Service provider benchmarking
Our benchmarking services cover the following areas
Custody and treasury
- There are currently more than 100 Dutch, French, German, UK, Canadian, and US institutions relying on our custody and treasury services, meaning that our benchmarking analysis provides unparalleled coverage of the custody market
- Automated links have been established with ten global and six regional custodians, allowing for faster, more accurate analysis
- Core custody services benchmarked include late settling trades, late income payments, and analysis of credit and debit interest rates
Fund accounting
We monitor and assess data from 12 fund accounting firms on behalf of over 25 fund manager clients.
- We cover the universe of UK, Dublin, and Luxembourg domiciled mutual funds, UK unit linked funds and Canadian fund ranges
- We benchmark 30,000 fund level NAVs per month, representing an AUM of more than $800 billion
Foreign exchange (“FX”)
We undertake both ongoing FX benchmarking and one-off historic audits.
- We benchmark an annual volume of around 800,000 FX deals worth around $2 trillion annually for more than 50 clients
- FX data is sourced directly from custodian banks or, when requested, from the client
- We assess the transaction costs of all FX trading data for any chosen peer group, counterparty, or group of counterparties
Investment operations
- We benchmark the “middle office” services of large fund managers. Most larger managers have outsourced these functions to custodian banks
- However, we assist those who have not by benchmarking their internal operations against a peer group of clients where these functions have been outsourced
We support key governance and commercial objectives
Ongoing monitoring
Our monthly reports enable the client to identify problems and risks at an early stage.
- Trends as well as isolated incidents are monitored on a monthly basis
- Service providers receive the same reports and know they are being continuously monitored
- Thanks to our reporting, clients can benchmark the service levels received from their service provider against other clients of the same custodian or clients using different custodians
Governance and fiduciary oversight
Easily demonstrate to regulators and third-party clients a proven due diligence process to monitor and improve services provided by custodian banks.
- Service quality is monitored on an ongoing basis with monthly evaluation
- Fees are benchmarked and reviewed on an annual basis
Cost and commercial arrangements
Negotiate with full transparency of market pricing and any discounts available.
- FX spreads: Typically range between $1-20m in savings
- Cash management: Up to $3m in interest savings
- Annual fee benchmarking: Greater than 30% reduction in fees
NB: Savings are indicative only and will vary on a client-by-client basis.
Fee benchmarking services
As part of our fee benchmarking services, we thoroughly review your service providers’ fees, benchmark your fee schedule against your competitors, and ensure that your subsequent commercial arrangements are competitive.
We enable you to prove to the board, regulators, and third-party clients that you have a proven independent due diligence process in place to monitor and improve the cost of services received.
Methodology, approach, and outcome
In the course of normal business, we regularly carry out fee benchmarking assignments for our clients. The data your fee schedule is compared against is current and live, representing clients who are actively managing their service provider costs.
Our extensive database of fee schedules enables us to create a tailored comparison group, meaning that your existing service provider fee schedule is measured against clients of similar AUM and structure. A standard data template allows you to provide us with data from recent invoices. Our clients have seen significant savings as a result of the analysis produced.
Scope of fee benchmarking review
Virtually all facets of your service provider(s) fee schedule can be included in the review, typically involving:
- Core custody fees
- Fund accounting fees
- Depositary / Trustee / Fiduciary fees
- Transfer agency fees
Detailed summaries or analyses are provided as standard for each area. Our aim is to highlight areas that are out of line with market pricing and areas that offer potential cost savings. We will work with you to support or lead any discussions with your provider on the back of our analysis.
