Hedge Fund Management Made Simple with Back Office Outsourcing Services

Accessing competent workforce and reducing price of services have for long remained the major goals of outsourcing. But, mostly companies that do outsource, do it for getting rid of their most boring and repetitive tasks. Especially when it comes to back office outsourcing services, the aim is to offload simple yet stultifying work like data entry and database management. However, with the evolution of companies providing back office services, it has become possible to outsource back office services that are complex and business-critical.

Hedge Fund Back Office Outsourcing for Minimizing Risks

Complex tasks like hedge fund management have long remained the Achilles heel of organizations. The intricate nature of these tasks along with the risk they pose if they are not done appropriately, make them hard to outsource. However, nowadays, there are many trustworthy hedge fund back office outsourcing services providers that can help you with:

1.      Staying compliant – As hedge fund managers face huge pressure to stay compliant, a worthy association with an outsourcing vendor that has considerable skills in the field can be a great help.

2.      Double verification – Hedge fund back office outsourcing allows for a hybrid model where fund administrators can associate with independent third-party service providers. This allows for double verification of critical back office work and prevents the violation of regulations.

3.      Difficult tasks are executed better – Fund administration and shareholder services put extreme pressure on an in-house department. But when you outsource, you can get this work done by outsourcing experts in the industry.

Outsource Back Office Services for Essential Hedge Fund Tasks

Hedge fund management encompasses a variety of tasks that need to be performed in isolation for the collective and rightful completion of work. Some of these tasks need to be done under the direct supervision of company employees like portfolio management, asset gathering and trading while other can be outsourced without hampering the overall quality of work.

1.      Administration of funds – It involves the pricing and evaluation of assets. As hedge fund requires transparent evaluation in order to show to the investors that they are offered the right value, there is a need for powerful software solutions and fund administration expertise. At Vcare, you get access to a seasoned workforce comprising managers and agents who do their very best to fulfill the need of the clients. Intricate accounting and tough tax compliance procedures are performed very well, ensuring successful completion of tasks.

2.      Shareholding services – Shareholding services can put great pressure an already overworked in-house team. Reporting and documentations are integral functions of shareholding services, which can be performed very well by an accomplished back office outsourcing services vendor. Below are some other critical functions that can be performed better when you outsource back office:

a.       Addressing frequent requests of customers

b.      Registrar and transfer agency services

c.       Reporting and documentation

d.      Review of fund’s compliance with important regulations like anti-money laundering law

Conclusion

Back office outsourcing services play a pivotal role in the performance of a business operation by cutting cost and providing access to new skills. In the past, companies used to outsource only basic functions like data entry and database management, fearing that complex and critical tasks may not be performed as expected. But with the improvement of back office outsourcing vendors, it has become possible to handover these tasks judiciously in such a way that core tasks still remain in your hand while complex yet repetitive tasks are offloaded. Vcare is a back office outsourcing services provider with multiple years of experience in the field. It can help you perform intricate tasks (like fund administration and shareholding services) that form an integral part of hedge fund management.
Also Read This: https://vcareoutsourcecallcenter.hatenablog.com/entry/2019/05/28/000552

Ease the Pain of Hedge Fund Management with Back Office Outsourcing Services

According to a survey by CFA Institute, the hedge fund market is expected to grow by 31% in the next 5 years. Hedge funds no longer belong to alternative asset class due to the newfound interest amongst masses. The increased popularity of hedge funds amongst investors and a rise in regulations for the same has made hedge fund management profitable and risky at the same time. People tasked with managing hedge funds are looking for alternatives to ease the pain in their day to day operations. This is the main reason why they are looking for back office outsourcing services provider who are good at hedge fund management.

What to Look for in a Vendor before Hedge Fund Back Office Outsourcing?

