Fund administrator, Spectrum, has created a hybrid product to assist fund managers in supporting their middle office, back office and fund admin operations, a product that was first developed and used in-house, by Spectrum personnel to deliver, on an outsourced basis, operations services to its clients.
The hybrid solution, called Virtual Back Office (VBO), allows the fund manager to retain in-house control over much of their daily middle and back office functions, while levering the benefits of a full service fund administration organization.
The VBO platform encompasses full middle office portfolio accounting, back office support, general lager posting and investor allocations/accounting. It offers an integrated STP solution for all operational and accounting processing and information needs, and is used daily by Spectrum’s daily servicing of over 140 funds and $20 billion in assets under administration.
With VBO, a fund manager is able to retain direct in-house control over their daily portfolio management activities and reporting, without the need to take on the additional IT burden, and at the same time leverage Spectrum to outsource such value-added tasks as overnight reconciliations, investor service, and fund administration.