“Germany-Panel” in Monaco •Participant •Possible topics "panel discussion“ •Current Situation “ Germany” •Target groups: Investors in Germany •Selection - Selectors - Selecting Approaches •Market entries – Opportunities and Pitfalls •Fund Boutiques: Additional Panel in Monaco •Notes to Monaco conversation impressions – “Market Entry to Germany” •Administration - Support for market entry •Market Research - Survey theory versus direct investor relations •Customer contact – organizations, "gatekeeper“ •Typical errors / pitfalls on market entry into Germany •Articles: Market Entry “Germany” Feedback, additional thoughts, experience or any kind of dialouge on such context is most welcome, please contact: info@markus-hill.com or Mary Daute (Asst. Manager) phone: + 49 17 66 33 66 094

1. Analysing The Demand For Boutique
Funds In Germany: Market Growth And
Selection Criteria
FundForum International, Monaco, 26-6-2013
New Portfolios In Search For Fund
Boutiques

2. MH Services
Agenda: “Germany-Panel” in Monaco
• Participant
• Possible topics "panel discussion“
• Current Situation “ Germany”
• Target groups: Investors in Germany
• Selection - Selectors - Selecting Approaches
• Market entries – Opportunities and Pitfalls
• Fund Boutiques: Additional Panel in Monaco
• Notes to Monaco conversation impressions – “Market Entry to Germany”
• Administration - Support for market entry
• Market Research - Survey theory versus direct investor relations
• Customer contact – organizations, "gatekeeper“
• Typical errors / pitfalls on market entry into Germany
• Articles: Market Entry “Germany”
• Markus Hill
• Contact Information MH Services
2

3. MH Services
Participants in the panel of discussion
• Moderator: Mark Hill (MH SERVICES)
• Dr. Thorsten Querg (FOCAM AG
• Günter Jäger (PLEXUS INVESTMENTS)
• Daniel Haas (MEYER & CIE)
• Dr. Ferdinand Verweyen (NORTH GERMAN NATIONAL BANK LUXEMBOURG SA)
• Christian Michel (FERI EURO RATING SERVICES AG)
3

4. MH Services
Possible topics "panel discussion"
• Current Situation "Germany"
• Target groups - investors in Germany (Switzerland, Austria)
• Selection - selectors - Selecting approaches
• Market entry - Opportunities and Pitfalls
• Outlook
• Appendix - Additional Information "German market"
4

5. MH Services
Current Situation “ Germany”
• Establishment - graduating process?
• Definition of "fund boutiques"
• Acceptance to all selectors?
• Large to small companies?
• Market segment - for increasingly interested party?
• Regulation - trends, inclined to (UCITS, AIFM, etc.)
• Sales / Marketing
• Discussion of "investors" versus "discussion Provider"
• Common fund of boutiques, asset managers and family offices
5

6. MH Services
Target groups: Investors in Germany
• Asset Managers - support and selection
• Family Offices
• Fund of funds manager - support and selection, volume, fund size
• Private banks - support and selection, competitive ratio versus "Pearl Approach"
• Foundations - Foundation funds, asset-management’s approaches, direct
investments
• Provision works
• Insurance - investment rules, asset classes
• Consultants - expenses, compensation, risk
• Corporates
• Churches (Investment committee)
6

7. MH Services
Selection – Selectors - Selecting
Approaches
• Risks of fund boutiques selector?
• Opportunities for fund boutiques selector?
• Risk tolerance - how strong can investor support?
• Where conflicts of interest may exist? (earnings, preferred partners, etc.)
• Active allocation approaches versus passive approaches?
• What exactly does "active management“ mean in the decision for boutique?
• Ask for transparency, Boutique versus Big Animals?
7

