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Goldman Sachs
These are results which Goldilocks would recognise more readily than Goldman . In no service area is the score outstanding , but in none is it dire either . That said , there is nothing mediocre about the score for sales and marketing , where the details suggest Goldman has indeed arrived at a client base that is just right , from the point of view of the firm , in terms of size , investment strategy and profitability . Outliers can still be found in both the general (“ hard to get great service unless you have a lot of assets with them ”) and the specific (“ Goldman Sachs capital introduction is really strong but always asks for a certain level of revenues before helping their hedge fund clients ”), but what is striking about the averages is their lack of volatility . True , the score is flattering in an area where Goldman is expected to shine : stock borrowing and lending . But across other disciplines in which the bank is a major force , such as financing and derivatives clearing of both kinds , the scores are indifferent . They are punctured mostly by a belief that the overall cost of the services is more reflective of their value to the firm than the clients , though this is characteristic of the survey as a whole . It is the mixed verdict in client service that might indicate a more meaningful degree of disgruntlement in some quarters . “ Goldman client service is excellent , from their management team down to our daily account rep ,” says one client . “ Tremendous partner .” But another argues , “ They used to be more pro-active . The quality is decreasing year over year .” Much the same is visible in the higher-scoring field of operations , where the assessment of the client who works with a “ great crew , very responsive and knowledgeable ” is offset by one who says operational staff “ used to be better .” A third receives “ reasonably accurate reports ” but has “ encountered instances where positions that had been redeems were still reported in the portfolio .” Where Goldman does shine brighter than the average prime broker is in product development , where clients recognise and appreciate an innovative approach to their problems . The consulting team is also highly regarded . “ The GS consulting team is my first call on almost any topic : legal , regulatory , cyber ,” says a client . “ If they do not know the answer , they know someone who does .” A second notes that “ while start-ups rely the most on consulting services , I find myself continuing to use these services through the year .” A third adds that “ the GS team has always been tremendously helpful . Their weekly surveys are of great value .” Likewise , the people working in capital introductions continue to win accolades . A stand-out area in 2017 , capital introductions is judged less favourably this year , but the outcome is still more than respectable . “ The Goldman cap intro team has been a strong partner for our firm ,” says a client . “ They are very well informed and have been a great source of market intelligence .” Technology , which was an issue last year , remains one in 2018 . “ The GS360 portal for equities and futures is in desperate need of renovation ,” writes one respondent . A second says there is a “ need to update the back end – feels older - not compatible with certain browsers ,” and a third suggests the “ GS prime brokerage portal have a system refresh . I am unable to access some functions on the portal .” But it is a fourth that identifies the main reason for the indifferent scoring of technology : “ I would like mobile reporting enhanced . Right now , I believe the only way to access the portal is through a desktop computer .”
45 %
By size
10 %
45 %
Weighted average scores
PROFILE OF RESPONDENTS
Large Medium Small
Weighted average scores by service area Service area
14 %
21 %
By location
2016 2017 2018 5.89 5.85 5.58
Weighted average score
Capital introductions 5.28 -1.7 % Client service 5.56 -7.5 % Consulting 5.63 -3.9 % Operations 5.78 -3.2 % Technology 5.48 -2.2 % Product development 5.61 2.8 % Risk management 5.28 -5.2 % Asset safety 5.75 0.1 % Sales and marketing 5.96 -2.9 % Trading and execution 5.40 -7.8 % Delta 1 , swaps and financing 5.44 -4.9 % Stock borrowing and lending 5.75 -3.7 %
65 %
Foreign exchange prime brokerage N / A N / A Fixed income 5.60 -3.0 % OTC clearing 5.37 -8.2 % Listed derivatives 5.72 -2.9 % Total 5.58 -3.8 %
Americas Europe and Middle East Asia
+/ - the global average
The Hedge Fund Annual 2018 globalcustodian . com 83