Outsourcing Fund Administration

Financial valuation is the many a times considered as the corner stone of applied mathematics and economics. The performance of fund managers are many a times judged on the Net Asset Value (NAV) of the mutuals funds they manage. Computing the NAV requires valuation of funds assets and liabilities. This task is cumbersome and takes a non negligible amount of time.

Impact of time spent in computing the NAV:

Over the years the time spent by fund managers in administrative tasks such as
such as calculations and reporting of the NAV has increased. As a results of which they were forced to cut short on their analysis to devote time towards such fund administration tasks. Over the years the above activities which complement the management of the assets are being considered for outsourcing.



Role of KPOs:

Fund managers have been seeking the help of KPOs to administer their funds as they have realized that such intensive work is not efficient for internal staffing as staffing cannot commit a reliable long term support. Such forms of outsourcing is important not only for the fund administration but also for fund analysis as structured and organized records are useful in all the phases of fund management.