Service Providers

Wed Feb 1, 2006

The benefits of good service providers

Most South African hedge funds conduct their operations with the help of prime brokers as well as independent administrators. Given that the local industry largely functions efficiently and has succeeded in avoiding any blow-ups or major scandals, the country's good quality service providers can take some of the credit for this healthy state of affairs.

The highly competitive prime brokerage business is essentially dominated by three main players - Deutsche Securities, Peregrine Prime and, more recently, Investec Securities. After an unsuccessful attempt to capture a viable share of the market, HSBC withdrew from the business in early 2006. Undeterred by HSBC's failure, the merchant bank, RMB, has recently formed an alliance with Morgan Stanley to launch RMB Morgan Stanley. In this way, by partnering with an international brand to leverage the business, RMB also hopes to attract overseas business when foreign investors enter the South African hedge fund market in...

ISSN: 2151-1845 / CDC10004H


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