Essentially, a fund administrator is an outsourced third party service provider that protects the interests of investors by independently verifying the assets and valuation of the fund. By outsourcing the fund administration function, fund managers are allowed the freedom to focus on portfolio management internally. Typically, fund administration comprises two parts: fund accounting and the activities of registrar/transfer agent.
Typically, fund administration comprises two parts: fund accounting (see fund accountant) and the activities of registrar/transfer agent. Fund Aadministrators that concentrate on the latter provide a set of services that support the running and managing of a fund. They do all the back office financial paperwork (particularly with regards to applications and transfers), support the investment team in the administration of the assigned funds and ensure the efficient planning and execution of the day-to-day functions. They must also set up funds correctly from a financial and legal perspective to minimise risk and optimise governance and control.
