Here are some of the most important considerations:
Fund Complexity and Asset Types
- Fund Structure: Does the system support all of the specific fund types (e.g., private equity, hedge funds, real estate, mutual funds) and complex structures (e.g., multi-currency, multi-class) that will be needed to service clients?
- Asset Types: Can it handle the specific assets the funds will be dealing in, such as equities, fixed income, derivatives, or alternatives? It should support all asset classes and their nuances, including any specialised reporting or valuation needs.
Regulatory Compliance and Reporting
- Local and Global Compliance: Does the system comply with regulatory requirements across the different jurisdictions being serviced? The system should provide tools to manage reporting and ensure compliance with local tax regulations and investor protection rules.
- Audit Trails: Is there an automated audit trail to ensure transparency and accountability? This feature is critical for reporting to investors, regulators, and auditors as well as supporting a well-documented control environment.
Automation and Efficiency
- Process Automation: Does the system automate manual processes like NAV calculation, reconciliations, and client reporting? Automation reduces errors, speeds up processes, and ensures consistency.
- Workflow Management: Does the system provide an efficient workflow for managing fund operations, from subscription and redemption processing to capital calls, distributions, and investor communication?
Data Integrity and Security
- Data Accuracy: Is the system designed to ensure accurate, real-time data capture? It should minimise manual input and errors that can lead to discrepancies in reporting.
- Cybersecurity and Data Protection: Fund administrators handle sensitive financial and personal data, so the system and infrastructure must have strong encryption, secure access controls, and robust disaster recovery procedures.
Customisation and Flexibility
- Configurable for Specific Needs: Can the system be tailored to meet the unique needs of the fund administrator and all its clients, such as customised reporting, workflow configurations, and investor communications?
- Scalability: As the business grows, can the system scale to handle increased volumes, more complex fund structures, or new asset classes without significant investment or system overhaul?
Client Communication and Investor Portal
- Online Access: Does the system offer a portal or other means for managers and investors to access their statements, performance reports, and other relevant documents? A good system will facilitate transparent communication with investors and other fund participants.
- Reporting Capabilities: How comprehensive are the reporting features? Can it generate detailed accounting reports and investor communications on demand and out of the box?
Integration with Other Systems
- Compatibility: How well does the system integrate with other platforms or tools used by the fund administrator, such as pricing vendors? Smooth data exchange between both upstream and downstream systems is essential for operational efficiency and automation.
Cost and Pricing Model
- Implementation Costs: What are the upfront costs for purchasing and implementing the system? This includes any training or consultancy fees.
- Ongoing Fees: What are the maintenance and subscription fees, and how do they scale as the business grows or changes? It's essential to assess long-term cost-effectiveness.
- Licensing Model: Is it a per-user, per-fund, AuA or subscription-based pricing model? The pricing structure should align with the fund administrators operating model and growth trajectory.
User Experience and Training
- Ease of Use: Is the system intuitive for users? A steep learning curve can increase training time and reduce productivity during the initial phases of rollout.
- Training and Support: What kind of training resources and support does the vendor offer? A system that’s easy to learn and backed by strong customer support will reduce operational friction and deliver results and savings in less time.
Vendor Reputation and Support
- Track Record: Does the vendor have a strong history of servicing fund administrators and understanding the challenges of the industry? Look at their experience, references, and client reviews.
- Support Services: How responsive and reliable is the vendor’s customer service? A strong support team is crucial for resolving any issues that arise after implementation to ensure the fund administrator can continue to deliver in line with their SLAs.
Technology and Future-Proofing
- Cloud vs. On-Premise: Is the system cloud-based or on-premise? A cloud-based solution offers flexibility, scalability, and easier remote access, while on-premise systems may offer more control, easier integration with other internal applications and security.
- Technological Innovation: What does the future roadmap look like for the vendor and how open is the vendor to user input and contribution to the future development of the system?
- System Updates: How frequently does the vendor update the system? Will the vendor be able to keep pace with technological advancements and regulatory changes?
Client-Specific Features
Investor Preferences: Does the system support the unique needs of the fund administrators investor base? For instance, some investors may require specific reporting formats, while others may need specific features.
Multi-Fund Support: If managing multiple funds, does the system have the ability to handle them in parallel with appropriate segregation of data, reporting, and investor details, both from a client point as well as operationally within the fund administrators business?
By carefully evaluating these factors, a fund administrator can select a fund administration system that not only meets the current needs of the funds business but also adapts as the business grows and the regulatory environment evolves.
Introducing PAXUS
PAXUS has supported the investment fund accounting and fund administration industry since 1999 via our core PAXUS fund administration system. PAXUS is a functionally rich, fully-integrated, specialist fund accounting and administration application that has been purpose built for the end-to-end back office administration of funds – including NAV calculations – and our solution fully supports a large range of alternative funds, including both open and closed ended structures; fund of funds, hedge funds, private equity, VC and real estate, and many other collective investment vehicle structures spanning all asset classes.
As a fully-fledged and fully-integrated fund administration system, PAXUS replicates the fund portfolio and trading for NAV accounting purposes and is used by fund administrators, asset managers, family offices and service providers around the world to perform fund accounting, portfolio accounting and investor services / transfer agency functions in addition to the compliance (KYC / AML) capture and monitoring, and oversight functions, including regulatory reporting and shadow accounting. Our solution includes multi-lingual reporting and both FATCA and CRS reporting as standard.
Everything you need for fund administration – and a lot more - is included with PAXUS. A true ‘one-stop-shop’ solution.
Operating a single code base approach means there is only one version of the system that exists, which means all of our clients have access to the same functionality regardless of size.
The PAXUS standardised installation package provides clients with a working database with all accounting rules and configurations, enabling a working ‘out of the box’ system which is straightforward to implement and use – and provides users with a full suite of data migration tools to streamline the onboarding and data migration process.
PAXUS is offered as a full SaaS solution with hosting included, or clients can choose to make their own hosting arrangements for an on-premise installation.
Providing dedicated implementation training, we will train your users on how to gain the maximum benefit from the system from Day 1 resulting in a quick and effective implementation plan and support. This is complimented by our online Support Desk allowing nominated users to log queries with our experienced support team for quicker resolution.
One of the main benefits of PAXUS is that it can accommodate any type of fund, and the system is also highly automated meaning you can administer many structures with a lower number of users alongside highly competitive pricing.
