Citco: Administrators can help hedge funds face today's rapid evolution
According to Citco's latest Industry Spotlight, a new quarterly newsletter
from the financial services firm,
administrators can in fact "facilitate
the rapid evolution" of the alternatives
sector - as indeed investors and
regulators are driving that rapid
evolution by demanding access to
more data, among other things.
So how can administrators help hedge
funds? Here are some of the points
listed by William Keunen, Global
Director, at Citco Fund Services:
1. As investors want independently generated data, they will rely on
administrators to provide transparency. The OPERA initiative, which Citco
is part of, is a step towards creating reliable data that can be aggregated
2. As new regulatory and tax compliance requirements will be expensive,
fund managers will look for creative ways to reduce or deflect costs,
exploring technology and operations outsourcing opportunities, even staff
‚Äėlift-outs'. This is where service providers come in.
3. As the hedge fund industry is gearing itself for more regulations, Citco
can help managers deliver Form PF to the SEC, Form SLT, offer valuation
and depositary services for compliance with the AIFMD and help to
prepare for FATCA compliance. Citco has set up a dedicated Regulatory
Reporting team to address the increasing demand from regulators.
4. Good corporate governance is now de rigueur. Service providers,
including Citco, can help implement it.
An evolving relationship between administrators
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This article was published in Opalesque's New Managers
a top-down monthly analysis, news and research publication on the global emerging manager space.