noticed some fundamental changes in the way Thomson Reuters manages your account. Over the last year we’ve made some seismic changes to our organisation to make sure that you, our customers, occupy the focal position at the centre of our business.

Every aspect of our operation – from people and systems to products – has come under scrutiny. We’ve retrained our front line staff to ensure they have deep specialism in your workflows ; to make them more accessible ; and to boost the frequency and relevance of their contact with you. We’ve re-engineered our administrative processes to deliver a simpler, more efficient customer experience. And we’ve recently launched several ground-breaking products and services that have been specifically designed to help you create extra value for your business.

These changes don’t happen overnight and we’re still refining some facets of the customer experience. My personal commitment is to continue working to make it simpler, faster and more rewarding for you to do business with us. If there’s any aspect of our service that you feel could be enhanced, please let me know personally – contact me at joerg.floeck@thomsonreuters.com.

The Knowledge EffectThe right information in the right hands leads to amazing things. With intelligent information, Thomson Reuters is helping the professionals we partner with to have an extraordinary impact. We provide over 20 million professionals around the world with crucial knowledge, sparking the ideas and actions that build businesses and shape economies :

− Seamlessly integrated databases that dig deeper, leading to greater discoveries.

− Smart algorithms that provide a fuller context for financial data, making markets fair and transparent.

All of this is backed by the most advanced information tools and services, and supported by thousands of experts who bring it all together. And it’s all available to you.

Serving you in LuxembourgLuxembourg is a world leader in fund management and it’s a vital market for Thomson Reuters. As you no doubt know, we have an office in your region ; however we also have a network of experts all over the world who have deep, specialist knowledge of your market, your workflows and the issues you face.

That knowledge and expertise is available to you whenever you need it via Thomson Reuters Knowledge Network – amultimediatraining capability that connects you with our specialized market and product experts, when it suits you. One click gives you instant access to engaging, interactive training. You can also dip into a virtual catalogue of self-paced training sessions and news-reactive videos, any time you want.

And there’s so much more – if you haven’t yet experienced the flexible benefits of Thomson Reuters Knowledge Network, contact youraccount team now to arrange a demonstration.

I hope you enjoy this issue of Point of View. If there are any subjects you’d like us to cover in future editions, please let us know by emailing pointofview@thomsonreuters.com.

Best regards,

“ The right information in the right hands leads to amazing things. We call it The Knowledge Effect.“

pictUReSof the YeaR iNteRNatioNaL

AdReeS LATIFPHOTOGRAPHER OF THE YEAR

FREELANCE/AGENCY

A statue and a torn Thai national flag remain in front of Bangkok's Central World shopping mall, gutted by fire

after army soldiers advanced towards an encampment of thousands of anti-government “ red shirt “ protesters.

19 May 2010.

LUCAS JACkSon2ND PLACE

SCIENCE/NATURAL HISTORY

Lightning streaks across the sky as lava and ash erupt from the caldera

of Iceland's Eyjafjallajokull volcano.

17April2010.

AdReeS LATIFAWARD OF EXCELLENCE

GENERALNEWSSTORY

Residents evacuating through flood waters dodge an army truck carrying relief supplies for flood victims in

Pakistan's Muzaffargarh district in Punjab province.

11August2010.

Joerg Floeck ManagingDirector ThomsonReutersGlobalSales&CustomerService

2

poYi began as a photographic contest in the spring of 1944 in Columbia, Missouri, when the Missouri School of Journalism sponsored its “ First Annual Fifty- print Exhibition “ contest. its stated purpose was, “ to pay tribute to those press photographers and newspapers which, despite tremendous war-time difficulties, are doing a splendid job ; to provide an opportunity for photographers of the nation to meet in open competition ; and to compile and preserve... a collection of the best in current, home-front press pictures.“

Pictures of the Year International has inspired and educated photographers across the globe for close to six decades ; its contest has recognized excellence in photojournalism by honoring the photographers, editors and their institutions of employment. pictures are selected and awarded by experts from the board of poYi.

