Hedge fund assessment of prime brokers holds steady

Initial Prime Brokerage Survey results show capital introduction to be the lowest ranked service area, according to hedge fund respondents.

By Richard Schwartz

The GC McLagan 2018 Prime Brokerage Survey results, to be unveiled the end of this week, show that Client Service remains among the best regarded service categories with Capital Introductions the least well regarded, consistent with the 2017 findings.

In the six service areas where results can be closely compared year on year, both category scores and rankings are, in fact, similar to 2017 (See Table 1).

The largest respondents have once again proved to be the harshest markers in most areas, cap intro being an exception, where the smallest respondents are the least satisfied. Even here, however, scores are above five, the threshold between ‘satisfactory’ and good.

Assessed by the location of respondents, meanwhile, EMEA-based hedge funds appear to be the most demanding. 

Aggregate category scores in the survey as a whole range from 5.37 to 6.13. The overall impression given by respondents is that concerns about any particular service area are limited to individual providers and that no service category appears to pose an industry-wide challenge.

As part of the agreement between Global Custodian and AON McLagan Investment Services to collaborate in the management of client experience surveys, the scope of this year’s Prime Brokerage Survey was expanded and updated to include a number of additional service categories.

Full results will be posted on www.globalcustodian.com on 7 September and published in Global Custodian’s Hedge Fund Issue 2018.

Table 1

 



2017

2018

Client Service

6.01

6.07

Operations

5.97

5.96

Securities Lending

5.97

5.79

Technology

5.60

5.86

Hedge Fund Consulting

5.86

5.80

Capital Introductions

5.37

5.44

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