To find the best administrator for your equity, quant and CTA funds, start by asking the following three questions.
Data automation is central to reducing risk, ensuring accuracy and empowering investment managers to deliver faster, higher-quality client service. The best servicing for high-volume trading funds incorporates straight-through processing, systematic master creation and fund family reconciliation.
It takes a serious commitment to technology investment to offer advanced data automation. But being a good data manager is much more than just a technology issue. As you examine the automation processes of your fund services partner (and their ability to support your high-volume trading strategy), ensure their focus centers around understanding your specific data needs.
When considering potential service partners, it’s critical you understand their approach to outsourcing. This is especially relevant when trading high-volume strategies in a daily liquidity environment. Meeting tight daily deadlines requires your provider to clearly understand your needs, exercise ownership and take accountability for delivering.
“The best administrators prioritize proactiveness, responsiveness and flexibility to ensure you get what you need when you need it,” says Linda Gorman, chief executive officer of U.S. Bank Global Fund Services – Europe.
When assessing a potential service provider, here are some key questions to evaluate their operating model:
Your service provider should understand the unique needs and demands of your investors in today’s increasingly complex environment. They should provide guidance and tools to help you efficiently manage risk and revenue, track performance and ensure your investor base remains well serviced.
Look for a partner that structures their organization and systems in a way where your investors receive timely, accurate and intuitive account information. Ideally, you’ll want a single point of contact backed by a dedicated servicing team and diverse network of product structure experts. For a seamless, streamlined workflow, look for a provider that prioritizes flexibility and has an infrastructure geared toward offering strong investor support.