JoergFloeck

pictUReSof the YeaR iNteRNatioNaL

This photo is an excellent study of how to highlight energy and movement in a single picture. The determination of both fencers to win the match can literally be felt by just looking at this fantastic sports photograph. The fluidity and grace of the movements of the two subjects are reminiscent of the flight of a bird.

PhotoCredentials: Venezuela’sMarlanaGonzalez(R)fencesagainstMonicaKwan ofCanadaduringtheirwomen’steamfoulfinalmatch

atthePanAmericanGamesinRiodeJaneiro.

Find out more on : www.pictures.reuters.com

What makes a good photo ? By Daniel Georges - System Integrator

pictURe teLLS US a StoRY...For our next issue, we would like to give you the opportunity to share with all of us what you think is a great picture.

Send your picture and your comments to pointofview@thomsonreuters.com and maybe you will be selected to win a pLAySTATIon 3 MoVe TM

CAThAL MCnAUGhTonAWARD OF EXCELLENCE

FEATURE

A duck, pheasants and rabbits hang from a clothes line before being plucked,

skinned and frozen at Garron Point in the rear garden of a hunters house near the

village of Carnlough in Northern Ireland.

18 January 2010.

AdReeS LATIFAWARD OF EXCELLENCE

GENERALNEWSSTORY

Marooned flood victims looking to escape grab the side bars of a hovering army helicopter which arrived to distribute food supplies in the Muzaffargarh district of Pakistan's Punjab province August 7, 2010. Pakistanis desperate to get out of flooded villages threw

themselves at helicopters on Saturday as more heavy rain was expected to intensify both suffering and anger with the government.

06August2010.

LUCAS JACkSon2ND PLACE

SCIENCE/NATURAL HISTORY

Land of fire and ice : The Northern Lights are seen above the ash plume of Iceland’s erupting

Eyjafjallajokull volcano in the evening on April 22.

22April2010.

3

In the second edition of our newsletter, we spoke to eric Mansuy, Chief Information officer at RBC dexia, about outsourcing, the role of IT in a company such as his, the challenges of being a truly global player and how his department is evolving. he also gives his personal views on the Luxembourg fund platform. eric Mansuy, let’s start with a definition.

how do you define outsourcing and where are the key benefits for you ?

“ There are two aspects for the IT managers at RBC Dexia. On one side RBC Dexia’s core business is to provide outsourcing services for our asset management clients. This means that asset managers entrust RBC Dexia with a certain number of functions that they believe are better serviced by a third party. In our case, clients outsource many of their back-office functions such as fund administration, custody, and fund accounting. One of the reasons they do this is because these functions have a heavy technology focus, with the need for automation. IT spend is a big factor in many of our clients’ decision to outsource their activities to us, because we provide them with the most up-to-date technology, sparing them the cost of constantly maintaining and upgrading their own systems. A lot of our clients use our services to help them distribute their UCITS funds around the globe for example, which requires robust and efficient IT systems to support our global footprint as we have offices in 15 countries. Having an efficient IT infrastructure is also important in terms of reducing risk and in terms of helping clients increase their speed to market when launching new products.

RBC Dexia rarely outsources its technology activities, but we do develop business partnerships with a lot of external IT partners such as TCS, IBM or Accenture all having an offshore presence. Working with external vendors enables us to have lower costs, better project management and delivery. RBC Dexia has very strong policies when it comes to our business partners. Being a global business means that we can leverage the capabilities of partners in many of the countries in which we are present. Our own IT systems are split in different locations around the world, and we are able to rely on our KualaLumpurofficetosupportouractivitiesinAsia-Pac.

What is the weight of IT in RBC dexia compared to other functions ?

“ Well RBC Dexia is a global company with 5,400 employees, of those, IT represents close to 750 people which is pretty significant. Our service offering is heavily reliant on IT. It is really at the centre of everything that we do, from the day-to-day business of servicing our clients and implementing projects to supporting our clients’ business growth. RBC Dexia has a lot of clients, and running services in all the countries requires strong IT capabilities, strong support models and strong partners.

Who are your main partners and what do they bring to you ?

