2n20.com created a new price comparison and negotiation service for institutional asset managers, helping them to optimise their service provider setup and drive down operational costs.
Over the last year a proprietary database was built, screening the market not only for different service providers, but also classifying them by pricing, value delivered and targeted client base. This enables Negotiato.rs to connect asset managers with service providers who are interested in the particular client relationship, which in return leads to better pricing and service level, ultimately leading to higher client satisfaction rates.
While service provider relationships with prime brokers or fund administrators are obvious topics to review, Negotiato.rs also covers issues from portfolio management software or swap counterparties to fund setup from A to Z in multiple jurisdictions.
Still most companies in the financial industry pay too much for the services they need, often settling with their existing solutions. An asset manager rarely has enough time to screen the market efficiently and to talk to a multitude of market providers who might not be the right fit in the first place. In a non-transparent market Negotiato.rs offers an unparalleled market overview that saves its clients time and money.
Instead of having to contact a multitude of service providers, asset managers now only have to talk to Negotiato.rs in order to receive the best offers for their individual case. These quotes are made based on an anonymous profile, which means that asset managers do not have to deal with several service provider sales staff calling them to follow up on the initial request.
The value proposition of Negotiato.rs not only lies in the price comparison aspect, but also in the re-negotiation of existing contracts. Most industry participants do not have the market knowledge to negotiate the best deal terms possible. Furthermore asset managers often have contracts in place that were signed years ago when their own as well as the market situation was different.
Therefore most fund managers and investors alike often pay more than some of their competitors. Negotiato.rs helps its clients to renegotiate contracts time efficiently in an opaque market.
As its proprietary database contains lots of prices and quotes the entry point for negotiations is more sophisticated, while bringing in a third party for the negotiation takes off the emotional pressure due to the established working relationship.
Furthermore the downside for asset managers to use the Negotiato.rs service is limited given the fact that it is based on a success fee model. This means the client will only be charged if a better deal is signed and the monies are effectively saved, thus the fee can be paid from a fraction of the savings realised.
“Service Providers sometimes will charge fees as if the client uses their whole product range, in other cases the asset manager may not be the target client of the service provider. There are many reasons why money managers pay too much for their existing solutions and to change a working setup might seem like too much work for some of them. To bring in an external party to screen the market for you and show you better options with virtually no effort required from the client is a value proposition which is hard to argue with”, said Dennis Drenjovski, CEO of 2n20.com.
He added: “The financial industry is confronted with increasing regulation, whether in the US with the Dodd-Frank Act, in Europe with the AIFM Directive or the Fatca legislation affecting every asset manager with US clients worldwide. Asset managers will need to take a good look at their service provider setup and make sure they are well equipped to handle the regulatory demands. Negotiato.rs not only can help asset managers to optimise their existing service provider setup in this regard, but also to help them choose the right partners to launch new funds and investment structures that are highly scalable, can keep up with regulatory demands while also staying flexible enough to execute sophisticated investment strategies.”
In times where every market participant in the financial industry has to deal with an increasing regulation which ultimately will lead to a convergence of mutual and hedge funds, asset managers have to review their service provider setup and ask themselves: ‘Are these the right partners for our business focus going forward and do they support our reporting needs?’
Negotiato.rs can answer these questions while also driving down the cost base of its clients at the same time.
Negotiato.rs is a combination of a price comparison and negotiation service for institutional money managers, helping them to optimise their service provider setup and drive down operational costs. The proprietary Negotiato.rs database contains information about service providers regarding their capabilities, pricing ranges, contracts and target clients. This unparalleled market overview enables Negotiato.rs to connect the market participants with the best fit and to renegotiate clients’ existing service provider contracts successfully.
Founded in 2009, the Freienbach-based Swiss 2n20.com AG is a financial service provider specialized in internet based services tailored for the hedge fund industry. It launched the first index family for hedge funds in UCITS wrapper – the UCITS HFS Index family – and acts as index provider in this regard. 2n20.com provides institutional investors with information via its databases and newsletters and offers investable products on and licensing of its indices. Furthermore 2n20.com offers institutional money managers a price comparison and negotiation service in order to optimise their service provider relationships via its Negotiato.rs platform.