FE 47 FA round-up - jssgmnf:Layout 1          28/3/12   15:10   Page 47        A stable market        FUND ADMINISTRATION ...
48-49 tables gmnf:Layout 1            28/3/12       15:03     Page 48        The figures…        SURVEY RESULTS        Nin...
48-49 tables gmnf:Layout 1                28/3/12   15:03    Page 49        TOP THREE MANDATE WINS IN 2011 (€BN)          ...
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Admin Survey April 2012


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Admin Survey April 2012

  1. 1. FE 47 FA round-up - jssgmnf:Layout 1 28/3/12 15:10 Page 47 A stable market FUND ADMINISTRATION Net inflows for third-party fund administrators are half what they were on the previous twelve months, finds Nicholas Pratt THIS YEAR’S SURVEY features managers and asset owners to 19 participants, as opposed to switch providers. Proving this is the 20 that appeared in 2011. The the case, however, is not so easy. notable absentee is Bank of The survey shows that the Ireland Security Services majority, but not all, of (BOISS) which was acquired participants are happy enough to by Northern Trust in June – a tell of the number of mandates move that signified the pressure they retained but, unsurprisingly, facing Ireland’s domestic not of those that they lost. banking sector and also Looking in more detail at gave Northern Trust (NT) a boost some of the new funds and in terms of exchange-traded mandates awarded in 2011, the funds expertise. size of the assets under Given that competition is so administration varied from €979 fierce among third-party billion (State Street and an administrators (TPAs), it is investment operations perhaps surprising that the outsourcing deal for an BOISS/NT deal is the only investment manager) to example of consolidation. But as €87 million (Swedbank and a David Dibben, head of global Ucits fund). As with previous fund products at RBC Dexia years’ surveys, there was a wide Investor Services, says:“The variation in the client types number of players appears to (traditional asset managers, have stabilised, and many firms pension funds and insurers on are now concentrating on one side and a Nordic private desire for greater transparency. establishing unique elements to equity firm on the other) and In terms of the geographies their service which will make also the product types. targeted by administrators, them more attractive in Another metric of note is the there are very few surprises – particular niches.” number of net asset values Europe, Latin America and Asia The numbers in the 2012 fund (Navs) calculated each month. feature heavily. Some are more administration survey suggest BNY Mellon tops the 2012 specific – RBC Dexia cites that times are tough. Net inflows survey with more than 255,000 – Malaysia, Taiwan and China as for 2011 are at least positive with an increase on last year’s its Asian targets; Custom House €294.7 billion; however, this is monthly figure of 198,000. mentions Brazil; and in Europe, less than half the 2010 figure of Meanwhile, at the other end of Russia (IPES), Switzerland (JP €630 billion. Conversely, the the scale, the 85 monthly Navs Morgan), Netherlands number of funds or mandates calculated by IPES is also an (Northern Trust) and Jersey won by the 19 firms that increase on last year’s 75. The (UBS) are mentioned alongside participated totalled 5,182 majority of participants have stalwart jurisdictions such as compared with the 1,828 of 2010. seen an increase in their Dublin and Luxembourg. monthly Nav calculations. The Next year’s survey may yet FIERCE COMPETITION need for more regular Nav throw up new geographical This could, of course, mean that calculations relates to one of the opportunities. However, it may the extra mandates were not a most commonly stated well be that TPAs’ international result of new fund launches but challenges of the TPA market – expansion efforts over the past instead indicative of the fierce the increasing demands of their few years have been successful competition that exists in the TPA clients fuelled as they are by the enough that there are few market and the willingness of demands of their investors and a territories left uncharted. fe www.funds-europe.com 47
