EU Fund administration - challenges & target operational excellence


EU Fund administration

Embarking on a journey to overcome challenges and target operational excellence

Since the global economic turmoil of 2007, the investment management industry has been hit by a series of headwinds, causing a sharp decline in Assets under Management. It is only recently that the pre-crisis level of AuM has been exceeded, although the industry landscape has drastically changed

Executive summary

Mutual fund industries are dealing with shorter market cycles, and external events, such as the introduction of new regulations, which are reshaping the industry. During the economic crisis, asset managers tried to contain costs and create pressure to renegotiate
fund administration fees. Although the situation has improved on the AuM side, the fund administration industry is facing a lasting low fees scenario. The sector has managed these circumstances in the short term by postponing investments and cutting costs, through
the automation of operational tasks and offshoring/outsourcing operations. However, the capacity of these measures to reduce costs will soon be exhausted.

The industry is currently facing a wave of new regulations that are required to be implemented within a short timeframe, while AuM is expected to grow. As a result, the focus is now moving from costs to investments, and five main business drivers have been identified:

  1. Competition
  2. Cost containment
  3. New product launches
  4. Service offerings
  5. Regulations


PDF file - size: 367kb

Performance issue 14 – May 2014

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

PDF file - size: 4.7mb
Did you find this useful?