Nearly a third of fund managers plan to outsource back-office functions in the next 12 months, compared with 18% that said the same last year.
The figures are from a survey of some 130 fund management companies by Luxembourg-based Kneip, an outsourcing provider.
Functions relating to Ucits regulation and production of Key Investor Information Documents (Kiids) are among the most likely to be outsourced, says Kneip, adding that more than half the firms surveyed said keeping their Kiids up to date was the biggest challenge.
A significant part of Kneip's business is to produce Kiids for fund management clients.
“While the reporting requirements of regulations such as Ucits IV and V are helping to ensure greater transparency and build investor confidence in the industry, they are also taking up a large amount of fund managers’ time, diverting them away from core business activities,” says Mario Mantrisi, chief strategy and research officer at Kneip.
“It is therefore unsurprising that many asset managers intend to contract out their back office functions this year.”
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