Effects of the credit crunch across Asset Servicing : Creating and grasping opportunities

Ineum Consulting just published a new report on the effects […]

November 10, 2008

Ineum Consulting just published a new report on the effects of the credit crunch. “Following decades of massive growth and success, the challenges facing the asset servicing industry, are diverse and intriguing. Until recently, life wasn’t so bad for custody and fund administration businesses. Some players within the industry echoed this sentiment saying that the global economic circumstances have created some challenges and opportunities, says Michel Kabanga Kayembe, Investment Funds Advisory Services, Practice Leader at Ineum. For example, fund of hedge funds’ managers, will certainly increase their financing appetite; it means service providers will become extremely choosy. Moreover, the bankruptcy of Lehman Brothers has introduced another challenge with regards to settlement risk. This entails ongoing developments on technology to remain at the cutting edge; additionally this allows the industry to face down competition.

Some players are asking themselves if the time has come to focus more on specialization such as valuation with “quant profiles” fully provided internally; servicing alternative funds onshore or offshore; concentrating on profitable clients segment; attracting and retaining top talented staff and anticipating changes in regulation.

Following the recent EU measures to resolve the current liquidity crisis, a tre- mendous amount of questions and issues have been raised. This report was prepared prior the rapid deterioration of the market conditions. It’s about being conscious and creating opportunities.”

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