Crypto Fund Administration Services

What are Crypto Funds

Crypto Funds or cryptocurrency funds are funds with their portfolio consisting of cryptocurrency as their asset class. With the evolution of digital and virtual currency, the global investment industry is witnessing a variety of cryptocurrencies that are in decentralized networks based on blockchain technology. The alternative Investment industry has been now largely exposed to a new paradigm of asset class resulting in a surge of crypto fund launches across the globe.

Crypto Fund not only focuses on direct cryptocurrencies but also leverages derivatives to level up the digital assets volatile nature. Less known but fairly known now “Perpetual Swaps” are new financial derivatives for the digital asset class.

What are Crypto Fund Administration Services

Crypto Fund Administration Services are very much similar to normal fund administration services. However, challenges for fund admins are heavy lifting on digital assets in the portfolio of managers and working around functions like custody, valuation, and product control. Vis-à-vis for a manager in alternative space except for digital assets; technology adoption for fund admins has been steady. With digital asset class, technology adoption calls for a steep curve of learning and adoption. Said that Crypto Fund Administrator Services requires cutting-edge technology and high-touch client services as to less regulatory foresight on the digital asset class.

Crypto Fund Administration Services are more and less the same on middle and back-office functions but portfolio servicing for fund admin differs whereby service providers have to rely on data feeds by crypto exchanges.

Fund Administrators do provide value additions to managers with the help of scalable infrastructure; which at the same time would be very unproductive and costly for the manager to maintain. Applications like Portfolio Management Systems, Reporting Tools, Order Management Systems, etc. are maintained by Fund Administrators to provide services based on the manager service’s scope.

Need for Crypto Fund Administration Services

Fund Administrators provide value addition and complete support to manager on middle and back-office functions, however, they have multifold responsibilities when it comes to stakeholders involved in the process.

Usually, managers rely on them to maintain the whole investment lifecycle, and at the same time investor expect an accurate and timely report from them to understand the manager's performance.

Fund administration services come with a high risk of liabilities as investors trust them from custody verification till valuations and accurate investments.

With increasing complexities, new asset classes, changing operational dynamics, and regulatory updates; Fund administration services remain at the center of the alternative investment management industry to support investment managers on all fronts.

Conventional Fund Admins are adapting to the new asset class to provide managers with the full suite of fund admin services.

Fundtec Service Coverage

Fundtec service coverage comes with greater flexibility for all sizes of managers irrespective of asset class, geography, and strategy.

Here is some glimpse of coverage for crypto funds:

Fund Accounting- Servicing of NAV, Portfolio & Investor level data
InvestoRelations- Investor Documentation, Investor letters/presentations, Marketing materials, Investor Communication/Queries/Requests
Administration & Compliance- Recordkeeping, Documentation, Regulatory Reporting & Fillings

Fundtec supports all crypto trading strategies and possesses all related knowledge of cold and hardware wallets, ICOs, forks, SAFTs, and SAFEs.

Here are some basic sets of activities covered for crypto funds as a part of fund admin coverage:

Calculate monthly fund level Net Asset Value (NAV)
Allocate gross profit to investors
Calculate investor level management and incentive fees
Calculate performance statistics for the fund and investors
Records trades and track positions
Reconcile transactions, positions, and cash
Coordinate audit activities with the fund’s auditor
Review subscription documents for completeness and accuracy
Generate and distribute monthly investor statements

Fundtec’s Value Proposition

With years of experience working with a variety of managers across the globe, we are positioned to deliver top-notch services to clients. Here are some factors:

24/5 Availability: Our "follow the sun" model ensures that Asset Managers, irrespective of time zone, will get services when they need them.
Solid Documentation: When someone is expected to perform a task, the most beneficial thing to do is create process documentation. That is what we do in our process across all the services. Our SOPs are updated regularly, and our team delivers with certainty and confidence. Resources may come and go, they get migrated to different roles within the organization, or they're out sick or on vacation, whatever the case may be, when another team member steps in, you need good documentation with training in place to ensure continuity.
Customized Offerings: One shoe size doesn't fit all, so Fundtec customizes and tailors its solutions to fit the unique needs of every client.
Industry Expertise: Fundtec's team comprises professionals coming with a wealth of experience from investment banks, fund admin firms, and technology giants. We have expertise in handling all types of asset classes (from listed securities to OTC products), and reports from different fund admins, brokers, and custodians.
Scalability: Fundtec empowers clients with better scalability via plug and play model which is always customized to the client's needs.
Cost-Effective: Fundtec's expertise, innovation, experience, and result-oriented approach on operational aspects enable us to drive greater process efficiency, and we pass the benefits and savings to our clients.
Transition and Change Management experts: With years of experience in handling transitions, we always consider all stakeholders for changes and transitions. Our client-centric approach enables a smoother reconciliation transition for all types of clients.
ISO Certified: We at Fundtec understand that every piece of information is crucial for our clients, so we follow the highest standards for maintaining quality and data security. Fundtec is ISO:27001 and ISO:9001 certified.