9 TH

Sponsored by

BIANNUAL
HFMWeek
HF ASSETS UNDER ADMINISTRATION

SURVEY
Despite the turbulence in the financial markets in recent months, the
ninth HFMWeek Hedge Fund Administrator Survey conducted in association with
Advent Software, the industry standard investment management software pro-
vider, has reported double-digit growth – a positive reflection on the hedge fund
industry’s resilience. By Kapila Gohel

www.hfmweek.com 6-12 December 2007 | 25

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9th HFMWeek hedge fund administrator survey
Total combined
assets in the
industry now rest
at $4trn – a long
way from the
$745bn reported
in the inauagural
administrators
survey
D
espite ongoing difficul-
ties in the global financial
markets and tough times
for alternatives, total assets under
administration (AUA) continue
to rise, with the total AUA now at
a record $4trn, according to the
ninth biannual HFMWeek Hedge
Fund Administrators Survey.
The survey, which gathered respons-
es from 66 administrators (excluding
consolidations) and includes almost
all third-party assets in the industry,
accounts for the six-month period from
1 May 2007 to 30 October 2007.
During one of the most turbulent
times in the history of financial markets,
and amid numerous fund collapses, the
hedge fund administration industry
reported overall double-digit growth in
the latest six-month period.
In fact, total combined assets in the
industry now rest at $4trn – a long way
from the $745bn reported in the inau-
gural hedge fund administrators sur-
vey compiled by HFMWeek (then called
AFSR) in November 2003, while the
number of participants in the survey
has doubled.
Broken down, total single-manager
AUA is now at $2.7trn, up from the
$2.5trn reported six months ago and
the $1.5trn reported in November 2006.
Total FoHF AUA is now at $1.3trn, up
from $1.1trn in April and the $950m
reported 12 months ago.
Regime Change
HFMWeek’s biannual survey has evolved
from earlier versions. Unlike previous
surveys, the definition of ‘hedge fund
assets’ now refers specifically to single-
manager funds and funds of hedge funds
26 | 6-12 December 2007
SINGLE FUNDS – 6 MONTHS GROWTH
company name
Single fund AUA (US$bn)
Apr 07 Nov 07
Single fund AUA (US$bn) Growth (%)
Apr 07 - Nov 07
1 CITCO Fund Services
2 IFS, a State Street company
390.00
166.80
440.00
290.00
13%
74%
3 Citi’s Hedge Fund Services
4 HSBC Securities ServiceS
20.60
174.80
228.79
216.28
1011%
24%
5 Goldman Sachs
6 Bank of New York Mellon
158.00
90.20
191.00
136.20
21%
51%
7 Fortis Prime Fund Solutions
8 CACEIS Investor Services
114.00
100.19
125.00
101.03
10%
1%
9 Globe OP 100.10 85.00 -15%
10 SS&C Fund Services 82.00 82.00 0%*
11 UBS Fund Services 56.55 79.97 41%
12 PFPC
13 JPMorgan Hedge Fund Services
57.20
40.30
67.12
53.00
17%
32%
14 SEI
15 Admiral Administration Ltd
40.00
25.99
43.00
37.00
8%
42%
16 Butterfield Fund Services 43.20 32.00 -26%
17 Olympia Capital 31.00 31.00 n/a*
18 Daiwa Securities Global Asset Services 29.63 29.15 -2%
19 RBC Dexia Fund Services 30.36 28.44 -6%
20 Ophedge 20.90 28.42 36%
21 Harmonic Fund Services 20.25 24.75 22%
22 US Bancorp Fund Services 23.40 23.40 n/A*
23 Spectrum Global Fund Admin 26.50 23.00 -13%
24 Custom House Admin & Corp Services 16.60 20.00 20%
25 Dundee Leeds Management Services 19.00 19.00 n/A*
26 Citadel Solutions 14.10 18.70 33%
27 Northern Trust Global Fund Services 14.28 18.40 29%
28 Kaufman Rossin Fund Services 14.40 15.44 7%
29 Euro-VL (SGSS) 21.26 15.40 -28%
30 Trident Fund Services 23.30 15.30 -34%
31 Caledonian Fund Services 13.40 15.00 12%
32 Swiss Financial Services Group 13.10 14.20 8%
33 CIBC 11.00 12.50 14%
34 LaCrosse Global Fund Services 7.22 11.91 65%
35 Meridian 9.70 11.40 18%
36 Equity Fund Services 10.25 11.30 10%
37 Fulcrum 11.00 11.00 0%*
38 AIS Fund Administration 6.00 10.00 67%
39 HedgeWorks 8.00 8.90 11%
40 Viteos Capital Market Services Limited 4.30 8.00 86%
41 BNP Paribas Securities Services 5.52 7.92 43%
42 ATC Fund Services 6.00 6.82 14%
43 Investment Data Services Group (IDS) 1.86 6.42 245%
44 Columbus Avenue Consulting 5.00 5.70 14%
45 Cayman National 5.10 5.10 n/A*
46 Bank of Ireland Securities Services 4.20 4.30 2%
47 Price Meadows Incorporated 3.80 4.30 13%
48 Conifer Securities 3.60 3.90 8%
49 Apex 1.90 3.90 105%
50 Standard Bank Fund Administration 3.27 3.75 15%
51 Pinnacle Fund Administration 2.90 3.50 21%
52 Mourant International Finance Admin 6.20 3.30 -47%
53 Folio Administrators 2.30 3.08 34%
54 Close Fund Services 1.65 2.11 28%
55 MadisonGrey Fund Services 1.22 1.90 56%
56 Banque Privee E De Rothschild 1.06 1.64 55%
57 European Fund Administration NEW 1.04 N/A
58 Circle Partners 0.60 0.65 8%
59 Trinity Fund Administrators 0.77 0.54 -30%
60 Panoptic Fund Administration 0.71 0.46 -35%
61 G&S 0.35 0.38 7%
62 Kingsway Taitz Fund Administration 0.24 0.27 11%
63 Legis Fund Services 0.10 0.10 n/A*
64 Praxis 0.01 0.08 700%
65 Royal Bank of Canada 2.07 0.00 -100%
66 BISYS Alternative Investment Services 169.91 0.00 n/A**
67 Investors Bank & Trust (Ireland) 154.00 0.00 n/A***
TOTAL 2443.21 2703.14 11%
*No new figures available **Now consolidated with Citi’s Hedge Fund Services ***Now consolidated with IFS, A State Street Company
www.hfmweek.com

