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Laxman Pai, Opalesque Asia:

Alternative fund managers are increasingly turning to third-party suppliers to support their fund management business, with 96% planning on using external support over the next three years, said a study.

The new research from Ocorian reveals the top three biggest concerns when it comes to switching providers, which is how quickly and accurately data can be migrated, the perception of investors and the market, and the impact this could have on the reporting cycle.

Despite these concerns, almost one in four (23%) alternative fund managers are looking at switching fund administration providers over the next 18 months in some way.

Among this 23% who are looking to make changes, more than one in eight (13%) will switch to an alternative third-party service provider while 7% plan to bring it back in-house and 3% will add another third-party service provider.

For those looking to switch, the top reason given is to improve service levels (75%), followed by improving the quality of data and reporting (69%), better technology (63%), and because of ESG capabilities (31%).

The research from Ocorian shows that price is the biggest driver (75%) among those who currently use a third-party administrator but are thinking of switching to another provider. This is closely followed by the level of service (67%) and the provider's overall reputation (50%).

Meanwhile, there is currently an equal split between those taking care of fund administrati......................

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