“ Our main partners are our clients because we work with them not only from a business perspective but also from an IT perspective. It is important that we stay close to our clients and ensure that our priorities are aligned with theirs in order to deliver the best service to them. So about two years ago we created a new role called IT Relationship Manager. These employees are specialised in helping clients with their day-to-day operations, and we have had very positive feedback from clients. We will be expanding this function and rolling it out globally, not only in Luxembourg but also Canada and Asia-Pac as well. It is a great achievement in terms of connectivity to our clients and the broader business.

That said, we do rely on certain external partners, the big five when it comes to consultancy and then some IT partners. We have worked with Tata Consultancy Services (TCS) for several years we are working with them now to deliver a new custody platform which is in the final stages of development, testing and integration with a view to be rolled out first in Canada.

With the profile RBC dexia currently has, there must be some challenges when it comes to finding key external partnerships…

“ We are a fast growing company and are constantly developing our technology to be on the cutting edge, so there is lots of scope to work with all kinds of external partners. We cannot work alone and as a global company we need global partners – but we also sometimes need to have some strong local service providers too. Even for very big companies, this can be an issue. We seek to work with partners whose expectations are in line with ours.

how has the framework of your offshore resources evolved in the past couple of years from an IT perspective ?

“ When you are a global company it is hard to talk about offshoring. Luxembourg, for example, is considered an offshore centre for many of our clients, but for those of us who work here, it is just the local market. Probably the main evolution in the last five years has been the ability to leverage the expertise of our various offices throughout the world. We have created some strong regional centres of excellence andarecontinuingtodoso.OurKualaLumpuroffice,forexample,brings us closer to our business in that time zone and reduces the need to organise and implement night shifts elsewhere. As part of our overall policies on global support, it enables us to follow the sun.

you speak of reporting developments. you launched a significant project concerning reporting in 2008. Can you tell us more about that ?

“ The output of our business is the way we provide information to our clients about their NAVs, their statements, their positions and so on. We have had a lot of demand when it comes to reporting, so now we want to be as expert as possible in what we can develop for them, the technologies involved in flexible reporting, enabling clients to define their own demands. Also, there are the web capabilities. RBC Dexia online is a great achievement on that front.

On top of this flexibility we have developed a standard catalogue of reports, which enables us to be quicker in terms of execution. If the clients follow standards close to ours, it is a way for us to integrate existing and to transition new clients more efficiently. When it comes to reporting, we aim to cover the broadest spectrum of services possible.

There is another project which is close to your heart which has changed the way you work globally. Could we ask you to shed some light on this ?

“ Yes, in 2008 the company moved to a more global operating model of which the objective was to switch from a local and geographical organisation into a global one and to have our leaders focusing their time on enterprise initiatives. I initiated that move in the IT department and now all our strategic projects are global so when we implement a new capability, be it on derivatives or on the website or custody, it is one platform for the group. This allows us to have a centre of IT excellence, which is in line with the way the rest of the business operates. One team needs to have the accountability to manage a platform and deliver to RBC Dexia globally. This has transformed the organisation and we are currently working on a second wave of improvements that is important for my team, for their motivation and for our efficiency.

What are the focus points for this second wave of improvement ?

“ We have defined four dimensions, starting with our client relationships from an IT perspective. We are conducting surveys and focus groups to refine our understanding of what clients expect from us to ensure we are aligned with their very specific needs.

The second dimension is costs. We have to look at budgets, and continue to maximise efficiency and project allocations.

The third is a focus on development. We are growing very rapidly and there are constantly new products being delivered, like our new derivatives platform for example, so it is one of our top priorities to ensure that the IT infrastructure is able to adapt.

Then there are our people. Talent management and training is important to us, as is making sure our workforce have a very good understanding of their clients’ needs in the IT sector.

Finally, we have to look at architecture and make sure we renew our platforms on a regular basis and invest in our core systems to anticipate future needs. Many of our global systems are managed from Luxembourg for example so the IT standards have to be top class.

To summarise, we are now working very hard to constantly improve the efficiency of the team and that of our platforms, ensuring we have the best IT service for our clients. In a sense it is also this that our clients are paying for when they hire us : the robustness and efficiency of our services cannot be replicated in-house for many fund managers.

What are you personal views on this very new project of setting up a fund platform for the Luxembourg industry ? Is it too late, or even too early ?