  2. 2. 48-49 tables gmnf:Layout 1 28/3/12 15:03 Page 48 The figures… SURVEY RESULTS Nineteen companies responded to Funds Europe’s annual survey of third-party fund administrators. Here is an indication of how their businesses performed over 2011 ASSETS UNDER ADMINISTRATION MANDATES WON AND RETAINED at 31 December 2011 (ranked highest to lowest) in 2011 (in alphabetical order) Global domiciled in third-party Mandates Won Retained (€ bn) Europe (€bn) admin staff BBH 186 n/d State Street 16,841 3,398 n/d BNP Paribas n/d n/d JP Morgan WSS 5,050 2,097 2,000 BNY Mellon* 210 70 RBC Dexia 2,066 1,014 5,500 Caceis n/d n/d HSBC 1,860 1,153 n/d Capita n/d n/d Citi* 1,161 549 4,522 Citi 1,012 22 Caceis 1,040 1,010 1,450 Custom House 30 all (figure n/d) Northern Trust 957.5 266.8 2,811 Deutsche Bank 80 all (figure n/d) BNP Paribas 845.7 638.4 n/d HSBC 1,072 9,357 BBH 797 244 n/d Ipes 29 n/a Soc Gen 413 353.9 >1,000 JP Morgan WSS n/d n/d SEI >310 >31 500 Maitland** 442 1,224 UBS 308 227 432 Northern Trust 215 19 Maitland 71.6 0.2 275 RBC Dexia 222 23 Deutsche Bank 68 27 225 SEI n/a n/a Custom House 38 4.5 250 Soc Gen 105 129 Capita 36 36 150 State Street 151 n/d Ipes 32 32 130 Swedbank 11 69 Swedbank 9.9 1.9 15 UBS 161 n/a BNY Mellon n/d n/d 4,600 *Emea only * $/€ conversions by Funds Europe, 31 Dec 2011 **Figures are for funds only 48 April 2012
  3. 3. 48-49 tables gmnf:Layout 1 28/3/12 15:03 Page 49 TOP THREE MANDATE WINS IN 2011 (€BN) NAVS DURING 2011 NAVs average per €bn Client type Product type month in 2011 BBH 15 Fund asset manager Cross-border funds BBH 48,000 8 Institutional asset manager Portfolios BNP Paribas 103,000 8 Fund asset manager Investment funds BNP Paribas n/a n/a n/a BNY Mellon 255,000 BNY Mellon 8 Asset manager n/a Caceis n/d 6.7 Pension Fund n/a Capita n/d 4 Asset manager n/a Citi 26,100 Caceis n/a n/a n/a Custom House 2,475 Capita n/d n/d n/d Deutsche Bank 2,700 Citi* 6 Asset manager Long/Mutual/CIS HSBC 93,018 5.24 Asset manager Long/Mutual/CIS Ipes 85 1.6 Insurance Long/Mutual/CIS Custom House 0.45 Hedge fund Multi-asset JP Morgan 63,900* Maitland 2,511 0.06 Private equity Property 0.02 Hedge fund Multi-asset Northern Trust 92,032 Deutsche Bank 2 FoF special opportunity hybrid RBC Dexia n/d 0.7 Hedge fund Irish Ucits platform SEI >2,500 3.6 Private equity Infrastructure fund Soc Gen 60,000 HSBC 14.2 Fund manager n/a State Street 233,000 0.96 Insurer n/a Swedbank 2,089 0.75 Fund manager n/a UBS 16,946 Ipes 0.4 Turkish PE fund manager Venture capital 0.4 Nordic PE manager Mezzanine fund *Includes segregated mandates 0.3 PE fund manager Listed PE fund JP Morgan WSS 25 Pension plan Pension fund 0.58 Private bank Mutual funds NET FLOWS DURING 2011 0.2 Supranational Mutual fund Maitland 18.1 Fund manager Mutual fund 1 Fund manager Mutual fund Company +/- €billion 0.25 Fund manager Mutual fund BBH +22 Northern Trust 31 Investment manager Outsourcing BNP Paribas +46.8 5.8 Pension Outsourcing BNY Mellon* +74.2 2.7 Investment manager Outsourcing Caceis -110 RBC Dexia 2.4 Investment manager Mainstream funds Capita -5.4 1.3 Insurance Mainstream funds Citi** +0.418 1.5 Bank Mainstream funds Custom House +3.5 SEI 1.5 Sovereign QIF Deutsche Bank +27 1.1 Sovereign Cayman HSBC +15 0.85 Investment bank Bank debt vehicle Ipes +1.5 Soc Gen 5.5 Asset manager Asset manager 1 US asset manager Ucits funds JP Morgan WSS +75 0.2 Pension fund Investment funds Maitland +5.3 State Street 979 Investment manager n/a Northern Trust +129 236 Life, pensions and investments n/a RBC Dexia n/d 226 n/a n/a SEI n/a Swedbank 0.1 Fund company non-Ucits hedge fund Soc Gen -50 0.1 Fund company non-Ucits hedge fund State Street n/d 0.08 Fund company Ucits fund Swedbank +0.26 UBS 7.8 Bank Multi-asset UBS n/a 3.9 Pension fund Multi-asset 2.9 Social security Multi-asset *Emea only **Citi gave US$ figure Note: *Citi gave US$ figures www.funds-europe.com 49