Multifonds launches single platform solution for traditional and hedge fund servicing
Multifonds, the Luxembourg based technology firm, has launched Global Investor, a single platform that can be used for both traditional long only and hedge fund administration.
The new product has been developed off its existing Transfer Agency platform, but will provide full support to alternatives. The product brand has been altered in the process.
Multifonds clients include fund administrators such as Northern Trust, Brown Brothers Harriman, EFA, Pictet, BNP Paribas and Societe General.
The decision to develop and launch the product was the result of a view that three key trends are affecting fund administrators, said Keith Hale, executive vice president, Client and Business Development at Multifonds.
One is the further development of regulations in Europe, such as Ucits as well as US regulations such as FATCA. This is putting pressure on administrators to constantly update the way they do their business in line with latest regulations.
Secondly there is increasing cost pressure on the industry in general, and this is also feeding through at the administrator level. M&A activity involving administrators taking over each other suggests they will be looking for improved platforms through which to maximise the efficiencies intended by acquiring competitors.
Thirdly, there is increasing convergence between the traditional and alternative funds universes, Multifonds believes. It cites a recent online survey suggesting that 65% of respondents feel the AIFMD regulations will spur convergence. The ability to administer both types – traditional and alternative – will help administrators do their work at a lower cost of ownership, the technology provider said.
Among the capabilities offerd to administrators of alternative investments are:
– Performance fees calculated based on flat or tiered rates, performance fee equalization
– Income allocation including aggregate and uneven allocations methods at both partner and tranche levels, multiple asset based fees definable from fund/share class through to partner and tranche levels,
– Incentive fees including total profit, excess income and fully qualified income definable from fund/share class through to partner and tranche level
– Complete set of performance return calculations
– Over-ride or re-state calculations, including income allocation, fee calculations, crystallizations and accruals and performance returns
Oded Weiss, CEO of Multifonds, said, “We are delighted to offer clients a proven, scalable solution for alternative as well as traditional funds. Multifonds Global Investor is the only transfer agency product that can offer a combined long-only and alternatives solution. As a single platform across different fund types, it enables our clients to reduce their cost of ownership, deliver consistent reporting to both managers and investors, and improve operational efficiency through implementation of a consistent operating model.”