Fundcraft SARL

fundcraft is tackling several critical issues that have long been a source of inefficiency and frustration for asset managers (AMs).

• Legacy Systems and Manual Processing: Incumbent administrators in the sector often operate on heavily customised legacy software, which is not only difficult to update and maintain but also relies heavily on manual processes. This outdated approach is prone to errors and inefficiency.

• Service Management: Asset managers need to be actively involved in managing services with these systems, which can be labor-intensive and take time away from core investment activities.

• Cost Structure: Traditional administrators charge a significant fee on assets under management or committed capital, often around 20 basis points, plus additional variable charges based on the number of people working on the processes. This results in unpredictable and sometimes exorbitant costs.

• Modern Point Solutions: While there are modern solutions available, they often present their own challenges. Some may not fully deliver on their promises, embodying a “fake it till you make it” approach. Others might have modern technology but offer incomplete servicing options, are not multi-asset capable, or address only isolated steps of the value chain. This results in AMs having to take on more work themselves or hire supplementary providers, increasing both cost and complexity.