Hedge fund management is a typical task and requires considerable expertise. As you are dealing with huge amount of money on daily basis, the scope of making mistakes is not-existent. To ensure that the assets are looked after appropriately, one should partner with a vendor that has the following capabilities:

1.      As hedge funds consist of products that are not traded publicly, one requires the services of fund managers who are capable of providing a transparent evaluation policy that addresses the concerns of the various investors.

2.      The vendor should be able to manage complex portfolios that include latest fund structures. As the modern-day portfolios are a lot more sophisticated than the ones found in other investment services like mutual funds, it becomes vitally important that your vendor is abreast of the latest developments taking place in the finance world.

3.      Tax compliance is an integral part of hedge fund back office outsourcing. Any mistake in managing the compliance work can have serious repercussions. This is the main reason why you should look for experienced hedge fund back office outsourcing companies that have good credibility and are sincere in their work.

4.      Managing investor relations is a cumbersome task that needs to be performed diligently. In case, you are unable to perform this service by yourself, outsourcing back office can be a great option.

5.      Above all, you should choose an office services outsourcing vendor who is good at customer relations, He should be able to perform tasks like taking requests from shareholders, analyze them and provide recommendations.

Partnering with an Experienced Hedge Fund Outsourcing Vendor

Outsourcing hedge fund management requires you to send a lot of business-sensitive information to your partnering vendor. Giving away critical information to just about anyone is not ideal. This not only puts your business at risk, it also puts your customers’ vital assets in danger. Therefore, you should partner with a hedge fund back office outsourcing provider like Vcare to ensure that the information remains safe at all times. Also, an experienced vendor will provide you access to cutting-edge accounting tools, which will make your work systematic and efficient. This will allow you to focus more on your core tasks and there will be no burden on you to interact with customers’ on day-to-day basis. A win-win situation for all.

Outsource Back Office and Perform All Business-Critical Services with Ease

Just as a backbone is important for a human body to stand up straight, the same way back office is crucial for a company to operate smoothly. Most back office operations do not grab the limelight; but they ensure that the front office tasks do not suffer. For example, your core process strategies (a front-end task) can be devised a lot better if you have access to the insights generated by data mining services (a back office task). In the absence of data mining, you won’t be able to understand the real requirements of your customers and address them timely. Just like data mining, there are many other back office services, and each of them with their own business-critical implications. Due to the sheer number of back office services, it is hard for a company to perform them under one roof. This is the main reason why; outsourcing back office services is a good decision for an enterprise.

 5 Business-Critical Back Office Outsourcing Services

Although there are many important back office outsourcing services that need to be performed for success of a business, there are 5 critical services that make a big case for outsourcing. Have a look at these services mentioned below:

1.      Data Mining: Out of all back office outsourcing services, data mining has the most potential in terms of shaping the fortunes of a business. By providing insights for businesses, it helps in devising future strategies. As data mining requires expertise and specific tools for its effective completion, it is better to outsource it to specialists who have the readymade infrastructure to undertake data mining tasks.

2.      Data Entry: Although data entry does not require the same level of skill as data mining, it is a herculean task when we consider the sheer amount of data it involves. There are certain software solutions that are required for its effective completion, which are extensively utilized by good back office services outsourcing vendors.

3.      Payroll Management: Managing a company’s payroll is quite a tricky task. There are so many dynamics and too many things to be considered while managing a payroll, which is why; it is the perfect candidate for back office outsourcing. When handed over to an accomplished back office vendor, payroll management not only ensures accurate work but also minimizes the cost of operation.

4.      Taxation and Bookkeeping Services: Taxation and bookkeeping tasks are as important as they are boring. However, just because they are repetitive and monotonous, it does not mean that you can take any leeway while performing them. Any mistake in bookkeeping can have immediate repercussions for a business. However, when you outsource back office, you immediately get access to tools like Quickbooks, MYOB, Peachtree, Quicken and Sage accounting, which enhance efficiency and accuracy of back office operations.

Directory Services: There are many back office outsourcing services out there like Vcare that excel in providing directory services. These services can be outsourced for managing contact details of clients, customers and other stakeholders.