SS&C GlobeOp, a division of SS&C Technologies, is one of the best-known hedge fund administrators, servicing some of the industry’s largest hedge funds. Year-on-year, the group saw its total hedge fund assets under administration rise from USD584 billion to USD739 billion.
Last year, SS&C GlobeOp saw increased demand for outsourced solutions driven by clients looking to re-engineer their operating models to create scalability and cost efficiency in the face of increasing complexity. This played to its strengths, given the technology heritage of SS&C Technologies and as Ken Fullerton (pictured), Managing Director, Global Co-Head of Hedge Fund Services, explains: “SS&C’s ability to create unique solutions built around our proprietary technology, such as our regulatory solutions product, GoTrade+, and middle office capabilities, allowed us to win marque mandates from competitors, as well as large firms who outsourced for the first time. We also saw a high level of client satisfaction from existing customers in 2017, which is always a goal of ours.”
One area of technology that SS&C GlobeOp continues to focus on is artificial intelligence, Fullerton confirms, as fund administrators throughout the industry look for ways to automate activities and tasks that were once manually performed. “Being able to automate mundane, administrative tasks will allow our staff to focus on higher value-add projects such as valuations, reconciliation discrepancies and NAV production/substantiation,” states Fullerton.
To further illustrate SS&C’s commitment to technology innovation, it recently hired Rishi Khanna to oversee the group’s cloud-based alternative asset solutions. “Our ability to attract and hire innovative entrepreneurs and technology leaders will enable us to keep pushing our technology solutions forward,” adds Mike Sleightholme, Managing Director, Global Co-Head of Hedge Fund Services, SS&C GlobeOp.
Selecting the right fund administrator is one of the most important considerations for fund managers, given the amount of middle-office support that is now needed in the current regulatory environment.
Sleightholme says that one of the most prevalent mistakes managers make is that they select an administrator based on immediate needs instead of looking at the long-term picture. Hedge fund managers, in his view, need to understand an administrator’s ability “to access new markets, asset types and fund structures, and provide increased scope of services as the manager grows and looks to scale. “Oftentimes, managers come to SS&C because they’ve ‘outgrown’ their existing provider.”
Another common mistake is managers ignoring technology capabilities. If a provider cannot keep pace with today’s rapidly changing digital economy, their business will suffer as a result.
“Lastly, cost pressures continue to drive the decision-making process which leaves managers with inadequate solutions and services,” states Sleightholme. He says that over the last 12 months, SS&C GlobeOp continued to win mandates across a “wide spectrum of strategies” including both mature and emerging managers.
Generally speaking, SS&C outperforms where complexity is a challenge for clients. As Sleightholme comments: “Illiquid credit, direct lending and closed-end fund mandates continue to present significant opportunities for us. Moreover, our deep expertise across all strategies and asset classes allows us to provide a full range of services, regardless of fund and/or strategy type. This includes pre- and post-trade compliance, loan servicing and settlement as well as specialised fund accounting services.”
On winning the 2018 award for Best Global Hedge Fund Administrator, Fullerton says: “We are very pleased and honoured to be recognised for this achievement. This is a true testament to our global workforce who take much pride in servicing our clients and strive to be the best every day.”
