GLOBAL CUSTODY SURVEY 1993

GLOBAL CUSTODY SURVEY

Operational Issues Affecting Global Investments

Presented by Buttonwood International Group, May 1993

Preface

The author wishes to thank the global custodians for providing a meaningful dialog in regard to the issues at hand. Their willingness to contribute the time and effort of experienced personnel is greatly appreciated.

The intent of this report is to highlight the important issues which may affect an investment manager's ability to invest in the global marketplace. The perspective is from the view point of the global custody banking community by experienced securities operations professionals. For the global custodian, this report presents your peer group's opinion about a number of the key issues facing the industry. For the investment manager, this report provides a number of insights regarding the changing demands of your business brought about by the inexorable drive toward the global marketplace.

A summary of the key findings of this survey were presented by John J. Giudice, President of Buttonwood International Group at a conference sponsored by the Advisors' Education Group, Inc. on May 17, 1993 in New York City.

CONTENTS

Introduction

Do U.S. investors in emerging markets need to be more involved in operational issues?

Operational Issues Facing A Global Investor

A summary of the major operational issues facing a U.S. investor in today's foreign markets as reported by the global custodians.

Foreign Country Investments..."Tar Pit Syndrome"

A review of the lead time factors in entering an emerging market. The most frequently mentioned securities markets are discussed.

Global Custodians Single Out Major Operational Hot Spots

Eleven operational processes were rated by the securities professionals. Tips for the investment Manager are provided to assist the investor.

Emerging Infrastructure

A review of new developments in electronic communications, international standards and services.

Conclusions

This survey was compiled by Buttonwood International Group One World Trade Center, Suite 7967, New York, NY 10048 (212)432-0513. Edited by David Mule'.
©1994, 1998 Copyright Buttonwood International Group. No part of this survey may be reproduced in any form without the written consent of the author.