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Citi Prime Finance’s 2011 IT Trends & Benchmarks Survey
Franchise Funds
: Total IT Spend
• While some of the largest funds spend under
$1 million USD on technology, some spend more
than $15 million USD annually
• Average annual IT spend for franchise funds
is $7.9 million USD
• As a percentage of AUM, IT spend for funds
in this segment runs 10 bps
- 3 bps – personnel
- 2 bps – hardware & networks
- 2 bps – software
- 3 bps – data
Franchise Hedge Fund Benchmarks [Manager’s with AUM > $5 billion USD]
$6M - $10M
$1M - $3M
Source: Citi Prime Finance
Franchise Funds: Total IT Spend
18%
28%
18%
18%
$500 - $1M
$3M - $6M
9%
$10M - $15M
9%
Over
$15M
28%
32%
18%
22%
Hardware
& Network
IT
Personnel
Data
Source: Citi Prime Finance
Franchise Funds: IT Spend by Category
Software
Franchise Funds
: IT Spend by Catagory
• Software allocation of IT budgets remains in line
with large and medium funds, indicating that
applications costs scale in proportion as their
budgets grow over time
Total IT Spend