A small Western European country, Luxembourg (officially the Grand Duchy of Luxembourg), is one of the most alluring business hubs in the region. From its competitive business location to its emerging industries, Luxembourg is an ideal place to set up your next business venture. We discuss some of the reasons for you to start doing business in Luxembourg. 

Strategic business location

Luxembourg is bordering European Union countries with major economies such as Belgium, France and Germany. Its central European location has direct access to its neighbouring markets. From Luxembourg, about 60 per cent of the Union can be reached in less than half a day, making it a strategic location for doing business. In addition, existing infrastructure makes it possible for Luxembourg to penetrate cities such as Brussels, Frankfurt, Amsterdam and Paris, all in just a few hours.  

The Grand Duchy provides for an ideal operational and logistical hub with its central position in the region. Regardless of its relatively small size, its geographical setting serves as an advantage for those who are planning on doing business in Luxembourg. 

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Valuable international relations

Complementing its favourable location, Luxembourg maintains good international relations with various jurisdictions. As a result, the Grand Duchy has an active presence in the formation of foreign policies. It is a proponent of international diplomacy and multilateralism. Luxembourg is a member of several international unions and organisations, some of which are: 

  • Benelux Union 
  • European Union and the eurozone 
  • UN Human Rights Council (2022-2024 term) 

Businesses established in Luxembourg have full access to the European Union’s internal market. This opens an opportunity to tap into 27 countries, translating to 445 million consumers.  

Moreover, Luxembourg ranked first globally in terms of social globalisation, according to the 2019 KOF Globalisation Index. In terms of social globalisation, the index measures “personal contacts, information flows and cultural globalisation.” Luxembourg also ranked fifth as the most globalised economy in the world. This segment includes trade and financial flows.  

A large pool of diverse human resources

Luxembourg benefits from its diverse and multi-national roster of human resources. Its central location provides for a diverse human capital in terms of talent, experience, culture and language.  

Multinational teams are a common sight for companies doing business in Luxembourg. The bridging of cultures and business standards is made possible as 74 per cent of the Grand Duchy’s workforce consists of foreign and cross-border professionals. 

The country’s human resources can provide valuable local experiences and networks, as well as share diverse knowledge. Its cross-cultural teams also break down language barriers, advantageous for companies serving international customers.  

What’s more, Luxembourg placed third for the second time in a row in the 2021 series of the World Talent Ranking of the Institute for Management Development (IMD). IMD’s World Competitiveness Center used a three-fold factor in evaluating talent in economies, namely, Investment & Development, Appeal, and Readiness.  

Favourable fiscal programs and grant schemes

The Luxembourg government has put into place an attractive fiscal environment for businesses. In fact, the country ranked fifth on the International Tax Competitiveness Index in 2020 and 2021. The index measures a country’s adherence to the crucial aspects of tax policies, namely, competitiveness and neutrality. If a country ranks highly in the index, its tax code is deemed to have the ability to promote sustainable economic growth and investment opportunities. Luxembourg’s tax regime is a contributing factor to the country’s successful business start-ups. 

Several government grants are available to businesses, especially in sectors such as information technology, environmental protection and energy efficiency. Financial support may also be granted to eligible small and medium-sized enterprises located in Luxembourg’s development areas. Locally-based businesses may avail of the National Credit and Investment Corporation’s (SNCI) medium- and long-term capital grants.  

Stable economy

Luxembourg has one of the highest GDP per capita in the world, which illustrates economic stability and a high standard of living. 

Luxembourg is one of the ten countries with an AAA rating from S&P Global Ratings, Moody’s and Fitch. This is the highest possible credit rating given to a prospective debtor. The triple-A rating reflects the Grand Duchy’s creditworthiness and state of the economy.  

Developing industries

Luxembourg reaps the benefits of its market’s diverse industries. Its banking and financial services lead the pack amongst other emerging sectors as the financial industry makes up for about a third of Luxembourg’s GDP. Some of the country’s emerging industries include: 

  • Financial technology 
  • Information and communication technology 
  • Biotechnology 
  • Automotive component sector and space 

These industries that constitute Luxembourg’s business environment provides market entry opportunities for companies and employment opportunities for professionals. The previously mentioned grants and fiscal programs supplement this opportunity, which stimulates competitiveness amongst businesses.  

