360-degree hedge fund solutions by Citco

There has been a notable shift in how hedge fund managers think about their internal middle and back-office footprints in recent years. 

Facing ever increasing costs and the highly competitive search for Alpha, hedge funds have recognized that maintaining extensive in-house capabilities, bloated technology stacks and running teams of operations analysts and accountants has often become cumbersome, distracting, inefficient and unnecessarily costly.

Enhancements in service propositions and oversight capabilities from third parties have given managers more flexibility to move from the concept of ‘full shadow’ to less intensive oversight models. The theme has continued apace in recent years and is yielding tangible benefits for managers by bringing about a reduction in effort duplication and, by extension, a reduction in costs. 

With continued development in technology and data solutions in the service provider community, the next stage in the journey for hedge funds appears to be here.

Managers are now not simply thinking in terms of shadow reduction but are looking to traditional fund administrators as they outsource a wider array of middle and back-office workflows, not traditionally in their purview. While technology limitations may have been a factor in the past, the availability of workflow and oversight tools, coupled with bespoke reporting via cloud-based data platforms, have placed administrators in a position to offer truly modern solutions.

Introducing 360-degree hedge fund solutions 

Thanks to our own longstanding commitment to investment in technology, cloud-based data solutions, workflow and oversight tools, the Citco group of companies (Citco) has embarked on launching operating model re-design and workflow optimisation programs with its most strategic clients in recent years.

These programs have now become a mainstay of how we approach servicing our clients. They include cloud-ready data management solutions, technology co-sourcing and staff augmentation, and have created a new paradigm with the power to transform everything from investor onboarding to order management workflows, payments processing, invoice approvals, document management as well as advanced risk solutions and more besides. 

Managers who engage with Citco in this way are already experiencing enhanced exceptions-based reporting on a daily basis, with truly actionable data insights, all without having to overhaul their own internal processes.

A significant advantage for managers is that they are benefiting from the investments Citco has made in cutting-edge technology and data platforms, which in turn is helping managers reduce their own future technology costs.

A new paradigm

Citco believes the future for hedge fund servicing models is moving beyond traditional daily reporting and outsourcing models. Whether it involves assisting managers to overcome technology limitations via transformative data-based solutions, a more flexible approach to co-sourcing technology, staff augmentation, or in many cases a combination of all three, the industry is calling for a much more solutions-focused approach beyond the scope of traditional fund administration. 

Citco’s long-standing approach to investing in state-of-the-art-data and technology advancement has put it at the forefront to meet the market’s needs head on.  We are very excited about the next phase of servicing asset managers.