Operational Benchmarking

Operational Benchmarking Report

The Operational Benchmarking component of Custodian Monitoring provides Thomas Murray's clients with a quantitative assessment of their custodian bank's service. Based on monthly client specific data provided to Thomas Murray by the custodian bank, the results of the assessment are reported to the client on a quarterly basis via easy to read graphics and charts. The results are also benchmarked against the aggregate results of other Thomas Murray clients to allow peer group comparisons to be made.

The periodic assessment measures results at an individual custodian level against the benchmark group, where performance is measured against the spectrum of core operational services and is derived from the operational data supplied by the global custodian relating to the custodian's client.

Eight Key Performance Indicators (KPIs) and sixteen performance metrics are covered by the assessment and are compared to the benchmark group including:

• Fee Summary - A monthly and year to date analysis of fees paid for safekeeping, transaction processing and other custody services
  
• Trade Instructions - total number of trades instructed compared to number of trades instructed on time.
  
• Trade Settlement - total number of trades settled compared to number of trades processed on a STP basis.
  
• Failed Trades - total number of trades settled compared to total number of trades that fail
  
• Income Collection - total number of income payments compared to total number of income amendments
  
• Corporate Action Instructions - number of corporate action instructions received compared to the number of late corporate action instructions
  
• Tax Reclaims - Value of tax reclaims outstanding compared to value of assets under custody
  
• Client Service - Number of queries raised each month compared to the response rate to queries. There will be one or more key indicators for each value added service, for example the ageing of reconciling items for investment accounting.

In addition to measuring the relative performance of a custodian over time and across managers or funds, the Thomas Murray Universe allows funds to measure their custodian's performance versus other custodians to determine relative performance and trends.

The universe includes data from other subscribers to Thomas Murray's Custodian Monitoring service and who have agreed to include their benchmarking data in the universe.