(FoHFs), and excludes other invest-
ments: private equity, venture capital,
UCITS (Undertaking for Collective
Investment in Transferable Securities),
SICAVS (Société d’Investissement
à Capital Variable), SICAFS (Société
d’Investissement à Capital Fixe) and
OEICS (Open-Ended Investment
Companies).
This time round those conducting
our survey requested that assets under
administration for other investments
– including private equity, venture
capital, UCITS, SICAVS, SICAFS and
OEICS, as well as ‘other’ investments
such as 130/30-type vehicles – should
also be broken out to ensure that these
figures are not included in hedge fund
assets. To avoid double-counting the
figures, the survey also required respon-
dents to split assets into single-manager
and FoHFs, allowing us to provide two
separate tables of results showing the
percentage growth for administration
of single hedge funds and FoHFs since
April 2007.
A further table shows the growth of
single-fund AUA from November 2006
to November 2007. Administrators
were not allowed to include sub or feed-
er funds when providing AUA figures.
Amid ongoing industry consolidation,
a shift has taken place among partici-
pating administrators; the acquisitions
of Bisys Alternative Investment Services
by Citigroup and of Investors Bank &
Trust (IBTCO) by IFS, a State Street
Company (IFS), has combined some of
the largest fund administration giants
within the top 10 administrators listed
in the last survey, bumping up both
their figures and growth.
The definition
of ‘hedge fund
assets’ now refers
specifically to
single-manager
funds and funds
of hedge funds,
excluding other
investments
www.hfmweek.com
sponsored by
SINGLE FUNDS – YEARLY GROWTH
Single fund AUA (US$bn) Single fund AUA (US$bn) Growth (%)
company name Nov 06 Nov 07 Nov 06 - Nov 07
1 CITCO Fund Services 310.00 440.00 42%
2 IFS a State Street company 142.50 290.00 104%
3 Citi’s Hedge Fund Services 20.60 228.79 1011%
4 HSBC Securities Services 174.40 216.28 24%
5 Goldman Sachs 142.00 191.00 35%
6 Bank of New York Mellon 61.90 136.20 120%
7 Fortis Prime Fund Solutions 123.00 125.00 2%
8 CACEIS Investor Services 85.79 101.03 18%
9 Globe OP 100.10 85.00 -15%
10 SS&C Fund Services 71.00 82.00 15%*
11 UBS Fund Services 55.62 79.97 44%
12 PFPC 48.20 67.12 39%
13 JPMorgan Hedge Fund Services 37.00 53.00 43%
14 SEI 32.00 43.00 34%
15 Admiral Administration Ltd 20.53 37.00 80%
16 Butterfield Fund Services 41.20 32.00 -22%
17 Olympia Capital 31.00 31.00 0%*
18 Daiwa Securities Global Asset Services 29.84 29.15 -2%
19 RBC Dexia Fund Services 13.89 28.44 105%
20 Ophedge NEW 28.42 N/A
21 Harmonic Fund Services NEW 24.75 N/A
22 US Bancorp Fund Services 17.45 23.40 34%*
23 Spectrum Global Fund Admin 24.00 23.00 -4%
24 Custom House Admin & Corp Services 14.90 20.00 34%
25 Dundee Leeds Management Services 23.00 19.00 -17%*
26 Citadel Solutions NEW 18.70 N/A
27 Northern Trust Global Fund Services 12.06 18.40 53%
28 Kaufman Rossin Fund Services 12.10 15.44 28%
29 Euro-VL (SGSS) 9.30 15.40 66%
30 Trident Fund Services 21.00 15.30 -27%
31 Caledonian Fund Services 13.40 15.00 12%
32 Swiss Financial Services Group 10.30 14.20 38%
33 CIBC 10.00 12.50 25%
34 LaCrosse Global Fund Services 7.23 11.91 65%
35 Meridian 9.20 11.40 24%
36 Equity Fund Services 9.95 11.30 14%
37 Fulcrum 11.00 11.00 N/A*
38 AIS Fund Administration NEW 10.00 N/A
39 HedgeWorks 6.50 8.90 37%
40 Viteos Capital Market Services Limited NEW 8.00 N/A
41 BNP Paribas Securities Services 4.87 7.92 63%
42 ATC Fund Services 5.32 6.82 28%
43 Investment Data Services Group (IDS) 1.32 6.42 386%
44 Columbus Avenue Consulting 5.20 5.70 10%
45 Cayman National 4.35 5.10 17%*
46 Bank of Ireland Securities Services 2.60 4.30 65%
47 Price Meadows Incorporated 3.20 4.30 34%
48 Conifer Securities 1.86 3.90 110%
49 Apex 1.07 3.90 264%
50 Standard Bank Fund Administration 2.38 3.75 58%
51 Pinnacle Fund Administration 2.20 3.50 59%
52 Mourant International Finance Admin 5.26 3.30 -37%
53 Folio Administrators
54 Close Fund Services
1.75
0.57
3.08
2.11
76%
270%
55 MadisonGrey Fund Services
56 Banque Privee E De Rothschild
1.30
0.66
1.90
1.64