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Things to keep in mind when doing business in Luxembourg

Forms of business organisation and requirements

Generally, the main types of business organisations in Luxembourg are sole proprietorship, companies, partnerships, and cooperative societies. Listed below are more specific types of legal entities that can be incorporated in Luxembourg, namely: 

  • Public limited-liability company or société anonyme (SA) 
  • Private limited-liability company or société à responsabilité limitée (SàRL) 
  • Simplified joint stock company or société par actions simplifiée (SAS) 
  • Simplified private limited-liability company or société à responsabilité limitée simplifiée (SàRL-S) 
  • Limited partnership with share capital or société en commandite par actions (SCA) 
  • General partnership or société en nom collectif (SENC) 
  • Standard limited partnership or société en commandite simple (SECS) 
  • Co-operative company or société coopérative (SC) 

The most common corporate structures are the public limited-liability company or SA and the private limited-liability company or SàRL. Here is a quick guide on the similarities and differences of SA and SàRL.

Public limited-liability company (SA) Private limited-liability company (SàRL) 
Legal personality Each company has a separate legal personality that is distinct from its partners. It has its own rights and obligations under commercial, accounting and fiscal law. Each company has a separate legal personality that is distinct from its partners. It has its own rights and obligations under commercial, accounting and fiscal law. 
Assets It holds its own assets. It holds its own assets. 
Capital Conditions A company should have a minimum of €30,000 capital fully subscribed with ¼ paid up on formation. A company should have a minimum of €12,000 capital fully subscribed and paid up. 
Company shares Registered or bearer shares/bonds or dematerialised securities are freely transferable. Company shares are registered and can be transferred under strict conditions. 
Number of partners It should have at least 1 partner. It should have between 1 and 100 partners. 
Financial Liability Liability is limited to the amount of contributions per partner. Liability is limited to the amount of contributions per partner. 
Decision-making bodies There are either a general meeting and board of directors meeting, or a general meeting, management board and supervisory board. There is a general meeting and a business manager or management board. 
Taxes The business income is directly taxable. The partners are only taxable when profit is distributed. The business income is directly taxable. The partners are only taxable when profit is distributed. 

Each legal entity varies in formation requirements, incorporation procedures and other applicable regulations. If you are planning to be doing business in Luxembourg, do not hesitate to contact our local office

Relevant legislation

The recent COVID-19 pandemic paved the way for new legislative frameworks concerning the operations and doing business in Luxembourg. The purpose of such measures was mainly to alleviate problems with liquidity and maintain employment. Such measures include state-guaranteed loans, assistance with the shift to remote work and financial support, among others. 

As one of the fastest-growing economies in the world, Luxembourg has a well-established Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) directives. Its financial sector laws are mostly based on the European Union’s regulations. Some of the key laws established to address money laundering are the Law of 5 April 1993, Law of 12 November 2004 and the Law of 27 October 2010

Luxembourg has also established the Cellule de Renseignement Financier (CRF) or Financial Intelligence Unit (FIU) within its Ministry of Justice to further strengthen its efforts against money laundering and terrorist financing risks. Corporate entities that are planning to be doing business in Luxembourg must comply with numerous AML/CTF obligations. 

How Bolder Group can help

There are many reasons to start doing business in Luxembourg. The Grand Duchy serves as an attractive location to start your next business venture. Its geographic, economic and political environment pushes its position as a competitive business hub in the region.  

As a global fund administrator, Bolder Group can provide you with the expertise that you need in your middle and back-office needs. We can also help you enter the Luxembourg market to grow your business internationally.  

Contact our Luxembourg office to learn more. 

Fund administration, an industry that has grown significantly over the years, is worth USD8 billion to USD 12 billion. That was magnified in the aftermath of the 2008 global recession, as more alternative investments soared to popularity. These investments included hedge funds, real estate, fund of funds, mutual funds, pension funds, private equity and venture capital. This fund inflow in the said sectors brought more business to the fund administration industry.

What is fund administration? 

Fund administration is an outsourced service where the provider executes middle-office and back-office functions. Fund administrators independently verify the fund assets and valuation under a manager’s portfolio.

Fund administrators provide administrative solutions to asset and fund managers. In doing so, the managers have more time and space to focus on portfolio growth and management.

Below is an overview of the functions of a fund administration service provider.

