Funds Administration Overview
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What is Fund Administration?
Funds Administration is the name given to the set of services provided in support of the running of a fund.
Types of funds include hedge funds, mutual funds, fund of funds, pension funds, unit trusts or other similar structures.
The Funds Administration Industry refers to the group of companies providing these supportive services.
| Below lists some of the services outsourced: |
|---|
| Calculation of the Net Asset Value (NAV) |
| Preparation of semi-annual and annual accounts |
| Financial reporting |
| Maintenance of the fund's financial books and records |
| Reconciliation of daily and monthly broker statements |
| Payment of the funds expenses |
| Pricing the portfolio of the fund |
| Calculation and payment of dividends and distributions |
| Provision of compliance and anti-money laundering reporting and monitoring |
Typically, fund administration comprises two parts: fund accounting and the activities of registrar/transfer agent. While all of above and below services come under the fund administration umbrella some service providers will split out the below registrar/transfer agent activities:
- Portfolio management and investment decision making
- Sourcing investors for the fund
Any service that doesn't fall into above could potentially be outsourced to a fund administrator or similar service provider. This allows the fund manager to concentrate on the areas where they add value i.e. investment decision making and growing the assets of the fund.
- definition of Funds Administration
- who uses Fund Administrators and why?
- overview of services provided
- what cannot be outsourced by Fund Managers
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