
Fund administration and distribution
What is Fund Administration?
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 who 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 aTransfer Agentservice.