Special Reports » OTHER REPORTS » GLOBAL FUND ADMINISTRATION

— Bernard Hanratty, Citi

It has, claim industry players, once again been a stellar year for the fund administration business. But with the larger firms all clamouring for M&A activity to gain much-needed scale, and increasing demands fuelling offshoring, is it really all that rosy? Gerry O’Kane reports.

— Frédéric Pérard, head of Global Fund Services at BNPPSS

Flying in the face of tighter margins and increased competition, Frédéric Pérard at BNP Paribas Securities Services believes that the opportunities in fund administration in Europe are far more prolific than those in the US. Gerry O’Kane reports.

— José Santamaria, RBC Dexia Investor Services Trust

Consolidation has seen many fund administrators unwilling to take on smaller hedge funds. However, the pressure is not one-sided, as hedge funds build NAV calculation infrastructures, administrators must deliver, writes Ceri Jones.

With increasing numbers of mergers and acquisitions in the fund administration space and a more global focus, how can players in the industry keep pace with demands for technology, talent retention and good service? Industry experts give their view in our latest roundtable discussion.

Henry Smith: In terms of number of players and their capabilities, what is the fund administration landscape going to look like three-to-five years hence?

Barry Carroll: There is going to be a polarisation. What everyone has talked about here is quality and yet these big acquisitions tend not to be highly successful. Indeed, because big organisations look upon them as an EBITDA curve, a cash cow – they rarely anticipate the opportunities and inject what is really required.

Increasing consolidation of global custody and fund administration have left niche players without the resources to compete with the bigger firms. Alan Dundon, global head of product, fund administration and middle office outsourcing, BNP Paribas Securities Services speaks to FT Mandate.

— Jervis Smith, Citi

Jervis Smith is the head of managed funds and insurance sector – for Europe, Middle East and Africa – within Citi’s Global Transaction Services business. He discusses the major trends in asset management and how securities services providers can help asset managers meet their clients’ changing needs.

— David Claus, Bank of New York

New opportunities abound in the fund administration world with the onset of Ucits III, with clients interested in seeing what it offers. However, with greater regulatory demands being placed on them, many smaller players are falling by the wayside, writes Gerry O’Kane.

— Susan Ebenston, JPMorgan Worldwide Securities Services

As more and more demands are placed on asset managers, such as regulatory requirements and the increasing uptake of alternative investments, many are outsourcing non-core competancies. Third-parties must make sure they aid rather than inhibit their clients’ development, writes Ceri Jones.

— Mark Kerns,Bank of New York

Fund administration is developing, but in favour of the larger managers who can use the increasingly complex investment style, more regulation and new demands to their advantage, writes Gerry O’Kane.

The ‘lift-out’ days of old have moved on, since outsourcing providers stood up to being forced into maintaining multiple systems on one platform. Gerry O’Kane charts the modern outsourcing landscape.

— John Wantz,RBC Dexia Investor Services

As well as offering low volatility, real estate funds also generate returns that offer protection against inflation. The Reifs market is maturing and Luxembourg is emerging as its home, writes John Wantz.

Henry Smith and Roger Aitken quiz leading industry figures from across Europe on the biggest challenges facing fund administrators today including building capacity and automation.

Henry Smith: In the battle to grow market share, what sort of pressures are fund administrators under to create new value added services which can command a premium?

— Germain Birgen, HSBC Securities Services

Germain Birgen, head of global fund services at HSBC Securities Services (Luxembourg), addresses FT Mandate’s questions on the current issues affecting fund adminstrators.

— Ivan Nicora,Euroclear

The costly nature of processing trades in cross-border funds is exacerbated the varying demands from different countries that make automation difficult. But change is afoot, writes Ivan Nicora.

As reality bites in the fast expanding transfer agency business, the regulatory and technical requirements force many firms to consider the outsourcing option, Gerry O’Kane reports.

Will an STP technological solution prove ever-illusive and what tactical approaches can transfer agents take to cement their role? Roger Aitken and Henry Smith bring industry experts into the debate.

Roger Aitken: What does the industry need to do to maximise the benefits of differing transfer agency models in Europe?

— Germain Birgen, HSBC Securities Services

Germain Birgen, head of global fund services at HSBC Securities Services (Luxembourg), reveals his thoughts on STP, the evolving role of transfer agents and compliance risk.