Citco Takes Top Spot In Hedge Fund Administrator Survey

Aug 17 2009 | 8:56am ET

The results are in and Citco remains the dominant hedge fund administrator in the top tier of the industry, according to the 2009 Global Custodian Hedge Fund Administration Survey.

Of the major prime brokers, only Goldman Sachs continues to shine in hedge fund administration. Deutsche Bank, which boosted its presence in hedge fund administration with the acquisition of California-based administrator Hedgeworks in January 2009, is a particularly interesting newcomer to the ranks of leading players, because it is both a major prime broker and a sizeable custodian. SS&C also makes its debut as a rated provider with an impressive set of scores.

League Table: The Major Providers
Provider / Position Last Year / Score

1. Citco Fund Services (1) 6.45
2. Deutsche Bank Alternative Fund Services (New Entry) 6.37
3. SS&C Fund Services (New Entry) 6.22
4. PNC Global Investment Services (4) 6.22
5. CACEIS Investor Services (6) 6.13
6. Goldman Sachs Administration Services(2) 6.13
7. UBS Global Asset Management - Fund Services (8) 6.04
8. HSBC Securities Services (5) 6.04
9. GlobeOp Financial Services (9) 5.93
10. State Street Alternative Investment Services (3) 5.93 

State Street, the Boston-based global custodian, which is extending its banking services to hedge fund managers, remains a top class service provider. French custodian and fund administrator CACEIS is now also a prominent force in the survey. The acquisition of Olympia Capital in November 2007 gave CACEIS a presence on both sides of the Atlantic. Despite the wider difficulties of the bank, UBS lifted its scores in all but two service areas, and moved two places up the league table.

Against the trends of consolidation in the financial services industry, and of shrinkage in the hedge fund industry, the hedge fund administration industry sustains a large number of smaller providers, many of them founded by former employees of the major providers. To reflect the different scale and nature of their business, the survey places smaller providers into a second "peer group," and measures their performance against each other rather than the major providers.

League Table: The Minor Providers
Provider / Position Last Year / Score

1. Stone Coast Fund Services (New Entry) 6.81
2. ISIS Fund Services (New Entry) 6.67
3. Prime Management (New Entry) 6.67
4. ATC Fund Services (2) 6.66
5. Equinoxe AIS (New Entry) 6.59
6. AIS Fund Administration (3) 6.58
7. Kaufman Rossin (1) 6.51
8. ALPS Price Meadows (New Entry) 6.47
9.Conifer Securities (New Entry) 6.43
10. Quintillion (6) 6.41

In total, Global Custodian surveyed 1,370 respondents.

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