Firstly, what is Fund Administration?
Fund Administration is an integral back-office support function that acts as an intermediary between fund managers and investors, to verify and distribute assets tied to investments.
Typically, fund administration comprises two main functions: fund accounting and the activities of registrar/transfer agent tasked with the day-to-day running and management of a fund. The latter function is extremely broad and varied. Responsibilities can include attending to all the financial paperwork with regards to applications and transfers, setting up funds, supporting the investment team with administration, investor servicing and reporting, treasury services and financial and statutory reporting, across a wide range of investment types from real estate to private equity funds, and everything in between.
Over the last decade or so, the fund administration business has experienced rapid growth, which shows no signs of subsiding. Since the 2008 financial crisis, the popularity of alternative investments such as private equity, hedge funds, venture capital and real estate has risen substantially, which has driven a similar boom in fund administration due to the influx of capital. Sources report that the industry is currently valued anywhere from $8 billion to $12 billion. The scale of investment has spurned an evolving industry, with large scale consolidations and everchanging regulations.
Whether you are considering working within or already working within funds administration, it is critical to ensure you’re equipped with the latest skills, knowledge and networks to progress and perform at the highest level.
Here are our Five Steps to Success
To help you determine the best way to upskill yourself and advance your career and expertise in fund administration, we have put together the following five steps to success:
1. Establish your objectives
What do you want to achieve in the next three to five years? For instance, you may want to progress within your current organisation or change specialism entirely (such as shifting focus from real estate funds to hedge funds or trust management to fund administration). You may be working in the legal or wider financial industry and wish to better understand the needs of your funds clients.
Mapping out your career trajectory will enable you to focus specifically on what is important for your own professional development.
2. Find the gaps
We all have areas where we can improve and expand our knowledge. Benchmarking yourself against your team, company and industry demands is generally a great way to identify the gaps in your own skillset and knowledge.
As we mentioned above, the funds industry is constantly evolving and therefore it is critical for fund administrators to stay on top of the everchanging regulations and market trends, as well as the specific obligations that arise out of them, for example, company law, governance and anti-money laundering provisions.
3. Broaden your professional network
Remember that enriching your knowledge is only one piece of the puzzle when looking to advance your career. Networking and upskilling within the fund sector will ensure that you stay up-to-date with the job market and emerging trends. Acquiring a professional mentor is an excellent way to receive honest advice and guidance, which will often pave the way for new opportunities. By optimising your networking opportunities, whether that’s through connecting with your mentor, attending events or via Linked-in, you will learn, grow and move closer to achieving your professional goals.
By signing up to one of our fund administration courses, you will join a global network of like-minded professionals, which will help kickstart your networking efforts.
4. Communicate you're upskilling
Our CLTI qualifications are led by highly experienced tutor practitioners who have extensive hands-on experience of the funds industry. They’ll focus on developing your practical skills so that they are easily transferable to your place of work. It’s important to highlight the positive impact that this will have on your team and wider organisation. So do communicate this to your manager by making a case for how you upskilling will enhance your output, and you may be able to gain funding and support for the course from your organisation. CLTI offers corporate packages.
If you’re looking at embarking on a career in fund administration, explore the types of roles you envisioned when outlining your objectives and research the skills that they require. This will be highly beneficial when you start applying for jobs, as you’ll be able to match the knowledge and skills you have learnt to those employers seek.
5. Continuing professional development
To upskill yourself and advance your career and expertise in the funds industry, it’s important to keep learning. CLTI offers a broad range of online continuing professional development courses, enabling professionals to upskill around their busy professional and personal lives.
Find out more about our range of unique fund administration programmes by visiting the pages below.
No matter what stage you’re at in your journey, now is the time to enhance your career as a fund administration professional. Who’s ready? Let’s go.
Our courses are quality assured by Alliance of Manchester Business School.
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