Fund administration outsourcing should be an integral part of your long-term strategy to stay competitive and most efficient.
The world is changing fast, and investment managers need to keep up with the changes.
To stay ahead of the competition, you must leverage every synergy and opportunity to the max.
Outsourcing is one way investment firms can stay ahead.
Long gone are the days when investment managers looked at outsourcing with skepticism.
James Yates, CFO of IK Investment Partners, accurately describes the current situation:
"There is a trend to to outsource, and not just in fund administration, but also in IT services, regulatory compliance, tax compliance, and HR-related matters."
According to a FlexShares survey, 32% of RIAs outsource in some form, up from 27% in 2020. And of those that outsource, 95% of those surveyed said they were 'satisfied' or 'very satisfied' with their outsourcing solutions.
And the trend only points to more firms leveraging third-parties in the future.
There are many reputable fund administration outsourcing providers out there, audited and certified by industry regulators, like Empaxis is.
With reputations to uphold and aware of competition, the service providers know they have to deliver.
Empaxis knows there's a demand for reliable fund admin support, and we are ready to meet the needs.
Every fund manager must track their performance, and they need to know that the reports are accurate and delivered on time. Empaxis has a proven track record in doing just that. It's how we got started and what we've done for nearly two decades.
With so much so success and experience in the area, Empaxis surely follows investment performance reporting best practices.
Investment managers need accurate net asset value (NAV) amounts to determine how much each share of the fund should be worth. All relevant analyses and decisions can be made thereafter.
Empaxis has plenty of experience dealing with NAV's for mutual funds and ETFs.
It's an entire process of downloading statements, formatting, renaming, and storing the files. Then it requires extracting data and sharing in a report internally or with client.
Through Robotic Process Automation (RPA), Empaxis has automated the alternative investment statement processing steps.
Statements come in at random times and with unpredictable volumes. To automate the processing of the statements right when they're available is a huge boon to investment managers, including hedge funds and family offices.
Along with investment automation solutions, investment firms need financial technology that streamlines workflows, platforms and dashboard that provide real-time investment and reporting analytics, as well as a central hub from which to view all their data.
Investment firms use our turnkey asset management platform, TAMP1, to achieve those very goals.
When outsourcing fund administration activities, you have ability to access this technology
According to an AssetMark survey, one of the main challenges for advisors is scaling their business for growth and spending time on business-building activities, including client financial planning, practice management, and new business development.
With outsourcing, you can scale more easily and focus on revenue-generating activity.
In the FlexShares survey cited above, 53% of respondents saw a correlation between outsourcing and the ability to generate more revenue.
When you partner with experts in fund administration support, you can trust in their experience. Because fund admin is all they do, they are naturally better at it. After all, it's their reason for being.
They build the process efficiencies after years of experience, and they do the work better and faster for you.
And according to a Northern Trust study, asset managers focus on outsourcing to improve efficiency and an “increas[ing] reliance on technology to solve multiple challenges, including improved access to, and management of, data.”
Just as outsourcing providers develop greater efficiencies, they're able to pass the cost savings on to you. That's part of the attraction!
Another way outsourcing saves you money is it keeps costs fixed. Keeping costs stable when inflation is persistently high and markets are unstable... outsourcing is one of the few ways out there to do that.
When you outsource fund admin functions, you free yourself from the burden of hiring internally, dealing with turnover and talent shortages.
Without weighing yourself down in administration work, you have the flexibility to pivot. You can more easily focus on activities that you know will bring the most benefits for your organization.
Working with Empaxis, it's never an 'all-or-nothing' approach.
Flexibility means supporting you and your requirements.
Your technology, your environment, your controls, what you need and when you need it... Empaxis makes it easy to get customized, co-sourced fund admin servicing.
We collaborate with your team to produce reports, data aggregations, dashboards, and other automated solutions
It is abundantly clear that investment firms have much to gain by partnering with fund administration outsourcing providers.
In fact, there's a lot that they lose if they don't.
To have an entire team that can handle reports, NAV calculations, process private investment statements, and deliver a centralized data and reporting hub, that's a huge value-add.
At a minimum, outsourcing is an option worth exploring and discussing with trusted services providers like Empaxis.