WORLD'S BEST SUB-CUSTODIANS, THE

Global Finance selects the winners in a specialized area of finance that is critical to global investing.

Investing in overseas markets is becoming routine, thanks to the efforts of sub-custodians, who work closely with local clearinghouses and depositaries around the world to handle transactions and supply securities services. Meanwhile, emerging markets are making foreign portfolio investors feel more welcomed by upgrading trading infrastructures and eliminating regulatory barriers. "Brazil, for example, used to be a complicated market to get into," says Roberto Gonzalez Barrera, head of securities services for Latin America at Citigroup. "But the country has done a great job in facilitating foreign investment," he says.

These changes have had a major impact on the trading of government bonds and derivatives in Brazil, Gonzalez Barrera says. Meanwhile, more and more local market participants are seeking to adopt international standards and to invest outside of their home market, he says. "Pension funds in Latin America are seeking to use custodians to improve transparency," the Citigroup executive says. "They are exporting capital outside of the region," he notes. Global investing has become a two-way street.

In the US market, sub-custodians are discussing ways to immobilize a growing range of sophisticated instruments, such as asset-backed securities, by making them depository-eligible, says Kevin Smith, senior vice president, global custody operations at Bank of New York. Much remains to be done in some areas, such as proxy services, Smith says. The US is the largest single market for class actions, he says, and there is room for more automation in this important sector.

Sub-custodians, who form the bedrock of the global securities business, are often hidden to the end users of custody services. But they deliver the products and services that enable investors to manage the risks and reap the rewards of cross-border investing.

Global Finance editors and reporters, with input from expert sources, selected the winners from the financial institutions that reliably provide the best custody services in local markets and regions to global custodians, broker-dealers and institutional investors. We chose winners in eight regions and in 35 countries. Our criteria included customer relations, quality of service, competitive pricing, smooth handling of exception items, technology platforms, post-settlement operations, business-continuity plans and knowledge of local regulations and practices.

HSBC, which calls itself "the world's local bank," won 15 awards, far more than any other bank, thanks to its strong showing throughout Asia and the Middle East. Citigroup was second, with five awards, including regional honors for Latin America.

While BNP Paribas repeated as the best sub-custodian for Western Europe, it faces growing competition from Citigroup. The US bank in June 2005 opened a new custody and clearing center in Breda, the Netherlands, following its acquisition of ABN AMRO s direct custody, securities clearing and fund-services business in eight markets last October.

Consolidation in the sub-custody business continues, as margins narrow and technology advances. The need for major investments in systems and people to remain competitive makes the provision of sub-custodial services an area that not every bank wants to pursue. Those with economies of scale and the specific expertise needed to provide quality service are still able to make a good living at it, however, and are enjoying fundamental growth in areas such as risk monitoring and correspondent brokerage, according to industry participants.

REGIONAL WINNERS

ASIA

HSBC

HBC is the leading sub-custodian in Asia, where it has an extensive network and detailed knowledge of local markets. HSBC's securities sub-custody and clearing business in the region is operated under the Hongkong and Shanghai Banking brand. HSBC is the leading foreign bank in China, with the largest branch network and the only on-shore B-share custody operations. The B-share markets for foreign currency trading of China-based companies are located in Shanghai and Shenzhen. HSBC's expertise as an Asian sub-custodian is not limited to China and Hong Kong, where it has a solid grip on the top position, but extends throughout the region. Global Finance named the bank the Best Sub-Custodian in India, Indonesia, Malaysia, the Philippines, South Korea, Taiwan and Thailand.

HSBC's Internet platform provides standardized as well as customized reports and services for global custodians, brokers, dealers and institutional investors. HSBC offers sub-custody services for both equities and fixed-income instruments. The bank's core securities-related services include receipt and delivery of securities, safekeeping, securities lending, dividend and income collection, proxy services and portfolio reporting. The bank tailors its fees to each customer, based on asset sizes and volumes in particular markets. It offers automated-settlement coverage programs in some markets, whereby it borrows securities to cover positions to avert failed settlements and avoid damage to its clients' reputations.

www.hsbc.com

AUSTRALIAN

Westpac Banking

From Australia and New Zealand to Tonga and Vanuatu, Westpac Banking is the leading sub-custodian in Australasia. The Sydney-based bank has 1,000 offices across the region. With approximately $150 billion in assets under management, it is the largest domestic custodian in Australia. The bank's securities clearing, settlement and safekeeping services are rated highly by its clients. Westpac's custody operations serve global custodians, clearinghouses, brokers, dealers and investment managers.

