Dublin / New York, December 5, 2022
Last month, Centaur conducted a survey of their client base. When asked to select which area weighed most in their decision-making process when choosing their fund administrator, the responders overwhelmingly named Service Levels as their top consideration (37%) with 84% of responders saying it’s an important consideration. Close behind came service capabilities at 26%, independence at 13% and reputation at 10%. Value for money was placed in fifth, with 9% of respondents saying it is the most important consideration, and 48% of responders saying that it’s an important consideration.
1. High Quality Service Levels
When selecting a fund administrator, managers overwhelmingly chose Service Levels as their most important consideration: 37% of respondents stated that it is the most important consideration when choosing an administrator while 84% say it is important.
Fund managers seek administrators who they can partner with over a number of years, and count on to consistently provide high levels of service. This means working with a team of experienced professionals who take the time to understand their client’s business. An administrator who is truly dedicated to working in partnership, tailors their service model around their clients, not the other way around. At Centaur, we firmly believe that all fund managers should receive the highest levels of service and support, allowing them to operate as efficiently as possible and focus on growing their business. Our 100% client retention rate is testament to this.
2. A Full Range Of Service Capabilities
As the fund administrator role evolves, providers need to offer expertise across a wide range of core and ancillary services. Third party fund administrators must be able to handle the demands of more complex structures, working in multiple jurisdictions with differing regulations. Service capabilities are considered the second most important requirement for fund managers when selecting a fund administrator with 26% of respondents saying it’s the most important consideration and 53% saying it’s somewhat important.
Therefore fund administrators should offer a comprehensive range of services and act as a one-stop shop for fund managers. Centaur’s comprehensive range of services include fund administration, middle office, investor, fiduciary and corporate services with a focus on hedge, private equity and real estate funds, insurance linked securities funds and family offices.
Independent administrators provide focused and unbiased services to investment managers, funds and their investors. 13% of respondents put independence at the top of their list when selecting a fund administrator, with 26% saying it’s somewhat important.
Selecting an independent, dedicated fund administrator means there are no competing service lines to divert time and capital and diminish their ability to provide clients with the best processes, technology and people.
With independence also comes flexibility. Independent administrators such as Centaur respond faster to technological and regulatory changes, placing them at the forefront of innovative thought. Fund administration is Centaur’s core business, therefore we constantly invest in our platform and services to efficiently meet the evolving needs of our clients.
Reputation, expertise and track record rate highly for managers when choosing a fund administrator. 10% of respondents put reputation as the most important feature of their selection process with 31% saying it’s somewhat important.
Market reputation is a common consideration for selection. A reputation takes time to build and is based on the personal relationships and trust built up between clients and their provider. At Centaur, we have a strong reputation in the market for outstanding client service and can proudly claim to have not lost a client since our inception in 2009.
5. Value For Money
In an increasingly competitive industry, fund managers are seeking greater value for money from their service providers. 9% of those surveyed put value for money as their top consideration when selecting a fund administrator with 48% saying that it’s somewhat important.
‘Value for money’ is not about who is offering the lowest fees. Often the lowest fees carry hidden charges that will become apparent further down the line. Transparency is key and managers need to be aware of hidden extras or flexible contract terms that favour the administrator over the client.
There is no doubt that the marketplace is evolving rapidly. Adaptation is vital for survival in the funds industry. Successful administrators must constantly adapt to market forces and diversify their service offering accordingly. In Centaur’s survey, 8% of respondents identified flexibility as their number one criterion in selecting an administrator, while 33% say it’s somewhat important.
At Centaur we understand that flexibility does not just apply to market forces, it’s also vital as administrators to listen to our clients and continuously adapt our service model to meet their evolving requirements.
According to the fund managers surveyed by Centaur, other areas of consideration from fund managers were scalability, accountability, technology and innovation.
For more information on the survey, please contact: