Large global managers have seen the appeal of middle-office outsourcing in recent years, but start-ups and small shops are also looking to hand off responsibility for post-trade processing to third parties.
“The $5 billion manager has almost all of the problems of a $200 billion manager in the middle office,” says Kirk Littleton, director of business development at Ultimus Fund Solutions. Those issues include tighter regulatory requirements, interest in expansion into new and more complex asset classes and increased data and reporting demands from executives and clients, he says.
The move downmarket of middle-office outsourcing has driven a number of service providers catering to small fund managers to beef up their capabilities in this area.
Cincinnati, Ohio-based Ultimus and Gemini Fund Services are among the fund administration specialists focused on smaller managers that have bolstered their technology platforms recently to offer middle-office services along with traditional fund accounting, transfer agent and fund administration functions. Middle-office services can include client or risk reporting, trade and corporate action processing and investment accounting, among others.
To read the entire article, log into Ignites by clicking here.