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Why Outsource your Fund Administration?

15 September 2022

As businesses seek to maintain their growth, an increasing number of them are looking to take advantage of the benefits offered by fund administration outsourcing companies. With so many firms going this route, those who choose not to do so will likely find themselves falling further and further behind their competition.

By outsourcing their fund administration, companies can avoid several pitfalls, including time-constraints, cost pressures and regulatory hurdles. This enables them to direct their efforts towards expanding their business to become a dominant force in their chosen sector.

Why outsource fund administration?

While growth is undoubtedly a good thing for businesses, it also comes with its own set of challenges. When a company grows, the workload that is imposed upon the firm will increase. As well as this, businesses may not have the time necessary to train internal staff to deal with any issues in-house. This time pressure may also cause the heavy compliance burden on the company to increase even further.

Even if some companies can find the resources to train their own in-house compliance team, this can also cause extra challenges. Fund administration is a very time-consuming issue, and this can divert time that could be used to grow the business or focus on developing new products. Furthermore, this is not just a one-time cost. If trained employees were to leave the company, then the business would incur further additional time penalties from onboarding and training new employees to join the compliance team.

In contrast to companies who take the approach mentioned above, businesses that outsource their fund administration are in a much better position to focus on growing their business.

3 benefits of outsourcing your fund administration

  1. Time Saving - Time is not the only resource that can be saved by choosing to outsource your fund administration.
  2. Cost Efficiency - Companies can also avoid incurring the expensive financial penalties that arise as a result of training their staff in-house. Although some businesses may feel that outsourcing is a waste of money, the opposite is true. Indeed, firms could be losing a much larger amount of money if they do not outsource their fund administration to a third-party.
  3. Be Compliant - As well as saving time and money, outsourcing fund administration to fund service providers also enables companies to stay ahead of compliance regulations. These are subject to regular change, sometimes with comparatively little notice. Thus, outsourcing this workload to a financial solutions provider - like Apex Group - allows businesses to avoid running afoul of new changes. This, in turn, helps preserve the most precious asset a company can enjoy – the continued confidence and trust of its investors.

What can Apex Group do for you?

More companies are choosing to outsource their fund management and administration. This is hardly surprising. There is only so much that internal fund administration and accounting can do to mitigate the downward pressure on costs and fees, as well as a global talent shortage.

As these concerns are paramount, fund managers are increasingly seeking a single-source solution, whereby they can access all the services they require, via one relationship. This is where we come in. Our wide range of fund administration services ensures that we take care of everything for you.

The results speak for themselves. An independent study published earlier this year by Forrester on the Total Economic Impact of Apex Group found that clients using our single-source solution achieved a return on investment of 105 per cent and cost benefits of $5.39m.

By choosing to outsource your fund administration to us, firms can rest assured that their business is in good hands. What’s more, our global reach means that any compliance needs are well taken care of, wherever operations are based in the world. We can ensure that the reputation of any firm is protected by preventing key decision-makers from being caught out by changing regulations.

We are more than the sum of what we do. As our CEO and Founder, Peter Hughes, stated

“strong client relationships have been, and always will be, at the heart of the Apex philosophy”.

We pride ourselves on the speed, agility and quality of our service. We want our clients to succeed just as much as they do.

 

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