Brandes Investment Partners 1 Custodian Tables June 2009 stment Partners ® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada. Hetal Patel Operations Intern June 2008 – June 2009
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Custodian Tables
June 2009
Brandes Investment Partners ® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Hetal Patel
Operations Intern
June 2008 – June 2009
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OVERVIEW
Background
Key Issues
Key Issues w/ Current State
Suggestions and Implementation
Costs and Benefits
Summary
Q&A
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BACKGROUND
• 474 DVP Accounts
• Custodian Information– Current - UNIX– Future plans – Compass Upgrade– Data Stored
• Departments– Settlements– Corporate Reorganization– Account Administration
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KEY ISSUES
3 Key Issues
Obsolete fields in Custodian Table
High volume of Custodian IDs
Inefficient placement of
Custodian data
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ISSUE 1:
We have a high volume of unique Custodian IDs that do not reflect the actual number of Custodians we use.
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ISSUE 1:
We have a high volume of unique Custodian IDs that do not reflect the actual number of Custodians we use.
Custodian Name Total Value USD # of a/c's# of
Cust ID's
Northern Trust $ 11,037,898,173.47 130 64State Street Bank & Trust Co. (US & Canada) $ 10,825,104,886.36 65 36J.P. Morgan Chase & Co. $ 4,439,162,362.45 20 13
TOTAL 113
Top 3 Custodians
42%
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ISSUE 1:
We have a high volume of unique Custodian IDs that do not reflect the actual number of Custodians we use.
Major Causes
One objective of suggestions: Reduce high volume
Expectation after implementation: Reducing from 10-60 IDs per Custodian to 4-5 per Custodian
Current Creating New ID/Updating process Length to create: 10 minutesLength to update: 3 minutes/Custodian ID
Example – Northern Trust
• Before implementation: 64 IDs, ~3 hours to update• After implementation: 5 IDs, 15 minutes to update• Saves 90% of time it takes to update
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ISSUE 2:Inefficient placement of Custodian data.
Some of the information is not optimally used at the current location
Case 1: Settlements Contact Info, DTC Instructions
Case 2: Trust Officer Contact Info
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CASE 1: Settlement Contact Info, DTC Instructions
Settlements Contact Info
SettlementsBackupDomesticDomestic Backup
DTC Instructions
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SUGGESTION 1 House DTC instructions and Settlements Contacts in ETC Utility
ETC Utility
• Capabilities
• Functions
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CUSTODIAN
SUGGESTION 1 House DTC instructions and Settlements Contacts in ETC Utility
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IMPLEMENTATION FOR SUGGESTION 1
Step 1
• Migrate DTC Instructions and Settlements Contact from
UNIX to the SQL Server Environment
• Time Required: ~1 week
Step 2
• Create a new webpage in ETC Utility under a Custodian Tab
to store that data• Time Required: ~1 week
Step 3• Link pathway from SQL Server
to ETC Utility• Time Required: ~1 week
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SUGGESTION 1
House DTC instructions and Settlements Contacts in ETC Utility
Pros Cons
No need to migrate to Compass Time Req.: approx. 3 weeks
Maintain in central location Systems resources
ETC Utility already feeds into Salerio
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ISSUE 2:Inefficient placement of Custodian data.
Some of the information is not optimally used at the current location
Case 1: DTC Instructions, Settlements Contact Info
Case 2: Trust Officer Contact Info
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CASE 2: Trust Officer Contact Info
Corporate Reorg.
Trust Officer ContactQIB LettersClass Action LitigationsInquiries
Account-basedExample: NT
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1
2
3
*
SUGGESTION 2 House Trust Officer Contact information in Compass
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IMPLEMENTATION FOR SUGGESTION 2
Step 1
• Migrate Trust Officer Contact information from UNIX to
existing Compass based on Client
• Time Required: ~1 week
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SUGGESTION 2
House Trust Officer Contact information in Compass
Pros Cons
Links to account Time Req.: approx. 1 week
Eliminates cause of high volume of Custodian IDs Systems resources
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ISSUE 3:Obsolete fields in the Custodian Table.
Fields that are no longer needed or used:
Euroclear
Global Sub Custodian
Global Agent #
Dividends contact
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REMOVE:
Obsolete fields:
• Euroclear
• Global Sub Custodian
• Global Agent #
• Dividends Contact details
DTC Inxns/Settlements Contact
Trust Officer Contact
SUGGESTION 3 Remove all obsolete fields from UNIX
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SUGGESTION 3 Remove all obsolete fields from UNIX
Remaining fields:
Custodian ID
FX Dealer ID
BIC/SWIFT Code
Custodian Name
Reorg Contact
FX Contact
Custodian Address
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IMPLEMENTATION FOR SUGGESTION 3
Step 1• Remove all the obsolete fields
from UNIX• Time Required: <1 week
Step 2
• Consolidate Custodian IDs• Delete Custodian IDs with
duplicate information• Reassign Custodian IDs to Clients
• Time Required: 1-2 weeks
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SUGGESTION 3
Remove all obsolete fields from UNIX
Pros Cons
Removes fields no longer needed/used Time Req.: approx. 2-3 weeks
Cleans Custodian Table before migration Systems resources
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Summary
Key Issues Suggestions
High volume of unique Custodian IDs
House DTC Inxns/Settlements Contacts in ETC Utility
House Trust Officer Contacts in Compass
Remove all obsolete fields from table
Inefficient placement of data
Obsolete fields in table
OBJECTIVES
Reduce the number of Custodian IDsProvide alternative location for some information
Implement before the Compass UpgradeClean up current Custodian Table before migration
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Q & A
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