FIS Blog

To Get Hedge Fund Shadow Accounting Right, You Need the Right Partner

November 27, 2018

When FIS set out to survey financial services leaders – including hundreds of asset managers across the traditional-alternative spectrum – some of us had a few guesses at what the results would show. From partnering with our clients and working closely together to understand their challenges and goals, we expected the research data to validate what we see among hedge funds and other asset managers day in and day out.

We figured the FIS Readiness Report 2018 would show a trend toward an increase in outsourcing, but the results were much higher than we had anticipated. What we learned from our survey respondents across the asset management mega-vertical is that almost 40 percent believe they are “wasting significant resources managing functions in-house that add little or no real value for our customers.” Also, 36 percent say they plan to significantly reduce their owned IT infrastructure over the next 12 months.

That two-fifths of executives believe they are wasting in-house resources is astounding – it represents a lot of hedge fund leaders who are thinking, “there’s got to be a better way to handle fund operations.”

When we line these research findings up with what we see in our everyday interactions with hedge funds, it makes sense.

In particular, we are seeing a growing trend among hedge funds looking to shadow accounting as a way to bolster operational excellence and efficiency. And, these hedge funds are thinking strategically about, not only if they should outsource accounting, but how to select the right partner for outsourced accounting.

For hedge funds exploring outsourced accounting as a means to boost operational efficiency – and curb in-house resource waste – you need a partner that is reliable, independent, and a proven expert in hedge fund operations. FIS is that partner.

With our accounting-as-a-service offering, we are empowering hedge funds as an independent third party with no conflicts of interest -- we don't have a fund administration department, so we are always able to be an impartial shadow accounting partner.

We aren’t going anywhere; FIS recently celebrated its 50th birthday, and we have decades of experience and expertise with hedge fund technology, including with our award-winning VPM portfolio and fund accounting solution. When it comes to counterparty risk, you’d be hard-pressed to find a partner as dependable as FIS.

If you are thinking that it’s time to eliminate resource waste and boost the efficiency of your fund operations, let’s talk. Our team is ready.