The bank's sub-custody services cover a wide range of investment securities, including equities, corporate debt, government debt and money market instruments. With a focus on client service, the bank informs all customers promptly of dividends and corporate actions, as well as regulatory changes relating to the Australian Stock Exchange, and other market developments.

www.westpac.com.au

CARIBBEAN

Bank of Bermuda (HSBC)

Bank of Bermuda continues to operate under its own brand, but its securities services are being integrated with those of HSBC, which acquired the Bermuda-based bank in February 2004. Bank of Bermuda's global fund services, with expertise in serving hedge funds and private equity funds, is now known as HSBC's Alternative Fund Services, or AFS. With service centers in 14 offices around the world, including the Cayman Islands and the Isle of Man, AFS has about $180 billion of assets under administration. Bank of Bermuda provides a full range of custodial services and specializes in customized services, such as the exception processing of non-standard transactions.

HSBC is reorganizing its global securities services business into four product lines, including sub-custody and clearing, alternative fund services, corporate trust, and institutional fund services. The institutional fund services line will concentrate on serving traditional funds and will include global custody as well as fund administration and performance consulting.

www.bankofbermuda.bm

CENTRAL AND EASTERN EUROPE

RZB

Raiffeisen International, the Central and Eastern European subsidiary of Vienna-based RZB, is the leading bank in the region in terms of geographic reach, with a presence in 16 countries. The initial public offering of Raiffeisen International in April 2005 was the biggest IPO in the history of the Vienna Stock Exchange. The issue totaled euro1.11 billion, including over-allotments, and was 22 times oversubscribed.

RZB was one of the first Western banks to do business in the CEE region and now has 23,000 employees and 920 offices serving 5 million customers in the area. The bank uses its own subsidiaries as its sub-custodians and specializes in the brokerage, settlement and safekeeping of CEE securities.

Raiffeisen International is one of the top banks in seven countries of South East Europe. It is the largest bank in Serbia and Montenegro, Bosnia and Herzegovina, and Albania. Raiffeisen International reported a 68.5% increase in first-quarter 2005 earnings before taxes, compared to the same period a year earlier, and a return on equity before taxes of 24.7%. RZB offers online custody reporting and efficient notification of company actions, such as dividend announcements and stock splits.

www.rzbgroup.com

LATIN AMERICA

Citigroup

Citigroup is the leading sub-custodian in Latin America, where it has more branches and covers more markets than any other bank. In Mexico, for example, its Banamex unit provides custody services to 88% of foreign investors in the country's markets. From its Tampa, Florida-based regional operations center, Citigroup has electronic links to depositaries and exchanges throughout Latin America.

It exited the sub-custody business in Bolivia in 2003 and relies on third-party agents in Ecuador, but the bank is the leading provider of securities clearing and custody services for foreign investors in seven countries in the region and is active in this area in three others. Citigroup representatives sit on the boards of local clearing houses and serve on technical committees in most of these countries.

Citigroup's brokerage subsidiary in Chile has an 85% share of the foreign broker-dealer business. Citigroup also is the leading provider of custody services for foreign investors in Brazil.

www.citigroup.com

MIDDLE EAST

HSBC

HSBC provides securities clearing and custody services in much of the Middle East, with operations in Bahrain, Egypt, Jordan, Lebanon, Oman, the Palestinian Autonomous Area, Qatar, Saudi Arabia and the United Arab Emirates. It was recently granted a license to open a branch in Kuwait. HSBC confirmed in May 2005 that it was in negotiations to acquire a majority stake in Dar Es Salaam Investment Bank of Iraq. British Bank of the Middle East, now called HSBC Bank Middle East, was founded in Eondon in 1889. It has long provided financial services throughout the Middle East region. HSBC began providing securities services to global custodians and foreign institional investors in these markets as soon as they were opened to non-resident investors.

