Global Asset Management

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Also by Michael Pinedo

SCHEDULING: Theory, Algorithms and Systems

PLANNING AND SCHEDULING IN MANUFACTURING AND SERVICES

QUEUEING NETWORKS: Customers, Signals and Product Form Solutions (with X. Chao and M. Miyazawa)

OPERATIONAL CONTROL IN ASSET MANAGEMENT (edited)

CREATING VALUE IN FINANCIAL SERVICES: Strategies, Operations, and Technologies (edited with E. Melnick, P.

Nayyar and S. Seshadri)

Also by Ingo Walter

THE COMMON MARKET: Economic Integration in Europe (with F.B. Jensen)

THE EUROPEAN COMMON MARKET: Growth and Patterns of Trade and Production

EXERCISES IN MACROECONOMICS (with W.E. Mitchell and J.H. Hand)

INTERNATIONAL ECONOMICS (with K. Areskoug)

INTERNATIONAL ECONOMICS OF POLLUTION

MULTINATIONALS UNDER FIRE: LESSONS IN THE MANAGEMENT OF CONFLICT (with T.N. Gladwin)

SECRET MONEY

GLOBAL COMPETITION IN FINANCIAL SERVICES: Market Structure, Protection and Trade Liberalization

INVESTMENT BANKING IN EUROPE: Restructuring for the 1990s (with Roy C. Smith)

GLOBAL FINANCIAL SERVICES (with Roy C. Smith)

UNIVERSAL BANKING IN THE UNITED STATES (with A. Saunders)

STREET SMARTS: Leadership, Professional Conduct and Shareholder Value in the Securities Industry (with Roy C.

Smith)

POLITICAL ECONOMY OF FINANCIAL INTEGRATION IN EUROPE: The Battle of the Systems (with J. Story)

GLOBAL CAPITAL MARKETS AND BANKING (with R.C. Smith)

INVESTMENT BANKING IN THE EURO-ZONE (with R.C. Smith)

MERGERS AND ACQUISITIONS IN BANKING AND FINANCE – What Works, What Does Not, and Why?

GOVERNING THE MODERN CORPORATION (with R.C. Smith)

REGULATING WALL STREET (with members of the faculty and co-edited with V. Acharya, T. Cooley and M.

Richardson)

GLOBAL BANKING (with R.C. Smith and G. DeLong)

INTERNATIONAL ECONOMIC RELATIONS (edited with F.B. Jensen)

STATE AND LOCAL FINANCE (edited with W.E. Mitchell)

THE UNITED STATES AND INTERNATIONAL MARKETS: Commercial Policy Options in an Age of Controls (edited

with R.G. Hawkins)

READINGS IN MACROECONOMICS (edited with W.E. Mitchell and J H. Hand)

STUDIES IN INTERNATIONAL ENVIRONMENTAL ECONOMICS (EDITED)

RESOURCE CONSERVATION: Social and Economic Dimensions of Recycling (edited with D.W. Pearce)

REGIONAL DIMENSIONS OF ENVIRONMENTAL POLICY (edited with H. Siebert and K. Zimmermann)

RISK AND THE POLITICAL ECONOMY OF RESOURCE DEVELOPMENT (edited with D.W. Pearce and H. Siebert)

DEREGULATING WALL STREET -- Commercial Bank Penetration of the Corporate Securities Market (edited)

HANDBOOK OF INTERNATIONAL BUSINESS (edited)

HANDBOOK OF INTERNATIONAL MANAGEMENT (edited)

EUROPEAN INDUSTRIAL RESTRUCTURING IN THE 1990S (edited with K. Cool and D. Neven)

RESTRUCTURING JAPAN'S FINANCIAL MARKETS (edited)

FINANCIAL SYSTEMS DESIGN: Universal Banking Considered (edited with A. Saunders)

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Global Asset Management

Strategies, Risks, Processes, and Technologies

Edited by

Michael Pinedo

and

Ingo Walter

iii

Editorial matter and selection © SimCorp StrategyLab 2013Remaining chapters © Respective authors 2013

All rights reserved. No reproduction, copy or transmission of thispublication may be made without written permission.

No portion of this publication may be reproduced, copied or transmittedsave with written permission or in accordance with the provisions of theCopyright, Designs and Patents Act 1988, or under the terms of any licencepermitting limited copying issued by the Copyright Licensing Agency,Saffron House, 6–10 Kirby Street, London EC1N 8TS.

Any person who does any unauthorized act in relation to this publicationmay be liable to criminal prosecution and civil claims for damages.

The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988.

First published 2013 byPALGRAVE MACMILLAN

Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,registered in England, company number 785998, of Houndmills, Basingstoke,Hampshire RG21 6XS.

