What Is A Fund Administrator?

Fund administrators are an outsourced service provider that work with fund managers
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Fund administrators are an outsourced service provider that work with fund managers.

They are responsible for servicing and managing an investment fund.

Some main tasks of a fund administrator include record keeping and financial reporting.

In this article we’ll be looking at:

  • The basics of fund administration.
  • Services provided.
  • Selecting the right administrator.

We will start off by first having a look at the basics of what a fund administrator is and their roles.

Fund Administration Explained

An investment fund works like a company.

And as with a company, annual and interim sets of accounts will need preparing. It is the fund administrator who takes care of this.

They take care of all the back office financial accounts and paperwork.

They ensure that clients have up-to-date information on their fund’s investment performance.

Plus, they also make sure that it follows all necessary legal requirements.

Fund managers outsource these responsibilities to a fund administrator.

This allows them to have more freedom to focus on portfolio management.

In general fund managers view them as partners within the fund.

Fund administration generally consists of 3 main roles:

  1. To value the Fund’s assets.
  2. Maintain the Fund’s official books and records.
  3. To report to the Fund’s investors.

We will next go over some of the other main responsibilities of a fund administrator next.

Services Provided

As mentioned, a fund administrator deals with most of the back end financial accounts of a fund.

Below we have created a list of some of the main responsibilities.

  • Daily monitoring and managing of the funds accounting operations.
  • Analyze fund requirements and deposit funds as necessary.
  • Maintain accurate records of all fund transactions.
  • Generate routine financial reports for management and clients.
  • Work with Auditors to execute annual financial audits.
  • Perform month-end account closings.
  • Prepare financial statements to Directors when needed.
  • Calculate capital gains.
  • Manage cash flow and expenses on daily basis.
  • Analyze funding issues.
  • Follow company policies and procedures for smooth operations.
  • Review and assist in new fund start-up activities.

Selecting The Right Fund Administrator

When selecting a fund administrator there are a few key points to consider.

The manager should use due diligence in the process for selecting a suitable partner.

The fund industry is continuing to evolve.

Because of this, managers are seeking new ways to diversify their portfolios.

There are four main driving factors managers consider when selecting an administrator:
  1. Their ability to work with a variety of products.
  2. A track record of experience in supporting their particular product.
  3. Being able to recognise potential issues and deal with them.
  4. Be knowledgeable of the manager’s product, structure and strategy.


Both the administrator and manager have the same goal to help advance the fund.

They both play a very important role within an investment fund and need to be able to work well together.

By now you should have a better understanding of the role of the fund administrator.

If you have a topic that you’d like us to explain, then please type your suggestions in the comments section below.

Please also feel free to ask any further questions too.

We read every comment and do our best to respond to your ideas.




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