Custody/Sub - Custody Business

The custody business is one of the most lucrative divisions in investment banking. It is estimated
that custody annually generates some 12.5 Billion in fee income noting that fees only constitute
about 40% of the overall income of a custodian... this is a high profile business worth considering
especially now that global fund managers such as State Street Bank, Bank of New York, Barclays..etc
are investing in the emerging markets of the Middle East.

Getting into custody is not easy; it requires investments in systems and development of a
specialised cadre capable of meeting the different needs and changing  demands of fund managers
and investors (customers).

What is a custodian? A custodian is a keeper and a care taker. In our profession, it is the bank that
performs a multitude of functions in order to assist the fund manager (the investment decision
maker), in executing its SECURITIES sales and purchase orders (settlements), safekeeping such
securities, collecting its revenues, reporting corporate actions...and other services that will be
addressed later.

The essence of this definition is that the global custodian carries out the duties of a master record-
keeper rather than just being the actual caretaker, of the securities.

For a pre agreed  charge, the global custodian agrees to handle all operational concerns that occurs
after the investment decision is made i.e. dealing with "post - trade" aspects of the investment, thus
allowing the investment manager to get on with the job of managing the fund.  

For the charge received, the global custodian typically provides the following package of services to
the fund manager.

  1. Safekeeping
  2. Settlement
  3. Custodian Services
  4. Corporate Action Processing
  5. Income Collection
  6. Multi-Currency Accounting
  7. Stock Lending
  8. Tax Reporting and Reclamation
  9. Cash Management
  10. Portfolio Reporting and Valuation
  11. Proxy Voting
  12. Foreign Exchange

Establishing a strong custody services can mean the difference between forging ahead and falling
behind; the difference between remaining local or regional and emerging global.

With JSCS securities experts, you can rest assured you made the right choice in contracting us to
establish or review your securities operations. We're proud of our profound knowledge in this
domain because it is a direct reflection of our dedication and commitment to custody services in
particular and banking operations in general. Our custodial services include putting in place a
system of operations for settlement, securities registration, safekeeping, income processing,
corporate actions, proxy voting, cash management, and real time trade and portfolio reporting.

More specifically, we can assist in establishing a Securities Department with sophisticated
automation, soundly placed procedures and well trained staff to achieve the following
accountabilities:-

Efficient settlement

To guarantee accurate and timely movement of securities and funds associated with trading it.
Serving investment managers at the highest standards can be achieved with a feasible securities
system provided staff receive  a specialised training.  

Securities safekeeping

To provide a secure facility for the safekeeping of your clients' stocks, bonds, notes and other
securities — in both physical and book-based environments. Furthermore, to ensure that clients'
assets are held securely and recorded accurately on your custody system.

Income processing

To process the income generated by the investments of your clients. You will be able to efficiently  
collect interest and dividends on securities in custody, and offer contractual income processing on
securities. An Income Entitlement Help Desk will be staffed by knowledgeable professionals,
supporting all your  clients' income inquiry needs.

Corporate actions

To keep your clients up to date on corporate action activity affecting their securities held in your
custody. They must receive timely corporate action notices about rights, warrants, conversions, name
changes, stock splits, and other corporate action types. You notification procedures will focus on
control and optimum information turnaround so that your clients  have the maximum time possible to
submit an informed response. You must  promptly act on your clients instructions with respect to
voluntary corporate actions.

Proxy voting

To notify your clients  on upcoming meetings for which they may cast their vote via SWIFT, fax,
telephone, mail or the Internet. To also provide front line service support through a Corporate Actions
Help Desk, to be staffed by a team of dedicated specialists.

The combination of our team of knowledgeable professionals and an adequate technology we can
come into a relationship that will most assuredly help you to establish and build up your custody
business.

Please call us for any details that you may require clarified on our securities services.  
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