By Phil Anderson From Ocorian

OUTSOURCING TAKES A BIGGER ROLE FOR NORTH AMERICAN FUND MANAGERS

• Ability to launch different product sets and speed to market are main drivers for rise in fund management outsourcing
• Almost all questioned by Ocorian use third party administrators for their European fund administration

Outsourcing is playing a bigger role for North American fund managers as they look for third party support with managing their business, new research from Ocorian, a global leader in fund administration, capital markets, corporate and private client, and regulatory services shows.

The key reasons for relying on outsourcing is that it enables managers to launch different product sets and to be faster to market, Ocorian’s study with private equity, private debt, real estate, venture capital and infrastructure fund management executives in the US and Canada responsible for $1.591 trillion assets under management found.Use of third party administrators is particularly prevalent in the European fund administration arms of North American firms, the research found. Almost all (94%) questioned use third-party administrators to some extent for fund administration including depository, SPV, AIFM and fund accounting.

Just 6% do all fund administration inhouse while 17% use multiple third party providers alongside inhouse teams and 18% use a combination of inhouse and one third party. Around two out of five (42%) use a number of third party providers while 17% rely on just one. Ocorian’s research found fund managers narrowly prefer to work with one provider when they require more than one service for their European funds with 35% opting for one provider while 33% preferred to work with multiple providers. Around 14% have no preference while 18% look to a mix of outsourcing and inhouse.

That is partly reflected in the one of the reasons for the rise in the outsourcing services identified by the study – reducing costs which was selected third ahead of greater transparency in reporting and expertise in jurisdictions. Reducing regulatory risk was ranked seventh ahead of the ability of outsourcing to help deliver stronger fiduciary management of funds and greater independence.

Kind regards

Phil

bout Ocorian

 Ocorian is a global leader in corporate and fiduciary services, fund administration and capital markets.

Supporting and protecting global investment is Ocorian’s priority; it manages over 17,000 structures on behalf of 8,000+ clients including financial institutions, large-scale international organisations, and high-net-worth individuals.

Ocorian provides fully compliant, tailored solutions that are individual to clients’ needs, no matter where in the world they hold financial interests, or however they are structured.

The group offers a full suite of corporate, fund and private client services across a network of offices spanning all the world’s financial hubs. Locations include Bermuda, BVI, Cayman, Denmark, Finland, Guernsey, Germany, Hong Kong, Ireland, Isle of Man, Jersey, Luxembourg, Mauritius, Netherlands, Norway, Singapore, Sweden, UAE, the UK, and the US.

To find out more about Ocorian and its services, including regulatory information, visit www.ocorian.com