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Cayman Funds 2016

“While pricing can seem like the common thread when reviewing multiple provider proposals, it is rarely predictive of the value received in return.” Michael Von Bevern is senior managing director and head of US operations, alternative investment solutions, at U.S. Bancorp Fund Services. He can be contacted at: michael.vonbevern@usbank.com Another important consideration when choosing an administrator is how often they are recognised for client service, whether through industry accolades or client recommendations. Providers should welcome feedback, and have a service team dedicated to your location to monitor your relationship, facilitate ongoing communication, and provide guidance as your business grows. Do not hesitate to call upon many of the administrator’s current clients for references. Most references will provide honest and constructive feedback that you can rely on. Not just the cost A common mistake many managers make is basing their decision solely on price. While pricing can seem like the common thread when reviewing multiple provider proposals, it is rarely predictive of the value received in return. Choosing the wrong administrator can ultimately cause you to focus more time and energy monitoring your administrator’s activity, decreasing their value and increasing operational burden. Back office operations and inadequate technology can deflect a fund manager’s attention from focusing on their own core competencies of generating alpha for their investors. Over the years, managers have openly admitted that their initial decision to pick one service provider over another was incorrectly based on price. Considering the many complications of switching fund administrators, it is extremely important to make the best possible decision at the outset. Smart IT Regarding technology, managers often make their selection based upon the visual impact of the demo they receive during the sales process without evaluating the true substance and the suitability for their fund’s complexity, data transparency needs, investor interface or reporting. 42 CAYMAN FUNDS | 2016 Selecting the provider with a right-sized technology offering and the in-house expertise to properly maintain it will help create an appropriate match between a fund’s needs and a provider’s platform. Building a partnership with an administrator that has a robust and flexible offering, that is scalable and can grow over time and in an ever-changing industry, should be at the top of the list when searching for a third-party provider. Additionally, assess whether your partner has the control consciousness and the financial backing to constantly improve its infrastructure to meet growing business complexities and regulatory changes. When searching for the right service provider, there should be a balance between the tangibles, such as price and technology, and the intangibles, such as the core values of people, financial strength of the organisation, control environment, and commitment to innovation. If the key areas of price, people and technology are met, your selection should weigh heavily on your daily contacts with the administration team and your future interactions. These individuals determine the value you perceive and your ultimate satisfaction level. While you cannot buy attention to detail, focus, commitment or flexibility, these characteristics must be embedded in your service team to create the comfort you need to rely on a primary administrator.


Cayman Funds 2016
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