Investment Company Institute Launches ICI Global, First Trade Body to Focus Exclusively on Global Fund Industry

Dan Waters, Former FSA Senior Regulator, Appointed Managing Director; Jamie Broderick, Head of J.P. Morgan Asset Management in Europe, to Chair Steering Committee

London, Washington, DC, Hong Kong, October 9, 2011 - The Investment Company Institute (ICI) today announces the launch of ICI Global, a new trade organisation to focus on regulatory, market and other issues for global investment funds, their managers and investors. ICI Global members will include regulated U.S. and non-U.S. based funds publicly offered to investors in jurisdictions worldwide, making it the first industry body to focus exclusively on the perspective of globally active funds. The new organisation will be based in London.

Dan Waters will be the Managing Director of ICI Global. Waters comes to the newly created organisation following a long international career in regulation, including 12 years at the United Kingdom’s Financial Services Authority (FSA), where he directed asset management policy. Waters will lead ICI Global’s international funds work from the London office.

Jamie Broderick, Head of J.P. Morgan Asset Management in Europe, will chair ICI Global’s Steering Committee.

“ICI Global will seek to advance the common interests and promote public understanding of global investment funds, their managers, and their investors as market and regulatory issues increasingly cross borders,” said Paul Schott Stevens, ICI President and Chief Executive Officer. “It will build upon and expand ICI’s long-standing international advocacy on issues that affect millions of investors worldwide.”

“Dan Waters brings exceptional knowledge of global fund regulatory issues,” Stevens noted. “He has gained wide respect as a member of the international regulatory community, in which he served for over two decades. He is well known throughout the fund industry and national and regional fund associations, with which ICI Global will work closely. Dan will be an outstanding leader for this groundbreaking initiative. So too will Jamie Broderick, who brings enormous business experience and policy understanding to his role as head of the ICI Global Steering Committee.”

Commenting on his new position, Waters said, “Global funds and fund managers face a complex array of regulatory and policy challenges. Finding appropriate global solutions for these challenges requires the capacity to look beyond national and regional approaches to focus on genuine, value-adding global answers. ICI Global is uniquely placed to take up this challenge. I am absolutely delighted to be leading this exciting and important work.”

“ICI Global responds to a rapidly growing transnational environment for global investment funds,” said Broderick. “As financial markets converge and funds’ activities become more global, regulators are increasingly coordinating their efforts internationally. Funds need a strong and informed source on issues that cross borders to inform the policy agenda worldwide.”

ICI Global’s Mission and Structure

ICI Global’s policy priorities and purposes fall into four broad categories: the role of funds and fund managers in financial stability; key transnational regulatory developments for funds; global trading and market structure policy developments; and retirement savings and pension systems.

The new organisation will serve as a conduit for proactive dialogue with a broad range of national and transnational regulators. It will also advocate for regulatory policies that promote funds as long-term investing vehicles. A key part of its strategy will be to work in close cooperation with national and regional fund and other associations worldwide.

Leading international fund management groups already have expressed their plans to join ICI Global. These companies include: Capital Research and Management, Columbia Management and Threadneedle Investments, Federated Investors Funds, Franklin Templeton Investments, Goldman Sachs Asset Management, Invesco, J.P. Morgan Asset Management, Legg Mason, Nuveen Investments, PIMCO Funds, T. Rowe Price, and Vanguard.

ICI Global’s Steering Committee, under Broderick’s leadership, will include senior executives of its global fund members. ICI Global will assemble an international staff drawn from a variety of relevant global backgrounds and based in London.

ICI Global also will draw on all of ICI’s Washington, D.C., based resources, including ICI’s unrivalled legal, regulatory, research, communications, and fund industry operations teams. ICI is the national association of U.S. mutual funds and other registered investment companies. ICI’s U.S. member funds serve more than 90 million investors and manage assets of $12.5 trillion, representing 98 percent of the U.S. fund market and nearly half of the $25.6 trillion worldwide fund market.

About the Investment Company Institute

The Investment Company Institute is the national association of U.S. investment companies, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and unit investment trusts (UITs). ICI seeks to encourage adherence to high ethical standards, promote public understanding, and otherwise advance the interests of funds, their shareholders, directors, and advisers. For more information, visit www.ici.org.

About ICI Global

ICI Global is a global voice of the fund industry, focused exclusively on the perspective of globally active funds. It seeks to advance the common interests and promote public understanding of global investment funds, their managers, and investors. ICI global serves a membership consisting of regulated funds publicly offered to investors in leading jurisdictions worldwide. For more information, visit www.iciglobal.org.

Media Contacts:
Citigate Dewe Rogerson (London)
Toby Mountford: +44 (0)20 7282 2820
Priscilla Garcia: +44 (0)20 7282 1075

Editor’s Note: Photos or photo availability upon request.

ICI Global: Questions and Answers

What is ICI Global?