Palgrave Macmillan in the US is a division of St Martin’s Press LLC,175 Fifth Avenue, New York, NY 10010.

Palgrave Macmillan is the global academic imprint of the above companiesand has companies and representatives throughout the world.

Palgrave® and Macmillan® are registered trademarks in the United States,the United Kingdom, Europe and other countries

ISBN: 978–1–137–32947–9

This book is printed on paper suitable for recycling and made from fullymanaged and sustained forest sources. Logging, pulping and manufacturingprocesses are expected to conform to the environmental regulations of thecountry of origin.

A catalogue record for this book is available from the British Library.

A catalog record for this book is available from the Library of Congress.

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ContentsPreface

Notes on Contributors

Part I Global Asset Management – Introduction and Overview

1.The Asset Management Industry Dynamics of Growth, Structure and Performance

Ingo Walter

2. What Do We Know about the Mutual Fund Industry?

Massimo Massa

Part II The Crisis of 2007–2008 and its Aftermath

3. Macroeconomic Perspectives on the Financial Crisis and Its Aftermath

Ole Risager

4. Some Lessons from CDO Markets on Mathematical Models

David Lando

5. The Credit Crisis of 2007 and Its Implications for Risk Management

John Hull

6. After the Storm: Four Innovations Changing Investment Management

Adam Schneider

7. Avoiding International Financial Crises: An Incomplete Reform Agenda

Jean Dermine

Part III Key Risk Factors in Asset Management

8. Managing Growth and Strategic Risk

Mathias Schmit and Lin-Sya Chao

9. Wall Street’s Management of Risk – Why It Failed

John H. Biggs

10. Reputational Risk

Ingo Walter

11. Risk Management for Pension Funds and Endowments

Aaron Brown

12. A Stitch in Time …

Kosrow Dehnad

Part IV Regulations and Governance

13. Corporate Governance and the Financial Crisis

Steen Thomsen

14. Governance and the Financial Crisis: More Convergence, Less Risk?

Renée Adams

15. Financial Regulation and Risk Governance

Caspar Rose

16. Game Change in Asset Management

Karel Lannoo and Mirzha de Manuel Aramendía

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17. The Asset Manager’s Guide to Sustainable Regulatory Challenge

Anders Bidsted Andersen and Carsten Kunkel

Part V Operational Processes and Costs

18. The Interrelationships between Processes, Costs and Risks in Asset Management

Michael Pinedo

19. A Best Practices Framework for Operational Infrastructure and Controls in Asset Management

Ümit Alptuna, Manos Hatzakis and Reha Tütüncü

20. Managing Costs at Investment Management Firms

Adam Schneider

21. Strategic and Tactical Cost Management in the Asset Management Industry

Marcelo Cruz

22. Transaction Costs and Asset Management

Yakov Amihud and Haim Mendelson

Part VI Operational Platforms and IT Strategies

23. Operational Platform and Growth: a Strategic Challenge

Jacob Elsborg

24. Addressing the Data Management Challenge in Asset Management

Howie San

25. The Use of Advanced Technology in Global Asset Management

Anders Kirkeby

26. Fit-for-Future Enterprise Architecture: Supporting Strategic Business Challenges

Marc Schröter

Part VII Future Challenges and Growth

27. The Strategic Imperative of Creating and Capturing Value

by Paul Verdin

28. Check Or Checkmate? Game-Changing Strategies for the Asset Management Industry.

by Johannes Elsner, Martin Huber and Philipp Koch

29. Designing Products for Reluctant Investors: Applications of Behavioral Finance

by Alistair Byrne

30. Current and Future Challenges Faced by Investment Funds

by Martin Gruber

31. Current and Future Challenges Faced by Asset Managers

by Stephen Brown

32. Current and Future Challenges Faced by Pension Funds

by Massimo Massa

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List of Figures and Tables

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PrefaceThis volume collects the thoughts of experts – insiders and outsiders with no axes to grind or services to sell – on the complex and dynamic issues that confront the global asset management industry.

What value is being created in the diverse asset management sector and how is that likely to change? What separates the winners from the losers in the various sectors of the industry? How and why did the industry fail to protect its clients in the financial crisis and what are the consequences going forward? What are the key risk issues confronting firms in the industry, notably operational and reputational risks, and how do they relate to governance and regulation?

If durable competitive distinction in fund performance is difficult or impossible to attain, then the name of the game has to be efficiency and costs – and their critical dependence technologies, systems architecture and client interface. The pivotal role of best-in-class transactions and information platforms is one of the few certainties in an otherwise uncertain industry context.