“ I think the fund market infrastructure is very important for this marketplace and the crossborder fund distribution in general. The industry requires standards to drive automation and cost reduction, so this type of market-wide initiative is welcome, as it seeks to overcome the relative fragmentation we have observed so far. We have seen different initiatives from different companies but now the banks, including RBC Dexia, are working together. That’s a good sign, and it makes a lot of sense for everyone involved in the fund industry to have this capability implemented. Each bank brings their own strengths and best practice to the table, and at RBC Dexia for example we have top of the range distribution support capabilities that could be used as a model for the whole industry in Luxembourg. The Grand Duchy could help its entire universe of funds expand outside its traditional activities.

The Luxemburgish authorities have expended a lot of energy to create the right regulatory framework for outsourcing companies, especially in the IT architecture area. do you see Luxembourg based players in that field growing more substantially than those from other european countries ?

“ It was definitely important for Luxembourg to be at the forefront of outsourcing regulation, even if it is confined to the country. The creation of PSF status was a strong move on the part of the CSSF. There are great capabilities in Luxembourg, great data centres, and it can give a lot of confidence to the players in the market. On the other side, a little bit more openness could be a next move. Not to share data, but in terms of remote access capabilities, and strengthening the country’s cloud computing capacity for example which are areas that are still highly regulated even though we have seen some improvement. Luxembourg has always created an environment that is easy and safe to work in. There is room for improvement of course, but Luxembourg has a great strategy and ambitions for the future. We just need to make sure that we continue to promote this beyond our borders.

on the subject of the future, a final question : what are your priorities in a post-crisis market characterised by mergers and acquisitions ? What are the challenges you face ?

“ In terms of IT, we will continue what we have been doing. Last year, RBC Dexia bought UBI Banca’s depository bank business which was a substantial IT project in terms of integration. It is very similar to when we start servicing a large new client. It is crucial to integrate or migrate their platforms seamlessly into ours. This has given us an enormous amount of experience which makes us confident that we can continue participating in the ongoing consolidation of our industry.

Also, we are seeing a lot of consolidation in the asset management space too, where there is a lot of M&A activity amongst our clients and an increase in cross-border flows. We need to make sure we can help our clients fulfil their ambitions there too. We see their timelines, and match their needs and their expectations.

eric Mansuy, thank you for sharing your time, your insights, your projects and your strategies with us. It has been enlightening and informative.

iNteRview eRic MaNSUY

4

iNteRview eRic MaNSUY

“ Well RBC Dexia is a global company with 5,400 employees, of those, IT represents close to 750 people which is pretty significant. Our service offering is heavily reliant on IT.”

5

6

oVeRVIeW

Designed to work seamlessly with your workflow, Lipper for Investment Management offers the flexibility to manage data and information in a way that suits your needs. It features the content, analytics and reporting capabilities needed by marketing, product management, sales and performance teams to conduct meaningful comparative analysis to identify new product opportunities and define positioning strategies. The natural choice for those wanting to make precise, fully-informed decisions, our hosted performance analytics solution offers capabilities that make accurate analysis and reporting both easier and more efficient.

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SUpeRIoR ConTenT

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precision comes as standard

ABOUT LIPPERLipper provides independent insight to asset managers and institutional investors on global collective investments, including mutual funds, retirement funds, hedge funds, and fund fees & expenses. Lipper offers premium quality data, fund ratings, analytical tools, and global commentary through specialized product offerings. Supported by the resources and knowledge of our parent company Thomson Reuters, Lipper provides unparalleled expertise and insight to the funds industry.

www.lipperweb.com

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the new training capability from thomson Reuters.Thomson Reuters knowledge network is a multimedia training capability that connects you to our top market- and product-experts with a deep level of specialization, at a time that suits you.

knowledge Live delivers one-to-one or group training. One click gives you instant access to engaging interactive training with one of our specialists.

knowledge on-demand gives you instant access to a virtual catalogue of self-paced training sessions and news reactive videos which are available whenever you need them.

