11. Do Funds and Syndicates need an Administrator?

A Fund Administrator is a person responsible for back-office activities of a Fund (or a Syndicate).

Functions of a Fund Administrator include calculation of Net Assets Value (NAV), preparation of reports for investors and a Fund/Syndicate, calculation and distribution of dividends services, liaising with Fund’s/Syndicate’s service providers, compliance functions, and so on.

The exact scope of Fund Administrator’s functions is defined in a Fund Administration Agreement and may take a separate schedule to list them.

It is possible for a Fund Manager to perform the functions of a Fund Administrator. However, most Funds (or Syndicates) outsource these functions. Outsourcing allows Fund Managers to fully concentrate on their primary role and be confident that other issues are handled by professionals. Furthermore, a well-known Fund Administrator makes a Fund (or a Syndicate) more reliable in the eyes of investors.