In June 2026, we announced that we had entered into an agreement to onboard Mercer New Zealand’s fund administration operations.
A small but significant detail was that our technology partner, Novigi, would also be establishing a presence in New Zealand.
The announcement reflects a change in how leading fund administrators are approaching technology. Rather than building every technical capability themselves, some are working with specialist partners while focusing on fund administration, finance, and client support.
This approach has become more common overseas. BNY Mellon’s work with Microsoft and Northern Trust’s collaboration with Foundation Source are two examples. The type of relationship between us and Novigi is less common in New Zealand.
Complexity has changed the equation
Technology has changed quickly, regulatory requirements have grown, and client expectations have risen. Administrators are looking beyond the traditional model of managing every capability internally because doing so is increasingly difficult to sustain.
Fund administration has always required administrators to balance compliance, registry operations, client servicing, and member transactions within a tightly regulated environment where accuracy is critical. The role now covers much more.
Today's administrators are expected to provide digital experiences, maintain cloud infrastructure, manage complex data environments, connect with third-party providers, and adopt technologies such as artificial intelligence (“AI”) with care. Member expectations are rising too. They compare their superannuation experience not only with other funds, but with digital experiences across their daily lives.
Technology has therefore become a specialist discipline within fund administration. Few would expect an airline to manufacture its own aircraft, or a hospital to build its own MRI machines. These companies focus on their core services while working with specialists that develop highly technical capabilities. Fund administration is increasingly taking a similar approach.
The end of the monolith
Historically, many administration businesses operated on monolithic platforms. Technology, data, operations, and client servicing were delivered through one integrated environment, often developed and maintained internally. That approach made sense when technology changed at a slower pace.
Technology now changes continuously. AI capabilities mature every few months. Cybersecurity threats emerge and change daily. Data platforms, workflow technologies, and digital channels are advancing at a pace that few individual firms can match across every discipline.
A modular approach acknowledges that every capability does not need to sit within the same business. Administration, data, cybersecurity, digital experience, and systems integration can develop independently while continuing to operate within one connected framework.
This model makes it easier to update systems, adopt new technology, and adapt services to specific client requirements.
Better systems, better outcomes
For clients, technology matters because of the experience it creates. Well-designed system integration can mean members don’t have to provide the same information more than once.
High-quality data can reduce processing errors, while interoperability allows systems to communicate and reduces manual work. Modern workflow platforms can shorten turnaround times and support automated processes, giving people more time to focus on work that requires their expertise.
These improvements may not always be visible to members, but together they affect how efficiently a fund operates and how confidently members interact with it.
The administrator remains accountable for the service, while the technology partner focuses on improving the technical capabilities that support it. Each business can focus on the work it is equipped to do, with the combined result supporting the client experience.
Why it matters now
The growing use of administrative lift-outs overseas reflects the size and complexity of the fund administration environment. A lift-out involves established business operations moving from one company to another, allowing businesses to transfer non-core departments or activities to a specialist provider.
In fund administration, such as with the Mercer New Zealand agreement, experienced staff move from a fund manager to a specialist administrator. This preserves institutional knowledge while giving employees access to broader capabilities, career development, and more resilient operating environments.
Moving an established administration operation involves more than transferring people and client relationships. The technology, data, and systems supporting the operation also need to be integrated into a modern platform.
This is where specialist technology partners can play an important role. Working with technology specialists can support future-readiness through data, automation, and systems integration, while improving efficiency, transparency, and scalability for clients.
The integration of Mercer New Zealand’s fund administration operations into our business provides a practical example of this approach.
We are responsible for fund administration, client servicing, and operational delivery, while Novigi contributes specialist expertise in technology, data, migration, and systems integration. Together, we bring complementary capabilities through a shared operating model designed to support long-term growth and transformation.
The partnership reflects an industry increasingly aware of the value of connected ecosystems rather than vertically integrated entities. Fund administration now involves more than processing transactions. It’s becoming a technology-enabled operating model that helps investment managers scale, adopt new capabilities, and deliver better outcomes for investors.
Explore how lift-outs can support growth
As fund administration becomes more complex, moving established operations to a specialist provider can help managers manage costs, retain expertise, and access specialist technology.
Our eBook, Lift-outs: reducing costs and supporting growth, explores why 65% of firms have already transferred in-house teams to specialist providers and what this can mean for their operating model.
