Fund Administration

What is the role of the asset management administration team?

The administration team is there to ensure that the asset managers can undertake their role as smoothly and effectively as possible. 

Roles:

• Calculate the NAV of the fund, crucial for investors to be able to make effective decisions
• Reconcile broker, custodian, bank and investment manager statements
• Check the settlement of daily purchases and sales of securities
• Collect dividends and interest
• Confirm trades with brokers
• Ensure financial statements are correctly prepared
• Ensure an up-to-date ownership record of the fund
• Make payments to investors of distribution funds
• Deal with the opening of new funds and the closing of old ones 

What is the administration process? 

One of the roles within the administration process that is outsourced is the role of the transfer agency. 

The transfer agency has several roles: 

• Keep a record of the investors’ holdings in the fund and when shares are bought and sold
• Maintain investors records
• Fee collection and dividend payment 

Another organisation employed by asset managers is a custodian, this is the organisation responsible for safekeeping investors assets. The custodian may have a different name depending on where in the world you are based.