As of June 7, 2012

2012 Senior Delegate Roundtable

Monday-Wednesday, June 18-20, 2012
Waldorf Astoria Chicago 11 East Walton, Chicago, Illinois 60611 Tel: 312-646-1300

Optimization with Constraints

After almost four years of post-crisis austerity, asset management firms can no longer postpone major business projects. But while business user demand for IT projects is expanding, asset management chief information officers are not seeing their budgets grow as fastor at all. And while the front office asks IT to build systems to help boost returns, new compliance and operational mandates driven by Dodd-Frank and other government action demand their share of the IT budget. How can CIOs craft the optimal IT strategy that lets them increase resources devoted to building the firm, rather than running the firm, while remaining within tight budget constraints?

Monday, June 18
2:30 pm 3:00 pm 3:00 pm 3:15 pm Registration Foyer of Sinclair Ballroom Opening Remarks Sinclair South Lewis Knox Executive Director Financial Technology Forum 3:15 pm 4:15 pm Using Collaborative Systems to Automate the Investment Process Sinclair South Daniel Bookstaber Founder & CEO Copia Compass Brian Sunshine Head of Trading Copia Capital James Connors Principal, Chief Technology Officer William Blair & Co., LLC

Investment management firms are starting to adopt corporate social media tools such as MangoApps and Jive to foster collaboration among its employees. Are these systems living up to expectations in terms of usage and results? Can a social networking tool be used to manage investment research and information? What compliance issues do these tools present?

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BREAKOUT DISCUSSION GROUP 4:15 pm 5:00 pm Fostering Collaboration in the Investment Process QUANTITATIVE RESEARCH FIRMS FUNDAMENTAL RESEARCH FIRMS

Sinclair South
MODERATOR TBD

Sinclair North
MODERATOR TBD

What are the challenges that investment firms face when they try to create electronic collaborative environments for investment staff? Why do such efforts fail so often? What are the keys to fostering adoption of the system by investment staff? 5:00 pm 6:00 pm The North American Oil Renaissance Sinclair South Tim Flannery Managing Partner Copia Capital LLC Perhaps the most important and least understood trend driving the U.S. economy today is the sudden availability of staggering amounts of natural gas and oil in North America. Advances in drilling technology have rendered economic deposits of oil and, gas sands and shales. In the space of two or three years, drilling boomtowns have arisen in barely populated North Dakota and the rustier bits of Ohio and Pennsylvania. Tim Flannery, chief investment officer of Chicago-based Copia Capital, a hedge fund focused on energy-related equities, will discuss where this sudden energy abundance came from, what it means for global energy prices in the near and medium term and how Americas new gas bubble is affecting everything from steel mills to wheat farms. 6:00 pm 6:15 pm 6:15 pm 8:15 pm Break Reception & Dinner at the Waldorf-Astoria Chicago Bernards Bar & Hemingway Room Join us for a cocktail reception in Bernards Bar followed by dinner in the Hemingway room. 8:15 pm 9:15 pm Keynote Presentation: Peering Into the Future of Science and Its Implications for the 21st Century Hemingway Room Michio Kaku Henry Semat Professor of Theoretical Physics City University of New York Dr. Michio Kaku, a theoretical physicist and proponent of string theory, is an internationally recognized authority in two areas: The first is Einsteins unified field theory, which Dr. Kaku is attempting to complete. The other is to predict trends affecting business, commerce, and finance based on the latest research in science.
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Dr. Kakus latest book, Physics of the Future: How Science Will Shape Human Destiny and Our Daily Lives by 2100, is based on interviews with over 300 of the worlds top scientists, many of them interviewed by Dr. Kaku for the BBC, Discovery, and Science Channel specials he has hosted. Physics of the Future details how the worlds scientists think the world of commerce, medicine, computers, and space exploration may evolve over the next 20, 50, and even 100 years (following in the footsteps of Jules Verne, who, with astonishing accuracy, predicted the world 100 years into the future). Dr. Kaku will share some of the most important and astonishing trends and predictions from his most recent work, offering a glimpse into the future few can imagine.

Tuesday, June 19
7:45 am 8:30 am 8:30 am 8:35 am Registration, Advisory Breakfast & Regular Breakfast Foyer of Sinclair Ballroom Opening Remarks Sinclair South Lewis Knox Executive Director Financial Technology Forum 8:35 am 9:35 am Creating and Communicating an IT Strategy Sinclair South Gudrun Neumann Senior Vice President and Chief Technology Officer American Century Investments Tom Alex Director, Information Technology Brandywine Global Investment Management, LLC Christopher Brown Chief Technology Officer Hartford Investment Management Co.

