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
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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
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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