Fund Administration and Distribution

The fund administration, or fund service department supports asset managers in a number of ways. Indeed, the role of an asset manager is first and foremost to make decisions on which assets to buy or sell in a portfolio. However, the clients who invest in the fund want to receive specific information about, say, the performance or current net value of their investment (Net Asset Value, or NAV). In that case, the asset manager can delegate this calculation to a fund administrator, or admin. Here the fund admin will sum up the value of the assets in the fund and then divide it by the number of units, thereby obtaining the value per unit. Similarly, each operation made by the asset manager will generate accounting entries. The asset manager can delegate the accounting of the fund to a fund administrator.

A fund is a legal structure, which means that there are regulatory, tax, ESG and financial reports to be drawn up. Some managers delegate these administrative tasks to a fund admin.

To summarize, fund services can handle the following on behalf of asset managers:

• Valuation (NAV)
• Accounting
• Reporting
  • Tax
  • Regulatory
  • ESG
  • Financial
  • Risks