Hedge Fund Admins Still Feel Europe's Pain

Sep 18 2012 | 12:31pm ET

Europe's economic woes continued to plague hedge fund administrators in an otherwise quite positive first half, says a recent survey by eVestment|HFN.

“The administration industry is feeling the effects of the European crisis.” said Peter Laurelli, vice president, research, eVestment|HFN. “After seeing outright declines in reported Europe-based hedge fund assets under administration during the latter half of 2011, growth turned positive in the first half of 2012 for firms’ European businesses although lagging growth in other regions. Aggregate European hedge fund assets increased only slightly, 0.5%, while two of the top three administrators in the region saw their Europe-based assets decline during the period. Asia-Pacific-based assets increased 4.5% in the first half of 2012, slightly below the overall industry gain.”

The survey—the 11th iteration of the eVestment|HFN Hedge Fund Administrator Survey—is based on replys from 45 hedge fund administration firms, including the 10 largest, which account for 85% of total administered hedge fund assets.

The survey also found that the alternative assets administration industry is consolidating, chiefly through acquisitions (like that of GlobeOp by SS&C), as increasing regulation and demand for more sophisticated services shrink margins.

Citco, State Street and BNY Mellon were the top administrators, with a combined $1.3 trillion of the total $2.819 trillion in single-manager hedge fund assets under administration. That total represents a 5.0% increase in single-manager AUA in H1 2012. Strategy-wise, respondents said structured credit and distressed debt funds and private equity funds have seen strong allocations in the past six months.

Administrators reported $763.5 billion in fund of funds AUA, $48.1 billion in managed accounts, $123.0 billion in UCITS hedge funds and $1.368 trillion in other alternatives. Total reported alternative investment AUA was $5.122 trillion at the end of Q2 2012, an increase of 7.0% for the first half of the year.
 


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR