[ S U R V E Y
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M U T U A L
F U N D
A D M I N I S T R AT I O N]
ALPS, a DST Company
“G
less than excellent, and all fields that saw scores dip last year
reat group of people,” writes one mid-sized client. “Ex-
have recovered in 2018, with two exceptions.
cellent client service.” The human side of the business
One is transfer agency. “TA may be overworked or under
is an area where ALPS consistently performs well, with even
trained,” writes one respondent. But there is nothing negative in
the 2017 decrease in the score for relationship management and
client perceptions of the capabilities of the firm in the adjacent
client service proving no more than a blip. It has rebounded
field of distribution support. “ALPS does a great job at reviewing
strongly this year, with one respondent singling out their ALPS
intermediary agreements and explaining distribution-related
contacts for their “responsiveness.” A second adds that the re-
topics to clients,” writes a respondent.
lationship management has “done an excellent job of providing
Reporting is the other service area that failed to rise. And if
support and responding to our needs.”
ALPS has an area in discernible need of investment it lies here.
Feedback of this kind matters to ALPs. With all but a tiny frac-
One respondent avers that a “more-enhanced direct sharehold-
tion of the clients serviced by the firm, managing no more than
er portal” is needed. ALPS needs no encouragement to invest
$5 billion, the human touch is at least as important as the level
of automation. It is an approach that wins as well as retains busi- in technology. As befits an administration business owned by
a technology vendor (reinforced by the SS&C acquisition of
ness. One respondent appreciates a “willingness to spend time
DST this spring), it expects to increase its levels of automation
educating new clients on entering the mutual fund business.”
through robotics.
Another says that staff are “very pro-active. We are a very small
By lowering costs, automation will certainly help ALPS and
shop and ALPS makes us feel like an important client.”
its clients cope with Small
the mounting
pressure on Equity
fees
While enthusiasm for the friendliness, responsiveness and
Medium downward
Large
7.10% gains can be 78.60%
industry. 78.60%
And if those
understanding of ALPS’ client contacts is near-universal, at least in the asset management 14.30%
purchased without imperilling a strong reputation for being
one respondent has noticed that these qualities do not always
client focused, the firm will own an unbeatable combination of
result in a rapid turnaround of queries. While acknowledging
7.10% 14.30%
efficiency and service. “ALPS is very transparent
and honest in
that ALPS staff are “friendly and helpful,” and that the firm has
all dealings,” concludes one respondent. “Staff has a high degree
“good depth of coverage on most issues,” he finds that it “can
of integrity and responsiveness. Their infrastructure is strong
sometimes be hard to reach and/or get a quick response.”
and cross communications are good.”
Yet no one could accuse ALPS of failing to keep abreast of
a changing marketplace and regulatory environment. The
PROFILE OF RESPONDENTS
78.60%
Securities and Exchange Commission (SEC) launched its
liquidity-risk-management-and-fund-reporiting modernisation
Medium
Large
Equity
Fixed income
Other
initiative in October 2016, with the aim of enhancing Small
investor
Medium
14.30%
78.60%
7.10%
78.60%
28.60% Small
7.10% Large
By size
By investment
protection. Since then, ALPS has used the opportunity to invest
time and money in developing new procedures and services to
90.00%
78.60%
help asset managers comply by a string of deadlines set by the
80.00%
7.10% 14.30%
70.00%
regulator, which stretch out to 1 March 2020.
60.00%
The firm earns its reward in robust scores for compliance in
Small
50.00%
40.00%
general, and a handsome one for responsiveness to regulatory
Medium
28.60%
30.00%
changes in particular. Even value, inevitably under pressure as
Large
20.00%
7.10%
compliance services translate into new and rising fees for cli-
10.00%
78.60%
0.00%
ents, has recovered from the sharp fall of last year. In fact, there
Equity
Fixed income
Other
are only two service areas where ALPS secures returns that are
Small
Weighted average scores
+/- 2017-2018
Relationship management and client service
0.21
2018
6.30
2017
6.09
2016
6.42
90.00%
Medium
Large
Weighted average scores versus the global averages
2018 2017 2016
60.00% Relationship management and client service 5.7% -3.1% 2.3%
-0.9% -8.8% 2.0%
7.6% -3.5% 5.8%
Transfer agency 7.10% -4.3% -5.3% 1.2%
Equity support
Fixed income
Distribution Other 1.8% -0.8% 0.2%
78.60%
80.00%
70.00%
Value delivered 0.27 5.83 5.56 6.12 50.00%
Fund accounting 0.30 6.50 6.20 6.72 30.00%
40.00%
20.00%
Value delivered
Fund accounting
28.60%
Transfer agency -0.13 6.08 6.21 6.50 Distribution support 0.28 6.37 6.09 6.42 Reporting -0.07 6.32 6.39 6.63 Reporting 5.4% 2.7% 6.8%
Compliance 0.00 6.42 6.42 6.51 Compliance 1.2% -2.2% 3.4%
Operations and custody -0.54 5.97 6.51 6.37 Operations and custody 2.7% 5.2% 3.0%
Total 0.09 6.27 6.18 6.46 Total 3.3% -1.8% 3.1%
74
Global Custodian
Summer 2018
10.00%
0.00%
Fixed income
28.60%