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Goldman Sachs
These are results which Goldilocks would recognise more readily than Goldman. In no service area is the score outstanding, but in none is it dire either. That said, there is nothing mediocre about the score for sales and marketing, where the details suggest Goldman has indeed arrived at a client base that is just right, from the point of view of the firm, in terms of size, investment strategy and profitability. Outliers can still be found in both the general(“ hard to get great service unless you have a lot of assets with them”) and the specific(“ Goldman Sachs capital introduction is really strong but always asks for a certain level of revenues before helping their hedge fund clients”), but what is striking about the averages is their lack of volatility. True, the score is flattering in an area where Goldman is expected to shine: stock borrowing and lending. But across other disciplines in which the bank is a major force, such as financing and derivatives clearing of both kinds, the scores are indifferent. They are punctured mostly by a belief that the overall cost of the services is more reflective of their value to the firm than the clients, though this is characteristic of the survey as a whole. It is the mixed verdict in client service that might indicate a more meaningful degree of disgruntlement in some quarters.“ Goldman client service is excellent, from their management team down to our daily account rep,” says one client.“ Tremendous partner.” But another argues,“ They used to be more pro-active. The quality is decreasing year over year.” Much the same is visible in the higher-scoring field of operations, where the assessment of the client who works with a“ great crew, very responsive and knowledgeable” is offset by one who says operational staff“ used to be better.” A third receives“ reasonably accurate reports” but has“ encountered instances where positions that had been redeems were still reported in the portfolio.” Where Goldman does shine brighter than the average prime broker is in product development, where clients recognise and appreciate an innovative approach to their problems. The consulting team is also highly regarded.“ The GS consulting team is my first call on almost any topic: legal, regulatory, cyber,” says a client.“ If they do not know the answer, they know someone who does.” A second notes that“ while start-ups rely the most on consulting services, I find myself continuing to use these services through the year.” A third adds that“ the GS team has always been tremendously helpful. Their weekly surveys are of great value.” Likewise, the people working in capital introductions continue to win accolades. A stand-out area in 2017, capital introductions is judged less favourably this year, but the outcome is still more than respectable.“ The Goldman cap intro team has been a strong partner for our firm,” says a client.“ They are very well informed and have been a great source of market intelligence.” Technology, which was an issue last year, remains one in 2018.“ The GS360 portal for equities and futures is in desperate need of renovation,” writes one respondent. A second says there is a“ need to update the back end – feels older- not compatible with certain browsers,” and a third suggests the“ GS prime brokerage portal have a system refresh. I am unable to access some functions on the portal.” But it is a fourth that identifies the main reason for the indifferent scoring of technology:“ I would like mobile reporting enhanced. Right now, I believe the only way to access the portal is through a desktop computer.”
45 %
By size
10 %
45 %
Weighted average scores
PROFILE OF RESPONDENTS
Large Medium Small
Weighted average scores by service area Service area
14 %
21 %
By location
2016 2017 2018 5.89 5.85 5.58
Weighted average score
Capital introductions 5.28-1.7 % Client service 5.56-7.5 % Consulting 5.63-3.9 % Operations 5.78-3.2 % Technology 5.48-2.2 % Product development 5.61 2.8 % Risk management 5.28-5.2 % Asset safety 5.75 0.1 % Sales and marketing 5.96-2.9 % Trading and execution 5.40-7.8 % Delta 1, swaps and financing 5.44-4.9 % Stock borrowing and lending 5.75-3.7 %
65 %
Foreign exchange prime brokerage N / A N / A Fixed income 5.60-3.0 % OTC clearing 5.37-8.2 % Listed derivatives 5.72-2.9 % Total 5.58-3.8 %
Americas Europe and Middle East Asia
+/- the global average
The Hedge Fund Annual 2018 globalcustodian. com 83