Fund Administration and Distribution

Fund Administration and Distribution

Fund administration (or fund service) supports asset managers whose primary role is to decide on which asset to buy or sell in a portfolio. Fund investors expect clear and specific information about their holdings, such as performance and current net value of their investment (Net Asset Value, or NAV). 

What are the roles of a Fund Administrator?

NAV valuation: the asset manager may delegate this calculation to a fund administrator. The fund administrator will sum up the value of all assets in the fund and divide it by the number of units, resulting in the value per unit. 

Accounting: 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.

Reporting: Since the fund is a legal structure, a number of reports need to be drawn up. Some managers delegate these administrative tasks to Fund administrators who prepare these reports on behalf of asset managers, including:

• Tax reporting;
• Regulatory reporting;
• ESG reporting;
• Financial reporting;
• Risk reporting.

Distribution: The fund distribution service enables asset management clients to reach new investors on a global scale. In this context, the fund distribution service supports managers with the pre-marketing process, registration, maintenance, and deregistration of funds/sub-funds in target markets. It also coordinates with local representatives and regulators, manages local representative requirements, and can additionally provide a Transfer Agent service.