The bank's custody platform provides reports and communications jinks to keep clients informed about local market developments and financial infrastructure. HSBC also helps clients apply for foreign investment licenses, tax clearance and reclamation of taxes, where applicable. The bank's Web-based delivery platform, HSBCnet, connects to other services offered by the group and is integrated into the Swift network for global financial communications.

www.hsbc.com

SOUTHERN AFRICA

Standard Bank

Standard Bank is the leading provider of custody services in South Africa for equities, bonds and money-market instruments, with a 40% market share. It also operates a regional custody network for sub-Saharan Africa that is active in 12 countries. The bank provides custody, trustee, securities lending and accounting-related services to institutional investors in these markets.

Standard Bank offers a range of investment services offshore through its office in Jersey. It acts as a depositary for internationally traded securities and can provide a nominee company to register clients' holdings. It offers online trading and portfolio-evaluation services, as well as dividend collection and processing of corporate actions. Standard Bank, through its London office, offers global custody services in an alliance with Bank of New York.

www.standardbank.co.za

WESTERN EUROPE

BNP Paribas

Paris-based BNP Paribas is continuing to expand its sub-custody business in Europe. The bank processed 23 million securities transactions in 2004 and ended the year with euro2.47 trillion in assets under management. It expanded into the Austrian custody market in July 2004, when its Frankfurt branch established a direct link to OeKB, the Austrian central securities depositary.

BNP Paribas provides securities clearing, sub-custody and outsourcing services for broker-dealers and institutional investors in 11 countries in Europe. BNP Paribas Securities Services also offers global issuer services to corporations and financial institutions, including local paying-agent services and global corporate trust. Its Global Fund Services unit offers fund administration, transfer agency, performance measurement, fund compliance and trustee services and outsourcing for institutional investors. The bank also provides financing to support clients' securities-related activities. BNP Paribas launched an automated corporate actions service recently, using the CAMA application developed by London-based Information Mosaic.

www.bnpparibas.com

COUNTRY WINNERS

ARGENTINA

HSBC

HSBC has taken its licks in Argentina, but the wounds are beginning to heal, and its 1997 acquisition of financial services group Roberts SA de Inversiones is starting to pay off. HSBC Argentina earned $156 million in 2004, up from $48 million a year earlier. The bank has links to the central securities depository, the Caja de Valores, and the central bank, as well as ArdenClear, and provides efficient clearing and settlement services. HSBC also has one of the largest insurance businesses in the country and offers a comprehensive range of financial products, including private pensions through a venture with New York Life.

www.hsbc.com.ar

AUSTRIA

Bank Austria Creditanstalt

Bank Austria Creditanstalt, Austria's largest bank, owns a Swift-based high-volume settlement system for Austrian securities. In addition to serving global custodians and international investors, the bank provides custody and fund-administration services to domestic companies and institutions. Its offshore unit in the Cayman Islands offers trust vehicles and custody services, as well as mutual funds. Part of Germany-based HVB, Bank Austria Creditanstalt's first-quarter 2005 earnings rose 49% from a year earlier to euro207 million.

www.ba-ca.com

BRAZIL

Citigroup

Citigroup's Citibank Brazil unit is the largest sub-custodian in the country, with about $57 billion of assets under custody for both local and international investors. The bank has electronic links to the CBLC, the depository and clearing-house for equities, and the CETIP, for clearing corporate bonds. The bank's securities country manager sits on the boards of both institutions and is vice president of the board of the CIP, the payments clearing house. Citibank Brazil offers safekeeping of securities, settlement, corporate actions management, dividend and income collection, and portfolio-valuation services.

www.citibank.com.br

CANADA

RBC

RBC Global Services, part of Royal Bank of Canada, is the country's leading sub-custodian. It offers transaction processing, investment administration and cash management to corporate, government and institutional clients. Nine of the world's top 10 global custodians are customers of RBC. The bank, with $1.25 trillion of assets under management, was the first to introduce automated securities lending in Canada. RBC also provides domestic and offshore fund services, performance measurement and tools to analyze trades before they are executed.

www.royalbank.com

CHILE

Citigroup

Citigroup's brokerage subsidiary in Chile is a member of the two major stock exchanges in the country. Citibank Chile offers a full range of securities services, including portfolio advisory and management services. The bank has influenced major changes in securities regulation, including the implementation of a nominee account structure at the central securities depository and the allowance of securities lending. Citibank Chile also helped to eliminate the need for official accounting and legal representation for foreign portfolio investors and to simplify documentation requirements.

