Fund Admin Research Reveals Asset Class Turmoil

London - 27 October 2011

New market research has been released analysing satisfaction levels of investing institutions with their fund administration providers. The research has been published by FSbenchmarks Ltd under the title ‘Fund Admin Report: Q1-Q3 2011’.

While overall levels of satisfaction are high, there is a noticeable drop in satisfaction levels by asset class with OTC derivatives servicing scoring 4.7 compared to equities at 5.3; at its worst, services associated with Pricing and Valuation for OTC derivatives hit a mere 4.0. This shows that despite headline grabbing activity relating to improving OTC derivatives processing in the industry, there is still much work to be done to make this an end-to-end reality.

One surprising result was that overall satisfaction with the frequency, accuracy and automation levels associated with the delivery of pricing updates for Fixed Income assets scored lower than for even exchange-traded derivatives. This highlights the ongoing difficulties faced by a marketplace where so many trades are private and the call for bond market transparency has yet to take hold.

Respondents were also asked to rate their satisfaction with named fund admin providers. Of the five fund admin providers, for which we hold data, HSBC and Northern Trust stand ahead of their peers in terms of overall client satisfaction.

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