ICI Global is a new trade organization focused on regulatory, market and other issues for global investment funds, their managers and investors. ICI Global members will include regulated US and non-US based funds publicly offered to investors in jurisdictions worldwide, making it the first industry body exclusively taking the perspective of globally active funds. The new organisation will be based in London.

What is ICI Global's mission?

ICI Global seeks to advance the common interests and promote public understanding of global investment funds, their managers, and investors.

Why did ICI create ICI Global?

International regulatory organizations increasingly influence global fund and capital markets policy, and fund activities are increasingly global in terms of investments, business strategies, and regulatory concern. Yet no current fund association exclusively focuses on the perspective of globally active funds. Global investment funds need a strong and informed resource on issues that cross borders. ICI Global can offer full, strong support via unbiased research, policy analysis, operations, issues development and public communications.

How will ICI and ICI Global work together?

ICI Global’s senior-level team in London will leverage and build on ICI’s broad policy and research expertise. ICI is already an engaged and respected participant in the global dialogue, currently working on an array of issues with regulators including:

The Financial Stability Board
The International Organization of Securities Commissions
The European Securities and Markets Authority
U.S. Treasury and other leading national ministries and regulators worldwide
Organisation for Economic Co-operation and Development
International Monetary Fund
Bank of International Settlements
Basel Committee

Why is ICI Global based in London?

London is well-suited for ICI Global, given the city’s role as a financial center and its geographic proximity to the headquarters of several important global financial regulators.

Are there other fund associations doing similar work?

There are many national and regional fund organizations whose market-specific work is excellent and well respected. ICI Global will avoid duplication with the important work these organizations undertake at the national and regional level. This effort will add an exclusively focused, global voice—fully backed by large and seasoned legal and research analysis teams—that will coordinate closely with these existing fund associations.

What priorities and policy issues will ICI Global address?

ICI Global will initially focus on four areas, addressing these representative issues:

Role of funds and fund managers in financial stability

Nonbank financial intermediation
Systemically important financial institutions (SIFIs)
Money market funds
Securities lending and repos
Exchange-traded funds

Key regulatory developments for funds

Tax and accounting changes (e.g., FATCA, IFRS)
Global trends in fund distribution
Global fund disclosure standards
Use of derivatives by funds
Regulation of remuneration/compensation
Global custody

Trading and market structure

Global capital markets
- Transparency, dark pools, liquidity
- Impact of high frequency trading
- Regulatory interventions in stressed market conditions
Derivatives markets
- Increasing regulation of OTC derivatives

Retirement savings and pension systems

Increasing individual responsibility for retirement provision
Growth of defined contribution plans
Role of funds in emerging national pension systems

What is the leadership structure of ICI Global?

ICI Global is led by Managing Director Dan Waters, who directed asset management policy for the Financial Services Authority (UK), and acted as a key leader within the organisation for more than a decade. Paul Schott Stevens, in his role as president and chief executive officer of the Investment Company Institute, oversees ICI Global. A steering committee of global fund leaders, chaired by the Head of Europe Investment Management at J.P. Morgan, Jamie Broderick, also will guide ICI Global.

How active are U.S.-based fund complexes in the global fund environment?

ICI members and their affiliates manage globally at least $16.38 trillion of UCITs, mutual funds, or 62 percent of the $26.6 trillion in global mutual fund and ETFs assets.

Who has joined ICI Global?

Leading international fund management groups that already have expressed plans to join ICI Global include:

Capital Research & Management Co.
Federated Investors, Inc.
Franklin Templeton Investments
Goldman Sachs Asset Management
Invesco, Ltd.
J.P. Morgan Asset Management
Legg Mason, Inc.
Nuveen Investments
PIMCO funds
T. Rowe Price Group, Inc.
Vanguard

ICI Global: Biographies

Dan Waters
Managing Director, ICI Global

Dan Waters is Managing Director of ICI Global. Prior to joining ICI Global, he served as Asset Management Sector Leader at the UK Financial Services Authority (FSA) from 2004–2010, leading the FSA’s regulatory and supervisory policy for the asset management industry. Waters also represented the UK in International Organization of Securities Commission's (IOSCO) Standing Committee on Investment Management. Waters began work in the UK in 1993 as Director of Enforcement at the Investment Management Regulatory Organisation. Previously, Waters headed International Enforcement at the U.S. Commodity Futures Trading Commission. He graduated summa cum laude from Boston College and cum laude from Harvard Law School.

Jamie Broderick
Chair, ICI Global Steering Committee

Jamie Broderick, managing director, is the head of Europe for J.P. Morgan Asset Management. An employee since 1993, Jamie led the development of the firm's European mutual fund business before being appointed as the overall head of the European business including both the retail and the institutional businesses.

Prior to joining J.P. Morgan, Jamie was the director of the Client Marketing Services Group at Wellington Management Company in Boston.

Jamie has an AB degree from Harvard College and did doctoral studies in Linguistics and Near Eastern Languages and Civilisations at the University of Chicago.