  • Processing of trade and related transactions
  • Processing of withdrawals, transfers and switches
  • Processing of daily corporate action
  • Preparation and maintenance of book of accounts (via external record compilation and verification, portfolio pricing, net asset value calculation and expense accrual calculation)
  • Processing of client (investor) documentation
  • Preparation and maintenance of documents like investor register
  • Trade and position break reports
  • Ad-hoc trades and position activity reports
  • Preparation of financial statements
  • Preparation of regulatory reporting
  • Profit and loss reporting
  • Tax reporting
  • Computation of track investments
  • Computation of performance fees
  • Calculation of the net asset value (daily, weekly, monthly)
  • Distribution of dividends
  • Distribution of investor statements and communication
  • Tracking of return of capital and return rates
  • Provision of share registrar and transfer agent

Apart from these functions, fund administration firms also provide fund formation solutions. This specific service includes:

  • Expert consultation on the ideal type of fund structure to be set up
  • Drafting of constitutional documents for the fund
  • Corporate services, such as bank account opening, brokerage accounts, tax registration and business registration, including obtaining security identifiers

Bolder Group’s fund administration solutions also comprise legal services to help its clients in the organisation of board and shareholders meetings where and when required, submission of reports, preparation of statutory documents, review of corporate legal documents and assistance in liquidation and re-domiciliation. Our fund administration firm has an in-house team of legal experts from all over the world.

Compliance is also a core part of a fund administration service. With the increasing and more complex regulatory requirements in different jurisdictions (especially in major financial hubs), fund managers should take advantage of the compliance solutions offered by third-party fund administration specialists.

Non-compliance with regulatory frameworks may result in consequences for the investors and managers, as some nations consider non-compliance (especially with AML laws) a criminal offence.

Fund administration also includes know-your-customer and anti-money laundering compliance services through the appointment of an anti-money laundering officer and the following:

  • Establishment of internal AML protocols
  • Set up of a sanctions list for screening purposes
  • Maintenance of systems that identify person, activity or country risks
  • Application of a risk-based approach in monitoring financial activities

The abovementioned are the composition of a traditional fund administration service. However, with the rise of digital assets, fund administration expanded to servicing cryptocurrency funds. Due to its digital nature, crypto fund administration relies on technology. Crypto fund administration service includes the following:

  • Crypto fund set-up and launch
  • Processing of transactions through exchange ledger and wallets
  • Preparation of books of accounts
  • Computation of interest charge
  • Calculation of profit and loss
  • Reconciliation of hot/cold wallet transactions
  • Compliance and reporting services as required by regulations

Fund administration: Assets in focus

Specific fund administration solutions differ based on the type of fund structure. There are different types of assets for which administrators provide fund services. Bolder Group, for example, arranges administration for hedge funds, PE and VC funds, crypto funds, real estate funds, managed accounts and fund of funds.

Amongst these, the basic services are reporting and compliance solutions, tracking of investments and NAV calculations. If a fund administration firm offers end-to-end solutions, it can assist in fund setup and legal and corporate matters.

Hedge funds

Third-party hedge fund administrators oversee about 80 per cent of all hedge fund assets under management worldwide, according to PwC. Hedge funds gained popularity in the 1990s and steadily grew until the 2008 financial crisis, recovering only in 2013. Data from Statista shows hedge funds are valued at USD4.5 trillion in Q32021; the largest share of hedge funds are represented by hedge fund managers in the US, presenting a massive opportunity for administration firms in the country.

Hedge fund administration is poised to grow in the coming years as more regulatory reporting is required from managers and investors. These directives include the Alternative Investment Fund Managers Directive of the European Union and the USA’s Form PF.

PE and VC funds

PE and VC fund administrators assist clients with portfolio and SPV accounting, payment services, audit and tax support, waterfall, capital distribution, compliance requirements, etc.

Increasing and stronger regulations in PE and VC funds have also presented more responsibilities to managers and investors. In the US, for example, the Securities and Exchange Commission proposed new amendments to the Investment Advisers Act of 1940 to underscore the transparency and efficiency of the sector, which, according to the SEC is valued at USD18 trillion.  

‘Private fund advisers, through the funds they manage, touch so much of our economy. Thus, it’s worth asking whether we can promote more efficiency, competition, and transparency in this field’, said SEC chair Gary Gensler.

On the other hand, figures from data analytics firm Factset showed that about USD$612 billion in VC funds were invested in 2021 worldwide – more than double the figures in 2020. This growth, especially in emerging markets like Latin America, Africa and the Pacific, fueled increasing valuations of VC funds, managers of which should take advantage of outsourcing fund administration functions due to the cash inflow. Last year, about 500 VC-funded companies were welcomed to the unicorn club, including startups from Brazil, Israel and Africa.

Crypto funds

Cryptocurrency transactions bypass traditional financial institutions and are not regulated by any governing authorities. However, due to the market’s volatility and the recent crash, governments and other regulatory bodies intend to impose more regulations on cryptocurrency transactions, making crypto fund administration more relevant to the virtual asset ecosystem.

For example, the EU seeks to control the crypto market via its Markets in Crypto-assets (MiCa) law, set to take effect by the end of 2023. A proposal to tax cryptocurrencies in the Philippines has been forwarded to the new administration. Hong Kong’s Securities and Futures Commission introduced a licensing regime for virtual asset service providers.

