Solutions
By Chris Kundro, Senior Vice President, Head of Wells Fargo Global Fund Services – There should be little surprise regarding the on-going trend of bank-owned hedge fund administration businesses being sold or put up for sale. There should be even less of a surprise to find that banks have been the acquirers of most hedge fund administration businesses, both bank-owned and independent, that have been sold. Both sides of this trend will continue.
Sellers will continue to exit the business primarily for financial reasons. Some banks have already reached this point due to a declining client base, a need for
BNY Mellon is a prominent investment company in the financial industry. It has a market capitalisation of USD45 billion and is one of the world’s largest investment managers with USD1.7 trillion in AUM.
More specifically, BNY Mellon is best known for its expertise in investment services. This side of the business accounts for approximately 70 per cent of the Company’s revenues; whether that’s core custody capability, administration – both traditional and alternative – corporate trust work, issuing depositary receipts and so on. It currently has approximately USD743 billion of alternative AuA and/or custody.
Despite its size, BNY Mellon is
There are plenty of push and pull factors influencing hedge fund administrators but whilst there are those who are getting distracted by M&A activity, one administrator that is taking advantage of the situation to win new business is Opus Fund Services, which serves over 200 fund managers and 300-plus funds with a combined AUM exceeding USD10 billion.
"We are in discussions with larger managers than perhaps we would have been a couple of years ago; largely due to the continued build-out of our institutional grade technology, service and brand," says Jorge Hendrickson (pictured), Director of Sales and Business Development.
Regulation
According to Mark Hedderman (pictured), CEO of Custom House Fund Services, the hedge fund administration industry needs a moment to reflect and think long and hard about what the preferred model to conduct hedge fund administration should be. It’s time to take a deep breath and look at how the evolution of the hedge fund administration business model has altered.
The genesis of the fund administration business was to function as a fully independent part of the investment management process, separate from prime brokerage and custody to perform a singular role. However, over the course of this century, that core function
According to a report produced last August by PwC entitled ‘Hedge Fund Administration – The quest for profitable growth’, there have been 27 HFA acquisitions since 2006, with 11 of those targets running USD20 billion or more in AuA. As the report points out, this helped bank-owned administrators increase their market share of outsourced hedge fund AUM from 47 per cent to 64 per cent.
State Street AIS acquired Goldman Sachs Administration Services in 2012 creating the world’s largest HFA with USD780 billion in AuA (as of October 2014); it remains the largest single manager HFA, having seen its assets
We live in an age of 24-hour news coverage. Indeed, the information at our disposal is greater than at any point in human history. As such, hedge funds and other money managers need to trade the markets as and when news events occur. Such is the interconnected nature of global markets that an event taking place say, in Japan, will likely impact the US.
Back in March of this year, the Chicago Board Options Exchange (CBOE) introduced extended trading hours for VIX options and SPX (S&P 500 Index) options to give global money managers greater flexibility to trade VIX and
Man AHL has launched a new video series, ‘AHL Explains’ outlining the key concepts in futures trend following, in a simple and accessible way.
The seven short videos are narrated by Man AHL’s Chief Scientist and Academic Liaison, Dr Anthony Ledford, and each seeks to bring essential quantitative investing concepts to life through illustrations and graphics. Dr Ledford is based at the Man Research Laboratory at the University of Oxford and leads Man AHL’s strategic research.
Sandy Rattray, CEO of Man AHL, says: “We have created the AHL Explains video series in an effort to demystify quantitative investing. We
Stellar Trading Systems is to introduce connectivity to Nasdaq Futures, Inc. (NFX), following the official launch of the NFX platform in mid-2015.
NFX is the exchange group's U.S.-based designated contract market (DCM), offering futures and options on key energy benchmarks, which includes oil, natural gas and US power.
"We are pleased to continue to develop our longstanding partnership with Nasdaq, to the benefit of our customers, who gain ultra-fast access to their innovative portfolio of exchanges," says Steve Thomas, Stellar MD.
Stellar Trading Systems provides cutting-edge futures, options, equities and treasuries capabilities to professional traders, providing connectivity to the world's
On Wednesday 22 April, the House of Representatives passed a new cybersecurity bill – the Protecting Cyber Networks Act (PCNA) – to allow file sharing between government intelligence agencies and private companies and raise the overall awareness of hacking.
This is just the latest chapter in what is fast becoming a key narrative within the US, where cybersecurity legislation is being rolled out to address the growing sophistication of cyber attacks.
Hedge funds are now becoming a more pronounced target and to that end, lawyers are requiring to get on top of the issues to advise their clients accordingly. Ed
It's just one day now until London-based investment managers still trying to get their heads around the various machinations of the AIFMD, can get expert insight into the benefits of setting up an EU-regulated fund in Malta.
On 11 June 2015, the Malta Business Network is hosting a special event at Malta House in Piccadilly, home of the Maltese High Commission, featuring a keynote address by Professor Joseph Bannister, Chairman of the Malta Financial Services Authority (MFSA), the island’s financial regulator.
To register, please click here
The event commences at 6pm and is only available to investment managers. Spaces are limited to 40 to 50 attendees and, most
