[ S U R V E Y
|
M U T U A L
F U N D
Up to $100 million
$100 million to $250 million
$250 million to $1 billion
$1 billion to $5 billion
$5 billion to $10 billion
$10 billion to $50 billion
Over $50 billion
N/A
A D M I N I S T R AT I O N]
Brown Brothers Harriman
BBH client size (AuM)
MFA overall client size (AuM)
According to data provided to Global Custodian in 2016, Brown BBH client size (AuM)
MFA overall client size (AuM)
Brothers Harriman provides fund services to 1,501 portfolios in
the US and 177 in Canada. It has 22 clients with portfolios above
$10 billion and 99 with assets below that level.
Responses for BBH in this year’s MFA survey come predom-
inantly from large and very large clients – often a tough crowd
to please, given the breadth and complexity of their service
requirements. The bank’s response base has halved compared to
2016, though the majority of these participants are returnees.
Performance is mixed. While scores are up in five categories,
the spread is wider than for many of its peers with a high of 7.00
Up to Up $100
Up to $100
million
Up to $100
million
to $100 million
million
$100
million
$250
million
$100 million
to
$250
million
for Transfer Agency Services and a low of 4.98 for Costs and
$100 million to $250 million
$100 million to
to $250
million
$250 million to $1 billion
$250 million to $1 billion
Value Delivered. Client comment is sparse. While one of the
$250 million to $1 billion
$250 million to $1 billion
$1 billion to $5 billion
$1 billion to $5 billion
largest clients says that, “BBH is very focused on delivering the
$1 billion
to $5 billion
billion
$1 billion to to $10
$5 billion
$5
billion
billion
$5
billion
to
$10
best service they can to us and are proactive instead of reactive,”
$5 billion
to $50
$10 billion
$5 billion to
to $10
billion
$10
billion
$50
billion
$10
billion
to
billion
another, who praises the bank’s “willingness and ability to assist
Over
$50
billion
Over
$50
billion
$10 billion
to $50 billion
$10
billion
to $50 billion
with special requests in a timely manner” nevertheless bemoans
N/A Over $50 billion
N/A Over $50 billion
the “high cost” of the service. This is reflected at an individual
N/A
N/A
question level, where BBH’s lowest score, 4.54, is for compet-
itiveness of fees charged – a drop of 39 basis points since last
year’s survey.
BBH scores by type of fund managed
MFA overall client size (AuM)
On a more positive note, BBH scores a perfect 7 for timeliness
Equity
Non-equity
All
of reporting to investors and efficiency in handling orders. The
Relationship Management and Client Service
6.00
n/a
6.43
former is also the question recording the most improved score
(up 2.20). The largest fall at a question level is for the bank’s
Value Delivered
4.50
n/a
4.98
ability and willingness to customise and or allow self-custom-
Fund Accounting And Valuation
n/a
n/a
6.15
ised reports. This is down 0.72 points to 5.15.
Transfer
Agency
n/a
n/a
7.00
BBH surpasses the survey average in two areas: Relationship
Distribution Support
n/a
n/a
n/a
Management and Client Service (+0.15) and Transfer Agency
(+0.46). In three areas, it’s underperformance is measurable:
Fund Reporting
n/a
n/a
5.58
Costs and Value Delivered (-1.07), Fund Reporting (-0.64) and
Compliance
n/a
n/a
6.46
Up to $100 million
Transfer Agency Services (-0.27).
$100
million
to
$250
million
Operations
and
custody
6.60
n/a
6.12
BBH has been a passive participant in this year’s survey. While
$250 million to $1 billion
its scores are quite creditable, it is hoped that in 2018, greater
5.70
n/a
6.10
$1 billion to $5 billion
engagement with clients will bring a return to form.
$5 billion to $10 billion
$10 billion to $50 billion
Over $50 billion
BBH
overall scores
N/A
BBH scores versus market average
2017 2016 2015
Difference:
2016-2017
Weighted share (%) 1.83 7.53 14.12 6.43 6.28 6.28 0.15
2017 All Difference Relationship Management and Client Service 6.43 6.28 0.15 Value Delivered 4.98 6.05 -1.07 Relationship Management and Client
Service Fund Accounting And Valuation 6.15 6.42 -0.27 Value delivered 4.98 5.37 5.40 -0.39
Transfer Agency 7.00 6.54 0.46 Fund accounting 6.15 6.17 6.50 -0.02
Distribution Support n/a 6.14 n/a Transfer Agency 7.00 5.68 5.90 1.32
Fund Reporting 5.58 6.22 -0.64 Distribution support n/a 6.22 5.89 n/a
Compliance 6.46 6.56 -0.10 Reporting 5.58 5.92 6.13 -0.34
Operations and custody 6.12 6.17 -0.05 Compliance and regulation 6.46 5.79 6.06 0.67
6.10 6.30 -0.20 Operations and custody 6.12 5.73 6.09 0.39
78
Global Custodian
Summer 2017