Can you tell us more about UMBFS? UMB Fund Services, or UMBFS, is a client-focused fund services provider that offers our clients a strong combination of industry expertise, top-shelf technology and outstanding service. We provide a broad array of services for a growing client base of mutual funds, hedge funds and private equity funds – as well as turnkey solutions including series trust, collective trust and registered alternative investment services. Our Alternative Investment Services division offers a complete back-office solution for hedge funds, funds of funds, registered hedge funds and private equity funds. The services that we provide for alternative investments include product formation assistance, fund accounting, fund administration, tax preparation and reporting, investor accounting and reporting, and custody through our affiliate, UMB Bank, n.a. We also collaborate with a team of professional service firms to offer Registered Fund Solutions, the industry’s first turnkey solution for launching and servicing a registered hedge fund. UMBFS is an operating division of UMB Financial Corporation, a highly rated, multi-billion-dollar, multi-bank financial holding company headquartered in Kansas City, Missouri. I can see that Registered Fund Solutions is a product that will differentiate you from your competitors; what else differentiates you? Having a full suite of mutual fund services, hedge fund services, and private equity fund services is unusual in a service provider of our size and positions us well versus our competitors. Our top-shelf technology (both commercial and proprietary) competes with larger service providers, while our clients greatly appreciate the responsiveness and consultative approach that comes from working with a boutique service provider. Our turnkey products such as our Investment Managers Series Trust, the Premier Advisor Collective Investment Fund Series, along with Registered Fund Solutions, which is our newest product, provide the marketplace with easier ways to launch mutual funds, collective investment funds, and registered alternative investments. How has UMBFS adapted to changing economic conditions? We have continued to grow our business through a rather volatile global economic marketplace over the past six years. We have done this through innovation of turnkey products, through expansion of our business via organic growth and acquisitions, UMB Fund Services and most importantly, by providing our clients with an unparalleled customer experience. We have stayed focused on the fact that our people and the talent, energy, and commitment they bring are our most important asset. We stick to our core principles and manage for the long term, and that has led to success for our clients – and in turn for UMBFS. What were UMBFS’s greatest successes in 2013? We have had a number of successes in the past year. These include expanding our technology suite for private equity, improving our capabilities in investor servicing for registered hedge funds, major enhancements to our web portal for clients and investors, a strong client retention rate, and our continued organic growth. How would you describe the hedge fund industry in 2013? The hedge fund industry is healthy and growing, with bright prospects for the future. We remain very positive about the hedge fund management community at large and believe they will continue to innovate and find new ways to create returns for their clients. As a result, we believe the best days for the hedge fund industry globally are yet to come. Were there any trends that you particularly noticed in 2013? We continue to see emergence of alternative investment strategies being packaged as UCITs globally and as ’40 Act mutual funds in the US, as well as registered private funds. We expect that this trend will continue and grow quite dramatically over the next five years. Also, after what has really been a purge in the hedge fund of funds arena, we are starting to see some recovery there and believe that this will continue as these managers rebound and develop new approaches, such as multi-manager funds. Outside the alternative investments industry, a trend has begun to develop in the ETF marketplace around non-transparent ETFs. This could be an interesting development that would re-shape the ETF business. And looking ahead – what predictions do you have for 2014 and beyond? We expect that, given the re-emerging global economy post- financial crisis, hedge funds, private equity funds, and registered investment products will continue to experience significant growth. We have also observed a great deal of consolidation in the service provider space, and we expect that will continue. We will be here to service clients long into the future and are focused on remaining relevant and innovative as we grow our business. Fact File Firm: UMB Fund Services Name: Lon Macdonald Email:
[email protected] Web: umbfs.com UMB Fund Services provides a broad array of services for mutual funds and alternative investments, as well as turnkey solutions including collective trust, multiple series trust, and registered hedge fund services. Services include fund accounting, administration, tax, investor services, transfer agency, distribution and custody. Clients benefit from high-touch service, leading-edge technology, and the stability of a highly capitalized parent that’s been around for 100+ years. Lon Macdonald, UMB Fund Services’ Executive Vice President, Alternative Investments, explains more about UMB’s award-winning performance. Best Fund Administrator of the Year: Fund of Funds 2014 International Hedge Fund Awards 17 www.acquisition-intl.com