46%
148%
57 European Fund Administration NEW 1.04 N/A
58 Panoptic Fund Administration NEW
59 Circle Partners NEW
0.46 N/A
0.65 N/A
60 Trinity Fund Administrators
61 G&S
0.51
0.25
0.54
0.38
5%
50%
62 Kingsway Taitz Fund Administration 0.06
63 Legis Fund Services NEW
0.27
0.10
343%
N/A*
64 Praxis NEW
65 Royal Bank of Canada 1.98
0.08 N/A
0.00 -100%
66 BISYS Alternative Investment Services 151.47 N/A N/A**
67 Investors Bank & Trust (Ireland) 144.60 N/A N/A***
TOTAL 2094.74 2703.14 29%
*No new figures for November 2007 **Now consolidated with Citi’s Hedge Fund Services ***Now consolidated with IFS, A State Street Company
6-12 December 2007 | 27
9th HFMWeek hedge fund administrator survey
HFMWeek also welcomes two niche
newcomers in our latest survey: Isle of
Man-based Galileo Fund Administration
and European Fund Administration, an
independent specialist administrator.
Breakdown
HFMWeek’s latest survey finds that the
percentage growth in AUA has slowed
compared with previous years.
However, the 11% growth in single-
manager AUA reported this November
is a positive reflection on the indus-
try’s ability to hold its own despite the
turbulence endured by the hedge fund
space, and indeed by financial markets
in general, as a result of the summer’s
subprime and credit crunch-inspired
market gyrations.
Two years ago, the fifth biannual
HFMWeek Hedge Fund Administrators
Survey reported single-manager assets
under administration had risen by a
third to $1.3trn. Last November, that
figure grew by a generous 53% in the
space of a year, with single-manager
assets in November 2006 at $2trn.
The 11% growth
in single-manager
AUA is a positive
reflection of the
industry holding
its own despite the
turbulence endured
as a result of
market gyrations
Figures reported in the eighth bian-
nual survey in April revealed a 17%
growth over the prior six months for
single-manager funds, with AUA reach-
ing the $2.5trn milestone. FoHF AUA
climbed 18% from $955bn to $1.1trn in
the same period. Total combined assets
in the industry represented 17% growth,
with AUA increasing from $3trn to
$3.5trn in the space of six months.
Still, industry growth has slowed
overall, with single manager AUA ris-
ing by a smaller but still respectable 11%
in the past six months, with global sin-
gle-manager hedge fund assets under
administration having increased from
28 | 6-12 December 2007
sponsored by
FUNDS OF hedge FUNDS – 6 months growth
Fund of Funds AUA (US$bn) Fund of Funds AUA (US$bn) Growth (%)
company name Apr 07 Nov 07 Apr 07 - Nov 07
1 Fortis Prime Fund Solutions 170.00 200.00 18%
2 CITCO Fund Services 140.00 180.00 29%
3 UBS Fund Services 76.24 115.85 52%
4 HSBC Securities Services 87.40 97.84 12%
5 IFS, a State Street company 49.90 85.00 70%
6 Citi’s Hedge Fund Services 4.10 72.08 1658%
7 SEI 56.00 57.00 2%
8 BNP Paribas Securities Services 25.80 52.75 104%
9 PFPC 46.80 46.43 -1%
10 Butterfield Fund Services 28.10 41.50 48%
11 Euro-VL (SGSS) 59.00 40.29 -32%
12 Bank of New York Mellon 27.60 39.16 42%
13 CACEIS Investor Services 22.92 33.24 45%
14 SS&C Fund Services 27.00 27.00 0%*
15 RBC Dexia Fund Services 22.82 26.03 14%
16 Swiss Financial Services Group 23.10 25.60 11%
17 Olympia Capital 25.00 25.00 0%*
18 Northern Trust Global Fund Services 13.79 17.49 27%
19 Royal Bank of Canada 17.30 17.13 -1%
20 Banque Privee E De Rothschild 9.80 15.44 58%
21 JPMorgan Hedge Fund Services 4.10 13.30 224%
22 Spectrum Global Fund Admin 9.50 11.00 16%
23 DAIWA Securities Global Asset Services 7.20 8.60 19%
24 Custom House Admin & Corp Services 6.10 7.30 20%
25 Trident Fund Services 6.15 6.60 7%
26 US Bancorp Fund Services 6.40 6.40 0%*
27 Admiral Administration Ltd 5.25 5.75 10%
28 CIBC 5.00 5.00 0%
29 Equity Fund Services 4.35 4.65 7%
30 Close Fund Services 4.83 3.95 -18%
31 Caledonian Fund Services 3.45 3.85 12%
32 Circle Partners 2.10
33 Bank of Ireland Securities Services 2.10
2.50
2.20
19%
5%
34 Folio Administrators
35 Harmonic Fund Services
1.80
1.75
2.02
1.81
12%
3%
36 HedgeWorks
37 Price Meadows Incorporated
1.60
1.20
1.80
1.75
12%
46%
38 Kaufman Rossin Fund Services 1.50
39 Investment Data Services Group (IDS) 1.04
