Selecting the right fund administrator can significantly impact your fund’s overall performance and effectiveness. In addition to maintaining operational efficiency, fund managers frequently deal with complex challenges like accurate and timely reporting, regulatory compliance obligations and investor relations. Working with a skilled and experienced fund administrator can help alleviate these burdens, enhance compliance, streamline operations and foster stronger relationships with investors.  

How can you find the right fund administrator? In this article, we discuss the various factors that you need to consider.  

What are the roles and responsibilities of a fund administrator?

Fund administrators support investment funds (e.g., hedge funds, private equity funds, mutual funds, digital assets funds, etc.) by managing key administrative functions such as accounting, reporting and regulatory compliance. Below are some of their key roles and responsibilities:  

• Accounting and Reporting: Maintaining accurate financial statements and performance reports for investors and regulators.  
• NAV Calculation: Computing the fund’s net asset value—daily, monthly, quarterly or annually. 
• Investor Services: Managing investor communications, subscription processing and redemption management.  
• Regulatory Compliance: Ensuring the fund’s adherence to industry regulations.  

What factors should you consider when choosing a fund administrator?

1. Industry Experience and Expertise 

Choose a fund administrator with expertise in your asset class who understands your fund’s complexities and offers services you require while remaining adaptable to your unique business needs. Your partner must deliver end-to-end fund administration services, combining industry expertise with extensive experience across diverse fund structures.  

2. Regulatory and Compliance Capabilities 

The fund administrator must have an in-depth knowledge of the evolving legal requirements that apply to your investments and be able to provide the compliance support you require. They should also stay abreast of local regulations to ensure compliance with relevant financial regulations and frameworks such as the AIFMD, FATCA and CRS. Additionally, it is crucial to have an administrator who can manage diverse fund structures tailored to various requirements to help you ensure full compliance and operational efficiency. 

3. Technology and Reporting Infrastructure 

Selecting an administrator who integrates digital solutions is essential for efficiency. Leveraging advanced technology enables seamless data management, automated reporting, and secure, real-time access to critical data, which drives efficiency and reduces errors. Employing cutting-edge technology to power systems for accounting, reporting, and compliance is essential for streamlining operations and enhancing data accessibility.  

4. Fee Structure 

Cost transparency is crucial when choosing the right partner. Evaluating various pricing structures, including potential additional fees for non-standard services, allows for fair comparisons and informed decision-making when outsourcing back-office services.  

5. Scalable Services  

Partner with a fund administrator that tailors its services to suit your fund’s unique requirements. Despite the regulatory changes and asset diversification, a flexible administrator can help you adapt to these increasing complexities to sustain stability and minimise operational disruptions. Choosing a full-service provider guarantees efficient management of essential tasks like investor communications, fund accounting and reporting—all of which are critical to a fund manager’s success.  

Can you co-source or outsource a fund administrator?

As demand for transparency grows and compliance obligations evolve, fund managers are increasingly co-sourcing or outsourcing their back-office functions to third-party administrators. By partnering with an experienced administrator and outsourcing fund administration, companies can gain cost-effective access to the expertise they need, address regulatory issues more efficiently and maintain investor satisfaction. This will allow them to allocate more time to their primary business objectives, ensuring sustainable business growth.  

Why you should conduct due diligence when choosing a fund administrator

Conducting thorough due diligence is a vital step you need to consider before selecting a fund administrator. Run a background check and review their history, reputation, track record and experience managing funds similar to yours. This will help in ensuring their reliability and expertise align with your fund’s needs.  

Moreover, partnering with an administrator who actively engages with regulators and industry bodies helps managers stay ahead of governance trends. This proactive approach promotes governance development while also ensuring compliance with developing standards. 

Why choose Bolder?

Considering a fund administrator’s expertise, compliance capabilities and technology can help you make an informed decision in choosing the right partner that aligns with your investment goals and fosters your fund’s long-term success. 

At Bolder Group, we provide comprehensive expertise in corporate, funds, governance and family wealth solutions catering to asset managers, corporations, multinationals and private clients. With over 45 years of experience in the financial services industry and more than $75 billion in assets under administration, we tailor our offerings based on your unique needs to help you achieve your goals and secure success.  

Bolder is strategically positioned in 18 major jurisdictions, offering bespoke solutions, which include:   

• Governance Services: Bolder provides comprehensive governance and compliance solutions to safeguard your business and ensure you meet regulatory requirements with ease.  
• Corporate Administration: We provide corporate solutions tailored to your specific needs; from company formation and market entry to governance, compliance and ongoing maintenance. 
• Fund Solutions: We handle the complexities of middle- and back-office operations so you can focus on your core competencies.  
• Family Wealth Services: We help you safeguard your legacy for generations to come through our private wealth services, including governance, company structuring and family office support.  

Discover how our fund administration services can optimise your fund’s operations—visit our Fund Services page or reach out to our team at info@boldergroup.com for more details.  

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.