Fund administration – why an integrated approach is key to delivering a high quality service

Fund administration – why an integrated approach is key to delivering a high quality service

Bob Burden, Opus Fund Services

“We live in the Managerial Age, in a world of Admin.”

Fund administration has long been regarded as little more than an administrative burden for fund managers.

Traditionally, fund admin is outsourced to “specialist” providers.  However, the disparate nature of these tasks means these providers have been required to rely on a range of independent off the shelf technologies in an attempt to manage them effectively. As a result, fund administration has taken the form of little more than a series of functionally separate work flows and spreadsheets which fund managers and their providers must update manually and then pair with a standalone client relationship management (CRM) system for managing prospective investors and communications to existing investors.

However, this whole approach is not ideally geared to the end user, the investor, who needs to be able to view and consider prospective investments in real time before making a decision – and then keep a close eye on how the investment is performing.

Many companies offer outsourced fund administration packages, but this is an area which has traditionally been highly commoditized – with many suppliers offering a similar product which is purchased either because of the brand name or because it is the cheapest. The user experience might not have been appropriately considered, which ultimately will also affect the standards and overall quality of client service.

Work smarter, not harder

Sometimes a fresh perspective is required.  As the big name firms jostle for market share and to maximize profitability, service quality and the customer experience are being ever degraded. Managers are starting to question the value proposition and are looking for a better alternative. 

15 years ago, the founders of Opus drew on their particular blend of technology and finance sector experience and launched the world’s first fully integrated tech-based fund administration platform. One that sought to deliver true value to both fund managers and investors alike.

The basic principles of the platform are still at its heart today – bringing together key functions into one convenient package, providing complete transparency, while delivering unrivalled functionality for all parties wherever in the world they are based.

But it has been the technologies evolution that is most groundbreaking. Through ongoing consultation with the end users, Opus’ understanding of what matters most to managers and investors alike has driven its perpetual iteration.

A customer-led approach to innovation has allowed Opus to tailor its platform to specific needs, ensuring true value is consistently delivered.

No pain, more gains

One of the key benefits of Opus’ platform is that it is based on the company’s own proprietary technology, rather than relying on third party software and systems. This ensures regular updates, complete accountability and compliance with changing standards.

All functions are handled within the system – the investor portal, for example, allows interaction with both prospective and active investors, equipping them with real time data on fund performance and potential new investments, allowing for more rapid and informed decision-making and securing greater investment levels as a result.

The convenience is key, as investor and fund manager communications are streamlined via this platform. The consolidation of functions into a single technology-led tool also demonstrates not just a commitment to optimized user experience and standards of service, but to responsibility and overall business integrity, particularly when it comes to the handling of data.

We need to talk about data…

Data handling and governance are of course very much in the spotlight these days, with the advent of global data protection legislation and regulation, not to mention every increasing occurrences of high profile data breached in the headlines. data breaches...

Some sectors and individuals have yet to appreciate the true importance of data security, and the need to ensure best practice in this area. However, investors and managers are entitled to expect that any data they supply is held and managed in accordance with best practice and in compliance with international standards which may be in force. Consolidation into a single cloud-based platform, with security regularly reviewed and updated to ensure compliance, should be a base line expectation of good client service.

Ultimately, the aim of a platform such as the one offered by Opus is to empower clients and investors by making fund administration, transparent, accessible and, most of all, easy through the conversion of complex manual processes into streamlined, repeatable and automated procedures. The overall outcome from this 15-year investment is a platform that can scale while keeping the user experience at the very centre of its success.

The adoption of this system is proven in optimizing service levels and therefore customer satisfaction and with continual commitment to the further evolution of the system to meet changing needs, it is showing that properly managed fund administration can add absolute value for both fund managers and their clients.