What Are the Responsibilities of a Hedge Fund Administrator?
Updated on Thursday 04th October 2018
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When opening a hedge fund startup, the investors of the vehicle will be legally required to hire a set of specialists that can manage the activities of the fund. Such persons need to have relevant experience and credentials in order to offer their services. Some of the key-persons that need to be hired to run the activities of a hedge fund are the hedge fund manager and the hedge fund administrator.
What does a hedge fund administrator do?
A hedge fund administrator is involved in a wide range of activities, mainly related to accounting and back office, but other activities can also be addressed to this job. It is also important to know that the hedge fund administrator closely works with the hedge fund manager, by providing relevant up-to-date information on any activity. Some of the responsibilities involve the following:
- takes charge of all the telephone, e-mail, fax inquiries of the fund’s current and potential clients;
- offering information on the fund’s main portfolios, the currencies it uses, discussing with other investment companies on possible investment projects;
- paperwork activities – preparing documents for the traders, managing the investors’ files and the register of the shareholders;
- preparing financial and accounting documents – dividend payments, reports, yearly financial documents;
- constantly verifying if the fund complies with the Anti Money Laundering legislation applicable in the jurisdiction in which the vehicle is registered.
Who pays the services of the hedge fund administrator?
Businessmen who are interested in how to start a fund must know that, in the case of hedge fund startup, it is necessary to appoint a management company, which is a requirement for most of the vehicles registered in a given jurisdiction. As a general rule, the fees of the hedge fund administrator fall under the responsibility of the fund for which the person works, and not to the management company.
Due to the fact that the hedge fund administrator has fewer responsibilities compared to the hedge fund manager, there are more flexible options for applying for this job (for example, it is accepted to hire employees from a broader specter of disciplines – such as administration, finance, business, management, accounting, financial services). Investors are invited to contact our team of affiliates for further assistance on this subject.