METHODOLOGY

The R & M Global Custody Survey measures customer satisfaction by means of questionnaires completed by a wide range of institutions around the world, being those involved in using the services of global custodians. Almost 900 qualifying responses were received for the 2008 survey. To qualify for the survey, a global custodian's business must cover at least five countries of investment in addition to the country or countries where the global custodian and client are domiciled. The global custodian need not serve clients based in more than one country or geographical region. In order to qualify for entry into the survey, global custodians were expected to receive a minimum of 30 responses. Of these, at least 15 must come from third party investment managers dealing with more than three global custodians. A response from an investment manager within an organisation associated with or related to a global custodian is only allowed if that investment manager also submits responses for at least three of the third party custodians that appeared in the previous year's survey. The survey analysis examines each of four geographical regions in turn: North America, United Kingdom, Continental Europe and the Rest of the World. These groupings reflect the geography of the responses. To qualify for each region, a global custodian must receive 10 responses from institutions in that region (except 5 is the minimum for 'Rest of the World'). The minimum number of responses to qualify for an individual country table is 10. Ranking methodology entails respondents rating their counterparties using a scale of 1 to 7 (seven being excellent and one being unacceptable) across 36 separate service elements, grouped into 11 broad service categories, across securities services and treasury services. The service elements include technology, reporting, settlement, safekeeping, income collection, tax reclamation, securities lending, performance measurement, foreign exchange, cash management and fees. R & M Surveys asked respondents to place the 11 service categories in order of importance. This ranking can be used to determine the importance of each bank's relative strengths and weaknesses. In addition to analysing the results by geography, the survey considers different client types. Firstly, there is a focus on investment managers, with some distinction between direct relationships (i.e. those investment managers who appointed and pay for the custodian's services) and third party relationships (i.e. those investment managers acting for an institutional investor who appointed and pays the custodian). Secondly, the focus is on pension funds/foundations/charities/others.