www.citibank.cl

CHINA

HSBC

HSBC is the leading foreign bank with the largest branch network and the longest uninterrupted presence in China. Last year it purchased a 20% stake in Shanghai-based Bank of Communications, China's fifth-largest bank, for an estimated $1.75 billion. HSBC is the only foreign bank with onshore B-share custody operations for trading of China-based companies in convertible currencies. It has a market share of more than 50% in the B-share custody business. HSBC also offers qualified foreign institutional investors onshore custodian services in China's A-share market. A-shares represent the largest class of Chinese shares and are traded in yuan.

www.hsbc.com.cn

CZECH REPUBLIC

Ceskoslovenska Obchodni Banka (CSOB)

Well-capitalized CSOB, which is majority owned by Belgium-based KBC, is the Czech Republic's largest bank, with 190 branches. It also is the country's leading sub-custodian. Assets under custody arrangements rose to $6.56 billion at the end of 2004, up from $5.84 billion a year earlier. With offices in Prague and Bratislava, CSOB's custody unit offers securities clearing and settlement, income collection, corporate actions management and market analysis. The bank also has an asset-management subsidiary and can draw on the services of KBC

Securities.

www.csob.cz

FRANCE

BHP Paribas

BNP Paribas Securities Services in Paris is the hub of a European network of securities clearing and settlement services and a full range of custody-related products. Services for French companies include shareholder registrar services, employee stock-ownership and options plans, advisory services and support for securitizations. The securities services subsidiary also provides investment-operations support to issuers, financial intermediaries and institutional investors. It is adept at handling failed transactions and provides financing and management of collateral.

www.bnp.fr

GERMANY

Deutsche Bank

Deutsche Bank's Trust and Securities Services unit, or TSS, handles $3 trillion of debt and equity securities. TSS provides safekeeping and clearing services for securities in 25 markets worldwide. In 2002 Deutsche Bank sold substantial parts of its global securities services business to State Street of the US. It retained its sub-custody network in Europe, Latin America and Asia, However, as well as its domestic securities services business. It augmented its German book of business in 2003 when it acquired euro200 billion of custody assets from Dresdner Bank, which was a well-established provider of custody services in the country.

www.db.com

GREECE

National Bank of Greece

National Bank of Greece is the oldest and largest Greek bank, with 600 branches and one-third of the country's banking business. Its National Securities subsidiary is the leading brokerage house in Greece and offers a full range of investment products. The bank ranked first among primary dealers in government bonds in 2004 for the fourth year in a row. In May 2005 Nationnal Bank of Greece agreed to merge with National Investment, which manages stock portfolios and munual funds. The bank's Luxembourg-based investment companies offer umbrella funds with a range of sub-funds and access to international markets.

www.nbg.gr

HONG KONG

HSBC

HSBC, through Hongkong and Shanghai Banking, controls more than half of the market for custody and clearing services in Hong Kong. Its securities operations center provides centralized securities processing for the bank's custody and clearing, asset management, trustee and brokerage businesses based in Hong Kong. HSBCnet, the bank's Web-based delivery platform, provides support for settlement, registration, corporate actions, remittances and reconciliation of securities transactions. All of the bank's centers are integrated into the Swift network. HSBC is a major participant in the international securities lending and borrowing market and has a trading desk for this activity in Hong Kong.

www.hsbc.corn.hk

INDIA

HSBC

HSBC was the first foreign bank to offer custodial services to international institutional investors in India and is the largest participant in this market. The bank's sub-custody services are tailored to local conditions and regulatory requirements. For its portfolio-valuation service, HSBC obtains securities price feeds from the National Stock Exchange and the Stock Exchange, Mumbai. The bank uses software developed by Credit Rating Information Services of India for the valuation of debt instruments. HSBC provides a broad range of trustee and investor services, including compliance monitoring and market information.

www.hsbc.com.in

INDONESIA

HSBC

HSBC has been serving global custodians, fund managers and broker-dealers in Indonesia since 1991. Hongkong and Shanghai Banking opened its first Indonesian office in Jakarta in 1884. The bank offers accounting and administrative support for equity and fixed-income funds. It also provides customized services through its corporate trust agency unit. HSBC has obtained approval from the central bank for sub-registry of government bonds and Bank Indonesia certificates, or SBIs. Last year it launched the first Indonesian government bond index. HSBC Securities Indonesia is a member of the Jakarta and the Surabaya stock exchanges.