Should chief information officers at investment management firms try to plot a multiyear blueprint for information technology at their firms? What would such an IT strategy comprise? Systems architecture? Major projects with a major impact on the firms capacity to compete? IT resources needed to execute the blueprint? To what extent does such a strategy orbit around the business strategy of the firm, and how can a CIO create and maintain any kind of strategic plan when the firms business strategy seems to change with every shift of the S&P 500?

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BREAKOUT DISCUSSION GROUP 9:35 am 10:20 am Developing an IT Strategy to Meet Growing Demand with Static Budgets Alternative Investment Firms Sinclair South MODERATOR Christopher Borghi Chief Technology Officer Canyon Partners, LLC

Traditional Investment Firms with <$50 Bn AUM Sinclair North MODERATOR Matt Laboe Exec. V.P., Information Technology Harbor Capital Advisors, Inc.

Traditional Investment Firms with $50 Bn AUM Fitzgerald MODERATOR Marcia Morgan V.P., IT Site Leader of Minnesota Nuveen Investments

Members will discuss the role of IT strategy in their firm and how they devise it. Who plays a role? To what extent is IT strategy distinct from an architectural plan? To what extent is it distinct from, even if driven by, business strategy? How do members make room for both build the firm initiatives and run-the-firm or infrastructure-oriented projects in a budget that isnt growing? 10:20 am 10:35 am Coffee Break Foyer SIMULTANEOUS SESSIONS 10:35 am 11:20 am Todays Equity Trading Environment and What It Means for IT Sinclair South MODERATOR: TBD PRESENTERS: Mani Mahjouri Chief Investment Officer Tradeworx, Inc. Eran Fishler Director of Algorithmic Trading Pragma The evolution of the US market structure to fragmented, competitive trading venues, very thin bid-offer spreads and small quoting increments, tiny lot sizes and tinier commission rates is transforming the equity trading
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Fixed Income Market Structure After the Volcker Rule Sinclair North MODERATOR: Justin Stephan, CFA Director, Trading Application Wellington Management Company, LLP PANELISTS: Isaac Chang Global Head of Fixed Income GETCO, LLC George OKrepkie President Bonds.com If the Volcker Rule, intended to end proprietary trading by banks, crimps market-making in corporate bonds, how will fixed income market structure adapt and find new sources of liquidity? Will electronic trading and new, nonbank

landscape. Full-service, bulge bracket brokers are feeling the squeeze; execution-only agency brokers even more so. Payment for research is increasingly separated from payment for execution through the use of commission sharing agreements, which changes the way investment managers choose their brokers. What does all this mean for the IT departments that support equity trading? 11:20 am 12:00 pm

market makers arise? The question isnt entirely theoretical: High-frequency trading firm Sun Trading recently acquired a rival specializing in cash bonds and futures. Our panel will try to envision the fixed income market of tomorrow.

Compliance Roundup: Upcoming Regulatory Issues and What They Mean for IT and Operations Sinclair South The pre-eminent regulatory issue affecting IT and operations to emerge from the Dodd-Frank financial regulation law is the move to central counterparty clearing for some over-the-counter derivatives contracts. But there are many other, more obscure compliance issues that will find their way onto the project lists of investment management firms It departments. Well review several in this overview of looming regulatory and compliance issues: FATCA: The Foreign Account Tax Compliance Act requires foreign financial institutions to report assets held by US account holders even though its not always an easy task to identify US clients who invest in offshore funds through foreign distributors. Form PF: In addition to filing Form ADV, hedge fund and private equity advisors must now report new information on their funds to FINRA on Form PF. Larger advisors will file quarterly and report on assets, performance, counterparty exposure and risk. OTC Derivatives: Standardized over-the-counter derivatives will be cleared through central clearinghouses. How will the new clearing regime affect dayto-day operations for buyside participants?