In the administration of crypto funds, a provider must have proven experience in trading and arbitrage strategies, cold/hardware wallet management and initial coin offerings, so they can provide effective solutions to crypto investors and managers.

Real estate funds

Bolder Group monitors capital commitments, drawdowns, carried interests and complex waterfalls as well as provides investor reports to its clients in the real estate industry. These administration services are tailored to whatever type of real estate funds the client handles — whether ETFs, real estate mutual funds or private (for high net worth individuals).

Real estate fund sponsors are generally expected to provide detailed investment information to investors, who are typically hands-off and leaving the day-to-day fund management to the sponsor. 

Managed accounts

Liabilities lie in the hands of money managers handling managed accounts of, usually, UHNWI. Money managers, who may also act as fiduciaries, are expected to invest and act based on the goals and risk tolerance of their clients. A lot of considerations come into money management; for instance, portfolio diversification, securities liquidation, tax concerns, P&L reports and daily valuations, amongst others.

Some of these functions are left to third-party providers of middle- and back-office jobs. Fund administration services can be customised based on the needs of the managers and the goals of the managed accounts, including, but not limited to, customer due diligence and other compliance requirements, valuations, tax reporting, etc.

Fund of funds

Managing fund of funds (FOF) may be complex due to its structure, and even more so if the administration is done in-house. When working with fund administrators, FOF managers can benefit from outsourced AML and KYC measures on new fund investors, report and financial statements preparation for shareholders and other investors, FOF price comparison reports as well as monitoring using fund technology.

The primary duties of fund administrators 

The previously mentioned functions of fund administrators illustrate an overview of what the services providers can offer. Generally, fund administrators make it easier for fund managers to focus on their portfolios by taking charge of back-office functions.  

The following section goes into detail about the primary duties of fund administrators. 

Fund accounting

An important facet of fund administration is fund accounting. This system of accounting involves the tracking of an allocated amount of funds for a specific function in an organisation. It also touches on the maintenance of the financial records and documents of a fund. 

Fund administrators are responsible for the accounting of investment portfolios such as securities, investment holdings and capital allocations. With this, the portfolio and investor activity are professionally managed. Moreover, fund administrators record the changes in the values of instruments that constitute an investment fund. This serves as a basis for the net asset valuation, one of the other primary duties of fund administrators. 

As opposed to general accounting, fund accounting is not focused on determining whether a structure is profitable. It is more focused on tracking the inflow and outflow of funds. Fund accountants generate information to establish how resources are utilised. Moreover, fund administrators conduct the effective and proper use of such resources based on allocation. Overall, its main purpose is to enhance accountability. 

NAV calculation

The net asset value or NAV represents the value of a certain fund, which is typically presented in a per-share unit. Its value provides an insight on the performance of a fund in a particular timeframe.  

Fund administrators are tasked to determine the net asset value of a fund which helps investors assess a fund or portfolio. Organisations also use the calculated NAV to decide on the number of shares that will be issued to investors and the amount of cash paid to investors. 

Its various applications in an organisation’s financial decisions emphasise the need for the expertise of a fund administrator.  

Investor services 

Fund administrators provide the information sought out by investors to evaluate a fund. They ensure that clients obtain the necessary particulars regarding a funds’ valuation and performance.  

With the growing demand for impactful investment opportunities, fund administrators assist in investment activities that ensure transparency and inclusivity. For instance, ESG investments are becoming a crucial aspect of portfolios. Fund administrators facilitate the integration of the ESG factors into investments.  

Fund administrators provide specialised services to clients in order to alleviate concerns brought by economic challenges. Read more on how fund administrators can help with investment funds during a recession here

Moreover, fund administrators warrant compliance with regulations and requirements. This is one of the areas where the various compliance solutions of a fund administration firm come into play.  

Compliance solutions

Fund administration specialists ensure compliance with every regulatory framework concerning funds and investments. Fund administrators fulfill the rigorous processes needed to meet compliance, reporting, and transparency requirements internationally and within the jurisdiction. 

Fund administrators provide compliance solutions to both traditional and digitalised fund structures. As various fund structures are continuously being set up in the market, applicable laws and regulations are also created. The regulations for each of the fund structures may also differ for different jurisdictions. Fund administrators take up the burden of keeping track of such crucial aspects of fund management.  

An important segment of corporate compliance is with regards to anti-money laundering (AML) regulations. We have discussed how AML non-compliance and poor practices can affect an organisation here

Financial reporting

Financial reporting involves an analysis of financial data to determine the financial and operational standing of an organisation. This helps managers identify risk areas. What’s more, contains information that potential investors typically want to assess.  