We have divided the volume into a logical sequence of sections discussing, respectively, broad asset management industry dynamics, the industry impact of the financial crisis of 2007-09, and key risk and regulatory issues facing the industry – subsequently narrowing the focus on operational processes and cost structures as well as operational platforms and IT strategies.

The latter are of key importance. If competitive distinction cannot durably be achieved through persistent portfolio outperformance adjusted for risk, then the distinguishing between winners and losers in the industry depends heavily on costs and quality of service, as well as optimizing both internally and externally the value of information.

The more technical chapters contained in this part of the volume are well worth the time and effort it takes to peruse them carefully. The last Section of the book looks ahead to the future of the asset management industry and the strategic positioning and execution issues that will determine competitive success.

We intend this book to be the go-to reference on the asset management industry, with a substantial shelf life. It provides a serious resource for readers seeking greater depth and alternative opinions on specific industry developments, as well as access to breadth for specialists interests in the dynamics of the industry.

We are grateful to the authors of the chapters contained in this volume for the quality and timeliness of their work – as in any such collection of views, credit belongs to them. We are also thankful to SimCorp StrategyLab, SimCorp’s independent private research institution, that through its extensive research program has transformed our idea into reality and made this publication possible.

We are also Indebted to Mette Trier, who kept us on a tight leash in getting contributions in on time and in correct form, and handling the logistics of the project with her usual high level of efficiency and diplomacy. Responsibility for any remaining errors of omission or commission rest with the editors.

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Notes on ContributorsRenée B. Adams is Professor of Finance and Commonwealth Bank Chair in Finance at the University of New South Wales. She is also the director of the Finance Research Network (FIRN), an affiliate of LSE’s Financial Markets Group and a member of the European Corporate Governance Institute (ECGI). She holds an MS in Mathematics from Stanford University and a PhD in Economics from the University of Chicago. Professor Adams’s research focuses on corporate governance, corporate finance and the economics of organizations. She is an expert on corporate boards and the governance of financial institutions. She has published in top accounting, economics, finance and management journals including the Journal of Accounting and Economics, the Journal of Finance, the Journal of Financial Economics, Management Science, the Review of Economic Studies and Strategic Management Journal. Contact information: Banking & Finance, Australian School of Business, UNSW, Sydney, NSW 2052, Australia. Contact:  renee.adams@unsw.edu.au.

Ümit Alptuna is a Managing Director at Goldman Sachs Asset Management and COO of Goldman Sachs Investment Partners. Prior to joining Goldman Sachs in 2001, he was a manager in Business Assurance Services at PriceWaterhouseCoopers LLP in New York where he was responsible for overseeing audit engagements as well as providing guidance on technical accounting matters. He is a graduate of the Stern School of Business at New York University, a licensed CPA and a CFA Charterholder. Contact: umit.alptuna@gs.com

Yakov Amihud is Ira Leon Rennert Professor of Entrepreneurial Finance at the Stern School of Business, New York University. His research focuses on the effects of the liquidity of stocks and bonds on their returns and values, and on the design and evaluation of securities markets trading systems. He is the co-author of a recently published book Market Liquidity: Asset Pricing, Risk and Crises, as well as a number of research articles. He has also advised the NYSE, AMEX, CBOE, CBOT and other securities markets. His research also includes the evaluation of corporate financial policies, dividend policy, mergers and acquisitions, initial public offerings, objectives of corporate managers and their risk taking, and law and finance. He has published more than eighty research articles in professional journals and in books, and edited and co-edited five books on topics such as LBOs, bank M&As, international finance and securities market design. Contact: yamihud@stern.nyu.edu

Anders Bidsted Andersen is Vice President and Head of Global Professional Services at SimCorp. His responsibilities include global regulatory service product development, value-creating packaged services and service-enabled solution innovations. With his global teams and regional service managers, he drives development, launch and execution of global regulatory, business and operational services and solutions for clients in all markets serviced by SimCorp. With over 20 years’ experience from executing and managing roles in Big-4 management consultancies and global high-performance organizations, his specialties are quantitative finance, regulatory change and acceleration of strategic and operational breakthroughs. Anders Bidsted Andersen holds an MBA from the University of Chicago Booth School of Business and a graduate degree in Computer Science. Contact: anders.andersen@simcorp.com

Mirzha de Manuel Aramendia is a Research Fellow at the European Capital Markets Institute (ECMI) and the Centre for European Policy Studies (CEPS) in Brussels since September 2010. In this capacity, he set up a Task Force on "Long-term Investing and Retirement Savings" in December 2012, which Final Report will be released in the Fall of 2013. The research of Mirzha at CEPS focuses on public policy and market aspects in relation to investment management, retirement savings, broader asset management - including life