1.65
1.42
10%
37%
40 Apex 0.86 1.23 43%
41 ATC Fund Services 0.47 1.15 145%
42 Meridian 0.80 1.10 38%
43 MadisonGrey Fund Services
44 Trinity Fund Administrators
0.61
1.08
1.10
0.93
81%
-14%
45 Citadel Solutions
46 Columbus Avenue Consulting
0.37
0.70
0.91
0.80
149%
14%
47 Standard Bank Fund Administration 0.40
48 Praxis 0.36
0.53
0.51
33%
42%
49 Dundee Leeds Management Services 0.50 0.50 N/A*
50 Cayman National 0.40 0.40 N/A*
51 Pinnacle Fund Administration 0.12 0.26 117%
52 Viteos Capital Market Services Limited 0.08 0.25 233%
53 European Fund Administration NEW 0.20 N/A
54 Panoptic Fund Administration 0.12 0.13 12%
55 Legis Fund Services 0.12 0.12 N/A*
56 Kingsway Taitz Fund Administration 0.06 0.05 -17%
57 Galileo Fund Services NEW 0.03 N/A
58 Conifer Securities 0.02 0.02 0%
59 Globe OP 23.35 0.00 -100%
60 BISYS Alternative Investment Services 63.08 0.00 N/A**
61 Investors Bank & Trust (Ireland) 4.00 0.00 N/A***
TOTAL 1105.57**** 1316.59 19%
*No new figures available **Now consolidated with Citi’s Hedge Fund Services ***Now consolidated with IFS, A State Street Company
****Total is less $23.10bn included in previous survey in error
$2.5trn to $2.7trn. FoHFs’ AUA also 19% from $1.1trn to $1.3trn over the past
fared well under the circumstances, with six months.
institutionalisation still driving growth However, over the past 12 months, the
in the space: assets have increased by growth of single-manager AUA has actu-
www.hfmweek.com
9th HFMWeek hedge fund administrator survey
ally dipped, falling to 29% compared with
the November 2005-November 2006
period, when growth was 53%. However,
the industry is showing no signs of slow-
ing down with steady inflows and new
respondents each year.
Market share
CITCO Fund Services tops the table for
the administrator with the lion’s share
of single-manager AUA. The global
administration behemoth has outdone
its competitors despite the major consol-
idations in the past six months. CITCO
reported its single-manager AUA share
grew to $440bn from $390bn in the past
six months, a substantial increase even
though the firm’s percentage growth for
single AUA has halved compared with
the previous survey.
Between November 2006 and April
2007, CITCO’s assets increased by
$80bn, a 26% increase in the space
CITCO Fund
Services has
outdone its
competitors
despite the major
consolidations that
have taken place
in the past six
months
of six months. This time around the
administrator’s single-manager assets
have increased by 13% since April, not
quite as hefty as the previous six-month
period but that still represents a mas-
sive $50bn in assets.
CITCO now administrates 1,500
single-manager hedge funds, having
gained almost 100 new clients since
the previous survey. The majority of the
firm’s growth, however, is organic and
has come from existing clients, accord-
ing to a statement from the firm.
HSBC Securities Services is the big-
gest mover in terms of its placement
in the top 10 table, falling casualty to
the consolidations between Citigroup
Global Transaction Services and Bisys
Alternative Investment Services, and
IFS with IBTCO.
30 | 6-12 December 2007
sponsored by
TOTAL AUA – 6 MONTHS GROWTH
Total AUA (US$bn) Total AUA (US$bn) Growth (%)
company name Apr 07 Nov 07 Apr 07 - Nov 07
1 CITCO Fund Services 530.00 620.00 17%
2 IFS, a State Street company 216.70 375.00 73%
3 Fortis Prime Fund Solutions 284.00 325.00 14%
4 HSBC Securities ServiceS 262.20 314.12 20%
5 Citi’s Hedge Fund Services 24.70 300.87 1118%
6 UBS Fund Services 132.79 195.82 47%
7 Goldman Sachs 158.00 191.00 21%
8 Bank of New York Mellon 117.80 175.36 49%
9 CACEIS Investor Services 123.11 134.27 9%
10 PFPC 104.00 113.55 9%
11 SS&C Fund Services 109.00 109.00 0%*
12 SEI 96.00 100.00 4%
13 Globe OP 123.45 85.00 -31%
14 Butterfield Fund Services 71.30 73.50 3%
15 JPMorgan Hedge Fund Services 44.40 66.30 49%
16 BNP Paribas Securities Services 31.32 60.67 94%
17 Olympia Capital 56.00 56.00 0%*
18 Euro-VL (SGSS) 80.26 55.69 -31%
19 RBC Dexia Fund Services 53.18 54.47 2%
20 Admiral Administration Ltd 31.24 42.75 37%
21 Swiss Financial Services Group 36.20 39.80 10%
