By Kevin Fu, CEO and Co-founder, Repool
Fund management software is a hidden opportunity to improve the efficiency of your firm or family office and improve your life as a fund manager. Instead of being a document shuffler, consider how data-driven fund admin software could transform your fund strategy especially in the fast-paced world of hedge funds.
#1 Fast and Accurate Data Reporting
Through data automation, your fund administration software should be able to pull data frequently, especially the all-important Net Asset Value (NAV) tracking. Ideally, you should be able to access your NAV tracking or a close estimate daily to maximize your ability to utilize trading strategies that require decisive action. By utilizing automation and/or machine learning, you can spend less time pulling reports and reduce human errors that frequently occur in large datasets. Additionally, ensure that your fund software can grow with you as your accounts become more complicated to manage. Having the flexibility for growth ensures better access to historical data and no expensive, time-consuming database migrations.
#2 Seamless Platform Compatibility
When selecting any software, compatibility with other systems and/or seamless API connections are crucial for success. For hedge fund managers, unifying subscription documentation, investor portals, data dashboards, and banking in one cloud-based platform create organizational efficiencies. When evaluating a potential fund administration platform, ask the provider about current compatibility with systems that you already use for your financial data, banking, and auditing. Your goal should be seamless platform compatibility.
#3 Comprehensive Ease of Use
Fund managers and their teams tend to spend a lot of time working in their fund admin platforms. A modern and straightforward user experience will reduce roadblocks and ensure that tasks are completed efficiently. You want key metrics easily accessible and detailed reporting that is easy to navigate. Having the option to easily share out data to investors and other key stakeholders is also an important consideration. If you are receiving a demo from a fund software, and their platform is maze-like, that does not bode well for your team. You want a fund administration platform that is intuitive to use especially during intense periods like fund launch, tax season, and financial auditing. Additionally, ease-of-use is also important for your LPs. Creating a simple investor onboarding process that does not require 5 logins and piles of PDFs will be much appreciated by your LPs. You are more likely to onboard successfully if the user experience of your platform is a pleasure and does not lead to investors dropping out part-way. When investors have an accessible portal with relevant fund metrics, they are empowered to login in and review data without needing to contact you. Investing in a fund administration platform that weaves in investor communications is also an investment in your workflow by reducing the number of impatient emails in your life.
#4 Secure Cybersecurity
Fund managers safeguard confidential data points in their fund administration platforms. It is important to understand how your software partner will ensure proper cybersecurity and data privacy measures. Look for providers with SOC certification, signifying thorough audits, two-factor authentication, and the implementation of appropriate procedures. When dealing with sensitive financial information on cloud-based platforms, cybersecurity is of utmost importance.
#5 Best-in-class Customer Support
When something goes amiss with your fund admin software, you want to be able to quickly reach a knowledgeable fintech support team. Look for a fund platform that has onshore customer support, extended business hours, and a willingness to cater to smaller funds (if you are one). You should make sure to select a provider that can demonstrate they have a responsive customer support process and team that will ensure you have real-time access to a knowledgeable team that can answer your questions quickly and accurately. This support can be instrumental in your fund’s success and growth. Ultimately, you want a fund administration platform that is a pleasure to use, so you can focus your efforts on what you do best – fund management strategy. A modernized fund admin that offers a seamless user experience is an important investment to make as a fund manager.