As the demand for alternative investments increases among everyday investors, RIAs are finding ways to address this demand and provide access to these investments. Some advisors use alternative platforms and marketplaces, while others create their own access vehicles or funds-of-funds. However, these alternative investment vehicles can also create challenges, such as complex data aggregation and reporting issues. A qualified fund administrator can help RIAs address these challenges by providing standardized reporting, regulatory reporting assistance and administrative support.
A qualified fund administrator should have the technology and expertise to automate data aggregation and normalization from multiple fund managers to provide the advisor with standardized investor statements. The right administrator should also be able to assist with regulatory reporting and administrative matters. A proprietary alternative investment vehicle allows advisors to respond to the growing demand for alternative exposure, and a fund administrator can provide even greater efficiency.
By partnering with a fund administrator, RIAs can focus on managing their clients' assets while leaving the administrative tasks to the experts. The administrator can handle the day-to-day responsibilities, such as processing investor subscriptions and redemptions, calculating net asset values, and maintaining the fund's books and records. This allows the RIA to focus on investment management and provide clients with personalized advice.
Furthermore, a fund administrator can help ensure compliance with regulations, such as the Investment Company Act of 1940 and the Securities Act of 1933. The administrator can assist with the preparation and filing of regulatory reports and can help the RIA navigate complex regulatory requirements.
In summary, a fund administrator can provide significant benefits to RIAs who manage alternative investment vehicles. By leveraging their technology and expertise, administrators can help RIAs efficiently manage their clients' assets and navigate the complexities of the regulatory landscape.
SS&C is the world’s largest fund administrator by assets under administration, serving clients across the full spectrum of alternative investments, and a leading innovator in technology-powered solutions and operational services for the global investment management industry. To learn more about how using a fund administrator can help you get the most out of your alternative investment vehicles, download our "Alternative Fund Administration for RIAs" whitepaper.