Global Custodian Summer 2017 | Page 82

[ S U R V E Y | M U T U A L F U N D Up to $100 million $100 million to $250 million $250 million to $1 billion $1 billion to $5 billion $5 billion to $10 billion $10 billion to $50 billion Over $50 billion N/A A D M I N I S T R AT I O N] Ultimus Fund Solutions Ultimus client size (AuM) MFA overall client size (AuM) Ultimus Fund Solutions counts 91 clients for its MFA service, UlSmus client size (AuM) MFA overall client size (AuM) covering 215 funds. This is a significant increase on last year, when it reported 79 clients and 180 funds. The bulk of these have assets under management of up to $5 billion with the larg- est in the $10-50 billion category. Having acquired a competitor firm in December 2015, total AUA has grown to $55 billion plus. From a results perspective, Ultimus has had an excellent year, surpassing the survey average in all service areas by between 0.41 and 0.82 points. Year-on-year, it has seen its own category scores vary little with the exception of Distribution Support, Up to $100 million which is slightly down by 0.21 points to a still impressive 6.71. Up to Up $100 Up to $100 million to $100 million million $100 million to $250 million $100 million $250 million Client comments are multiple and overwhelmingly positive. $100 million to $250 million $100 million to to $250 million $250 million to $1 billion $250 million to $1 billion “Excellent client relationship management,” says one invest- $250 to million to $1 billion $250 million to $1 billion $1 billion $5 billion $1 billion to $5 billion ment manager. “I have never worked with a service provider $1 billion to $5 billion billion $1 billion to to $10 $5 billion $5 billion to $10 $5 billion billion with a quality of staff as high as Ultimus in every discipline.” An- $5 billion $10 billion $5 billion to to $10 billion $10 billion to to $50 billion $10 billion $50 billion other lauds “the highest level of professionalism with outstand- Over $50 billion $10 billion to $50 billion $10 billion to $50 billion Over $50 billion ing response times.” Such praise is not limited to the smaller N/A Over $50 billion N/A Over $50 billion clients. “They are excellent in managing our very high complex- N/A N/A ity and high volume trading strategies,” says one larger client. “They are very helpful in relaying what they see happening in the asset management space.” Ultimus scores by type of fund managed MFA overall client size (AuM) Ultimus itself notes that support for advisers seeking to grow Equity Non-equity All their mutual fund business through acquisitions has become increasingly important. “The ability to keep expenses down Relationship management and client service 6.98 6.87 6.96 and complexity to a minimum while helping advisers navigate Value delivered 6.90 6.67 6.87 conversions, changes of control, proxy solicitations, fund name Fund accounting and valuation 6.98 6.80 6.95 changes, etc. is a critical function for an administrator to fulfil and can serve as a strong differentiator for the firm.” It points Transfer agency 6.96 6.83 6.95 to its strength in legal administration as a useful resource for Distribution support 6.98 5.62 6.71 clients needing to merge or re-organise mutual funds. Fund reporting 6.93 6.90 6.94 In light of its growth, Ultimus has hired a significant num- Up to $100 million Compliance 6.98 6.97 6.98 ber of new staff in the last year, including multiple hires in $100 million to $250 million fund accounting, 1940 Act attorneys, paralegals, transfer agent Operations and custody 6.91 6.82 6.91 $250 million to $1 billion professionals, and a new chief financial officer. “We view our $1 billion to $5 billion 6.95 6.69 6.91 professionals, who offer clients access to sought after expertise, $5 billion to $10 billion as our most important differentiator and will continue to invest $10 billion to $50 billion in talent as our firm grows,” says the firm. Over $50 billion Ultimus N/A overall scores Ultimus scores versus market average 2017 2016 2015 Weighted share (%) 25.66