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By: Scott Price, Head of Business Development and Client Management for North America, Maitland
Ernst & Young’s latest global annual survey of hedge funds and investors paints an interesting picture when it comes to the evolving role of fund administrators within the sector. Unsurprisingly, the survey confirms that fund administrators are still primarily used for the traditional 'core’ back office functions, with NAV performance calculation topping the list (outsourced by 78 per cent of funds).
But the report also reveals a nascent trend of funds starting to use administrators for a wide range of non-traditional services. It notes that these new services represent "an area ripe for consideration for managers looking to reduce the workload and cost of their internal infrastructure", recognising the "advances made by third-party providers in these areas, in addition to growing investor comfort with managers’ relinquishing control of these responsibilities."
Some of these additional services are simply natural extensions of fund administration’s traditional fund accounting and transfer agency role, while others represent a move up the value chain from back- to middle-office services such as regulatory /compliance support, and offshore legal services. Others, however, speak to a more fu...................... To view our full article Click here
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