Fund Administration

Great talent is required for driving results, so we help our clients identify the best people and design their roles. We partner with clients to structure how limited resources are applied and measure the costs and productivity of their operations by asset class and territory. Our team provides the information needed for data-driven decisions.

Challenges in the Current Landscape

There is $40 trillion invested in 114,000 mutual funds and funds of mutual funds. Another $2.7 trillion is invested in exchange-traded funds and about the same ($2.9 trillion) in hedge funds and more is invested in private equity and real estate funds. The asset value of these funds net of fees payable (NAV) is calculated regularly by specialist fund administrators or fund accountants employed by global custodian banks.

The risks are high. An incorrect NAV can result in managers and distributors receiving incorrect fees, or investors buying or selling at the wrong price, exposing administrators to claims for loss. Yet, fund products and investments are growing in complexity and subject to increasingly rigorous oversight. Likewise, the transfer agents that maintain lists of investors and settle subscriptions and redemptions are under increasing pressure to intensify their know your client (KYC), know your distributor (KYD), and anti-money laundering (AML) processes to ensure that neither fund distributors nor their clients are bad actors. They face punitive fines for errors.

The price fund managers are prepared to pay for fund accounting and the transfer agency is not rising in line with the risks. With static revenues, rising customer demands, and increasing levels of regulatory and investor risk, administrators cannot afford to rely on experienced and over-burdened managers or cheap and poorly qualified staff to manage complex middle office, back office, and compliance functions. Nor is it safe to assume clients will behave in the future as they have in the past.

Gain Business Insights to Make Informed Talent and Business Decisions

We work with clients to provide strategic insights and up-to-date information enabling clients to:

  • Understand client feedback and predict customer actions
  • Align your best talent to your most complex challenges and nurture your future leaders
  • Focus training budgets in response to employee feedback
  • Ensure firms are staffed for seasonal volatility and outsource effectively
  • Prepare for due diligence reviews

Compensation, Financial, and Customer Satisfaction Intelligence

Our team provides surveys that help that provide comprehensive compensation and customer satisfaction data. Our surveys include:

  • Compensation in Fund Accounting
  • Compensation in Fund Management
  • Compensation in Funds of Funds
  • Compensation in Fund Sales and Marketing
  • Compensation in Hedge Funds
  • Compensation in Private Equity
  • Compensation in Transfer Agency
  • Expense, Staffing, and Productivity Hedge Fund Study
  • General Ledger and HR Systems Data Downloads
  • Hedge Fund Administration Customer Satisfaction
  • Mutual Fund Administration Customer Satisfaction
  • Prime Services Survey
  • Private Equity Administration Customer Satisfaction
  • Real Estate Fund Administration Customer Satisfaction
  • Staff Engagement in Fund Administration

Ready to learn more? Contact our team today for an overview and survey access.