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* Effect of upheaval in retail investment market on transfer agency widely
unrecognised amongst independent investment management consultants.

* Citisoft responds with new retail consultancy service headed by David
Emsley, transfer agency expert formerly with Bank of New York.

8th March 2001 – London – Citisoft, the specialist investment management
consultancy, has today launched a new service to provide independent
consultancy for the retail investment management market. The service will be
headed by David Emsley, who joins Citisoft from Bank of New York.

Citisoft is responding to an increasing demand for consultancy in transfer
agency arising from the huge growth in mutual funds. Transfer agency
supports the retail purchasers of investments such as unit trusts and ISAs.
To ensure that the fund is well managed on behalf of the client, the
transfer agent deals with subscriptions and redemptions, handles shareholder
records and certificates and distributes company information, such as annual
reports, to shareholders.

However, transfer agency has seen margins squeezed as brokers and dealers
have begun to encroach on areas of core business. Transfer agents have had
to turn to new technology solutions including Straight Through Processing
and the Internet to reduce administration costs, while adding service
strings such as clearance and settlement to their bows.

David Emsley commented, "The retail fund management industry is in the midst
of huge reform. Investment products and services are increasingly shifting
towards retail style relationships (for example, fund supermarkets) but
intense competition is driving through changes such as transparency and open
standards. The pressure is on transfer agency to respond if it is to take
advantage of new opportunities. Transfer agents are looking for advice on
systems solutions, but the vast majority of consultancies with expertise in
this area are tied to systems providers. Citisoft has brought me in to set
up a new service that will provide the impartial advice and expertise that
transfer agents are demanding."

David Emsley has joined Citisoft from Bank of New York, where he headed the
25-strong team responsible for taking the bank’s transfer agency system,
Rufus, to blue-chip clients including Abbey National, Legal and General and
Save & Prosper. Emsley has fifteen years of experience in the retail
investment management industry and before Bank of New York has worked in
system implementation and unit trust accounting for leading institutions
such as Framlington Unit Trust Managers, Henderson Administration, Gartmore
and Barclays Unicorn.

Jonathan Clark, Director of Citisoft commented, "Transfer agency was a gap
that needed to be filled in the independent consultancy market. With the
arrival of leading transfer agency expert David Emsley, Citisoft can now
fill that gap with a full range of consultancy services to the retail
investment management sector."