Can Technology Really Help Your Fund Tax Process? 5 Key Ways


Thursday, January 5, 2023 | By Christopher Madpak, Managing Director Tax Services & Technology

Can Technology Really Help Your Fund Tax Process? 5 Key Ways

With the right tools, as outlined in our "Increase Investment Returns Through Real-Time Tax Management" whitepaper, managers can create a systematic approach to tax-efficient investing and gain a significant competitive advantage.

  • A single source of truth—All portfolio and transaction data needed for tax reporting, compliance and analysis must be accessible through one system.
  • Process integration—All processes related to tax reporting and compliance must be integrated into a single system.
  • Intelligent automation—Advanced automation technologies increase speed and accuracy, ensuring data integrity and process efficiency.
  • Advanced analytics—With centrally accessible data, managers are able to derive more meaningful insights more quickly and thoroughly.
  • Investor-level tax analysis and reporting—A single solution for data, processes and analytics should also be able to easily communicate reports and benefits to investors.

Investors need fund managers that can deliver optimal performance regardless of market conditions—something that has become increasingly difficult to achieve in recent years. Many managers may be so focused on the search for alpha that they miss an opportunity to add to their returns through tax-efficient investment strategies. Taxes are among the most influential portfolio performance factors, and as investors become increasingly tax-aware, they expect their managers to optimize their tax positions.

In order to run “what-if” scenarios and evaluate the tax impact of investment decisions before executing them, managers need real-time portfolio data and advanced analytics capabilities. Many firms lack this access or rely on stale data aggregated from disparate systems and spreadsheets. This results in a substantial percentage of potential returns being left on the table.

Tax-efficient investing can improve returns and confer a competitive advantage. Tax BrightLine℠ is SS&C’s operational hub for all tax matters. Our single, seamless, end-to-end platform for tax compliance, reporting and analytics helps fund managers optimize their tax strategies while meeting their tax filing and reporting obligations. SS&C Tax BrightLine℠ can be deployed as a licensed software solution or as part of a comprehensive tax accounting and reporting services offering delivered by SS&C’s team of tax specialists.

To learn more about how SS&C can help you increase investment returns through real-time tax management, download our "Increase Investment Returns Through Real-Time Tax Management" whitepaper.



Alternative Investments, Asset Management, Fund Administration, Regulation


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