Cayman 2007 - HFMWeek

ADMINISTRATION CAYMAN asia-pacific special special report report 2007is now often a strict requirement by investors.The pressure by institutions, as well as thedifficulty in trying to retain qualified staff anddevelop the necessary technology, has led to adecrease in hedge funds self-administering.n Some managers are forced to take a‘multi-admin’ approach.Many hedge funds are forced to have morethan one administrator due to their originaladministrator’s inability to provide servicesfor complex products and strategies, such ascredit strategies, including bank debt, directlending, and OTC derivatives products.n There is a growing demand for more frequentand complex processing, custom datadelivery and enhanced reporting; leadingsome investors to managed accounts.The demands for greater transparency byinstitutional investors and managers has ledmany to request that their administratorprovide them with weekly NAV calculationsand custom data downloads, as frequentlyas daily, to populate trading, risk, CRM, andportfolio management systems. Many investorsrequire separately managed accountsin the instances where they cannot get theinformation and data they now require.Managed accounts however, can createincreased burdens on the managers and can beonerous or not possible with multiple primebrokers and certain strategies such as directlending and private equity.Spectrum has created solutions to satisfythe demands for more frequent processingand has the ability to support managed accountplatforms.n Desire for additional integrated servicesfrom the administrator.As the industry continues to mature, hedgefunds are looking to their administrator toalso provide:n Compliance consultingn Preparation of financial statements inaccordance with GAAPn Due diligence services for institutionalinvestors and fund of fundsn Tax services and supportCompliance consulting continues to generategreat interest from managers and institutional investors to ensure compliance withbest policies and practices, and to lend comfortto their investors.