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insurance - and investor protection. It extends to connected aspects in the fields of financial stability, institutional settings and supervisory practices, economic growth and competitiveness, corporate governance, social inclusiveness, competition policy, market structure and industrial organisation. Mirzha is MA in European Economic and Legal Analysis from the College of Europe in Belgium (2010) and a qualified lawyer from the Bar of Madrid. He holds both a master in Business Economics and master in Spanish and Common Law (2009) from the University of Valladolid (Spain). Contact: mirzha.demanuel@ceps.eu

John H. Biggs is an Executive-in-Residence and Adjunct Professor of Finance at the Stern School of New York University. He served as President and then Chairman and CEO of TIAA-CREF, a multi-line pension and insurance company for 14 years. He served as a Director of many companies, in particular, JP Morgan Chase, a multi-line financial institution, where he was a member of the audit committee. He is currently Chairman of the Audit Committee of Boeing, a multi-line industrial company. He is a Fellow of the Society of Actuaries and earned a PhD in Economics. He has participated in and written on corporate governance, actuarial and general management issues. He is a director and former Chairman of the National Bureau of Economic Research. He served as the Chief Financial Officer of a life insurance company before becoming Vice-Chancellor of Washington University in St. Louis in 1977. In these two institutions, he implemented the “accountability center” management principles as described in this article. He has served as a trustee of the foundations overseeing FASB and the International Accounting Standards Board. He is currently a trustee of Washington University in St. Louis and Chairman of its Investment Management Company. He is a member of the American Academy of Arts and Sciences, and the Council on Foreign Relations. Contact: jbiggs@stern.nyu.edu

Aaron Brown is risk manager at AQR Capital Management and 2011 Global Association of Risk Professionals Risk Manager of the Year. He is the author of Red-Blooded Risk (Wiley, 2012), The Poker Face of Wall Street (Wiley, 2006 – selected one of the ten best books of 2006 by Business Week) and A World of Chance (with Reuven and Gabrielle Brenner, Cambridge University Press, 2008). In his 32-year Wall Street career he has been a trader, portfolio manager, head of mortgage securities and risk manager for institutions including Citigroup and Morgan Stanley. He also served a stint as a finance professor and was one of the top professional poker players in the world during the 1970s and 80s. He holds degrees in Applied Mathematics from Harvard and Finance and Statistics from the University of Chicago. Contact: Aaron.Brown@aqr.com

Stephen J. Brown is David S. Loeb Professor of Finance at the NYU Stern School of Business. He graduated from the University of Chicago, earning a PhD in 1976. Following successive appointments at Bell Laboratories and Yale, he joined the faculty of New York University in 1986. In 2002 he was appointed Professorial Fellow at the University of Melbourne. He has served as President of the Western FinanceAssociation, was a founding editor of the Review of Financial Studies and is a Managing Editor of The Journal of Financial and Quantitative Analysis. He has testified on his research before a Full Committee Hearing of the US Congress House Financial Services Committee in March 2007. In 2010 he served as a member of the Research Evaluation Committee of the Excellence in Research Australia initiative on behalf of the Commonwealth Government of Australia. Contact: sbrown@stern.nyu.edu

Alistair Byrne is a senior investment consultant at Towers Watson in London, but writes here in a personal capacity. He advises a number of large defined contribution pension plans on their investment approach and strategy. Alistair began his career in investment management at AEGON Asset Management UK, where he was investment strategist and head of equity research. He has also held academic positions at the University of Edinburgh and Strathclyde

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business schools, and has been a principal at Investit, the investment management consultancy. Mr. Byrne has a PhD in finance from the University of Strathclyde and is a CFA charterholder. Contact: alistair.byrne@btinternet.com

Lin-Sya Chao graduated from the Solvay Brussels School of Economics and Management with a major in finance. Having a special interest in strategic issues underlying the financial crisis, she completed a master’s thesis on the topic ‘Strategic Risk Management: The Next Challenge for Financial Institutions’, under the supervision of Professor Mathias Schmit. Contact: l.chao@segora.be

Marcelo Cruz is the Editor-in-Chief of the Journal of Operational Risk and adjunct professor at the New York University. He is the Head of Enterprise Risk Management and Operational Risk at E*TRADE. He was also the Global Head of Operational Risk at Morgan Stanley. Previously he was an associate Partner at McKinsey & Co, Chief Risk Officer of Aviva plc and global head of operational risk at Lehman Brothers. Marcelo was the Managing Director and founder of RiskMaths, a boutique consultancy focused on risk management and strategy. Marcelo also worked at UBS AG, the Swiss bank, for 3 years as head of operational risk, having worked in London and New York. Before UBS he also worked as a chief economist/strategist for an investment bank and as a derivatives trader for JP Morgan where he was in charge of structuring and trading OTC products. Marcelo Cruz is author of ‘Modeling, Measuring and Hedging Operational Risk’, Wiley, (2002). He was a member of the Industry Technical Working Group that helped to develop the new Basel Accord. He was also a Trustee of the Board of GARP and currently sits on the Research Committee of PRMIA. Contact: marcelo.g.cruz@gmail.com

