Citco reported the greatest amount of HF assets for funds located in North America, Europe and Asia at the end of 2008. The firm’s North America HF assets grew from 65% to 69% of total assets. Citi was replaced as the second largest administrator of North American hedge fund assets by The Bank of New York Mellon, but remained solidly in the top three. OpHedge Investment Services, JPMorgan Hedge Fund Services and Admiral Administration are new to the North American top ten. SS&C Fund Services and SEI were new to the top ten European HF list while NAV Consulting, SS&C, Kingsway Taitz, Citi and Meridian Fund Services moved into the top ten of Asian HF administrators.

Asian Hedge Funds Felt Most Pain in 2008

The shakeup in Asian HF administrators was likely a result of large losses for funds located in the region, investing in local markets throughout 2008. Looking through the top ten it is apparent that North America administered hedge fund assets were more stable than funds in Europe and Asia. The average top ten North America HF administrator saw assets fall an average of 15.8% compared to 21.5% for European based administered funds and 50.0% for Asian funds. Only one of the top ten in any region was able to significantly raise their assets in a specific region, which was JPMorgan Fund Services which increased their European based fund assets 17.0% from the prior survey.

South America and South Africa Show Regional Growth

For this survey HFN asked funds to specify their regional HF assets which fall outside of North America, Europe or Asia. UBS Global Asset Management – Fund Services reported the largest amount of assets in this category with $14.1 billion from hedge funds located in South America. Lacrosse Global Fund Services also reported assets in this region of $320 million. South Africa was the other most popular region with Investment Data Services Group (IDS), Maitland Fund Services and Custom House Global Fund Services reporting HF assets located in the country. When HFN began producing the administrator survey in Q1 2007 only one firm reported assets located in South Africa

Funds of Funds by Region

Citi was by far the largest administrator of North American FoFs with $68.3 billion in $AuA in the region. SEI and UBS round out the top three. Citco was the largest European FoF administrator with $77.5 billion in $AuA followed UBS and BNP Paribas Securities Services.

Funds of funds appear to have yet to grow a meaningful foothold in Asia, while in Europe FoFs are almost more prevalent than HFs in terms of assets. The top ten Asian administrators reported only $8.2 billion in FoF $AuA, only 31% of the regional HF $AuA while the top 10 European administrators reported $305.2 billion in FoF $AuA compared to $343.9 billion in HF assets.