Expert trainers, via webcam, delivering specialist market and product related sessions in 15 languages : English, French, German, Spanish, Portuguese, Italian, Japanese, Mandarin, Cantonese,Russian,Turkish,Polish,Korean,GreekandArabic.

knowledge Academy provides scheduled group instructor-led training in a classroom or seminar, on site or virtually. Knowledge Network uses Adobe® Connect™ MeetingTechnology to engage with participants in virtual, interactive training sessions. Thomson Reuters customers get instant access to meetings by clicking a URL, requiring only a webbrowserandAdobeFlash®Playersoftwarethatisalreadyinstalledonover98%ofInternet connected desktops worldwide.

KNowLedGe NetwoRK

To learn more and book your session : training.thomsonreuters.com

To request training : training@thomsonreuters.com

the right information in the right hands leads to amazing things.With intelligent information, Thomson Reuters is helping the businesses and professionals we partner with to impact the world in extraordinary ways. It is a ripple effect that is set in motion by the most advanced information tools and services. Seamlessly integrated databases that dig deeper to lead scientists to greater discoveries. Smart algorithms that provide a fuller context for financial data, making markets fair and transparent. Real-time analysis that allows healthcare professionals to help their organizations save money - and lives. Predictive research systems that detect the seemingly undetectable in order to help promote the rule of law. All backed by thousands of experts who bring it all together.

From a trader in Sydney to a hospital worker in Illinois to a scientist in Beijing to over 20 million other professionals around the world, our clients rely on the knowledge we provide to help them spark ideas and actions that positively affect millions more. In business. In government. In the world in which we live.

That's the knowledge effect. See how we're proving it every day at thomsonreuters.com

KNowLedGe effect

overview of RegulationIn September 2009 the G20 recommendedreforms to address the concerns raised during the Credit Crisis such as :

• The bail out of financial institutions.

• The interdependence that was found between counterparties.

• The lack of transparency that made valuing positions difficult.

The G20 set the end of 2012 as the deadline for implementation of these reforms. The focus is on reducing counterparty risk, operational risk and systematic risk. As such, these reforms will result in changes to the trading workflow as well as increasing transparency and greater supervision of the banks.

proposed Regulatory ChangesAlthough there is widespread agreement on the need for a consistent application to implement the regulatory changes to reduce counterparty/operational/systematic risk, changes differ by geography and instrument, with different areas of focus and requirement to comply and varying enforcement timescales. Updates are happening on an ongoing basis and the outline below is designed to provide you with an overview.

USA

USA passed dodd Frank Act in July 2010 and its two regulators, the SEC and the CFTC must turn these into rules before the second half of 2011.

The Dodd Frank Act covers the following in addition to the G20 requirements :

• Requiring banks to spin off some derivatives trading (Lincoln Amendment).

• Barring proprietary trading and curbing involvement in private equity and hedge funds (Volker Rule).

• Restricting ownership of trading platform and clearing houses (Lynch Amendment).

eURope

Europe is still drafting its legislation. It has issued a number of draft proposals such as European Market Infrastructure Regulation (EMIR)

published on the 15th September 2010, the Capital Requirements Directive (CRD IV) and MiFID II published 8th December 2010. These are focused on market infrastructure and market abuse and expanding MiFID which currently only covers the equities market.

In addition to the G20 reforms the focus has been on :

• Emphasis on best execution.

• Restrictions on High Frequency Trading.

• Taxing Banks and employee remuneration (UKSpecific).

ASIA

There is currently no clear consensus view across Asiayet.Japan,HongKongandsomeoftheotherswill comply with G20 reforms. Other countries are in “ watching “ mode to see if there is global consensus.

Organisations are now looking at how they should respond to the potential challenges and opportunities that these market changes bring to their business, focusing on areas such as trading profitability ;

• Where, how and with whom can they trade.

• Increased costs from clearing trades and holding additional capital from un-cleared trades.

• Impact on market liquidity from increased transparency and/ or fragmentation.

• Impact on market liquidity from increased capital costs.

• Restrictions or bans on some trading activities.

Dealers and price makers will also begin to consider the regulatory fate of Single Bank Portals, trades executed by sales desks and other areas such as investment stakes in trading platforms and clearing houses.

