11th Annual Custody Buyer's Guide

Global Finance,  Apr 2001  by Thurston, Charles W

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TOP EMERGING MARKETS: A substantial part of investments emanating from Norway in emerging markets is still indirect, through feeder funds; direct investments in emerging regions is not significant.

BUSINESS DEVELOPMENTS: Reporting and service enhancements included income, corporate events, and MIS; concluded development of the ISO 15022 MT's. Client wins, excellent ratings, and sound financial results.

OUTLOOK: There will be significant changes with implementation of the Stock Exchange Act in 2001 and the Depositories Act in 2002. DnB expects continued high interest for Norway as a local market (outside EU, outside EMU).

CONTACT: Uff Noren, head of client relations/network management; Tom-Stian Johnson, head of global relations.Tel: 47-22-94-80-30; Fax: 47-22-48-28-46. E-mail: custody@dnb.no.Web site: www.dnb.no/custody

HSBC BANK

CUSTODY ASSETS: 2000: $1.150 trillion; 1999: $1.108 trillion

RATINGS: Moody's Aa2; S&P AA-; Fitch IBCA AA; Dun & Bradstreet 5A1

CLIENT PROFILE: By location: UK 64%; Europe (ex-UK) 28%; other 8%. By investor type: overseas banks/financial institutions 36%; insurance companies/fund managers 23%; pension funds 13%; UK banks/financial institutions 12%; mutual funds 6%; other 10%. Foreign: 40%; Domestic: 60%

CAPABILITIES/SERVICES: settlement, safekeeping, dividend collection, corporate actions, proxy voting, online access to proxy voting service, tax reclamation, client servicing, core reporting & cash/custody/income, proprietary link reporting (hexagon securities), specialized reporting, securities lending, cash management services, interest on idle balances, foreign exchange services, multicurrency reporting, derivatives clearing, market information, fund administration, performance measurement, corporate trust services, CREST/CMO member, indemnify for sub-custodian loss, unbundled service pricing and banking services.

TOP EMERGING MARKETS: Malaysia, Thailand, South Africa, Botswana, Columbia, Chile, Ecuador, Venezuela, Kazakhstan, Poland, Bahrain

BUSINESS DEVELOPMENTS: Moved all SWIFT messaging from IS07775 to IS01 5022; development of e-commerce capabilities to report to clients by e-mail or by secure Internet access; enhanced cash forecasting and management services using HSBC's On-line Account Management real-time balance reporting system; executed transfer of UK money market instruments to CRESTCo; readied processes and systems for potential UK entry to European Monetary Union; improved proxy voting services (particularly electronically); established Operational Improvement Unit (OIU) to identify and implement detailed measures to obtain information on and to reduce the risk at a given level of operation.

OUTLOOK: CREST Delivery versus Payment, continuous linked settlement for foreign exchange, and UK electronic transfer of title for equities and gilts will be introduced; Global Straight Through Processing Association expected go live in Q401; Securities Stamp Duty in the UK may be abandoned.

CONTACT: Mark Smith, senior global business development manager. Tel: 44-20-7260-5917; Fax: 44-207260-5941. E-mail: mark.g.smith?hsbc.com. Web site: www.gis.hsbc.co.uk