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M U T U A L
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A D M I N I S T R AT I O N]
New horizons
The 2018 Mutual Fund Administration survey focuses on North American
providers, but from next year, its scope will be expanded.
T
he 2018 Mutual Fund Administration
Survey is the first to be produced
jointly by AON McLagan Investment
Services (McLagan) and Global Custodian
(GC), following signature of their agree-
ment to co-operate in the management of
client experience surveys in the securities
services industry from March 2018.
Under the terms of the partnership
agreement, McLagan provides a fully out-
sourced survey service to GC, including
the creation and distribution of question-
naires, the collection of questionnaires
completed both online through a dedicat-
ed technology platform and offline in for-
matted Excel spreadsheets, the analysis of
the data received, and the preparation of
both results and accompanying texts for
publication.
McLagan will also prepare research
reports, based on the survey findings but
combined with additional information
about the costs, revenues, productivity
and financial performance of service pro-
viders, for purchase by the firms that take
part in the survey.
GC continues to deliver all other aspects
of the surveys published in the magazine,
including the annual awards dinners in
London and New York, and all advertis-
ing and sponsorship associated with the
surveys, including the purchase of tiered
Badges of Excellence.
The timing of the 2018 Mutual Fund Ad-
ministration Survey, which was open for
submissions between February and April
2018, did not permit the full division of
labour between GC and McLagan to op-
erate. Instead, both the survey question-
naire and the data collection process were
managed by GC, while the analysis of the
data, the weighting of respondents and
the preparation of the texts that accom-
72
Global Custodian
Summer 2018
pany the published scores were managed
by McLagan.
As in 2016 and 2017, the published
survey considers only fund managers
purchasing fund administration services
in North America. This has the virtue
of facilitating comparability, but at the
expense of illuminating the global mar-
ketplace. In 2019, we intend to expand
the coverage of the Mutual Fund Admin-
istration Survey to incorporate all of the
major fund markets of the world, using a
remodelled questionnaire.
We are most grateful to all fund manag-
ers who took the time and trouble to com-
plete a respondent questionnaire, as well
as to the mutual fund administrators who
encouraged their clients to do so, and
who completed a provider questionnaire
of their own. Without their contribution,
this survey would not be possible.
Contacts:
Daljit Sokhi
Global Custodian
[email protected]
Richard Schwartz
Global Custodian
richard.schwartz@globalcustodian.
com
Dominic Hobson
McLagan Investment Services
[email protected]
Allison Cayse
McLagan Investment Services
[email protected]
Methodology
The 2018 Mutual Fund Administration
Survey asked respondents to address
29 questions divided between eight
service areas: relationship management
and client service, value delivered, fund
accounting, transfer agency, distribution
support, reporting, compliance and op-
erations and custody. One hundred and
nineteen completed questionnaires were
received on behalf of 13 fund adminis-
trators, of which six received at least
five responses, which is the minimum
number required to assess a service
provider adequately enough to publish
their average scores, both in absolute
terms and relative to the average scores
in each service area. Respondents were
asked to rate their service provider on a
scale of 1 to 7, where 1 is “very weak” and
7 is “excellent.” The analysis published
in this issue of the magazine is based
on average scores given by respondents.
The scores are also 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.