The Bank of New York Tops $100 Billion in Hedge Fund Assets Under Administration

NEW YORK, Jan. 24 /PRNewswire-FirstCall/ -- The Bank of New York, a global leader in securities servicing, has surpassed the $100 billion mark in hedge fund assets under administration, reflecting rapid growth in the bank's servicing of funds of hedge funds, multi-strategy hedge funds, and European- based hedge fund firms focused on fixed-income and credit investments.

In the last five years, the Bank has grown hedge fund assets under administration from $16 billion to $100 billion and last year posted a 41% increase in assets under administration. The Bank has also experienced significant growth in the average fund size and number of fund structures serviced as part of a strategic focus on building long-term relationships with the leading industry firms.

"We have posted consistently strong organic growth in our hedge fund administration business by customizing our core operational and technology expertise to meet the unique needs of the industry," said Brian Ruane, executive vice president at The Bank of New York. "With institutional demand for hedge funds expected to triple by 2010, we are uniquely positioned to serve this burgeoning industry through hedge fund administration and a variety of other securities services."

Global institutional demand for hedge funds will increase from $360 billion currently to more than $1 trillion by 2010, according to a recent study of leading institutional investors, investment consultants and hedge funds by The Bank of New York and Casey, Quirk & Associates LLC. Retirement plans globally will account for the vast majority of asset flows.

In addition to hedge fund administration, the Bank offers a broad array of accounting, cash management, collateral management, custody, trust, asset management and private banking services to the hedge fund industry.

The Bank of New York Company, Inc. is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, asset management, and private banking. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at http://www.bankofny.com/.