Recent research carried out by Preqin found that one third of hedge fund managers switched their service provider last y
3 Myths in Switching Fund Administrators Recent research carried out by Preqin found that one third of hedge fund managers switched their service provider last year, with fund administrators and prime brokers accounting for the highest type of service to be moved. With this growing trend in mind, let’s look to dispel some common myths when switching.
1
MYTH
2
MYTH
3
MYTH
All fund administrators are the same.
Changing fund administrators will create investor uncertainty.
Switching providers is costly and time consuming.
FACT 61% of managers who
FACT Only 3% of managers
FACT 42% of fund managers
Hedge Fund Outlook for 2014
switched last year did so because they were dissatisfied with the service.
noted that investors had concerns with their choice of service provider.
INDUSTRY SIZE
$2.6 trillion
73% agree the outlook is positive
chose to switch because of cost savings.
83% of managers believe AUM will increase
Performance & Regulation
68% 45%
POSE THE LARGEST CHALLENGE A third of all hedge fund managers changed service providers in 2013. SS&C GlobeOp was selected for administration services for more new fund launches in 2013 than any other fund administrator. SS&C GlobeOp is the largest publicly traded independent fund administrator providing the world's most comprehensive array of financial technology products and services under a single platform. SS&C GlobeOp’s expertise in business process outsourcing supports complete lifecycle capabilities to hedge funds, fund of funds, private equity funds, family wealth offices and managed accounts.
www.sscglobeop.com
Source: Preqin Research February 2014, Why are Hedge Fund Managers Changing Service Providers? www.preqin.com/docs/reports/Preqin_Special_Report_Service_Providers_Feb_14.pdf
