y provide are usually charged to investors as a fund expense. Traditionally, fund administrators are mostly concerned with pricing, wherein they reconcile broker statements with investment managers. They collect information provided by the investment managers and the prime brokers and make sure the information matches up so they can begin to calculate the net asset value. And because fund administrators need to be concerned about the value of the funds as well, part of the process will involve considering activities like investor assets flowing in and out of the fund. An example of this would be hedge funds selling securities to raise cash to cover for an investor's redemption request.
While fund administration has always been an integral part of any business Patty Mills Jersey , mostly it has always been done in-house. However, in the aftermath of the Madoff scandal in 2010, which had a profound effect on fund administration services due to the reduction of business flows, more and more investors called for stricter regulations and best practices to really ensure investment protection.
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