Financial reports are required by authorities and are normally required by an organisation’s shareholders. Fund administrators provide financial reporting services in accordance with clients’ needs, GAAPs, IFRS, and other local accounting standards, practicing transparency and data-driven decision making.  

Tax support

Apart from financial reports, fund administrators also assist in an organisation’s tax obligations. Different fund structures and tax authorities call for distinctive tax reports. Fund administrators assist clients to generate information, accomplish tax forms and deliver requirements necessary for the operations of an organisation. A fund administrator has expertise in dealing with global tax requirements. 

Domiciliation services

Fund administrators have extensive knowledge and resources needed to successfully domicile in a competitive market. They assist in selecting the optimal corporate vehicle in a specific jurisdiction, as well as fulfilling the relevant regulatory and legal processes. 

Fund administration professionals also provide areas to carefully consider when deciding on domiciliation. Apart from the legal restrictions and regulations, factors such as fiscal obligations, local investor sentiments and set-up period are addressed.  

Legal services

Fund administration companies also provide legal services to enable fund managers to focus on their operational activities. Fund administrators work on much needed areas such as corporate governance and regulatory filing tasks. Whenever there are changes within funds, it is the duty of fund administrators to assess and highlight areas of concern.  

Bolder Group, for instance, offers legal services such as preparation and filing of statutory returns, assessment and arrangement of corporate legal documents, sending in reports to authorities, amongst others.  

Ultimately, fund administrators create a system of efficiency and comprehensive adherence to rules and regulations applicable to the organisation through their legal, accounting and corporate services. This leads to minimal exposure to legal risks and liabilities. 

Working with fund administrators: the benefits

The increasing complexity of middle-office and back-office functions amplifies the need for fund administrators. Trends involving fund administration, like digitalisation and stricter compliance regulations boost the demand for specialised services and knowledge in fund management.

Acquiring the services of fund administration firms has its benefits.

Focus on your core product offerings and services

Acquiring an outsourced fund administration service helps take away some of the administrative burdens of fund managers. The abovementioned functions of fund administrators can be outsourced to assist, not only in ensuring the execution of fund administration activities, but also in saving the time being taken away from working on non-core functions.

With outsourced fund administration, managers and investors can direct their efforts in the development of their own asset and fund strategies and activities. Fund administrators can ensure timely, quality and relevant middle- and back-office functions on behalf of its clients. In addition, fund managers can maximise this outsourced service as fund administration firms provide thorough attention and expertise in crucial administrative tasks.

Gain insights from experts

Third-party fund administrators can provide the necessary guidance and insights in addressing the needs of clients. May it be in terms of administrative solutions, fund formation, legal services, compliance, among other things, efficiency and quality of work can be ensured with professionals that work on a specific function.

As established beforehand, regulatory requirements are building up and becoming more complex. Fund administrators specialise and customise compliance services to clients according to regulatory changes. Diverse requirements in distinct regions can be attended to by fund administration agencies. In short, experienced fund administrators could fill in the knowledge and skills gaps potentially present in a non-specialised in-house team that would execute these middle- and back-office jobs, especially in terms of legal compliance.

Establish cost-efficiency

The resources and workforce needed to execute back-office functions can be allocated to other business units by having fund administrators. Fund administrators can help do away with the costly expansion and development required to obtain a professional team to manage key fund administration responsibilities. Moreover, outsourcing such services could minimise the need to develop in-house tools, technology and systems.

Fund administrators minimise potential errors and legal issues, essentially preventing unnecessary costs. Professionals such as AML officers ensure compliance with regulatory and reporting requirements.

Bolder Group, for instance, has various regional offices that cater to the local fund managers and investors. Moreover, our international teams offer several corporate, private, funds and governance services tailor-fit to each sector and jurisdiction.

Working with fund administrators can be a favourable option as the composition of fund administration services continues to grow. Being able to focus on core responsibilities, obtain professional solutions and services and achieve cost-efficiency in a challenging and fast-growing facet of a business with fund administrators could help achieve operational advantage.

Who benefits from fund administration services?

Fund administration involves various services that ultimately reduce administrative burdens and achieve operational efficiency and growth. For instance, Bolder Group’s fund administration services are mainly catergorised into corporate, private, funds and governance.

With this, various entities can make use of and benefit from such services. Let us determine some of the entities that may benefit from each of the fund administration solutions.

Market entrants, new corporations, … 

A fund administration professional can administer corporate services such as business and market entry support, company structuring, and secretarial services, to name a few. A market entrant could benefit from specific business and market entry support functions which involve the provision and search for employees, managers and directors, payroll services, office solutions, amongst others.

