A new research report by FSbenchmarks Ltd about fund administrator client satisfaction has found that institutional investors are least satisfied with the services they receive around OTC derivatives.
The Fund Admin Report: Q1-Q3 2011 measures the level of satisfaction with investors of their administrators by asset class and service type. FSbenchmarks surveyed clients of five administrators, including HSBC, Northern Trust and others.
FSbenchmarks says client satisfaction with OTC derivatives servicing scored well below that for equities, and that clients were least satisfied with pricing and valuation services for OTC derivatives. 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, the firm said in a statement.
Clients were also less satisfied with the frequency, accuracy and automation levels of pricing updates for fixed income assets, which scored lower than exchange-traded derivatives services.
In Global Custodians survey of 36 hedge fund administrators, clients broadly ranked OTC derivatives services about average with a global score of 6.21 (out of 7) compared to a global average for all services of 6.22. Where clients ranked their fund administrators lowest in our survey is in risk management (5.78) and credit leverage (5.92).
(CG)