8. MH Services
Market entries – Opportunities and Pitfalls
• Sales representatives? Placement agent? Own sales force? Consultants?
• Which investment vehicle is appropriate?
• Hit-and-run approach versus a solid long-term foreign asset managers to think?
• Administrator who can support? Corporate culture?
• National vision versus Pan-European / Global Approach?
• Why many foreigners fail in Germany?
• Peculiarity of the German market: fragmentation ("Investors clusters")
• What did the successful boutiques make it right?
• What does foreign fund boutiques in Germany contribute to be appreciated by
German Funds selector ?
• Differences: private, semi-Institutional, Institutional
• Tax
• Platform, Master KAG, White Label Service KAG
8

9. MH Services
Outlook
• Market division?
• Networks and investors
• International Cooperation
• Regulation
• Who offers the best performance for entry to Germany? (Administration and sales)
• Universal Investment? State Street? Northern Trust?
• Capacity building among investors directly? Shift from the intermediary to the
investor?
9

10. MH Services
Fund Boutiques: Additional Panel in Monaco
FundForum International, Monaco, 26-6-2013
Boutiques: Selectors Choice
A Showcase Of Boutique Funds
Moderated By
Jose Luis Jiminez, CEO, MARCH GESTION DE FONDOS & Chairman of GBAM
(Group of Boutique Asset Managers)
With Boutique Fund Selector Feedback:
Markus Hill (MH Services, Germany) & Dr. Thorsten Querg, FOCAM AG
Günter Jäger, PLEXUS INVESTMENTS
Daniel Haas, MEYER & CIE
Boutiques:
Tim Guinness, Global Energy Fund, GUINNESS ASSET MANAGEMENT
Azhar Hussain, Head Of Global High Yield, ROYAL LONDON ASSET MANAGEMENT
Mike Pinggera, Multi Strategy Fund, FOUR CAPITAL
Jan Petersson, TELLUS FONDER
Open Q & A:
The Role Of Boutiques in „The Investment Solution Portfolio“
10

11. MH Services
Notes to Monaco conversation impressions
– “Market Entry to Germany”
11

12. MH Services
Market entry “Germany” (I)
Points that one can select from comments and questions of international market
participants:
• Administration – is there an optimal 360-degree asset management company or is
there optimal Custodian for market entry in Germany / Europe?
• Market research – it makes more sense to obtain directly feedback from investors in
German-speaking on product offers rather than buying costly surveys?
• Which organizations in Germany / Europe have contacts / databases to respond
quickly to investors?
• Why do many asset managers fail in Market entry?
12

13. MH Services
Market entry “Germany” (II)
1. Administration - Support for market entry
• Investment companies in Germany and Luxembourg are contact points
• International custodians are also the contact point
Administration means : Manage your fund with me but see for yourself how you can
collect assets!
Administration means : Manage your fund with me and I will support you in entering the
market!
What help can investment companies from Germany and Luxembourg offer (Universal
Investment, Hauck & Aufhäuser IPConcept etc.)?
What help can "classic" custodians offer (Northern Trust, State Street, etc.)?
What makes an ideal partnership between administrator and asset manager?
Special field of support: Marketing, Sales, Public Relations
Core Question: How administrators provide an added value if administration fees are
comparable?
13

14. MH Services
Market entry “Germany” (III)
2. Market Research - Survey theory versus direct investor relations
• Market research institutes
• Consultants
Market research can be stated as: I will sell you some data’s and see how you can
proceed or utilize it.
Market research can be stated as: I know the relevant data, will prepare for you in order
to come in concrete dialogue with the potential investor (database, contact, feedback,
“sales start")?
Does it make sense to speak to German or English market research institutes?
Does it make sense to speak to German consultants or placement agents?
Special field of support can be: figures, data, data bank, product feedback for market
entry
14

15. MH Services
Market entry “Germany” (IV)
3. Customer contact – organizations, "gatekeeper"
• Sales
• Placement agents
• Consultants
• PR-/Marketing-Agents
• Event Organizers
Customer contact can be defined: adjust or buy – employ someone? Or use one for
intermediary or long term business development?
Customer contact can be defined: use an introducer, see if there's potential and proceed
internal or external to the topic distribution system Germany?
Customer contact can be defined: network, PR-/Marketing-/Sales support locally,
organize yourself, instruct external or in combination with investment fund company?
Special field of support: Introduction, roadshow organization, events
15