Parties who are looking to establish a company or a Special Purpose Vehicle (SPV) can be assisted by fund administrators. Moreover, corporate entities, especially those that are newly formed, can avail of services that enable systematic and secure fulfillment of corporate requirements.

Entrepreneurs, families and family offices, … 

Private fund administration services pertain to functions that address internal business concerns and obligations. With this, entrepreneurs who are looking to manage their finances and operations could benefit from such services. Entrepreneurs can turn to fund administrators to manage these tasks with confidentiality and made to fit their personal needs.

Families and family offices likewise benefit from fund administration services. Fund administrators have the expertise in advising these parties in administering family business functions such as succession planning, private equity structuring and family meetings, to mention a few.

In addition, fund administrators can assist estate holders in managing their wealth and asset portfolios, as well as organising their philanthropy endeavours. Private entities, thus, derive benefit from the tailor-fit services of fund administration specialists.

Asset and fund managers, investors, … 

Fund administrators provide services to different types of asset managers. May it be hedge fund managers, real estate managers, private equity managers, or private equity fund participants, to name a few, fund administrators carefully analyse and deliver the needs and goals of these managers. They also take on essential responsibilities for asset and fund managers for them to focus on their core offerings.

Similarly, investors benefit from the professional services of fund administrators. Investors in cryptocurrency and funds, for instance, can acquire timely and relevant information regarding their investment portfolios. Fund administrators can also provide accurate reporting and trading strategies to these investors.

Brokers, art dealers, realtors, … 

Fund administration professionals administer corporate governance services which cover facets such as compliance and KYC/AML services through consulting, regulatory reporting and filings and officer provision services, amongst other services.

Other parties utilise corporate governance services aside from the abovementioned corporate bodies, other investment vehicles, asset and fund managers, and private entities; brokers, art dealers, realtors also derive benefit from the governance services of fund administrators.

Brokers and realtors administer trades and exchange of investments. Consequentially, they would need to comply with relevant regulatory systems such as AML, terrorist financing, auditing requirements, amongst others. This also applies to those who participate in the art market as they deal with a number of clients and valuable assets.

The complexity of regulations and other compliance requirements in their field of work can be accommodated by fund administrators. With this, risks associated with non-compliance are minimised. 

Fund administration professionals have numerous services available for these parties to address their needs and use them to their advantage. A fund administration professional has the resources, knowledge and expertise to assist any of these entities. If you are looking for a fund administration service provider to conduct your corporate, private, fund and governance needs, contact the Bolder Group team.

Fund administration technology

Before technology took over a significant part of the fund administration process, clients used to request for a physical copy of a summarised report. But with digital advancements, now, they prefer real-time access and overview to relevant data that would help them make informed investment decisions.

This option is readily available when fund managers partner with third-party fund administration firms. Usually, these companies are equipped with cutting-edge financial technology that helps them automate the workflow, digitise documentation and secure data.

Industry experts see rapid digitalisation as one of the key trends shaping the fund administration industry this year and in the coming years.

How does technology shape fund administration?

Cloud capabilities

The Covid-19 pandemic has magnified the need for a better digital workflow, as entire departments have begun to shift to part-time or full-time remote working. Now, while cloud capabilities have been around for years to support fund administrators’ need for real-time data accessibility, fund administration firms have turned to more sophisticated cloud network systems to ensure their offices from around the world collaborate efficiently. The cloud provides fund administration companies with a central platform that can be used for fund accounting or transfer services and more.

Investor or fund manager portals

In some cases, fund administration companies outsource software that allows their clients to access their underlying fund data and investor statements. These programs are designed to safekeep information about transactions, net asset values, contract notes and other files that contain particulars needed for investment decisions.

Some fund administration firms have an in-house software development team who designs such portals, so that fund and asset managers, as well as investors, can retrieve data from a single platform. In-house developed programs are advantageous in the sense that no third-party providers can enter this portal, thus making the data more secure.

Forensic tech

Compliance solutions are key facets of fund administration services. Fund administrators have adapted forensic technology to make their compliance service workflow more efficient, ensuring accuracy and enhancing the end-to-end process, as well as transparency protocols.

With forensic technology, fund administrators will be able to effectively capture and analyse data for KYC, CDD, CFT or AML checks. What’s more, it allows data to be accessed in a fraction of time, as opposed to sifting through hard copies of needed information. This especially gives compliance officers time to focus on the documents instead of looking for relevant data.

Due to the volume of data from external and internal sources, it is crucial to have updated technological infrastructure that will allow for transparency, accuracy and accessibility. Click this link to know the technology we use at Bolder Group.

