The thought of finding a new fund administrator strikes fear for many fund managers. It can be a painful process that devours time and resources. However, while switching administrators is a big decision, there are ways to ease the pain. Choosing an administrator with the tools to ensure a smooth transition is important.
There are many factors to consider when evaluating a new fund administrator. Choose an administrator who offers high-quality service supported by transparency and good communication. You also need an administrator who allows you to grow by outsourcing some functions. Technology is a major area of consideration as well. In choosing a fund administrator that invests in technology infrastructure, you will have more access to automation and intelligent technologies to make your processes more efficient and to better withstand increasing regulatory scrutiny.
Look for an administrator with a global presence, as this adds flexibility and agility on a global scale. You must also consider the complexity of your fund, and find an administrator with jurisdictional subject matter experts across compliance and regulation. Finally, make sure you consider costs, and client firms may want reduced fees or more service to correspond to a fee increase, and administrators that show flexibility in negotiation are more likely to help you retain business.
Switching fund administrators doesn’t have to be as complicated as you may have experienced. A provider with a modern, scalable technology infrastructure and an experienced team can make the transition seamless and painless, allowing you to start seeing the benefits of switching from the moment you go live.