www.hsbc.com.in

ISRAEL

Bank Hapoalim

Bank Hapoalim, Israel's largest bank, is the country's leading sub-custodian, with a 30% market share overall and a 40% share with respect to the activity of foreign investors. Its brokerage subsidiary is the leading trader on the Tel Aviv Stock Exchange. The bank's London-based Poalim Asset Management (UK), established in 2001, offers mutual funds, alternative investments and structured investment products to high-net-worth clients worldwide. Bank Hapoalim's first-quarter 2005 earnings rose 80.5% from the same period a year earlier. The gain reflected the sale of its shares in New York-based private bank, Signature Bank, in March 2005.

www.bankhapoalim.co.il

ITALY

Bariea Intesa

Banca Intesa, Italy's largest bank, with assets of euro275 billion at the end of 2004, is the country's leading provider of securities services. The bank offers custody, clearing and settlement services for foreign investors accessing the Italian securities markets. It asset-management subsidiary, which is being merged with that of Crédit Agricole, is one of the largest such operations in Italy. Banca Intesa has more than 3,000 branches in Italy and is on a buying spree in Central and Eastern Europe. In February 2005 it launched a tender for ABS Banka in Bosnia and Herzegovina. In March it acquired Delta Banka, Serbia's second-largest bank. In April it gained control of KMB Bank in Russia.

www.bancaintesa.it

JAPAN

Sumitomo Mitsui Banking

Sumitomo Mitsui Banking, Japan's third-largest bank, is the country's leading provider of custody services. The bank recently launched a system to provide information on corporate actions through its website. It also has established a support desk for trading in Japanese government bonds, as well as an information and advice center for proxy voting. Sumitomo Mitsui Asset Management, founded in December 2002, has more than $84 billion of assets under management. The bank posted a $2.2 billion loss for the fiscal year ended March 31, 2005, as it accelerated the process of disposing of its bad debts.

www.smbc.co.jp

MALAYSIA

HSBC Bank Malaysia

HSBC Bank Malaysia has had a presence in the country for more than 120 years. It is the largest custodian for foreign investors in the Malaysian market, where it has offered custody and clearing services for more than 30 years. The bank has 4,300 employees, an increase of 900 from a year ago. It operates 36 branches as well as a call center that serves the entire HSBC group. After Hong Kong, Malaysia is HSBC's second-biggest business in Asia. The bank is eager to take advantage of financial liberalization in Malaysia, which will be fully open to foreign bank competition in 2008 in line with World Trade Organization rules.

www.hsbc.com.my

MEXICO

Banamex

Banamex, owned by Citigroup since 2001, is the top provider of custody services for foreign investors in the Mexican market, with a market share of approximately 88%. The bank is the largest in Mexico, with 1,400 branches. It offers a full range of financial services, including an online securities brokerage, known as AcciTrade. Banamex introduced an online negotiation platform for securities lending in February 2005. The system enables institutional investors and fund managers to concentrate their debt and equity securities-lending transactions and related services in a single site.

www.banamex.com

NETHERLANDS

BNP Paribas

France-based BNP Paribas is the sub-custodian of choice by global custodians and foreign investors in the Dutch market. It is facing competition from Citigroup, which acquired ABN AMRO's direct custody, securities clearing and fund-services businesses in the Netherlands and other European and Asian markets in October 2004. BNP Paribas provides securities services and investment operations support to issuers, financial intermediaries and institutional investors. The bank offers securities and derivatives clearing and outsourcing for broker-dealers. It also provides fund-administration services, shareholder services for corporations and securities lending.

www.bnpparibas.nl

PERU

Citigroup

Citigroup's Citibank Peru has captured 95% of the market for custody and clearing services for foreign institutional investors in Peru. Citibank Peru is an indirect participant in the Central Securities Depository. It has had a presence in the country for 85 years and began offering custody services in Peru in 1992. Citibank Peru offers banking, insurance and investment products and operates a securities brokerage subsidiary. The bank has about 460 employees and offers a wide range of securities services.

