Wednesday, 24 August 2016
Last updated 15 min ago
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.