Cryptocurrency to long-term assets: End-to-end fund administration services
A fund administrator handling multiple funds investing in diversified investments approached Sundaram with resource scalability and operational challenges as they added more funds to their portfolio. They sought a reliable outsourcing provider with expertise in fund administration services.
They outsourced their fund administration based on cryptocurrencies, added funds based on long-term assets and continued expanding their investment portfolio in foreign currencies.
Activities handled by SBS
For preparing newsletters
The Challenge
Scalability, Maintaining accuracy, Venturing into new funds, Tax reforms and Compliance
➤ NAV calculation: The client wanted to calculate NAVs accurately and precisely, as each report was provided to the investors to keep them posted on the fund’s performance.
➤ Financial reports: The fund’s Net Asset Value is calculated every day to determine its financial position, which is challenging in a highly volatile crypto market.
➤ Scalability: As the number of sub-funds under the major fund administered by the client increased, the client faced difficulty scaling up with limited resources.
➤ Different asset classes: The new fund added was unlike the first fund handled, as the nature of assets, investment duration, regulations governing the funds, their redemption activity and determining the valuations of the funds were totally different.
➤ Tax reforms: When the client expanded their fund’s portfolio by investing in foreign funds, the back-end processes were challenging, as the tax reforms and regulations were unique to that currency.
➤ End-to-end services: The client faced challenges handling the end-to-end fund-administration services.
➤ Compliance: As the fund expanded, regulatory compliance became more challenging.
The approach
Sundaram Business Services utilised its expertise in fund administration services and helped the client achieve several benefits.
➤ NAV calculation: SBSL calculated the NAV, which was used to prepare newsletters that help investors understand their funds’ performance. With our streamlined approach, the newsletters were prepared within 24 hours of calculating the NAV
➤ End-to-end processing: The client started by outsourcing the NAV calculation and reporting process. Then, they expanded by outsourcing redemptions, chart preparation, BAS preparation, accounts payable, invoice processing, bank reconciliation, and other fund administration processes.
➤ Specialised expertise: Though we received basic training in handling the client’s fund management activities, we successfully managed new funds in different currencies through our strong expertise in handling various clients in fund management.
➤ Better Visibility: They provided our resources with sample reports from previous months, which our resources converted into accurate and detailed reports. This greatly improved the investors’ understanding, which was later used in newsletters.
The impact
Improved TAT, Accuracy, Better visibility, Business growth and Compliance
➤Quick turnaround time: The NAV calculations and other processes were completed swiftly, ensuring the investors were updated with reports promptly.
➤ Accurate reports: Accuracy in NAV calculations, reconciliations, and investor reporting was achieved, which eliminated the chance of costly errors.
➤ Dynamic market: With our in-depth knowledge, we determined the NAV of the highly volatile cryptocurrency market and promptly presented it to investors.
➤ Reliability: Our clients’ third-party vendors refer to our sheets to verify the end results, highlighting the reliability of our data sheets.
➤ Quicker access to newsletters: Our streamlined approach helped the client prepare newsletters faster, which were ready within 24 hours of NAV calculation.
➤ Brand growth: As SBS efficiently worked on the NAVs and other fund-related activities, the brand’s visibility increased, attracting more entities and leading to better business growth.
➤ Compliant: The reports generated complied with ATO and other regulatory bodies.
➤ Scalability: The client could scale up when the number of sub-funds increased or during peak tax loads, improving the business’s profitability.
