Better service levels and improved data quality are the top two drivers for why alternative investment managers may switch their third-party administrators in the near future, according to research.
About 23% of alternative fund managers in a survey said they were looking at switching fund administration providers in some way in the next 18 months.
By switching providers the fund managers hope to improve service levels (75%), gain higher quality of data and reporting (69%), better technology (63%) and ESG capabilities (31%).
Underlying drivers for moving provider were shown to be price, followed by service levels and a provider’s overall reputation.
Ocorian, a fund administrator, surveyed 100 alternative fund managers in various European countries.
Paul Spendiff, head of business development, fund services at Ocorian, said: “There is currently a pretty even split between alternative fund managers using third-party administration suppliers and those who manage it in-house, but our research shows a rising trend towards using third-party expertise over the next three years.”
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