You are granted an individual use license; a site license for multiple users is available on request by e-mail: site-license@buttonwood. com This special report on global custody - the 2001 Eighth Annual Global Custody Survey - was prepared by Buttonwood International Group, New York. The data collection efforts for the Survey were completed November/December 2000, with survey results appearing shortly thereafter at www. buttonwood. com. The Yearbook is a must-have for investment managers, fund managers, pension funds, banks, brokers, technology vendors, industry consultants, securities operations. any professional involved in the worldwide securities markets. The 2001 Survey Participants represent nearly $40 trillion assets in custody. ABN AMRO Mellon Global Securities Services The Bank of New York Brown Brothers Harriman & Co. BNP Paribas Citibank, N. A. Deutsche Bank Investors Bank & Trust JP Morgan Mellon Trust The Northern Trust Company Royal Trust State Street Corporation The Yearbook – with over 220 printed pages – describes services offered by global custodians in the worldwide securities markets and also, explores those issues and trends of importance to both investor and service provider in the Emerging Markets. In the Profiles section of the Yearbook, services offered by each global custodian in the worldwide securities markets are described in detail. A new service category for 2001, “Outsourcing,” is catching on with funds, plan sponsors, and investment managers. Other service categories included are Client Workstation Technology, Cash Management, Derivatives, Foreign Exchange, Fund Accounting, Network Management, Offshore Funds, Portfolio Management and Performance Measurement, Proxy Services, International Securities Lending, Tax Reclaims, Trade Execution and more. A Network Management Chart for each global custodian identifies the network by country, including current and planned network additions, proprietary/non-proprietary, subcustodians and SEC 17f(5) qualified status. Survey topics for 2001: EM countries are reviewed to highlight those troublesome issues - EM Hot Spots - of import to the most savvy investor. The investor is provided with practical insights, accompanied by seasoned advice for sidestepping the many pitfalls. This year, a few custodians were less than pleased with developments in certain mature markets. Commentary on these countries is included as well. Global Straight Through Processing (GSTP) has made very significant progress to date, achieving a number of milestones in a short time. What lies ahead is a series of major industry challenges, as viewed by the global custodians. Concern about the possibility of two diverging models for post trade processing was expressed, as a U. S. model, which addresses the industry change to T+1 settlements, differs from the global model. The survey discusses GSTP implementation challenges, expected benefits and implementation costs. The international securities lending business had another boom year, with a 20% plus growth rate over last year. Although most custodians have lending business in over 30 countries, the mature countries tend to dominate the landscape. The European markets were strong, buoyed by the U. K. gilts market in 2000. The section is packed with charts and tables on current and past experiences by the world’s largest players. This year promises to bring the greatest roll-out of new, Internet-based products by global custodians. The survey touches on these new products, in addition to sorting-out a few exciting trends which are starting to unfold. The advent of e-commerce strategies deployed at the major banks may be the future platform for delivery of global custody services. A new, Internet-driven movement portends to rattle the competitive landscape in the not too distant future. The IT investments for the initiative are staggering.

MacDonald M. J. M. Neumann K. Rogoff M. Taylor P. Weller.

His research primarily focuses on hedge funds and managed futures.