2023 was a turbulent year for listed funds and fund managers, with 2024 set to be more stable yet still demanding.
Effective collaboration with a fund administrator and company secretary can ensure an efficient, outsourced approach to administration, putting fund managers and listed boards in the best possible position for success in the coming year.
Partnering with the right outsourced provider allows the fund manager and listed boards to focus on their investment strategy and decision-making, while leaving administration and compliance tasks to a specialist provider.
Outsourced fund administrators and company secretaries play crucial roles in a fund and can provide numerous benefits, including:
1. Expertise and Knowledge
Outsourced fund administrators and company secretaries frequently specialise in fund administration and are knowledgeable in this area.
They understand best practices and are constantly updated on regulatory expectations and market developments.
They frequently serve as a liaison between the fund manager and fund’s board of directors, shareholders, regulatory authorities, and other stakeholders.
2. Efficient and Economical
Given their specialisation, they are likely to have more efficient systems and methodologies. This can result in cost savings and increased efficiency when compared to developing and maintaining similar functions in-house.
3. Regulatory Compliance
They are already compliant with regulatory standards, which can be complex and challenging to handle. They stay up-to-date on the changing rules and regulations while maintaining efficient workflows.
4. Risk Management
An external fund administrator can help to reduce risk by providing another set of eyes to scrutinise fund operations, preventing or detecting errors, fraud, or other issues earlier.
5. Scalability
Outsourcing enables funds to rapidly scale their operations as they grow without incurring a proportional increase in costs. Moreover, it can also help manage variable cost structures as fund sizes may fluctuate.
6. Focus on Core Business
Outsourcing fund administration allows a fund to focus on its core business activities. It can free up resources and time, allowing the fund to concentrate on investment strategy, client relations, fund raising, etc.
To take advantage of positive signs and market movements, it is important to have the right foundations in place and be able to move quickly.
A number of funds have already expressed interest in switching to a new service provider in order to provide more efficient and cost-effective services. JTC has a well-established, cost effective and seamless transition process that ensures no disruption to business operations.
If you are considering a transition to a new fund administrator and/or company secretary and wish to discuss how this can be accomplished, please contact Susan Fadil directly.
JTC Fund Services
Our fund services team has decades of experience and a proven track record administering both closed and open-ended funds established in Jersey, US, UK, Guernsey, Ireland, Luxembourg, Cayman Islands, Singapore, South Africa, Mauritius and BVI.
We pride ourselves on the in-depth knowledge and agility of our subject matter experts who deliver efficient fund administration services including company secretarial and governance, AIFM, compliance, depositary, investor reporting, regulatory, transfer agency, and treasury, as well as fund accounting covering financial reporting and tax compliance.
About Susan Fadil, FCG.
Susan joined JTC’s London team in 2017 to launch a new Governance Services offering primarily to listed funds and corporates. As a Senior Director within JTC’s funds and corporate services division, her 25 years of leadership experience is invaluable to the business and the industry as a whole.
Susan is also a Fellow of the Chartered Governance Institute UK & Ireland and was a member of its governing board for six years, serving as Chair of the membership committee. Both roles were voluntary and contributed to the profession of which she is a dedicated member.
