Choosing the right fund administrator is the key to success

By: Ron Tannenbaum

In its third edition of The Guide to Sound Practices for the Selection and Period Assessment of Administrators, AIMA worked with several market participants, including SS&C GlobeOp, to create updates that reflect today’s evolving and challenging alternative fund management environment.

The guide discusses key developments shaping the industry and highlights that not all administrators are equal. Some of the key points investment managers should consider before deciding if a fund administrator is the best fit for their current and future requirements are:

  1. Technology and cyber security: Data sets and processes used to handle alternative funds are complex; investment managers must work with administrators that maintain their own customizable technology and devote substantial resources to maintaining fund/investor data integrity.
  2. Middle-office services: An administrator’s platform must service all the trade life cycles of all asset types.
  3. Complex fund accounting capabilities: Investment managers that diversify into different trading strategies, asset classes, and fund structures need an administrator that operates its own developed software.
  4. Regulatory and systemic risk reporting: Investment managers must choose an administrator that has staff with regulatory expertise and the latest software to handle all reporting requirements.
  5. Relationship management and oversight: The service level must be effectively monitored internally by the administrator’s senior management team to ensure servicing issues will be promptly and effectively addressed.
  6. AML/KYC/CTF capabilities: An administrator that emphasizes staff training to identify and prevent money laundering has independent testing of its controls (e.g. SSAE16 SOC Type I/II report) and can tailor its process to each jurisdictional requirement. This helps protect the fund, its investors, and the investment manager from being associated with money laundering or other criminal or terrorist activities.

Today’s alternative fund management environment is evolving quickly. The right administrator helps you navigate the changes efficiently and with confidence.

SS&C GlobeOp is a leading fund administrator that provides the world’s most comprehensive array of financial technology products and services under a public, independent, single platform. Our expertise in business process outsourcing supports complete lifecycle capabilities and is available on a stand-alone basis to funds, family wealth offices, and managed accounts. To learn more about how we can help you, visit us online or contact solution@sscinc.com.