www.citibank.com.pe

PHILLIPINES

HSBC

HSBC is the leading provider of custody and clearing services to foreign portfolio investors in the Philippines. The bank's Manila office offers online trade settlement with the Philippine Central Depository, as well as safekeeping of securities, and proxy voting and nominee services. HSBC has had a presence in the Philippines for more than 120 years and began offering domestic custody and clearing services in 1955. It has provided similar services for foreign investors since 1985. The bank offers flexible and responsive customer service.

www.hsbc.com.ph

POLAND

Bank BPH

Bank BPH is a leading provider of securities-settlement services in Poland, where the bank has a network of 560 branches. Part of Germany-based HVB Group, the bank is 71% owned by Bank Austria Creditanstalt. Bank BPH turned in a solid financial performance in 2004, more than doubling its net income. The bank was formed by the 2001 merger of BPH and PBK, two of the nine commercial banks spun off by the National Bank of Poland in 1989. The Bank BPH name was adopted in 2004. The bank's shares are listed on the Warsaw Stock Exchange, and its global depositary receipts trade on the London Stock Exchange.

www.bph.pl

PORTUGAL

Banco Espirito Santo

Banco Espírito Santo, or BES, is one of the largest providers of sub-custodian services in Portugal. Since November 2003 it has been a clearing member of the Euronext markets of Lisbon, Paris, Amsterdam and Brussels. Its brokerage unit is a trading member of these markets and offers clearing services in all of them to non-resident institutional clients. BES is a settlement agent for Euronext Lisbon and over-the-counter trades. It executes all corporate actions associated with securities safekeeping and assures the processing of all income collections regarding the assets under custody. BES also offers a proxy voting service.

www.bes.pt

RUSSIA

ING Bank

ING Bank (Eurasia), part of Netherlands-based ING Group, is the largest custodian in Russia, with about $37 billion of assets under custody. ING Bank began providing custody services in Russia in 1995 and acquired Credit Suisse First Boston's local custody activities in 2002. ING's custody operations include settlement, fearing and safekeeping of both domestic and international equity and fixed-income securities. The bank also provides clients with corporate-actions announcements and market information, income collections and repatriation, and proxy voting. ING acts as local sub-custodian for many depositary receipt programs.

wwrw.ing.ru

SINGAPORE

United Overseas Bank

One of Singapore's leading banks, United Overseas Bank offers comprehensive custody services, including settlement, safekeeping and registration of securities. The bank has 68 branches in Singapore, as well as a growing international network, with offices in 17 countries. In 2004 it acquired a 97% interest in Bank of Asia, Thailand, with a network of 133 offices. It also purchased a 23% interest in Bank Buana Indonesia last year. UOB Custody Services collects dividends, interest and bonus-share entitlements and supplies comprehensive reports on securities transactions and accounts.

www.uobgroup.com

SOUTH KOREA

HSBC

HSBC is the largest foreign custodian in South Korea, which it entered in 1992 when the country's markets first opened to foreign investors. In July 2003 HSBC acquired a majority stake in Asset Management Technology Korea, which has $27 billion of funds under administration. HSBC handles about half of the market for custody and clearing services for foreign institutional investors in South Korea. So far, HSBC has refused to pay the asking price for major local banks that have come on the market, but it is eager to expand its operations in the country.

www.kr.hsbc.com

SPAIN

Santander Central Hispano

Santander Central Hispano, Spain's largest bank, is also the country's leading sub-custodian. The bank operates in 40 countries and has a large presence in Latin America. The group's securities and investment activities are conducted under a variety of names, including SCH Bolsa in Spain, Santander London in the UK and Santander Investment Securities in the US. Santander's acquisition of UK-based Abbey, which was completed in November 2004, increased funds managed on behalf of customers by 70%, to more than $750 billion. The bank's first-quarter 2005 income, which included Abbey for the first time, rose 38.5% to $1.47 billion. Not including Abbey, earnings would have been up 20.6% from the same period a year earlier.

www.bsch.es

SWEDEN

Skandinaviska Enskilda Baoken

Skandinaviska Enskilda Banken, or SEB, provides global custody services for domestic institutions in Sweden, as well as sub-custody services for foreign institutions investing in Sweden and elsewhere in the Nordic region. SEB's asset-management activities include mutual funds, portfolio management and private banking. The Stockholm-based bank has about $125 billion of assets under management. SEB has 675 offices in 20 countries, including Germany, the Baltic countries and Scandinavia. It owns SEB Trygg Liv, one of Sweden's largest life insurers.