16. MH Services
Market entry “Germany” (V)
4. Typical errors / pitfalls on market entry into Germany
• Opportunism
• Short term thinking
• Big visions without budgeting
• "We always fly to London and then to Germany, Switzerland, Austria"
Failure in launching can be: We will attend few events, speak to few random contacts and
attempt it one more time.
Stumbling block: We hire a sales representative on site, to operate somehow on a
performance-base, without any obligation on both sides, to enforce sales!
Another reason for failure - quite popular: We have an average product, if possible not
disclose to German investors before market entry but expect tickets directly in a month!
Special Services: There are variety of support options in the German speaking countries,
a good consultants saying, if an entry should not be attempted – one can prevent
unnecessary use of time and budget.
16

17. MH Services
Articles: Market Entry “Germany”
“As a fund industry location and with its interesting investors, Germany is
attractive to foreigners!”
From June 24, 2013 until June 27, 2013, the industry-wide, well-known conference
FundForum International takes place in Monaco. The independent industry expert
Markus Hill will lead a panel of discussion of German speaking fund selectors on the
topic of fund boutiques. The editor in chief Frank Schnattinger from IPE Institutional
Investment has discussed with him the current situation of German fund industry.
PanelDiscussionFundForumInternational2013
Private Label Funds, Luxembourg, and Market Entry in Germany
“What the farmer doesn’t know, he doesn’t eat” (German proverb). This old German
proverb could also apply to certain investment companies or fund advisors outside of
Europe. Often, due to language skills, familiarity with existing structures, or the
“foreignness” of particular fund launch designs, foreign asset managers seem to consider
interesting decision-making processes when they contemplate market entry in Germany.
Information is indispensable: fund structure, regulation, but most of all the distribution
opportunities in the German-speaking world are hot topics among the community of
international sales professionals and are frequently discussed. How can German
investment companies become attractive sparring and business partners at this point?
How can a local, on-site partner offer added value in this situation?
PrivateLabelFundsMarketEntryGermany2013
More articles (fund boutiques, market entry, Germany): PublicationsMarkusHill
17

18. MH Services
Markus Hill
Markus Hill (MSc in Economics) is an independent asset management consultant based in
Frankfurt, Germany Professional experience includes SEB Bank and Credit Suisse Asset
Management. In addition, he worked as head of sales and PR for a German fund boutique.
Since 2005 he specialized in the management of mandates, sales, marketing, and PR
(consulting, "introducing"). Markus is also involved in selecting themes in the specialist
areas of target funds with a multi-management aspect, fund boutiques and mutual funds for
institutional investors (product scouting, fund selection). Furthermore he is actively engaged
in cooperation with the market-leading Private Label Funds/Master KAG in Germany
(Universal-Investment) promoting the idea of independent asset management and was the
Co-Initiator of the first all-German Consultant survey in 2005 and the first "UCITS-survey" in
2003. Market entry into Germany, behavior of fund selectors and fund providers in German
asset management industry are often discussed by him, e.g. in his asset-management-
publication MH-Focus. Through many articles, columns and presentations (national and
international) he has become a highly recognized expert in the German asset management
industry. "Industry multiplier" is a term often used by journalists and clients to describe his
style and personality.
(Markus Hill/ MH Services assigned in the role of Media Partner for: UCITS
Alternatives Conference in Zürich, September 2011)
18

19. MH Services
Contact Information
MH Services
19
Markus Hill
CEO
T: +49 (0) 69 280 714
M: +49 163 4616179
Email: info@markus-hill.com
Website: www.markus-hill.com
Mary Daute
Assistant Manager
T: +49 (0) 69 280 714
M: +49 176 6336 094
Email: mary.daute@markus-
hill.com
Website: www.markus-hill.com
Beatrix Biesemann
Project Assistant
T: +49 (0) 69 280 714
Email: beatrix.biesemann@markus-hill.com
Website: www.markus-hill.com