The benefits to investment funds of outsourced transfer agent services are many and varied. The general benefit of relieving management of the distractions of transfer agent tasks is incalculable. But here are a number of specific ways that third-party transfer agent services simply benefit the bottom line.
Payroll Savings and Efficiency
A full-service transfer agent services provider utilizes advanced and integrated transfer agent and accounting systems that coordinate in real-time for capital calls, distributions, tax form production, compliance reporting and investor transparency via mail, email or web portal delivery. This optimizes data flow, maximizes data security and reduces the cost of every transfer agent function.
Audits, Role-Specific Expertise and the Reputation of Your Fund
By migrating transfer agent functions to a third-party provider, in-house staff can be re-deployed to activities that contribute to enhanced returns. Additionally, a transfer agent partner that is able to provide sales reporting, financial reporting, web portal solutions, fulfillment services and investor/advisor phone support helps to support and empower these activities – magnifying the benefit of reassigning the in-house transfer agent services staff.
Experience and Economies of Scale
Smooth effective transfer agent services avoid regulatory action. An experienced and engaged transfer agent services firm can call fund management’s attention to potential red flags, avoiding costly mistakes and violations. An advanced transfer agent will establish procedures and policies that keep funds from avoidable mistakes, saving the time, cost and disruption of regulatory inquiries.