Khosrow Dehnad is Assistant General Manager and Head of Analytic and Quantitative Trading at Samba Financial Group. Before joining Samba, he was a Managing Director in the Structured Credit Products at CITIGROUP in charge of Exotic Credit Trading. Previously, he was head of Fixed Income Derivatives Structuring and New Products. Prior to the merger of CITIBANK and Travelers Group, he was the Head of Hybrid Desk at CITIBANK where he created products such as Flexible Cap, Q-Cap, and Defensive Swap etc. Dr. Dehnad received his BSc in Mathematics with first class honors from University of Manchester, England and his PhD in Math from University of California, Berkeley. After receiving his second Doctorate in Applied Statistics from Stanford University, he joined AT&T Bell Labs where he published the book ‘Quality Control and Taguchi Method’. He has worked at the program trading firm of D.E. Shaw and Derivatives marketing and structuring group at Chase Manhattan Bank. For the past 14 years, Dr. Dehnad has been an Adjunct Professor of Operations Research at Columbia University where he teaches Applied Financial Engineering and Forecasting. He has taught at University of California at Berkeley, San Jose State University, and Rutgers University. Contact: dehnad@aol.com

Jean Dermine received his 1Docteur des Sciences Economiques from the UniversitéCatholique de Louvain and MBA from Cornell University. Jean Dermine is Professor of Banking and Finance at INSEAD, Fontainebleau. Author of articles on European banking markets, asset and liability management and the theory of banking, he has also published five books; one of which being Bank Valuation and Value-based Management-deposit and loan pricing, performance evaluation and risk management, McGraw-Hill, NY, 2009. He has been a Visiting Professor at Lausanne, Louvain, New York University, the Stockholm School of Economics and the Wharton School. Contact: jean.dermine@insead.edu

Jacob Elsborg, MBA, MSc, is Head of Technology for ATP’s investment department, a position he has held since 2000 and is responsible for the department’s operational platform. ATP is a statutory pension fund with over 4.7 million members – virtually the entire adult population in Denmark – and the country’s largest fund. Group assets totaled around

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DKK629 billion at year-end 2012. He started his career as an IT economist for DanmarksNationalbank, the central bank of Denmark, from 1991 until 2000. Contact: jae@atp.dk

Johannes Elsner is a partner in McKinsey’s Munich office. Since 2006 he has been working for clients in the European financial services industry with a focus on asset managers, investors and universal banks. Aside from his client activities, Mr. Elsner is a core member of McKinsey’s European asset management practice leadership. He has co-authored several publications such as Check or Checkmate - Game-changing Strategies for the Asset Management Industry (2012). He studied law at the University of Munich in Germany (qualifying as state attorney) and economics at the London School of Economics. Contact: Johannes_Elsner@mckinsey.com.

Martin J. Gruber is Scholar in Residence and Professor Emeritus at the Stern School of Business at NYU. He has an SB in Chemical Engineering from MIT and both an MBA and PhD from Columbia University. He is the author of over one hundred journal articles, many of which deal with mutual funds. His book Modern Portfolio Theory and Investment Analysis is going into its ninth edition and has been a best-selling text for more than thirty years. Professor Gruber is currently a member of the board of several Daiwa and Aberdeen mutual funds. He has been a director of the DWS funds, the S.G. Cowen funds and TIAA-CREF, where he served as Chairman of the board. Contact: mgruber@stern.nyu.edu

Emmanuel D. (Manos) Hatzakis is a Risk, Structuring, and Analytics expert, currently with UBS in New York, and earlier with Goldman Sachs and Merrill Lynch. Manos has built award-winning risk management models, developed and validated sovereign debt restructuring proposals, and designed and implemented portfolio optimization programs for annuities and private investors. He authored several articles, including Op-Eds in The New York Times and The Financial Times, and edited academic journals. Manos earned a PhD in Operations Research at Wharton. He is a CFA Charterholder and FRM. Contact: manoshatzakis@aol.com

Martin Huber is a senior partner working in McKinsey’s Cologne office. Since 1996 he has been working for several international clients in the European and Middle-Eastern financial services industry. He serves asset managers, investors, insurance companies and private banks on a broad range of topics. Furthermore, he is the co-leader of McKinsey’s global asset management practice and responsible for the annual pan-European survey on the economics of asset managers. Mr. Huber also leads McKinsey’s recruiting efforts in Germany. He received an MBA and holds master’s and doctorate degrees in law from the University of Vienna, as well as an LLM from the University of Chicago. He is also a member of the New York bar. Contact:martin_huber@mckinsey.com.

