The report addresses a number of issues. Regulation, valuation, complexity of structures and loss of assets under administration are all major concerns for the industry.

In addition aA wide range of services is planned by fund administrators looking to move into front- and middle-office areas, along with ways to increase efficiency.

With fewer new launches and assets under administration still at low levels, there is more pressure on fees and ways to cut costs.

Finally, independent valuation tops the list of concerns for administrators calculating NAV, particularly where OTC or hard-to-value securities are used.

CONTENTS

All change
What are the main challenges facing fund administrators over the next 12–18 months?

Technology quandary
How will technology requirements change over the next 12–24 months? What are the technological challenges facing hedge fund administration?

Focus on middle and back office
What new services will you be introducing over the next 12–18 months? What are some of the value-added services now being offered by fund administrators?

Braced for impact
What impact do you expect increased regulation to have on fund administrators and their hedge fund clients in 2010? Do you expect permanent and significant changes as a result?

Round the clock
How critical is it to have 24/7 global coverage?

More clarity demanded
What is the impact on and challenges for administrators of the need for funds and funds of hedge funds to provide more detailed operational risk reporting to investors?

Independence at centre of valuation
What are the main challenges fund administrators face in verifying valuations to calculate NAV? How are administrators valuing illiquid or hard-to-value instruments and what are the problems they face?

Increase in daily reporting
What percentage of the funds you administer request daily reconciliation and/or NAV calculation? Are the majority of funds asking for this service?

Open for business
What are the main criteria you use to accept/reject a hedge fund client? What types of funds do you prefer?

Testing times for smaller administrators
Do you think niche/boutique fund administration will be able to survive?

You get what you pay for
How will costs change over the medium and long term? How much is it a factor in the choice of an administrator?

Big getting bigger
Do you expect to see consolidation of the fund administration sector in the short/medium term?

All mixed up
As the demarcations between traditional long strategies, private equity and hedge funds blur, what impact will this have on fund administration?

Investors seek variety
How do the needs or requirements of investors vary? What are the differences between, say, family offices and institutional investors?

Expanding markets widen service range
Where are the new or expanding markets for fund administration? How is growth in emerging markets impacting fund administration services?

Power shifts to investors
How much influence do investors have on a fund’s choice of administrator?

Getting to grips with Ucits
What are the specific challenges for fund administrators dealing with Ucits III hedge funds and funds of hedge funds?

Changing relationships
What is the relationship between the administrator and custodian and how will this change over the medium to long term?

More optimism in 2010
What percentage of hedge fund/fund of hedge fund clients have you lost/gained in 2009? What are your forecasts for 2010?

Multiplying challenges
With the rise of multiple prime brokers, what are the challenges for fund administrators?

US still reluctant to outsource
How important is independent third-party outsourcing of administration for a fund?

Litigation avoidance
What are the main legal risks a fund administrator faces?

Plethora of service offerings
How will the increasing pressure to have independent validation of pricing impact fund administrators?

Participants in the Global Fund Administration Management Report

Apex Fund Services
Peter Hughes, group managing director

Bank of Ireland Securities Services
Liam McNiffe, head of hedge fund services

BNY Mellon
David Aldrich, managing director

Butterfield Fulcrum
Akshaya Bhargava, CEO

Citco Fund Services (London)
Oliver Scully, managing director

Citi
Richard Ernesti, managing director, global head of client and sales management for investor services, global transaction services

Custom House Global Fund Services
Dermot Butler, chairman

Equinoxe Alternative Investment Services
Stephen Castree, CEO

GlobeOp
Hans Hufschmid, CEO

HSBC Securities Services
Paul Stillabower, global head of business development, fund services

Kleinwort Benson
Joseph Truelove, head of Channel Islands business development

LaCrosse Global Fund Services
Stuart Feffer, co-CEO

Legis Fund Services
Martin Tolcher, managing director

Northern Trust
Ian Headon, senior vice president of product management for alternatives, Europe, Middle East and Africa

Omnium
John Buckley, president

SEI
David Morrissey, new business development, Europe and the Middle East, investment manager services division

State Street Alternative Investment Solutions
Deborah Yamin, senior vice president of strategy and product development

Trinity Fund Administration
John McCann, managing director

Viteos Fund Services
Jonathan White, business development manager, Nothern America