22 Daiwa Securities Global Asset Services 36.83 37.75 2%
23 Northern Trust Global Fund Services 28.07 35.89 28%
24 Spectrum Global Fund Admin 36.00 34.00 -6%
25 US Bancorp Fund Services 29.80 29.80 -0%*
26 Ophedge 20.90 28.42 36%
27 Custom House Admin & Corp Services 22.70 27.30 20%
28 Harmonic Fund Services 22.00 26.56 21%
29 Trident Fund Services 29.45 21.90 -26%
30 Citadel Solutions 14.47 19.61 36%
31 Dundee Leeds Management Services 19.50 19.50 0%*
32 Caledonian Fund Services
33 CIBC
16.85
16.00
18.85
17.50
12%
9%
34 Royal Bank of Canada
35 Kaufman Rossin Fund Services
19.37
15.90
17.13
17.09
-12%
7%
36 Banque Privee E. De Rothschild
37 Equity Fund Services
10.86
14.60
17.08
15.95
57%
9%
38 LaCrosse Global Fund Services
39 Meridian
7.22
10.50
12.78
12.50
77%
19%
40 Fulcrum
41 HedgeWorks
11.00
9.60
11.00
10.70
0%*
11%
42 AIS Fund Administration 6.00
43 Viteos Capital Market Services Limited 4.38
10.00
8.25
67%
89%
44 ATC Fund Services 6.47
45 Investment Data Services Group (IDS) 2.90
7.97
7.84
23%
170%
46 Columbus Avenue Consulting 5.70 6.50 14%
47 Bank of Ireland Securities Services 6.30 6.50 3%
48 Close Fund Services 6.48 6.06 -6%
49 Price Meadows Incorporated 5.00 6.05 21%
50 Cayman National 5.50 5.50 0%*
51 Apex 2.76 5.13 86%
52 Folio Administrators 4.10 5.10 24%
53 Standard Bank Fund Administration 3.67 4.28 17%
54 Conifer Securities 3.62 3.92 8%
55 Pinnacle Fund Administration 3.02 3.76 25%
56 Mourant International Finance Admin 6.20 3.30 -47%
57 Circle Partners 2.70 3.15 17%
58 MadisonGrey Fund Services 1.83 3.00 64%
59 Trinity Fund Administrators 1.85 1.47 -21%
60 European Fund Administration New 1.24 N/A
61 Panoptic Fund Administration 0.83 0.59 -29%
62 Praxis 0.37 0.59 59%
63 G&S 0.35 0.40 13%
64 Kingsway Taitz Fund Administration 0.30 0.32 5%
65 Legis Fund Services 0.21 0.21 N/A*
66 Galileo Fund Services New 0.03 N/A
67 BISYS Alternative Investment Services 232.99 0.00 N/A**
68 Investors Bank & Trust (Ireland) 158.00 0.00 N/A***
TOTAL 3548.78**** 4019.73 13%
*No new figures available **Now consolidated with Citi’s Hedge Fund Services ***Now consolidated with IFS, A State Street Company
www.hfmweek.com
9th HFMWeek hedge fund administrator survey
In the last survey HSBC came in sec-
ond place in single-manager AUA, a
rank it had held since April 2006 even
though its total AUA had essentially
held steady.
HSBC reported AUA of $174.8bn
in April, an increase of $400m, from
$174.4bn in November 2006.
In a significant turnaround, HSBC
now has $216.28bn in assets, a healthy
24% increase since April. According to
Tim Howell, head of HSBC Securities
Services, the firm is seeing institutional
investors – particularly pension funds
and asset managers – servicing the
institutional market and driving growth
in the alternative sector.
“Our largest areas of growth within
the single-fund mangers have been
with emerging markets, equity market-
neutral, event-driven, global macro and
multi-strategy,” he said.
IFS is now the
sponsored by
TOP 10 SINGLE FUND AUA administrators by % growth
Single fund AUA (US$bn) Single fund AUA (US$bn) Growth (%)
company name Apr 07 Nov 07 Apr 07 - Nov 07
1 Citi’s Hedge Fund Services 20.60 228.79 1011%
2 IFS, a State Street company 166.80 290.00 74%
3 Bank of New York Mellon 90.20 136.20 51%
4 HSBC Securities Services 174.80 216.28 24%
5 Goldman Sachs 158.00 191.00 21%
6 CITCO Fund Services 390.00 440.00 13%
7 Fortis Prime Fund Solutions 114.00 125.00 10%
8 CACEIS Investor Services 100.19 101.03 1%
9 SS&C Fund Services 82.00 82.00 0%*
10 Globe OP 100.10 85.00 -15%
* no new figures available
TOP 10 fund of funds AUA administrators by % Growth
Fund of Funds AUA (US$bn) Fund of Funds AUA (US$bn) Growth (%)
company name Apr 07 Nov 07 Apr 07 - Nov 07
1 Citi’s Hedge Fund Services 4.10 72.08 1658%
2 BNP Paribas Securities Services 25.80 52.75 104%
3 IFS, a State Street company 49.90 85.00 70%
4 UBS Fund Services 76.24 115.85 52%
5 Butterfield Fund Services 28.10 41.50 48%
6 CITCO Fund Services 140.00 180.00 29%
7 Fortis Prime Fund Solutions 170.00 200.00 18%
8 HSBC Securities Services 87.40 97.84 12%
9 SEI 56.00 57.00 2%

