|By Business Wire||
|August 26, 2013 12:02 PM EDT||
At a time when asset management companies and fund administrators are being tasked with higher levels of reporting and transparency, roughly three in ten (29 percent) worry about lack of automation and an additional 24 percent are concerned with data integrity. This is one of the key findings of the 2013 Confluence Fund Administrator Trends Survey, which polled 178 U.S. and international back-office professionals on their biggest daily concerns.
“Fund administrators are being challenged with a perfect storm of lack of automation, regulatory scrutiny and the need to do more with less,” said Confluence Chief Operating Officer Skip Smith. “The back-office must adapt in order to survive; automation is the key to improving control and efficiency while simultaneously reducing risk and cost.”
According to the study, the biggest globalization challenge fund administrators are facing is standardizing processes for corporate management purposes while maintaining flexibility for local reporting (35 percent). Sequent challenges include pressure to comply with multi-regulatory regimes simultaneously (18 percent) and administering funds across multiple time zones (7 percent).
“As international borders continue to break down, financial organizations will look to automate their business processes,” said Smith. “Embracing automation—instead of fighting a rearguard battle to preserve manual methods—provides fund administrators the opportunity to transform their business and position themselves, and their clients, for ongoing global success.”
Other fund administrator insights of note include:
- When it comes to regulatory reporting, half the respondents were onboard with automation and an additional quarter plan to automate in the next two years.
- Additional back-office challenges that concern fund administrators include: reporting errors (12 percent); controlling administrative costs (10 percent); inability to scale operations to meet growth objectives (9 percent); and lack of experienced staff (8 percent).
- The top back-office operations administrators are looking to automate in the next 24 months are AIFMD reporting, regulatory reporting and performance fee calculations.
ABOUT THE CONFLUENCE FUND ADMINISTRATOR TRENDS SURVEY:
Confluence collaborated with Campos Inc. on the 2013 Confluence Fund Administrator Trends Survey to understand what issues are affecting global fund administrators. The Fund Industry survey was conducted in the spring of 2013 amongst 178 decision makers at asset management companies and service providers who are involved in and/or influence the use of products for fund administration services.
For more than 20 years the global investment management industry has come to trust Confluence to deliver innovative solutions to take the risk out of fund administration. Helping investment management companies gain unprecedented control, Confluence automates every step of the fund administration process—including the collection, creation, confirmation and delivery of investment product data. Results are lower costs, reduced risk, decreased reporting turnaround times and the scalability to automate more processes without additional resources.
Confluence solutions are used by 40 percent of the leading global investment managers, and more than 60 percent of U.S. mutual funds. From the Confluence traditional install, hosted and outsourced Unity® platform solutions to our enterprise-grade SaaS enabled Unity NXT Expense Processing solution; Confluence automates critical fund administration and reporting processes—such as regulatory reporting, financial statement preparation and expense processing. Confluence solutions support a wide array of collective fund investment types – including European domiciled UCITS, alternative investments, traditional U.S. based ’40 ACT mutual funds, and contemporary fund structures such as ETFs.
Headquartered in Pittsburgh, PA, Confluence serves the international fund industry with key locations in San Francisco, CA, London and Luxembourg. For more information, visit www.confluence.com.