NEWS AND INFORMATION - Details
| Articles | Industry Interviews | Conferences | Employment Classifieds |
 
 
ANNUAL OFFSHORE HEDGE FUNDS ADMINISTRATORS SURVEY
 

Largest Third Party Administrators of Offshore Hedge Funds

Market share by net assets

Market share by number of funds

# of fund administration offices (principal office)

Citco Fund Services

20.0%

22.9%

14 (Curażao)

Bisys Fund Services

10.8%

7.5%

4 (Bermuda)

Goldman Sachs

10.3%

5.1%

3 (Cayman)

International Fund Services

10.2%

6.0%

2 (Dublin)

Fortis

10.0%

7.6%

6 (Dublin)

UBS

5.8%

6.6%

1 (Cayman)

Bank of Bermuda

5.0%

5.7%

11 (Bermuda)

BNY Alternative Inv. Services

3.5%

2.9%

4 (NY/Bermuda)

Olympia

3.2%

5.1%

4 (Bermuda)

Prime Management

2.4%

0.6%

1 (Bermuda)

Butterfield Fund Managers

2.3%

4.9%

3 (Bermuda)

Dundee Leeds Management

2.1%

1.8%

3 (Bermuda)

PFPC

1.9%

3.1%

5 (Dublin)

SEI Investments

1.5%

2.1%

3 (Dublin)

Admiral

1.5%

2.5%

1 (Cayman)

Daiwa Europe

1.3%

1.1%

3 (Dublin)

DPM

1.2%

2.2%

2 (Somerset, NJ)

Trident Trust Company

0.8%

1.9%

4 (Bermuda)

Custom House

0.6%

2.6%

1 (Cayman)

International Fund Managers

0.6%

1.0%

2 (Dublin)

Tranaut Fund Administration

0.5%

0.7%

2 (Dublin)

Meridian Corporate Services

0.3%

1.5%

1 (Bermuda)

Source: HFN proprietary research on over 4,400 offshore hedge funds with total reported capital in excess of $490 billion.

Our annual survey of offshore hedge fund administrators provides the broadest picture of the offshore hedge fund industry. Offshore hedge fund assets have continued to grow from a year ago with aggregate single manager fund assets up 17% from $418 billion in June 2002 to $496 billion in June 2003. New funds with strong pedigrees continue to attract large amounts of capital from day one, while others have to prove themselves over longer periods than earlier. The capital raising environment in the offshore fund market is increasingly dominated by funds of funds which have become a large business segment for offshore administrators, representing for some as much as 20% of their offshore hedge fund assets under administration.

The major trends noted in last year's survey have persisted with increasing integration between the operations of managers, prime brokers and administrators, the institutionalization of the business and the increased due diligence required at all levels by anti money-laundering regulations and the USA Patriot Act (see HFN May 2002 issue). In a continuing sign of the institutionalization of the hedge fund world and related services, there was another important acquisition of offshore administrator with the purchase of IFA by Bank of New York, coming on the heels of that of Hemisphere by Bisys and IFS by State Street. The disclosure and record-keeping requirements in subscription agreements keep on increasing. For instance, many offshore fund documents now require investing entities to undertake to maintain investor information for five years after redemption, following a rule adopted last May by the U.S. Treasury for mutual funds. The issues related to oversight of hedge funds, domestic as well as offshore, by independent parties are gaining importance particularly in the area of security pricing. Some administrators have commented on the need to establish industry best practices for valuing complex securities. A.B.

Jurisdictions of Incorporation

Overall Market Share as of 12/31/02

Overall Market Share Five Years Ago (12/31/97)

Cayman

54%

32%

BVI

25%

41%

Bermuda

10%

13%

Bahamas

4%

8%

Ireland

3%

0%

Source: The U.S. Offshore Funds Directory 2003 Edition

 
Back to Top