To know more about fund administration and our services, contact a Bolder office near you.

Bolder Group is an independent global organisation providing fund administration services in the Americas, EMEA and Asia. 

bolder group logo - independent global fund administration firm

In October 2021, AMS Financial Group and Circle Partners partnered up to create an independent global fund administration firm catering to multiple locations in major financial hubs all over the world. The result? Bolder Group. The objective? To break barriers at the base of business.  

Fund administration firm Bolder Group has 13 locations, spanning from the Americas to Europe to Asia. And it continues to grow and evolve along with the ever-changing financial landscape. Our company’s philosophy is to be informed of the latest developments in the financial world, so we can keep our clients and partners involved and in control – at all times. This is how we, as a fund administration firm, work to meet clients’ needs and satisfaction.  

Fund administration is an art of its own. That is why a firm offering this kind of service takes a load off the back of fund and asset managers. Why are fund administration firms important? For one, fund managers want to stay laser-focused on their clients’ needs and portfolios. Doing that whilst taking care of the back-office matters is, to say the least, a tough challenge.  

Why do you need a fund administration firm like Bolder Group as a partner?  

The first reason you should outsource your fund administration solutions to a firm like Bolder Group is to ensure you can focus on core competencies. Not only will this save you time, but it will also save you from tons of non-revenue earning responsibilities. If you choose to do fund administration on your own, instead of hiring a firm to do it on your behalf, you will need human resources, dedicated office space and technology.  

The common assumption is that outsourced solutions are more expensive, but in fact, partnering with a fund administrator is a more practical solution than performing this task in-house. Considering economies of scale, fund administrators usually cater to multiple clients, through which you get a cost-effective yet high-quality service. 

Plus, with a fund administration firm as a partner, you will be free from the pressures of reports and compliance, the complexities of NAV calculations and data management.  

A top-notch fund administration service also requires updated technology that the firm can use for automated process flows, data management and analysis, investor portals and know-your-customer/anti-money laundering procedures. Bolder Group continuously invests in technology to fully take advantage of digital processes.  

Our firm, Bolder Group, provides 360 fund administration services that will free you from middle and back-office responsibilities, so you can spend your time growing your clients’ and investors’ portfolios.  

Our global solutions

We provide clients with our corporate, private, funds and governance solutions.  

Corporate Solutions 

Our corporate solutions include company & SPV structuring, to help you stay informed of regulatory and compliance concerns. Bolder Group has an extensive experience in SPV structuring and company management for alternative investment managers and capital market actors to make sure our clients are in good standing with local and international regulations.  

We also assist our corporate clients with our seamless market entry solutions, offering a private space in Hong Kong via The Point, project implementation and management and pension scheme. We can also help you with payroll services, temporary employee solutions and relocation needs. In particular, we help companies enter the Dutch market through Bolder Launch.  

Our corporate & secretarial services cover account filings and preparation of board and annual meeting documents, amongst others. Our secretarial expertise will reduce your administrative burden.  

Our fund administration firm also provides you with office accounting solutions tailored to your needs, according to local accounting standards. These are part of our accounting services: periodic management reporting, consolidated reporting, interim financial reporting on demand and coordination and management of audit process.

Private solutions 

We don’t only offer fund administration services to firms or corporations, but to private clients as well. We help them incorporate companies in foreign jurisdictions and offer directorship and management services through our company formation & management services. 

We can also structure projects to protect and enhance your assets through our estate & multigenerational planning. Bolder Group is a fund administration firm with a very reputable name in providing trust services, along with financial reporting.

Bolder Group helps private clients navigate the complexities of running businesses and corporations through family office solutions, philanthropic strategies and governance solutions. These services will not only protect your wealth. Equally important, they ensure your family legacy is preserved. Furthermore, we keep your books of accountants aligned with relevant local and international regulations through our financial accounting & reporting services for private clients.  

Fund solutions 

As a fund administration firm, we understand the challenges of fund management and complex reporting duties. With our fund solutions, we can administer your hedge funds, PE & VC, cryptocurrency funds, real estate funds, fund of funds and managed accounts.  

Our fund solutions include accounting, NAV calculations, fund formation, legal, domiciliation and treasury. In addition, we help in bank account opening, AML procedures and investor services, amongst others. In terms of real estate funds, we monitor commitments, drawdowns carried interest and waterfalls. On cryptocurrency, our services include set-up, high-frequency trading strategies, full transaction ledger, cold and hardware wallets in-kind capital transactions, amongst others.  

Governance solutions  

Bolder Group’s range of fund administration services also includes governance solutions for firms, that look for cost-efficient and effective compliance methods.  

