Outsourcing Fund Administration involves delegating fund management processes to a specialist outsourcing partner. It’s a strategic decision that can empower your fund managers to provide exceptional value to clients, instead of being bogged down in back-office tasks.
A growing number of fund managers are looking to outsource administration services. Recent estimates suggest at least 4 out of 10 managers outsource elements of their administration, while 7 out of 10 expect to increase the amount of functions they outsource in the next few years.
Why are more fund managers choosing to outsource fund administration?
There are several reasons more wealth management companies are looking to outsource and enhance efficiency within their business:
- Round-the-clock support for global investors – It is now a given, rather than a luxury, for investors to access markets from all over the world. Behind-the-scenes support helps fund managers operate around the clock, keep up with multiple time zones, and complete tight-deadline tasks.
- Market shifts create more administration – Today’s investors are facing a high-inflation, high-interest-rate environment. For example, in November 2023 the Reserve Bank of Australia raised the local interest rate to 4.35%, a 12-year high. Many fund managers rebalance portfolios in line with changing conditions and priorities, which creates a greater administration workload.
- The need to automate regulatory compliance – Expert fund administrators have the right systems and tools, as well as necessary accreditations and memberships, to automate compliance and ensure you keep on top of changing regulations. This can be especially beneficial as Australian regulations continue to tighten.
What are the key benefits of fund administration outsourcing?
In addition to dealing with rapidly evolving global markets, time zones, and regulations, fund administration outsourcing can provide you with a range of benefits, including:
- Cost-efficiency – Outsourcing eliminates in-house staff wages, training, and infrastructure expenses, allowing you to reallocate resources where you need them the most.
- Scalability – You’ll have more resources and flexibility to grow. Whether you want to open new funds or service a surge in investor demand, you’ll be poised to capitalise on growth without slowing down to recruit and train additional staff.
- Peak-time staffing – When the end of fiscal quarters or tax seasons create fluctuations in your workload, an experienced outsourcing provider lets you easily scale your capacity up or down.
- Industry experience – Specialist knowledge helps you navigate complex regulatory and reporting requirements, while also developing and evolving operational processes for better efficiency.
- Expertise in tools – By enlisting experts who support a range of the latest applications, software, and tools, you’ll have the ability to handle large volumes of data and complete administration quickly, with a greater level of accuracy.
- Business continuity planning – An outsourcing partner can safeguard you and your clients from service disruptions out of your control, such as natural disasters, sudden staff turnover, or cybersecurity attacks.
How can Sundaram Business Services help?
If you’re searching for an outsourcing partner with extensive knowledge and experience in fund administration, Sundaram can help. With a 20+ year track record of success – including assisting some of Australia’s leading wealth management companies – we can handle your back-office administration tasks such as:
- Client onboarding
- Reconstruction
- Daily operations
- Year-end tax
- Registry management
- Dealing
- Distribution runs
- Rebates
- Statements
- Reconciliation
By putting these tasks on autopilot with a trusted outsourcing partner, you’ll create more time for your fund managers to do what they do best. They can undertake high-value tasks that are essential to performance and client success, as well as their own job satisfaction.
Want to learn more? Speak with an expert member of the Sundaram team and discover how you can outsource your administration services to create better efficiency in your business.
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Sundaram Business Services is a business process outsourcing company with offices in Australia, India and the UK. With over 20 years’ experience in the Australian market in providing outsourced teams to Australian businesses across Accountancy, Portfolio Management, Self-Managed Super Funds, and Mortgage Broker Support, our business becomes an extension of yours.
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