Orchestrating Complexity

To support growth and restructure an existing master feeder fund into a parallel master fund with more than $400 million AUM, a global alternative investment manager needed to transition to a new administrator with expertise across diverse fund structures and strategies.

MUFG Investor Services’ Conversion team held extensive workshops to assess current processes and account for bespoke reporting elements. A key requirement was to capture performance metrics since fund inception more than 5 years ago. To minimize investor impact, the Conversion team coordinated with our in-house AML and KYC specialists to fully align communications with client expectations.

• Scope: Approximate four-month transition process;
• Team: Conversion team members in Halifax and Toronto; specialists across Accounting, Middle Office, Compliance and Investor Delivery;
• Technology: Historical data mapping and integration into the investor allocation system, comprehensive reporting, and NAV solutions;
• Collaboration: Parallel operations with the previous administrator for one month.

From initial analysis to data migration, our Conversion specialists developed a tailored approach and delivered a controlled conversion. The open-ended fund was complex, with three tiers in the master feeder structure including both public and private securities. The project framework featured guided onboarding, thorough due diligence and close coordination with the client to create optimal workflows for tax, regulatory and audit requirements.

In less than four months, the client successfully transitioned to MUFG Investor Services while maintaining business-as-usual operations and the investor experience. Complex structures, including open- and closed-ended funds, are now operationally supported and service levels have been significantly elevated. Streamlined reporting is consistently provided, including client-specific requirements around investor statements and other customized outputs.

The client achieved:

• Improved NAV calculation accuracy
• Up to 80% reduction in review time for NAV reporting
• Reduced operational risk due to automated, streamlined books and records
• Deeper investor transparency

Additional benefits:

• Increased efficiency due to reliable data capture
• More efficient payment process due to streamlined workflows
• Added controls and transparency with enhanced reconciliation approach