Well cover each of these issues in a brief overview in a plenary session, following up with break-out sessions for each issue that will go into detail on implementation. BREAKOUT DISCUSSION GROUPS 12:00 pm 12:45 pm FATCA Sinclair South
SESSION LEADER:

Form PF Sinclair North

SESSION LEADER:

OTC Derivatives Balsan Restaurant Private Dining Room

SESSION LEADER:

Travis Swenson Senior Manager Deloitte & Touche LLP

Akbar Ayaz Chief Systems Officer Elliott Management Corporation

Justin Stephan, CFA Director, Trading Application Wellington Management Company, LLP

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12:45 pm 1:30 pm 1:45 pm 2:15 pm 5:00 pm

Luncheon RIA Restaurant Bus departs hotel for Second City Theater Making IT Up as You Go Along: Using Improvisational Skills to Improve Communication Second City Theaters Main Stage Investment management information technology, with all its planning, architecture, strategy and prioritization, may not seem to offer much opportunity for improvisation. But improvisation as practiced at Chicagos Second City, the legendary comedy troupe where such famous comic actors as Bill Murray, John Candy, Tina Fey and John Belushi began their careers, is a discipline built on teachable skills. Those skills, including active listening, the tenet of Yes, and., can help CIOs communicate and collaborate more effectively with internal clients and team members. Among the topics well cover in this interactive exercise: Using Active Listening to clarify communication Successfully forwarding the message Prioritizing listening when dealing with multiple messages Delivering positive and negative messages effectively

So loosen up, relax and get ready to learn how to wing it with the best of them at Second City. 5:00 pm 5:30 pm 8:30 pm Bus departs for Gibsons Steakhouse Reception and Dinner at Gibsons Steakhouse Gibsons Steakhouse has been the pinnacle of dining on Chicago's Gold Coast for over two decades. This legendary steakhouse offers a true Chicago dining experience. Its long history on the Chicago restaurant scene can be traced pictorially throughout the restaurant with autographed photographs of athletes, politicians, movie stars and, of course, the die-hard Gibsons locals.

Wednesday, June 20
7:45 am 8:45 am 8:45 am 9:00 am Registration, Advisory Breakfast & Regular Breakfast Foyer of Sinclair Ballroom Opening Remarks Sinclair South Lewis Knox Executive Director Financial Technology Forum

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9:00 am 9:45 am

Trends in IT Compensation and Hiring Sinclair South A panel of recruiters and chief information officers will discuss the results of the 2012 Financial Technology Forum Compensation Survey: What do the results tell us about the demand for IT personnel at money management firms now and in the future? Robert J. Wiener President QED Resources, Inc. Adam Stauffer Chief Technology Officer HBK Capital Management

9:45 am 10:30 am

Helping IT Staff Learn About the Asset Management Industry Sinclair South Rex A. Althoff President, Technology and Chief Information Officer Federated Investors, Inc. Will Hansmann Chief Technology Officer Aurora Investment Management LLC

The ideal IT staffer is one who has not only up-to-date technical skills but also deep knowledge of the investment management business. But business knowledge, especially for firms located outside the Northeast U.S., is the hardest to find in new hires, so some firms have created investment management training programs for their IT staff. What do these programs cover? Are they run by in-house staff or by outside training firms? How effective are they in accelerating an IT staffer up the financial learning curve? 10:30 am 11:00 am Coffee Break Foyer BREAKOUT DISCUSSION GROUPS 11:00 am11:45 am Strategies for IT Personnel Resources Firms with IT Headcount 40 Sinclair North MODERATOR Brad Batalitzky Head of Systems Jennison Associates Firms with IT Headcount <40 Fitzgerald MODERATOR J.R. Morris Director of Application Development The Baupost Group

Members will discuss how they recruit, retain, train and manage IT talent, and how the current business environment has affected the market and career path of investment management IT personnel. Are firms more likely to use contractors than employees today than a year or two ago? Are they engaging contractors for longer periods? What has happened to contractor rates compared to salaries for employees?

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11:45 am 12:45 pm

IT Outsourcing Case Studies: Offshore, Captive, Nearshore, Onshore Sinclair South OFFSHORE Lei Lu Vice President of Technology Ares Management LLC CAPTIVE Priscilla Moyer Senior Vice President, Chief Information Officer Franklin Templeton Technologies

What makes for a successful outsourcing relationship in an investment management IT environment? Does it all depend on the task outsourced? The governance model? The location? Well hear case studies from members who have outsourced significant IT tasks using different models. 12:45 pm 1:30 pm 1:30 pm Luncheon RIA Restaurant Conference Concludes

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