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Citi
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modernised reporting challenge set by the SEC.
here is some slippage in the average scores by compari-
Solving the compliance challenges set by the SEC will make it
son with last year, but then the returns of 2017 were of an
more difficult to overcome the sense that Citi is not particularly
unusually superior calibre. Part of the explanation is that Citi
price competitive. It is already hard for banks, which carry the
services clients that are harder to please. More than half of its
burden of capital requirements, to compete with non-bank ad-
respondents are larger fund complexes of the kind that prefer
ministrators on price – though the Citi score for value suggests
a major custodian bank with a global presence to be a special-
clients know they will always get what they pay for.
ist fund administrator. “Global presence [and] dedication to
As it happens, Citi thinks the combination of regulation and
account” are what one client likes best.
technology can in some areas reduce costs to managers. While
Importantly, the less-than-stellar scores are also concentrated
passing on most of the costs of compliance is unavoidable, the
in a narrow range of service areas. Relationship management
bank believes that at least one regulatory change – namely, Rule
and client service is not one of them. Here, an excellent score is
30e-3, which will allow mutual fund companies to default to
bolstered by multiple testimonials. “Staff is always responsive
emailing investors annual shareholder reports – will actually
and pro-active,” writes one respondent. “Great continuity of
save managers money.
staff.” A second appreciates “amazing customer