John Hull is Maple Financial Professor of Derivatives and Risk Management at the Joseph L. Rotman School of Management, University of Toronto. He has written three books ‘Risk Management and Financial Institutions’ (now in its third edition), ‘Options, Futures, and Other Derivatives’ (now in its eighth edition) and ‘Fundamentals of Futures and Options Markets’ (now in its seventh edition). The books have been translated into many languages and are widely used in trading rooms throughout the world. He has won many teaching awards, including University of Toronto’s prestigious Northrop Frye award, and was voted Financial Engineer of the Year in 1999 by the International Association of Financial Engineers. He is co-director of Rotman’s Master of Finance program. Contact: hull@rotman.utoronto.ca

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Anders Kirkeby is global Domain Manager for System Architecture in the Strategic Research Department at SimCorp. He leads a team charged with setting and executing strategically focused changes in the SimCorp Dimension investment management software product. His specific focus areas include scalability, enterprise-wide cross-functional consistency and overall user experience. Prior to joining SimCorp, he served in software architecture and consultant roles focused on the Microsoft technology stack, as well as a three-year IT start-up engagement as technologist and product owner for an SaaS product. He earned his degree in Computer Science and Human-Computer Interaction from the University of Aarhus, Denmark. Contact: anders.kirkeby@simcorp.com

Philipp Koch is a partner working in McKinsey’s Hamburg office. Since 2001 he has been working for clients in the banking and insurance industry, with a special focus on asset management. He is a core member of the European asset management practice. He served numerous asset managers and institutional investors worldwide on questions on strategy, PMM, distribution strategy, product development, alternative assets – in particular real estate – and organisational set-up. Prior to joining McKinsey, Dr Koch received a MSc from the London School of Economics in Political Science. He holds a PhD from the Helmut-Schmidt University Hamburg and his doctoral dissertation was entitled ‘Optimizing Distribution Systems in the Asset Management Sector – Institutional Arrangements as Key Factor of Success’. Contact: philipp_koch@mckinsey.com.

Carsten Kunkel is Manager of the Legal Practices team in SimCorp’s Central European market unit. The team has a regulatory compliance function with a number of specialized consultants dedicated to meeting the regulatory requirements of global asset managers. Carsten Kunkel has been with SimCorp for more than seven years and prior to heading up the Legal Practices team from 2008, he worked as Presales Consultant. Before joining SimCorp, he gained five years of consultancy experience in the financial services industry, focusing on banks and insurance companies in Germany. Carsten Kunkel earned his degree in Economics from the University of Mannheim, Germany. Contact: carsten.kunkel@simcorp.com

David Lando is a Professor of Finance at Copenhagen Business School and Director of the Center for Financial Frictions (FRIC) funded by the Danish National Research Foundation. He holds a Masters degree from the joint mathematics–economics program at the University of Copenhagen and a PhD in statistics from Cornell University. David Lando’s main area of research in finance is credit risk modeling and risk management and some of his work has appeared in Econometrica, Journal of Financial Economics and Review of Financial Studies. He is the author of a monograph on credit risk modeling published by Princeton University Press. David Lando has been a visiting scholar at Princeton University, the Federal Reserve Board in Washington and The Federal Reserve Bank of New York. Before joining Copenhagen Business School, David Lando was a Professor at the Department of Applied Mathematics and Statistics at the University of Copenhagen. Contact: dl.fi@cbs.dk

Karel Lannoo is Chief Executive of the Centre for European Policy Studies (CEPS), one of the leading independent European think tanks. He has published a number of books and numerous articles in specialized magazines and journals on general European policy, and specific financial regulation and supervision matters. He is an independent director of BME (Bolsas Y MercadosEspanoles), the listed company that manages the Spanish securities exchanges. KarelLannoo directs the European Capital Markets Institute (ECMI) and the European Credit Research Institute (ECRI), both operated by CEPS. He holds a baccalaureate in philosophy and an MA in history from the University of Leuven, Belgium and obtained a postgraduate in European studies from the University of Nancy in France. Contact: klannoo@ceps.eu