second-largest 10 PFPC 46.80 46.43 -1%

administrator, TOP 10 total aua administrators by % growth

as predicted by Total AUA (US$bn) Total AUA (US$bn)
company name Apr 07 Nov 07
Growth (%)
Apr 07 - Nov 07

HFMWeek in the 1 Citi’s Hedge Fund Services

2 IFS, a State Street company
24.70
216.70
300.87
375.00
1118%
73%
previous survey, 3 Bank of New York Mellon 117.80 175.36 49%

with single-
4 UBS Fund Services 132.79 195.82 47%
5 Goldman Sachs 158.00 191.00 21%
manager AUA 6 HSBC Securities Services
7 CITCO Fund Services
262.20
530.00
314.12
620.00
20%
17%
of $290bn 8 Fortis Prime Fund Solutions 284.00 325.00 14%
9 PFPC 104.00 113.55 9%
10 CACEIS Investor Services 123.11 134.27 9%

“FoHFs’ AUA has also grown signifi-

cantly over the past year.”
HSBC reported a 12% growth in
FoHF assets under administration,
with around $10bn more in assets
than six months ago – a significant
shift from the 4% increase detailed in
the previous survey. Despite this tre-
mendous comeback in performance,
HSBC has fallen two places in the top
10 league since April, and is now the
fourth-largest administrator by single-
manager AUA.
Pairing up
Knocking HSBC off the second place
spot was IFS, which was sixth in the
league in the last survey, with $154bn in
AUA before its acquisition of IBTCO.
IFS, which had $166.8bn as of April
2007, is now the second-largest hedge
fund administrator, as predicted by
HFMWeek in the previous survey, with
$290bn in single-manager AUA.
In fact, the eighth biannual survey
estimated that IFS and IBTCO’s total
combined AUA would be $374.7bn. In
fact the total combined AUA is $375bn,
so the previous survey’s estimation was
just shy of the mark.
However, it does appear that despite
the 74% growth by IFS due to the con-
solidation, there has not been an actu-
al growth in AUA for the combined
administrator. A spokesperson from
IFS was not contactable for comment
before going to press.
Another successful pairing report-
ing their consolidated figures were
Citigroup Global Transaction Services
and Bisys Alternative Fund Services. Citi
announced it had agreed to acquire Bisys
Group for $1.45bn in May. The admin-
istrator is now known as Citi’s Hedge
Fund Services.
“The Citi acquisition of Bisys has com-
bined the strengths of both companies,”
said Bob Donahoe, managing director
of Citi’s Hedge Fund Services. 
“Citi’s broad range of products and
services enables us to provide the most
innovative solutions for our clients.  We
continue to stay focused and provide the
experience, expertise and resources our
clients are accustomed to.”
As result of the acquisition, Citi, which
had $24.7bn in assets in April, now has
total combined assets of $300.87bn,
close to the $257.9bn HFMWeek pre-
dicted in our prior survey. The com-
bined entity now has $228.79bn in

