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P R I M E
B R O K E R A G E ]
ABN Amro
Weighted
average
scores
2016
2017
lways pursue client interest,” writes a client. Another re-
2018
“A
6.03
2016
2017
2018
5.99
6.03
5.99
5.56
very 5.56
professional party to work with,” while a third has ex-
perienced nothing but a “very good service from the account
spondent echoes this sentiment, agreeing that ABN Amro
Respondent
profile
management
team and client relations teams.” Even sales and
is “perceived as a performance-driven organisation that is fully
marketing,
focussed on the clients’ needs and requirements.” The Dutch Small fund
11% where commercial terms are set, is praised for
managers
“transparent pricing and charging of fees.” But the ultimate ac-
prime broker certainly knows what types of client it likes. The
Weighted
Medium-
colade is
delivered by a client who says, “We 11%
intend to increase
firm offers almost a full range average
of services, but it does not aim to
sized fund
14%
the
business
relationship
going
forward.”
support every type of investment
scores strategy. Its focus is primarily
14%
managers
2016 that like
6.03 to trade equities, 2016
2018
equity and commodities managers
Large fund 2017
75%
2017 especially
5.99
6.03
5.56
managers 5.99
rates, currencies and commodities,
in exchange-trad-
PROFILE OF RESPONDENTS
5.56 of working with Americas
3.5%
ed and OTC derivative forms. 2018
Nor is it afraid
75%
Europe
and
start-ups and smaller funds. In fact, a beneficiary of the capital
93%
Respondent profile
Middle East
introductions services of the bank
praises ABN Amro for their
Small fund
By size
By location
Asia
3.5%
11%
“excellent understanding of our
investment strategy, in-depth
managers
3.5%
knowledge and [the] expertise
of their advisors.” A client of Weighted average scores 11%
Medium-
by service area
3.5%
fund
14%
longer standing agrees. “As an sized
established
business
for years, we
Americas
14%
managers
Large
profit from the advice given,” he writes. The bank does predict-
Weighted +/- t he global
Large
fund
Europe and
Service
area
ably well in foreign exchange prime brokerage,
75% fixed income,
average score
average Medium
managers
Middle East
OTC clearing and listed derivatives, though one respondent is
Small
Americas
3.5%
Capital
75%
Asia
disappointed: “Credit default Europe
swaps
are
not
currently
provided.”
and
introduction
6.16
14.8%
93%
93% clients, attract
Operations, also crucial to highly
Middle transactional
East
s
favourable reviews. “Excellent
support over
20 years in opera-
Asia
3.5%
5.77
-4.0%
tions services,” writes a happy client. “Very rare to see errors.” Client service
3.5%
Weighted average
scores and
by service
area Consulting
5.6 3.5%
-4.4%
Another says operations are “helpful,
diligent”
“always
-4.9%
willing to assist with one-off transactions,” while a third adds Operations Weighted 5.67
average scores
Technology
5.01
-10.6%
that “operations is very helpful and knowledgeable.”
Weighted +/- t he global
Service area
2016
2017
2018
average
score
average
Some interesting nuances are hidden in
the detail,
especially
Product
5.14
-5.7%
6.03
5.99
5.56
when it comes to financing. Clients
believe ABN Amro works development
Capital
hard to deliver margin savings,
and to provide
introduction
6.16 financing,
14.8% but
93%
Risk
s
inevitably they will always believe
that their portfolios are more
5.31
-4.7%
management
marketable than they are. As it
happens,
ABN
Amro
prides
itself
Weighted average scores by service area
Client service
5.77
-4.0%
5.49
-4.3%
on risk management, chiefly as a means of helping its clients Asset safety
Weighted average +/- the global
Consulting
5.6
Sales and Service area
do more trading, and structures
its own operations
to -4.4%
avoid the
5.89
-4.0%
score
average
Operations
5.67
-4.9%
marketing
internal silos that hamper margin savings at other prime brokers
Technology
5.01
-10.6%
Trading and
Capital
introductions
6.16
14.8%
5.52
-5.6%
when clients are trading across exchanges and asset classes. execut ion
Product
Client service
5.77
-4.0%
Given this, the ABN Amro score
for margin 5.14
savings is -5.7%
reassur-
development
ingly high. A client agrees the bank does the job well. “Risk
Consulting
5.60
-4.4%
management by ABN is probably
one of their strongest areas of
Risk
Operations
5.67
-4.9%
expertise,” he writes. A second
respondent 5.31
applauds -4.7%
an “excel-
management
Technology
5.01
-10.6%
lent re porting and margin methodology model.” A third adds
Asset safety
5.49
-4.3%
that the “risk department is very strict but fair.” So ABN Amro
Product development
5.14
-5.7%
Sales and
5.89
-4.0% it will
will be puzzled by its performance
on asset safety, though
marketing
Risk management
5.31
-4.7%
be pleased that its openness to
clients
Trading
and using third-party custodi-
Asset safety
5.49
-4.3%
5.52
-5.6%
execut ion
ans is recognised.
Sales
and
marketing
5.89
-4.0%
There is also recognition that ABN Amro was changed by
the financial crisis and is still constrained in stock loan by lack
Trading and execution
5.52
-5.6%
of supply. “Since that time, they have not signed agreements
Delta 1, swaps and financing
5.76
0.7%
with many counterparties,” ventures a respondent. “As a result,
Stock borrowing and lending
5.25
-12.0%
their access to counterparties and hence their ability to provide
Foreign
exchange
prime
brokerage
6.23
9.9%
the best SBL service is limited at times, particularly in hard-
er-to-borrow names. It is an area they should resolve, rather
Fixed income
6.14
6.4%
than attempting to focus on re-hypothecation.” Advice of that
OTC clearing
5.81
-0.7%
kind is coupled with generous comments about the people at
Listed derivatives
6.04
2.6%
ABN Amro, some of which are name-checked. “Great customer
care,” says one respondent. Another finds “ABN is a great and
Total
5.56
-4.1%
74
Global Custodian
The Hedge Fund Annual 2018