Asset Services FAQ
What are custody services?
Custody services are a cornerstone of the financial industry. They provide safekeeping, settlement and administration of financial instruments, while ensuring regulatory compliance. These services are essential for institutional investors, asset managers and other financial market participants by providing a secure framework to safeguard, protect and oversee assets.
Core custody services include asset safekeeping, which ensures secure storage and segregation of client assets, and trade settlement, which guarantees the accurate and timely exchange of securities and cash. Custodians also manage corporate actions and oversee income collection, ensuring timely receipt of dividends and interest. Proxy voting services enable clients to exercise shareholder rights.
Additional services include cash processing, foreign exchange and tax reclaims, helping clients optimise available cash and recover withholding taxes. Custodians also provide regulatory reporting, ensuring compliance with local and international requirements while enhancing transparency and mitigating risks.
By combining advanced technology with robust risk management, custody services deliver secure, efficient and compliant solutions, offering clients the protection and peace of mind that their assets are safeguarded and expertly administered.
What are fund administration services?
Fund administration services are essential for the efficient and compliant operation of investment funds. They enable asset managers to focus on their core strategies, while ensuring seamless operations and regulatory compliance. These services rest on three pillars: fund accounting, transfer agency services and complementary solutions. Together, they form a robust and comprehensive operational framework.
Fund accounting underpins fund administration, ensuring accurate transaction recording, portfolio valuations and cash reconciliations. A critical component of this process is calculating the net asset value (NAV), which determines the accurate value of a fund’s shares and ensures fair pricing for investors who want to invest in or exit a fund. Fund accounting also covers financial and regulatory reporting, including financial statements and regulatory filings, and ensures compliance with accounting standards. Fund administrators also facilitate audit coordination to support efficient and accurate audits.
Transfer agency (TA) services are dedicated to managing investor-related activities. These include investor onboarding with KYC/AML checks, processing subscriptions, redemptions and transfers, maintaining shareholder registers and managing dividend and distribution payments.
Additional complementary services enhance the fund administration offering. These include tax reporting, such as investor tax statements, FATCA/CRS compliance and withholding tax reclaims, as well as performance measurement and analytics, which deliver valuable insights into fund performance, risk metrics and benchmarking.
What is fund governance?
Fund governance refers to the comprehensive framework of processes, policies and oversight mechanisms that ensure investment funds are managed in the best interests of investors and in full compliance with applicable regulations. This framework supports accountability, transparency and complianceand enhances investor confidence while preserving fund integrity.
The core components of fund governance include portfolio management oversight, robust risk management, efficient fund administration, effective regulatory compliance and supervision of delegated functions such as distribution and investment management. It also involves internal controls, monitoring service providers and ensuring alignment with the fund’s investment strategy, objectives and risk profile.
Additional responsibilities include valuation oversight, compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, and conflict of interest management. Governance frameworks provide sound remuneration policies and ensure proper reporting to investors and regulators. Management companies and AIFMs play a critical role in due diligence on third-party service providers and maintaining high standards of corporate governance.
By fostering transparency, accountability and compliance, fund governance ensures effective operation of investment funds. It protects the interests of investors and meets evolving regulatory obligations.