We offer outsourced KYC compliance services for long-term KYC sustainability for our clients, which include consultation, KYC health checks, policy establishment and end-to-end project management. We have a KYC platform and a money laundering back office that do CDD, AML, PEP verification, UBO verification, record-keeping and compliance reporting & notification. This is also thanks to our in-house experienced and professional AML compliance officers, ML reporting officers and deputy MLROs.  

We also provide you with directorship & office services, including the appointment of the president, vice-president, treasurer, secretary and directors. We oversee registration, board meeting coordination and bank account management.  

Bolder Group offers Automatic Exchange of Information (AEOI) solutions to clients, too, to help them ensure business sustainability and stability, all whilst reducing administrative and financial workload. We offer reporting services related to FATCA, CRS, MDR/DAC6 and others, country-by-country.  

Global fund administration firm 

Bolder has thirteen locations in financially strategic hubs. Our offices can give you professional and personalised assistance for your business’s or firm’s fund administration needs, with our goal in mind: to add value to business and society in a bolder way.  

Reach out to one of our offices today to learn more about what we can do for you and how we work.  

logo of bolder group - global fund administration firm

Bolder is an independent service provider, offering corporate & fund services, company structuring and business support, financial accounting and reporting, private wealth services, governance and compliance solutions. Bolder has a global presence in over 12 offices and boasts a diverse clientele that spans from start-ups, larger corporations, multinationals to SMEs, private clients/family offices and asset management.

Two high performing companies: Circle Partners and AMS Financial Group merge in October 2021 to form Bolder and offer a comprehensive range of corporate and financial services since 1982.

At Bolder Group, we don’t only administrate your funds. We administrate your success to break the barriers. At the base of business.

Soho Beach House, Miami FL – January 25, over 450 registered companies were invited to Miami Hedge Fund Week hosted and co sponsored  by NexGen360 / Castle Hill and Bolder Group.

The summit is meant to be a celebration of networks of professionals and businesses in the finance industry in the United States. Many attendees were seen including Bolder’s clients, friends and relationships. As well as representatives from all over the world.

Miami Hedge Fund Week is also a kick-off to a series of networking events for the finance industry in the US – which will eventually lead up to the I-Connections Conference.

Bolder Group attends and co-sponsors Miami Hedge Fund Week 2022 in Soho Beach Miami Florida USA. Representatives are (from left to right) Nick Neri, Alaiana Monteiro, David Payne, and Jim Mead. 

(photo from Nick Neri on LinkedIn)

Bolder Group is proud to be a part of such an event, proving the Company’s reach and improved trust as an industry member. Bolder Group’s representatives who attended the event  were (from left to right) Nick Neri, Alaiana Monteiro, David Payne, and Jim Mead. 

READ: Bolder Group Nominated on Hedgeweek European Awards 2022

Nick Neri, VP of Business Development, The Americas of Bolder Group, was happy that the Event went above and beyond his expectations even during this pandemic where many states are still locked down. Miami Hedge Fund Week 2022 followed the venue’s COVID19 social protocols for everyone’s health and safety.

“Bolder has a bright future and this is just the beginning of things to come!” Nick Neri also added.

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For more information about Bolder Group and what we do, visit https://www.boldergroup.com/who-we-are/

Bolder Group | At the base of business
THE AMERICAS
United States
Cayman Islands
British Virgin Islands
Nevis
Curaçao
EMEA
The Netherlands
Luxembourg
Switzerland
Slovakia
ASIA
Singapore
Hong Kong
The Philippines

Bolder Group is nominated as an awardee for the Best Administrator – Start-Up & Emerging Funds category for Hedgeweek European Awards 2022. 

Bolder Group is proud to announce that it is recognised as one of the fund administrators with a strong market share in the said category. 

Vote for Bolder Group here. Voting runs until January 31st.

According to Hedgeweek, “The annual Hedgeweek European Awards recognises excellence among fund managers and service providers in Europe across a wide range of categories. Nominations for all categories are based on annualised performance over a 12-month period from September 1, 2020 to August 31, 2021. Nominations in various award categories are further split by size and strategy as specified in the award name.” 

Said Awards will also recognize other categories like Best Accounting Firm, Best Administrator – ESG, Best Administrator – Offshore, Best Administrator – Overall, Best Audit Firm, Best Data Management Solution, and more. 

Moving along, Bolder sees itself as a nominee for more and bigger categories not only for the Hedgeweek European Awards, but also in more award giving bodies. 

Vote for Bolder Group here on Hedgeweek’s website. Voting runs until January 31st of 2022. 

To learn more about Bolder’s services and locations, head on over here.

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