TD Securities
Weighted
average
score
Large
+/- the
Medium
global
average
Small
Capital
80%
N/A
N/A
introduction
s
Client
6.39
6.4%
service
N/A
N/A
Consulting
ice area
Weighted average
Operations
5.73 scores -4.0%
Technology
5.31
-5.2%
2016
2017
the
%
|
Asset safety
Sales and
5.53
5.67
1.4%
100%
2018
5.93
Americas
Europe and
Middle East
Asia
Methodology
The 2018 Prime Brokerage Survey asked respondents to
address 57 questions across 18 service areas: Capital intro-
ductions, Client service, Consulting, Operations, Technology,
Product development, Risk management, Asset safety, Sales
and marketing, Trading and execution, Delta 1, swaps and
financing, Stock borrowing and lending, Foreign exchange
prime brokerage, Fixed income, OTC clearing, Listed deriva-
tives and Future Relationship. (However, scores for Future Re-
lationship were not included in the total calculations printed
here.) For the majority of questions, respondents were asked
to assess their administrators by determining how much
they agreed or disagreed with a series of statements about
services. Respondents were also given the option of providing
one overall assessment of a service area rather than answer-
ing individual questions. For each service area, respondents
were also invited to provide commentary. A total of 1,400
completed questionnaires were received on behalf of 35
prime brokers. After clean-up and validation, 1,395 respons-
es remained. In order to receive a write up in the survey, an
administrator needed to receive at least 10 responses. As a
result, we were able to provide assessments for 24 separate
prime brokers. The analysis published in this report is based
on average scores given by respondents. They are weighted
for the size (measured by assets under management, or AuM)
and complexity (measured by the number of asset classes and
investment strategies pursued) of the respondent. Scores in
any question or service area which attracted less than four re-
sponses are excluded from the calculations. The suppression
of scores for this reason does not mean the provider does not
offer the service in question; it means only that an insuffi-
cient number of respondents scored the service to assess its
quality with confidence.
We are most grateful to all fund managers who took the
time and trouble to complete a respondent questionnaire,
as well as to the hedge fund administrators who encouraged
their clients to do so and who completed a provider question-
naire of their own. As a thank you, hedge fund managers who
participated in this survey are entitled to a free benchmarking
report from McLagan, comparing their assessments to those
of peers using the same service providers.
100%
5.70 2.4%
6.02 4.9%
The Hedge Fund Annual 2018
globalcustodian.com
95