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BMO Capital Markets
As in 2017 , there is considerable volatility in the scoring of the Canadian bank . There is an excellent score in the core service of stock borrowing and lending , which would be even higher if respondents were convinced that BMO had readier access to hard-to-borrows . But there is also a disappointing score for product development . While it is true that not every hedge fund managers is seeking innovative products and services (“ We do not present any product development needs , other than basic technology required to interact and report with BMO ”), no prime broker sets out to suppress the creativity and ingenuity of its staff in solving complex or challenging client problems . Indeed , the scoring of the people who work in prime brokerage at BMO is much better than the average suggests . “ Client service team is an excellent , professional , responsive and capable group ,” writes a respondent . “ We are extremely satisfied by the level of service .” Another is puzzled by the idea that BMO employees might be less than first-rate . “ We have never had to deal with under-performing staff ,” notes one client of operational staff . Another has found only a “ strong , responsive and knowledgeable team supporting us .” The scores for sales and marketing indicate they like the pricing of the products and the balance sheet even more than the people . Likewise , the details of the capital introductions score indicate the outcome is more about the effectiveness of the service than its reach and ambition . After all , BMO has built a considerable reputation for capital introductions in Canada , producing a quarterly alternative investments catalogue , and hosting a string of institutional and retail client events and one-to-one meetings . But capital-hungry managers will always want more . “ We need access to BMO ’ s wealth management IAs , but often divisional barriers get in the way ,” writes one of them . “ And the IAs need hedge fund research – they are too busy gathering assets to have a full understanding of the complexities of hedge funds . I have heard the conflict of interest argument , but BMO does research for investment banking clients – why not for prime brokerage clients ?” The bank will be more concerned about the assessment of its financing services . Though at least one client is flatly disappointed by the “ amount of leverage / financing provided ,” the majority of respondents are in fact appreciative of what BMO is doing to finance their portfolios . The average is lowered by the minority of respondents that want the bank to work harder to cut their costs through netting and portfolio margining . Much the same is true of foreign exchange . “ It needs to be better integrated ,” is the advice offered by one user . “ One bank , one counterparty , one reporting platform , one settlement platform .” If there is an area where the call for investment is unequivocal , it is technology . A much-improved area in 2017 , the scoring of technology has regressed somewhat this year , and not only because of the ( still limited ) demand for greater accessibility and the ( rapidly rising ) anxiety about data security . “ The personal service we get is excellent ,” writes a respondent who is looking for investment in technology to accelerate and improve his P & L reporting . “ The technology provided is not . Like the people but not the infrastructure .”
A second client agrees . “ The technology is weak , in terms of providing live , real-time information that is easily downloadable and provides basic information , such as P & L ” he writes . But a third client says the technology is good enough . “ Technology , data content and access adequate for our purpose ,” he writes .
17 %
By size
7 %
77 %
Weighted average scores
PROFILE OF RESPONDENTS
Large Medium Small
Weighted average scores by service area Service area
By location
3 %
97 %
2016 2017 2018 5.74 5.62 5.65
Weighted average score
Capital introductions 5.62 4.8 % Client service 5.95 -1.0 % Consulting N / A N / A Operations 5.66 -5.0 % Technology 5.29 -5.6 % Product development 4.85 -11.2 % Risk management 5.23 -6.0 % Asset safety 5.85 1.9 % Sales and marketing 6.20 1.1 % Trading and execution 5.58 -4.6 % Delta 1 , swaps and financing 5.21 -8.9 % Stock borrowing and lending 6.13 2.8 % Foreign exchange prime brokerage 5.44 -4.1 % Fixed income 5.76 -0.2 % OTC clearing 5.53 -5.5 % Listed derivatives 5.88 -0.1 % Total 5.65 -2.5 %
Americas Europe and Middle East Asia
+/ - the global average
The Hedge Fund Annual 2018 globalcustodian . com 77