[ S U R V E Y | H E D G E F U N D A D M I N I S T R A T I O N ]
NAVIGATING THE RAPIDS
Faced with pressure from managers to help them adapt to a challenging and fast-moving climate , hedge fund administrators have rallied to the task .
Over the past year , hedge fund administrators have had to deal with the daunting challenges facing their common clients , driven by factors well-rehearsed elsewhere in this issue of Global Custodian . “ Performance and complexity challenges are still very real for a hedge fund ,” says BNP Paribas . “ Continued pressure on asset class diversification and growing demands from Investors and regulators has led to operational pressure for the hedge fund .” Apex points out that , “ The regulatory landscape is continually evolving and regulations that may impact hedge fund strategies will be a key focus point , such as short-selling regulations , MIFIR , MIFID and wider EU regulatory reforms , coupled with diverging regulations across the US and APAC . Navigating global regulations will continue to impact strategies .”
Managers are also increasingly under pressure to incorporate ESG into their decision-making , leading to increased data demands on their service providers . Add to that , the challenge of finding and retaining talent in the post-pandemic hybrid work environment , which , says Opus , has shifted employee expectations . “ Those that have failed to adapt have been greatly impacted by ‘ the great resignation ’, the firm suggests . “ High employee turnover and a corresponding decline in service has been a common theme from managers looking to move their fund administration to Opus from their existing providers .” Judging by the results of the survey , clients are on the whole pleased with the way their providers have risen to the occasion . Global average category scores are all above 6.00 with the inevitable exception of Pricing . Client Service remains in the top three categories overall .
Categories |
Global Average ( Unweighted ) |
Global Average ( Weighted ) |
Difference |
Fund Accounting |
|
6.36 |
6.39 |
|
0.03 |
Reporting to Auditors |
|
6.33 |
6.33 |
|
0.00 |
Client Service |
|
6.26 |
6.29 |
|
0.03 |
Reporting to the Manager |
|
6.26 |
6.25 |
|
-0.01 |
Operations |
|
6.25 |
6.25 |
|
0.00 |
Middle Office Services |
|
6.21 |
6.19 |
|
-0.02 |
Reporting to the Tax Authorities |
|
6.19 |
6.19 |
|
0.00 |
KYC , AML and Sanctions Screening |
|
6.18 |
6.19 |
|
0.01 |
Reporting to Investors |
|
6.17 |
6.19 |
|
0.02 |
On-boarding |
|
6.15 |
6.14 |
|
-0.01 |
Investor Services |
|
6.15 |
6.20 |
|
0.05 |
Reporting to Regulators |
|
6.12 |
6.16 |
|
0.04 |
Price |
|
5.74 |
5.73 |
|
-0.01 |
Average |
|
6.18 |
6.19 |
|
0.01 |
76 Global Custodian Fund Services Annual 2022