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Massimo Massa is the Rothschild Chair Professor of Banking and Finance at INSEAD, where he teaches international finance, corporate finance, information financial economics and behavioral finance in MBA, PhD and Executive programs. He graduated summa cum laude from the Department of Economics at the LUISS University of Rome, Italy. He has obtained an MBA from the Yale School of Management and an MA and PhD in Financial Economics from Yale University. His research interests include portfolio theory, theory of information in financial markets, behavioral finance, market microstructure and mutual funds. His articles have been published in academic journals such as Review of Financial Studies, Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Financial Markets, Review of Finance, and European Journal of Financial Management.Massimo has previously worked in the Bank of Italy in the Banking Division (1989-1992) and in the Research Department (Monetary and Financial Markets Division) (1993-1997), participating in the day-to-day running of monetary policy and on the analysis of the financial markets. Contact: Massimo.MASSA@insead.edu

Haim Mendelson is the Kleiner Perkins Caufield & Byers Professor of Electronic Business and Commerce, and Management at the Stanford Business School. His research areas include information technology and finance, and he has published more than a hundred research papers, more than thirty company case studies, and three books in these areas.  His most recent book (co-authored by YakovAmihud and Lasse Pedersen) is ‘Market Liquidity: Asset Pricing, Risk, and Crises’ (Cambridge University Press, 2013).  Professor Mendelson has been a consultant and adviser to leading firms and startups in the areas of high technology, finance and entrepreneurship, and he has directed multiple executive education programs and research projects in these areas.  Professor Mendelson has been elected Distinguished Fellow of the Information Systems Society in recognition of outstanding intellectual contributions to the Information Systems discipline. Contact: Mendelson_Haim@gsb.stanford.edu

Michael Pinedo has an Ir degree in Mechanical Engineering from the Delft University of Technology in the Netherlands, and MSc and PhD degrees in Operations Research from the University of California at Berkeley. He is currently the Julius Schlesinger Professor of Operations Management and Chair of the Department of Information, Operations and Management Sciences at the Stern School of Business at New York University. Michael Pinedo’s current research focuses on the modeling and analysis of service systems, with an emphasis on Total Quality Management (TQM) and operational risk. He has written numerous technical papers on these topics and is the author of several books. Michael Pinedo has consulted extensively for manufacturing companies as well as financial services companies, for instance as a consultant for many years at Goldman Sachs, advising on issues involving operational risk. Currently, Michael Pinedo is editor of the Journal of Scheduling (Springer) and associate editor of the Journal of Operational Risk. Contact: mpinedo@stern.nyu.edu

Ole Risager, PhD, is a professor at Copenhagen Business School. He has published extensively on foreign exchange markets, stock markets, and macroeconomics. His work has appeared in international journals as well as in publications of the International Monetary Fund and the World Bank. Ole Risager is currently chairman for Core German Residential II, a real estate investment company, vice chairman for Maj Invest, a mutual investment company, and member of APM Terminals’ Executive Risk Management Committee. He has previously served as a senior economist to the IMF and as a consultant to the World Bank. He has also been Vice President - Chief Economist at A.P. Moller – Maersk. Contact: or.int@cbs.dk

Caspar Rose, PhD, is a professor at Copenhagen Business School, Department of International Economics and Management. He holds a master of laws as well as a doctorate in finance and his research focuses on operational risk management, financial regulation,

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M&A’s as well as corporate governance – all issues about which he has published extensively in international journals. Caspar Rose has worked in Dansk Industri (Confederation of Danish Industries) as special legal adviser as well as chief analyst at the Danske Bank, Group Operational Risk. He also serves as external consultant for financial institutions. Contact: car.int@cbs.dk

Howie San is global Domain Manager for Data Management and Connectivity in the Strategic Research team at SimCorp. His specific focus areas include standard interfaces, the connectivity tool set and market data management. Prior to joining SimCorp, he held a number of senior product management roles at various industry leaders including Citi Securities and Fund Services, Dealogic, GFI and Thomson Financial. He earned his degree in Business Administration from the University of Bath, UK, and is Pragmatic Marketing Certified. Contact: howie.san@simcorp.com

