TAILORED SOLUTIONS: Service Provider Fee Analysis
Barrington helps Asset Management Companies and Fund Boards understand the competitive nature of their fee arrangements with custodians, service vendors and software companies.
Over 95% of Barrington’s revenue comes from work for firms that manage money, not service providers or vendors. As a result, we are independent in our approach to performing an evaluation that is in the best interest of our client.
While most asset managers are satisfied with their service providers, all firms need to be certain that they are paying market competitive fees. Over 20 times each year Barrington performs analyses of the fee arrangements for fund companies located in the US, Canada, Luxembourg, Dublin or the UK. Barrington performs fee analyses and competitive selections so frequently that we maintain up-to-date information on ‘normal and customary’ fee levels for a broad range of client profiles and service providers.
The process provides specific recommendations and meets Board oversight objectives:
- Understand client satisfaction levels with various aspects of the current relationship – define the scope of the effort: potential consideration of alternative vendors, or only to validate current fees.
- Gather and review client information – assets, fund profiles, activity volumes.
- Verify billing is in accordance with current fee schedule(s).
- Fee modeling of incumbent vendor against multiple competitive fee schedules.
- Analyze findings and provide specific negotiation recommendations.
- Complete vendor negotiations or support client in the process.
- Develop Board presentation materials (and can present at the Board meeting as requested).