Administration and operations are an essential part of the investment management business. However, providing these services in-house can present a major challenge. Regulatory change, risk considerations and the constant need to update and develop complex IT systems mean that many asset managers, banks, insurance companies and pension funds prefer to outsource their fund administration to specialists.
Within Global Asset Management, the Fund Services unit meets this growing demand. It has in-depth knowledge of regulatory and compliance requirements in 28 markets. It is ranked number one by assets under administration in the three key centres of Luxembourg, Switzerland and the Cayman Islands. The Fund Services unit encompasses Investment Fund Services, which deals with wholesale and institutional funds as well as Hedge Fund Services, which provides services for hedge funds and funds of hedge funds.
Investment Fund Services has assets under administration of CHF 270 billion and offers services out of Luxembourg, Switzerland and the UK. It provides a comprehensive range of solutions including fund set-up, international distribution support, and fund administration. In 2004, Investment Fund Services started implementing a new platform with straightthrough- processing capabilities, allowing it to process high volumes of transactions with exceptional accuracy.
Hedge Fund Services is based in the Cayman Islands – serving North and South America – and Ireland, where it provides services to European hedge fund clients. In total, assets under administration are CHF 93 billion. The business provides a wide range of services including assistance with establishing funds, net asset valuations, maintenance of financial records and shareholder servicing.
Hedge Fund Services has also developed special solutions for funds of hedge funds clients, including lines of credit, custody and foreign exchange hedging. In 2005, the business will introduce a new funds of hedge funds database which will track the prices of the vast majority of hedge funds.
The rate of technological change and an increasingly competitive marketplace mean that fund administrators must be ready to develop new systems and services. Hence, the Fund Services business will continue to innovate by investing in the latest technology and the professional development of its people.
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