32 | 6-12 December 2007 www.hfmweek.com

9th HFMWeek hedge fund administrator survey
single-manager AUA and $72.08bn in
FoHF AUA, thanks to its soaking up of
Bisys’s $169.9bn in assets.
Donahoe noted growth has also come
from new clients. “Given the institution-
al calibre of our business, we continue
to see strong growth from both existing
clients as well as new start-ups,” he said.
“We have been experiencing growth in
both the fixed income/credit funds as
well as fund of funds.”
Top 10
Other usual suspects in the top 10
included the Bank of New York, which
recently merged with Mellon to form
Bank of New York Mellon. The com-
bined entity reported 51% growth in its
Margins within
the industy are
sponsored by
TOP 10 ADMINISTRATORS BY SINGLE FUND % GROWTH
Single fund AUA (US$bn) Single fund AUA (US$bn) Growth (%)
company name Apr 07 Nov 07 Apr 07 - Nov 07
1 Citi’s Hedge Fund Services 20.60 228.79 1011%
2 Praxis 0.01 0.08 700%
3 Investment Data Services Group (IDS) 1.86 6.42 245%
4 Apex 1.90 3.90 105%
5 Viteos Capital Market Services Limited 4.30 8.00 86%
6 IFS, a State Street company 166.80 290.00 74%
7 AIS Fund Administration 6.00 10.00 67%
8 LaCrosse Global Fund Services 7.22 11.91 65%
9 MadisonGrey Fund Services 1.22 1.90 56%
10 Banque Privee E De Rothschild 1.06 1.64 55%
TOP 10 ADMINISTRATORS BY fund of funds % GROWTH
Fund of Funds AUA (US$bn) Fund of Funds AUA (US$bn) Growth (%)
company name Apr 07 Nov 07 Apr 07 - Nov 07
1 Citi’s Hedge Fund Services 4.10 72.08 1658%
2 Viteos Capital Market Services Limited 0.08 0.25 233%
3 JPMorgan Hedge Fund Services 4.10 13.30 224%
4 Citadel Solutions 0.37 0.91 149%
5 ATC Fund Services 0.47 1.15 145%
6 Pinnacle Fund Administration
7 BNP Paribas Securities Services
0.12
25.80
0.26
52.75
117%
104%
8 MadisonGrey Fund Services 0.61 1.10 81%

not as attractive 9 IFS, a State Street company

10 Banque Privee E De Rothschild
49.90
9.80
85.00
15.44
70%
58%
as in the past,
TOP 10 ADMINISTRATORS BY total % GROWTH
due to increased Total AUA (US$bn) Total AUA (US$bn) Growth (%)
competition and company name Apr 07 Nov 07
1 Citi’s Hedge Fund Services 24.70 300.87
Apr 07 - Nov 07
1118%
a proliferation 2 Investment Data Services Group (IDS) 2.90 7.84 170%

of new start-up 3 BNP Paribas Securities Services

entrants
single-manager AUA following the con-
solidation, and a 42% increase in FoHF
AUA. The firm’s combined AUA total
$175bn.
As would be expected, consolida-
tions have significantly changed the
face of the top 10 compared with pre-
vious surveys.
According to Robert Lockhart, vice-
president, alternative investment ser-
vices at Bank of New York Mellon,
consolidation is likely to pause for the
moment but will eventually continue.
“There are not enough good-quality,
mid-sized TPAs (third-party admin-
istrators) out there who are attrac-
tive, or indeed available, for the right
price,” he said.
“Consolidation is likely to come via the
‘back door’ as a result of ‘super mergers’
of banks and service providers.”
Andre Valente, global head of busi-
ness development & client relation-
ships, fund services, at UBS Global Asset
4 Viteos Capital Market Services Limited
31.32
4.38
5 Apex
6 LaCrosse Global Fund Services
2.76
7.22
7 IFS, a State Street company 216.70 375.00 73%
8 AIS Fund Administration 6.00 10.00 67%
9 MadisonGrey Fund Services 1.83 3.00 64%
10 Praxis 0.37 0.59 59%
Management backed this assessment,
though he suspects consolidation will
come at the smaller end of the scale.
“The industry has already experi-
enced significant consolidation activity
to date as many of the major indepen-
dent administrators were acquired by
commercial and investment banks,”
Valente added. “There are a few inde-
pendents which could be considered
acquisition targets.”
To be sure, margins within the indus-
try are not as attractive as in the past
due to increased competition as well as
a proliferation of new start-up entrants
over the past 18 months.
“There are too many small parties all
fighting for the same pie, which still
puts margins under pressure while at
the same time pushing levels up,” said
Joost Lobler of Equity Fund Services, a
60.67
8.25
94%
89%
5.13
12.78
86%
77%
smaller administrator with $11.3bn in
single-manager assets.
“Larger, more established administra-
tors are focusing on institutional clients
with significant assets under manage-
ment to protect capacity. The industry
will experience smaller providers posi-
tioning themselves on specific strategy
types, strong technology and/or valua-
tion capabilities.”
Some smaller administrators are
reaping the benefits brought on by the
upsurge in consolidation.
“Over the past year, our main driv-
ers for growth have been the unrest
funds are having with all of the con-
solidation in the industry and the lack
of service fund managers have received
as a result,” said Robert Kapustein,
assistant vice-president of marketing at
MadisonGrey Fund Services, which has

