Company Rationale

Competitive pressure has led to an increase in the rate of product innovation in funds management that has outstripped the capabilities of traditional fund management infrastructure. This has led to significant inefficiency, financial loss and reputational damage.

There is a recognised lack of scalability worldwide in fund accounting and related fund processing functions. This is characterised by a near linear relationship between number of funds serviced and headcount of investment managers and administrators.

Market expectations of continued pressure on margins indicates that managers will continue to seek efficiency gains that will translate directly into cost pressure on administration functions and service providers.

Given the current market conditions and expectations, Milestone Group aims to consolidate our position as the emerging leader in the provision of a scalable technology solution that can simultaneously address three of the most pressing issues that investment managers and their service providers are facing globally:

• Margin pressure and efficiency / scalability

• Flexibility to support product innovation

• Transparency and operational risk reduction