www.seb.se

SWITZERLAND

Credit Suisse

Credit Suisse is the leading sub-custodian in Switzerland, where it offers a full range of securities services and special expertise in Swiss franc-denominated equity and fixed-income securities. The bank's Zurich office acts as a principal for securities lending and borrowing in the Swiss market. Credit Suisse Zurich is a securities broker and can offer financial products traded on various exchanges. It offers settlement services to members of Virt-x, a cross-border exchange for top European stocks, and to remote members of SWX Swiss Exchange through an automated system that is available to both Swift and non-Swift users.

www.credit-suisse.com

TAIWAN

HSBC

HSBC has been offering custody and clearing services to foreign investors in Taiwan since 1991, longer than any other bank. It is the leading custodian in Taiwan, with a market share of about 30% among institutional investors. In 2001 HSBC acquired a majority interest in China Securities Investment Trust, Taiwan's leading asset manager. HSBC also operates an insurance brokerage business in Taiwan. HSBC Taiwan posted pretax earnings of $110 million in 2004, an increase of 30% from a year earlier.

www.hsbc.com.tw

THAILAND

HSBC

HSBC is one of the largest subcustodians in Thailand, with a 25% market share among foreign investors in the country. The bank first began offering sub-custodian services in Thailand through a subsidiary in 1987. HSBC also operates a stock brokerage subsidiary, HSBC Securities (Thailand), and offers a full range of investment services, including mutual fund sales. The bank's securities-processing system was developed as part of its Web-based delivery platform, HSBCnet. The system provides efficient processing of transactions and keeps clients informed of market developments.

www.hsbc.co.th

TURKEY

GarantiBank

GarantiBank, the leading sub-custodian in Turkey, has been providing custody and clearing services to foreign investors operating in the country's capital markets since 1989. It is the only locally owned provider of custody services with a significant market share. In July 2004 Italy-based Banca Intesa broke off negotiations for the purchase of a controlling interest in GarantiBank from the Dogus Group. GarantiBank is part of a network of European Securities services providers through a cooperation agreement with France-based BNP Paribas Securities.

www.garanti.com.tr

UNITED ARAB EMIRATES

HSBC

HSBC's operations in the United Arab Emirates include HSBC Bank Middle East, HSBC Insurance Brokers, HSBC Finance and HSBC Bank International, which provides offshore banking services. In July 2000, when the UAE market opened to foreign investors, HSBC was the first bank to provide custody and clearing services. HSBC Bank Middle East offers a wide range of investment services, including debt capital market services, asset management, corporate finance, private equity and securities broking. The bank opened a new office in downtown Dubai last September and operates customer-service centers at major shopping malls.

www.uae.hsbc.com

UNITED KINGDOM

HSBC

Britain's largest bank, HSBC is also its leading sub-custodian.With more than $1.5 trillion of assets under custody, it offers first-rate global custody and domestic UK sub-custody services through its London-based Global Investor Services division. The GIS unit also has operations in Edinburgh and Dublin. HSBC Global Fund Services, another unit of the bank, offers fund administration and investment services to hedge funds, funds of funds, emerging market funds and private equity funds. The bank's asset-management and international fund administration businesses were boosted by the acquisition last year of Bank of Bermuda. The HSBCnet platform provides HSBC clients with realtime reporting of cash and securities positions. The bank recently began offering electronic proxy services to institutional investors for their holdings in 43 markets worldwide via ADP Investor Communications Services.

www.hsbc. co.uk

UNITED STATES

Bank of New York

With nearly $10 trillion of assets under custody and administration, Bank of New York provides securities services in more than 100 markets worldwide. Its Brussels operations center is its custody hub in Europe. In the US, Bank of New York recently announced that it was reappointed as master custodian and securities-lending agent for the Alaska Permanent Fund following a competitive review. The fund is a public trust created for the citizens of Alaska and has a market value of $30 billion. The bank entered into a marketing alliance in May 2005 with KPM Technologies to help nonprofit organizations automate the administration of their endowment funds. Last year, it purchased a 51% stake in Netik, a data-warehouse technology service used by fund managers.

www.bankofny.com

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