34 | 6-12 December 2007 www.hfmweek.com

9th HFMWeek hedge fund administrator survey
$3bn in total AUA. MadisonGrey finds
itself in the top ten highest growers for
this survey, displaying a 64% growth in
its total assets, with AUA growing from
$1.83bn to $3bn since April.
Kapustein said: “There has been
a flight to quality amongst managers
which is good for institutional quality
SAS70 administrators [administrators
possessing a Statement on Auditing
Standards qualification].”
But sometimes size matters. “The
larger administrators are trend-
ing upwards at a faster clip than the
smaller, less well-known administrative
groups. Consolidation will continue
over the next two years, leaving small-
Administrators
sponsored by
Incorporating broader categories
Traditionally, the biannual HFMWeek Hedge Fund Administrators
Survey requested that hedge fund administrators provided figures for
their assets under administration (AUA) for just single-manager hedge
funds and funds of hedge funds. This time however, the survey has broad-
ened its remit, requesting that hedge fund administrators report AUA
in private equity, venture capital, UCITS, SICAVS, SICAFS and OEICS,
as well as ‘other’ investments such as 130/30 type vehicles, separately in
order to ensure there is no double counting.
The following table displays the total assets under administration split
between single-manager hedge funds, FoHFs, UCITS, SICAVS, SICAFS,
OEICS, private equity and venture capital funds and all “other” types of
funds. Assets administered by the 66 participants in the current survey
total $104.3trn. n
total assets under administration by category
CATEGORY TOTAL
a) Single-Manager Hedge Fund Assets Under Administration 2703.14
b) Fund of Hedge Fund Assets Under Administration 1316.59
c) UCITS, SICAVS, SICAFS, OEICS, Venture Capital or Private Equity vehicles 3387.43

expect that d) Other Fund Assets Under Administration (i.e. 130/30)

Total Hedge Fund Assets Under Administration (Total of a & b)
3028.67
4019.73
there will be a Total Assets Under Administration (Total of a, b, c & d)

10435.83

continued increase
in institutional
demands for hedge
fund opportunities
and information by
investors
to mid-size funds with service gaps,”
added Kapustein.
MadisonGrey’s single-manager AUA
increased by 56% from $1.22bn to
$1.90bn and its FoHF AUA by 81%,
from $610m to $1.10bn over the past
six months.
Institutional drive
UBS has carved itself a generous slice
of the FoHF AUA share, with $115bn
of its total $196bn in AUA attributed
to FoHF assets.
The administrator has jumped ahead
one place to third-largest FoHF admin-
istrator since the April 2007 HFMWeek
Survey. According to Valente, the main
reasons behind the growth are con-
tinued steady growth with significant
transfers of existing FoHF business
and a continuing interest from Asian
institutional investors.
The FoHF industry continues to
grow, with the bulk of institutions still
a long way from possessing the exper-
tise to select and manage hedge fund
portfolios, according to Jaron van Dam,
chief commercial officer at Fortis Prime
Fund Solutions, the administrator top-
ping the league for FoHF AUA in the
latest survey.
Fortis, which administers $200bn in
FoHF assets, has grown by 18% in the
past six months, in line with the indus-
try’s overall upwards trend.
The administrator remains in the
top 10 tables for both single-manager
AUA and total combined AUA, where it
ranked as third-largest administrator by
total hedge fund assets. Fortis’s single
fund AUA grew by a meagre 2% from
$123bn to $125bn. While its total assets
have increased by 14% from $262.2bn
to a generous $325bn.
Most administrators expect that there
will be a continued increase in institu-
tional demands for hedge fund oppor-
tunities and information by investors,
according to Hans Hufschmid, CEO of
GlobeOp, an administrator with $85bn
in total combined AUA which recently
became a listed company.
He predicts that this will be seen
especially within FoHFs, which are “an
important entry point for institutions
wishing to invest in hedge funds to help
diversify exposure, limit concentration
risk and select the most appropriate
investment strategies,” Hufschmid said.
Credit crunch
Overall, the latest survey showed a gen-
erally slower growth rate for the indus-
try as a whole. Equity Fund Services’s
Lobler noted that the summer’s credit
crunch-inspired market gyrations were
one of the main reasons for this slower
rate of increase.
“Unfortunately, we have lost a num-
ber of large clients as a result of the
credit crunch, resulting in a slower
growth rate than we had hoped for this
last six months,” he said.
However, the firm did not fare too
badly, producing a 10% increase in
single-manager AUA and a 7% gain in
FoHF AUA, averaging a total combined
growth of 9%.
Despite the slower growth, assets
under management will continue to
grow at a much faster pace than the
traditional asset management industry,
with asset inflows skewed toward larger
hedge fund firms with strong, but cost-
ly, operational infrastructures, accord-
ing to Fortis’s van Dam.
However, that doesn’t faze the
smaller administrators. Indeed, the
outlook for the industry is strong,
according to Jack McDonald executive
vice-president of Conifer Securities,
which achieved an overall 8% increase
in total hedge fund AUA in the latest
six-month period, compared with 94%
in April.
“Despite the credit crunch, the search
for alpha is still on,” McDonald said.
“Assets continue to flow into the field,
and many managers are seeing this as an
opportunistic time for investment.” n

36 | 6-12 December 2007 www.hfmweek.com