To hear more on how Thomson Reuters are working towards meeting the challenges and opportunities of Regulatory change, please reach out to your Account Manager or local Thomson Reuters contact person. For the latest news and analysis on dodd Frank and other developments please visit www.complinet.com/dodd-frank.

NaviGatiNG ReGULatioNRegulation is The big story for 2011 and we are all facing the largest overhaul of financial regulation since the 1930’s. Whilst the nature of change differs between geographies, the principles are common : to bring greater transparency and accountability to the markets and reduce operational and counterparty risk ; to reduce systemic risk ; and to protect consumers.

Regulation impacts all of our customers requiring them to make significant changes from the way they trade to the need to substantially restructure their business and to hold additional capital. equities are already regulated and now regulators are focusing on oTC derivatives and other instruments.

Although the picture is becoming clearer, there is still a lot of uncertainty about the details and the consequences of this upheaval. Banks have grasped that derivatives trading is about to change for good and that they will be required to provide increased transparency. This in itself could very well result in increased costs around clearing and settlement.

Chris hartfreeGlobalCommercialDirectorTBS

"Thereisaprinciplesomecallthebutterflyeffect. Itsaysarandomeventinonepartoftheworldcanhaveadramaticeffectinanother.Chaosreigns.

We believe in a different principle.

Thatknowledgeallowsustosteerthecourse ofevents.Togroweconomies.Promotejustice. Evensavelives."

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Thomson Reuters (Markets) S.A. 40, Avenue Monterey · L - 2163 Luxembourg

pointof view

eiKoN iS " LUXe "iN LUXeMBoURGthomson Reuters Eikon and its innovative marketing campaign have seen thomson Reuters brand profile rise in the past few months.

In Luxembourg, the Thomson Reuters team, led by Pierre Castagne, kept the spirit alive and welcomed Eikon to the local community at an exclusive Go-Live launch event.

Eikon was introduced to the financial community in Luxembourg on December 1, hosted by Thomson Reuters and our partners, ICMA and ACI. The strong support from our partners helped us launch Eikon to their customers as well – extending the reach of Eikon beyond Thomson Reuters borders. Over 350 visitors, including customers from Germany, Switzerland and Belgium, attended the event.

The night had something for everyone. In keeping with the innovation theme, attendees enjoyed more than 50 Eikon demos, using the touch screens provided throughout the venue. For sports fans in the audience, the Eikon demo room hosted a Playstation 3 – Eikon Tennis Cup competition. Attendees who were more interested in the market had a chance to compete for an iPad by estimating the closing price of Dow Jones.

From “ Thomson Reuters is back ” to “ Eikon looks great.” It was an amazing night for Thomson Reuters, Eikon and for our customers in Luxembourg.

First prize Ipad to Philippe Charlier - Banque Pictet

2nd prize Amazon voucher to Anders Persson - Nordea Bank

3rd prize 2 tickets GP F1 Germany to Sébastien Fries - KBL Bank

UpcoMiNG eveNtS15/03 – 16/03/2011 · Alfi Spring Conference During the conference Philippe Carrel (Thomson Reuters Risk - Asset Owner Enterprise) will talk about Risk Management and how to regain control of Financial Markets.

6/04 · Lipper Fund Awards Join us to celebrate the success of Europe's top-performing funds and fund management firms. It's a great opportunity to meet peers, share insight and hear from industry experts.

26/05 · Luxembourg For Finance - 6th Financial Forum This year, on 26th of May 2011, renowned speakers and experts will discuss about : Accelerated Changes in Finance : Getting on Board.

21/06 · Luxembourg Financial Services 2020Jointly organized by Deloitte & Thomson Reuters. The topics presented will revolve around Luxembourg Financial Services in 2020, focusing in particular on the following subjects : • Regulatorychallengesanddevelopments:goodfortheinvestors,badfortheindustry? • Offshoringandvariousmodels:whatshouldtheindustrypositionbe? • LuxembourgbeyondtheFinancialCenter:howtodiversifythemarketlandscape? • Keycurrentregulatory,technicalandcommercialissues(break-outsessions). • PrioritiesforLuxembourgcountry(Duringanafternoonroundtable).

Looking for more information about those events ? Contact us by email : luxembourg.events@thomsonreuters.com