Your primary goal as an investment fund manager is to maximize returns for your investors. Managing transfer agent services, accounting, reporting and tax functions while adhering to regulatory requirements inevitably diverts attention away from generating value and satisfying investors.
Even the most seasoned fund managers find in-house transfer agent processes difficult. Managing transfer agent teams as well as managing complicated data and security procedures, coordinating outside vendors and responding to regulatory requirements are tasks not in the core competencies of fund managers.
Outsourcing transfer agent services to a vendor that can handle a fund’s expanding transfer agent and portfolio accounting needs while also managing document management, data security and compliance is a sound business decision. It represents a sensible division of labor.