An Evolved Concept of Fund Administration

Fundamentally, the concept of fund administration is becoming more complex with every next release in regulatory norms related to investments. Today, fund administration is not limited to accounting and transfer agencies. It requires a thorough knowledge of calculation and management of the funds, income and expense accruals, financial reporting, financial statements, reports to shareholders and audit liaison, to name a few skills that the alternative investment fund administrator must-have. 

But have you ever thought what is the need to improvise the role beyond the required traditional expertise? Because Fund Solution Provider require all the statistical and financial data to perform the Net-Asset-Value calculation process effectively, they are also dependent on data from the diverse field to evaluate Risk management, Performance measurement, Compliance, Reporting and others.

The continuously changing norms and extended responsibilities forced managers to rely on Alternative Investment Fund Administrator. With their complete knowledge, they handle the tasks much better and could assist in other segments related to future plannings decision making, understanding of risks etc. Here are a few things other than joining hands with a funds solution provider which investment companies need today to streamline the operations and mitigate the possibility of risks.

Risk management & Performance measurement

Because both of these areas require constant analysis an understanding of all the risk factors that could affect the performance, a fund accounting system or something similar is required by fund administrators. So, they could feed proper and accurate data into other systems in a timely manner.

Another alternative to a fund accounting system is outsourcing a specialized and expert fund administrators who could be trusted with their knowledge and reliability. Parenting with professionals is a cost-effective solution as it reduces the need to exchange & reconcile data for accurate reporting.

Investment compliance

Another important subject considered by investors and fund managers is the exposure of funds. A fund administrator is supposed to keep an eye on the funds, their incoming, utilization, and manipulation, against all sorts of criteria identified in the investment prospectus.

The final call related to the expenditure of funds within the limits is set by the Fund management company, but the administrator makes sure that the investors adhere to the limits set in a timely and accurate way to reap higher profits.

Automated regulatory reporting

Improvising the specialized systems to generate regulatory reports continuously without any manual intervention or human errors in the need of investment administrators, managers and investors today. It is assumed that the place way to get these reports on time and with no errors if from the alternative investment fund administrators system, given that they have every necessary information on their system. But the chances of statistical error are still present.

Streamlined Communication between Investors, Administrators & Managers

There is no scope for errors, delay and ignorance in fund administration. The time of manual subscription and filing of redemption forms, preparing investor documents and questionnaires is gone as it is prone to the risk of human errors. Today an automated system is the need of every alternate investment fund administrators as well as managers as it increases the processing speed, reduces the risk of errors, encourages accuracy and streamline the communication. This will also help in sharing monthly audits and workflows to the investors.

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