Fund administration in the alternative investment industry: Administrator selection and best practices

Udit Gambhir

Journal of Securities Operations & Custody, 2009, vol. 2, issue 1, 63-74

Abstract: Globalisation and reducing investment restrictions have encouraged capital flows across the world. Product development in financial markets has hastened the channelling of this capital into 'bets' that hedge against the negative impact of exposure, or simply for speculation. Enter the world of alternative investments — of which hedge funds form a primary part, in addition to private equity, fund of funds and other non-traditional asset classes. As of 2007, the global hedge fund industry had assets of about US$2.48tn. Alternative investment managers are distinguished by an objective to deliver absolute returns. These funds accept investments from high-net-worth individuals (HNWIs) and/or accredited investors and institutions.With increased assets under management, managers are outsourcing key components of their day-to-day activity. Today, accountants, administrators, attorneys, bankers, brokers, custodians, consultants and marketers are a few key service providers to this industry. This paper will try to provide an overview of one of the key service providers: administrators. It will provide a general overview of the key service providers and delve deeper into administration, and aims to provide the reader with an understanding of the administration process, as well as certain key things that must form part of a checklist when selecting an administrator. It will also list some best practices in administration that could help administrators to improve their processes and streamline operations.

Keywords: hedge funds industry and service providers; hedge fund administration; fund administration best practices; funds administrator due diligence: selection and process; fund accounting and fair value; KYC/AML and compliance of hedge funds; net asset value (NAV) timelines and checklists; hedge fund operations outsourcing (search for similar items in EconPapers)
JEL-codes: E5 G2 K22 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/2461/download/ (application/pdf)
https://hstalks.com/article/2461/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jsoc00:y:2009:v:2:i:1:p:63-74

Access Statistics for this article

More articles in Journal of Securities Operations & Custody from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().