Adam Schneider is a Principal in Deloitte’s Financial Services practice. He serves as Senior Advisor to the Deloitte Center for Financial Services. Headquartered in New York City, the Center provides insight and research to help improve the business performance of global financial institutions. Adam is also Deloitte’s Regional head of Banking and Securities, responsible for organizing services to a portfolio of major financial institutions. Adam works primarily in financial services and technology. He managed Deloitte’s Securities Industry consulting practice from 1995-2001, Deloitte’s nvestment Industry consulting practice from 2001-2007, and has been the lead partner for several clients. Adam assists clients in major business transformations including product strategy, M&A, finance, technology implementation, operations improvement, regulatory response, and cost reduction. He managed Deloitte’s Credit Crisis Task Force from 2008-2009 providing resources and knowledge to a wide range of clients. He is a Deloitte knowledge resource in many areas including capital markets, investment banking, investment management, home lending, retail banking, asset servicing, and transaction processing.From 1991–1995, Adam was Managing Director responsible for technology, operations, and administration at an institutional asset management firm. Before 1991 he was also a Partner at Deloitte &Touche.Adam is extremely active professionally. He has authored numerous publications, contributed to industry reference books, and has given numerous presentations, roundtables, and speeches at industry conferences and at major business schools. Adam holds an MBA from the Columbia University Graduate School of Business and a BS from the Sloan School of the Massachusetts Institute of Technology. Contact: aschneider@deloitte.com

Mathias Schmit holds a Ph.D. in finance from the Solvay Brussels School of Economics and Management (Brussels), where he is a part-time professor and member of the Emile Bernheim Research Centre. He has worked in banking and public affairs-related activities since 1995. Currently, he is conducting research and consulting activities in banking and risk management. He is also a regular speaker at major conferences around Europe on banking issues, with a special focus on financial analysis, risk management and strategic risks. Contact: m.schmit@sagora.eu or mschmit@ulb.ac.be.

Marc Schröter, MSc EE and BA in Finance, is Senior Vice President and Head of Strategic Research at SimCorp. With SimCorp since 1995, he has cooperated with a range of financial institutions in Europe. In that role he has worked with most business areas of buy-side investment managers across front, middle and back office. Prior to his current position, Marc Schröter was Head of Professional Services at SimCorp. Since 2006, he has been managing the Strategic Research department, where he leads a team of 30+ domain managers and senior business analysts and is responsible for the strategic direction of SimCorp’s investment

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management solutions. Contact: marc.schroeter@simcorp.com

Steen Thomsen, Professor, PhD, is director of the Center for Corporate Governance at Copenhagen Business School (CBS). He specializes in corporate governance as a teacher, researcher, consultant, commentator and practitioner. His academic publications include some 30 international journal articles and 3 books on the subject. His research is currently focused on industrial foundations – foundations that own business firms. Steen has served as a board member in several business companies and is currently a non-executive chairman of 2 consulting firms. He writes columns for the Danish business newspaper Børsen, and has served as a consultant and lecturer to several large companies and government organizations, including the EU, the UN, Copenhagen Stock Exchange, the Danish Central Bank and the Danish Venture Capital Association. He has also contributed to the Danish corporate governance code and other best practice codes. Contact: st.int@cbs.dk

RehaTütüncü is a Managing Director in the Quantitative Investment Strategies business within Goldman Sachs Asset Management where he manages a team of strategists responsible for building the infrastructure and algorithms for quantitative portfolio construction and risk management. Prior to joining GS, he was an Associate Professor in the Department of Mathematical Sciences at Carnegie Mellon University. He received his PhD in Operations Research from Cornell University. He is the co-author of the book Optimization Methods in Finance and the author of many articles on the subjects of optimization and quantitative finance in academic and practitioner journals. Contact: reha.tutuncu@gs.com

Paul Verdin is Full Professor and Chair in Strategy and Organization at Solvay Business School (ULB, Brussels) and Professor of Strategy & International Management at KULeuven (B). Previously an Associate Dean at TiasNimbas (Tilburg University, NL), he was also on the INSEAD (F) faculty for over 15 years, notably as a ‘Distinguished Visiting Professor’ and at IESE Business School (E). After Masters Degrees in Law and in Economics (KULeuven, B), he obtained the MA and PhD in Economics from Harvard University, where he worked with Nobel Laureate Tom Schelling, and consulted with McKinsey & Co., Merrill Lynch Capital Markets, the IMF and the World Bank. Dr. Verdin’s widely cited research focuses on the critical role of innovative company strategy and organization for long-term value creation, and how it interacts with industry dynamics and competence- and resource-based competition. For many years he has also been researching the strategic and organizational challenges of globalization and regional integration. He directs executive seminars and strategy workshops, and consults on strategy processes for a wide range of companies in a variety of industries and particularly in financial services. Contact: paul.verdin@econ.kuleuven.be

Ingo Walter is President of SimCorpStrategyLab and the Seymour Milstein Professor of Finance, Corporate Governance and Ethics at New York University Stern School of Business. His principal areas of academic and consulting activity include international banking and capital markets. Professor Walter is the author and/or editor of 28 books, most recently the third edition of Global Banking, published by Oxford University Press in 2012. He studied engineering at Lehigh University and received his PhD degree in economics from New York University. Contact:iwalter@stern.nyu.edu

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