Fund administrators play a vital role in protecting the interests of their investors by verifying the valuation of the fund and assets. The fund managers can realign their focus on portfolio management by outsourcing the fund administration function to third party Independent Global Fund Administrator. It consists of two parts fund accounting and registrar/transfer agent activities.
The fund manager considers investor’s demand along with market opportunities in order to evolve their businesses. Hence, there is a strong need to find an independent fund administrator so that the fund managers can focus on more growth opportunities. Choosing the right fund administrator partner can help in saving cost, offer a seamless connection with outside parties and provide accurate & updated information. In contrast, a bad independent fund administrator can ruin your reputation and image. Wondering, how to choose/what to consider before choosing an independent global fund administrator? Here are some great tips to help you choose the right fund administration partner.
Key aspects to consider while selecting the right independent global fund administrator
Global independent fund administrators are highly capable of managing the fund administration, and hence the funds manager relies heavily on their services. With a plethora of available options, it’s critical to analyse the capabilities of your future fund administration partner to get high accuracy and reliability. Here are some of the key features to look for in a reliable global fund administrator.
1. The global fund administrator should have a robust operational infrastructure with internal controls.
2. They should have the desired expertise in your crucial asset classes along with the scope of scalability.
3. The fund administrator should act as a single source for all your needs
4. It should have a required quality of systems, benchmark automation, the optimum level of servicing and a strong follower of top-level cyber security.
5. There should also be a provision of directorship services and corporate secretarial.
6. The fund administrator should be able to manage foreign exchange and bank account.
7. They should be capable of strategist complex fund management.
8. While choosing the global fund administrator, the rigorous compliance and governance processes should never be ignored.
9. Besides providing the local expertise, your fund administrator should be globally renowned.
Roles and responsibilities of the global independent fund administrator
Apart from protecting the interest of investors by independently verifying the assets, the fund administrators role includes the following things.
- Net asset value NAV calculation.
- To prepare the financial reports and statement.
- Audit listening.
- To calculate the income and expense accruals along with the pricing of securities at the current market value.
- To open and control the fund bank accounts.
- Fund expenses payment management.
- Contacting shareholders and preparing the reports.
- The independent global fund administrator should be capable of reconciling statements of the
- broker, custodian, bank and investment manager.
- To collect dividends and interest.
- To maintain and file the funds financial books and records.
- To calculate the dividend payments and distribute them to the transfer agent.
- To settle the daily purchases and sales of securities.
- To prepare and file the local regulatory body reports.
- Deciding the fund portfolio pricing.
- Calculating the total returns and other performance measures of the phone.
- Investor KYC and compliance, along with anti-money laundering monitoring and reporting.
- Liquidity supervision, dissolution of the funds and governance.
These days the fund administrators are expanding globally and bringing the evolution in fund management strategies which further provide consistent and reliable services to you and your investors. However, you have also got an option to switch your global fund administrator, and the following section describes that in a better way.
What steps to be taken to switch to another global fund administrator?
Once you have decided to switch the fund administrator, there a few pointers to be considered. Please have a look at them.
1. For smooth planning, there should be a due diligence check of investors and individual risk assessment.
2. Also, there should be a complete assessment of physical and electronic data requirements.
3. Mutually agree and sign the full-service level agreements along with service contracts and confidentiality
4. The new administrator should review all legal agreements, and legal counsel should verify any necessary change at the very beginning.
5. Preparing the contractual changes and necessary announcements for notification to investors.
6. Mutual agreement with the previous administrator for data transfer methods and protocols.
7. Reconciliation of the calculated net asset value (NAV) from both the administrators, previous and new.
8. To facilitate the smooth and complete audit process, there should be a live transfer of current and historical data for the entire accounting period.
Talk to Ascent fund services to get assistance
Hopefully, you learned enough about how to select the right independent global fund administrator, their roles & responsibilities and how to switch to a new fund administrator smoothly. Ascent fund services, the leading fund administrator company, is more than a fund administration wherein the experts can deliver the Crypto Fund Administrator facilities, managing hedge funds, private equity, etc. We can help you handle any business needs with our expertise, blended with the experienced fund administration support. Contact us now to know more.