As fund managers evolve their businesses in response to investor demands and market opportunities, finding a modern fund administrator as a single-source provider becomes increasingly important.
One of the biggest decisions an asset manager has to make is choosing the right fund administrator to partner with. Choosing well can save costs and provide a seamless connection with all outside parties and provide you with accurate, up to date information and reporting; choosing badly can ruin your reputation. So what are the key differentiators should you be looking for in selecting the right partner?
Traditional role vs. evolving role
Fund administrators have traditionally been focused on functions that protect investors by independently verifying assets and valuations of the fund, allowing fund managers to focus their attention on management of their portfolios. These include:
However, the role has been evolving in recent years, with leading fund administrators expanding both the scale and breadth of their capabilities. The leading administrators now operate globally, with expertise in the regulation, reporting, tax and compliance across multiple markets, enabling you to use the same administrator in all of the markets in which you operate, providing a consistent and reliable service to you and your investors.
As well as offering global scalability, fund administrators have been adding new products and services such as:
This evolution of the fund administrator role provides increasing support for middle-office and front-office functions previously only possible by committing to the fixed cost of internal resources, thus offering a single-source solution to fund managers.
Things to consider when selecting a fund administrator
With the increased capabilities that a modern fund administrator can offer comes an increased dependence on their capabilities. Hence, it is critical that fund managers perform a comprehensive assessment of a new partner’s ability to provide the high levels of accuracy and reliability that you rightly demand. Some of the key requirements are:
If you are a global business, your fund administrator should be too, providing local expertise where and when you need it covering local regulation, tax and compliance solutions.
Key steps when switching fund administrator
Once you have made the commitment to switch fund administrator and selected your new partner, you must agree a timetable of events to prepare and execute a project plan. It is important that from the outset that both parties allocate sufficient resources to accomplish the tasks set out in the plan to ensure a smooth transition by the planned date. The plan should encompass:
A well planned project with full transparency and a shared commitment will deliver a seamless transition and the immediate realization of the full set of benefits offered by the new administrator.
Talk to Apex Group
Apex Group is more than just a fund administrator, the global team delivers a comprehensive range of services to asset managers, capital markets, corporates, private clients and family offices. The Group has continually improved and evolved its capabilities to offer a single-source solution through establishing the broadest range of products in the industry, fund administration services, digital banking, custody and depositary, and super ManCo services, business services including HR and Payroll and a pioneering ESG Ratings and Advisory services for private companies. With 45 offices around the world, we stand ready to support any business need.
Contact us now to learn more about what Apex Group can offer you.
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