Manual Processes & Data Integrity Causing Global Fund Administrator Anxiety
August 26, 2013
At a time when asset management companies and fund administrators are being tasked with higher levels of reporting and transparency, roughly three in ten (29 percent) worry about lack of automation and an additional 24 percent are concerned with data integrity. This is one of the key findings of the 2013 Confluence Fund Administrator Trends Survey, which polled 178 U.S. and international back-office professionals on their biggest daily concerns.
“Fund administrators are being challenged with the perfect storm of lack of automation, regulatory scrutiny and the need to do more with less,” said Confluence Chief Operating Officer Skip Smith. “The back-office must adapt in order to survive; automation is the key to improving control and efficiency while simultaneously reducing risk and cost.”
According to the study, the biggest globalization challenge fund administrators are facing is standardizing processes for corporate management purposes while maintaining flexibility for local reporting (35 percent). Sequent challenges include pressure to comply with multi-regulatory regimes simultaneously (18 percent) and administering funds across multiple time zones (7 percent).
“As international borders continue to break down, financial organizations will look to automate their business processes,” said Smith. “Embracing automation—instead of fighting a rearguard battle to preserve manual methods—provides fund administrators the opportunity to transform their business and position themselves, and their clients, for ongoing global success.”
Other fund administrator insights of note include:
When it comes to regulatory reporting half the respondents were onboard with automation and an additional quarter plan to automate in the next two years.
- Additional back-office challenges that concern fund administrators include: reporting errors (12 percent) controlling administrative costs (10 percent); inability to scale operations to meet growth objectives (9 percent); and lack of experienced staff (8 percent).
- The top back-office operations administrators are looking to automate in the next 24 months are AIFMD reporting, regulatory reporting and performance fee calculations.
ABOUT THE CONFLUENCE FUND ADMINISTRATOR TRENDS SURVEY:
Confluence collaborated with Campos Inc. on the 2013 Confluence Fund Administrator Trends Survey to understand what issues are affecting global fund administrators. The Fund Industry survey was conducted in the spring, 2013 amongst 178 decision makers at asset management companies and service providers who are involved in and/or influence the use of products for fund administration services.
Confluence is a global technology solutions provider delivering innovative products to the worldwide money management industry, to meet asset managers’ and service providers’ performance, reporting, analytics, risk and data needs. With the recent acquisition of StatPro, Confluence offers its clients a broader range of data-driven managed investment solutions including post-trade regulatory and shareholder reporting, performance and attribution, portfolio analytics, and asset data services and data management, delivering a full technology suite to the front, middle and back office. Headquartered in Pittsburgh, PA, Confluence serves the international fund industry with locations across Europe, North America, South Africa, Australia and Asia.