Transforming Fund Administration: From Static Spreadsheets to Automation and Agility

Fund administration is a critical piece of any investment management firm. While fund managers focus on making the right investment decisions, fund administrators take care of everything behind the scenes, from NAV calculation process and investor reporting to fund reconciliation, compliance, and more.

Funds have become more complex, and investors have become more demanding of timely and accurate reporting. In this evolving landscape, traditional methods by administrators are starting to reveal their limitations. Manual processes, delays, data errors, and compliance risks are just a few of the growing challenges that deter efficient operations.

First-rate fund operations are key for competitive differentiation.

So, how can fund administrators keep up and even stay ahead? The answer lies in automation and agile practices built on smart technology solutions.

Hidden challenges in fund administration

The role of fund administrators is becoming increasingly complex. Manual workflows, fragmented data systems, and outdated technology are slowing operations and increasing the risk of costly mistakes, especially when administrative activities are intensifying. When key processes rely on specific individuals, even a single departure can disrupt continuity. Add to that the ever-tightening web of compliance requirements, and it’s clear that traditional approaches are no longer sustainable.

These challenges are not just operational headaches; they translate into higher costs, delayed reporting, and missed opportunities for growth. According to DataSnipper, successful fund administration teams are actively investing in automation, centralized data platforms, and real-time compliance tools to stay ahead. Tools like AI-powered NAV calculators and integrated compliance dashboards can reduce errors by up to 90% and free up teams to focus on strategic tasks.

As investment fund services evolve, embracing modern infrastructure is not just a competitive advantage; it’s a necessity. This requires advanced tech-based solutions to simplify and accelerate tasks like creating reports, assessing compliance measures, and reconciling data that usually are time-consuming for these teams.

How automation addresses the challenges

Automation is fast becoming the game-changer in fund administration. As funds grow more complex and investor expectations rise, manual efforts simply cannot keep pace.

• Speed: Automation accelerates routine processes like NAV calculations, reconciliation, and investor reporting. By eliminating manual bottlenecks, fund administrators can deliver faster turnaround times and meet tight deadlines with ease. For example, AI-powered systems can reduce NAV processing from hours to minutes by aggregating and validating data in real time.
• Accuracy: Manual data entry and reconciliation are prone to human error. Automation drives validation layers and real-time monitoring that catch discrepancies before they escalate. This not only improves data integrity but also enhances trust with investors and regulators. Automation can reduce reporting errors by up to 30% through built-in compliance checks and audit trails.
• Scalability: As funds grow in size and complexity, legacy systems often struggle to keep up. Automated platforms are designed to scale effortlessly, handling higher transaction volumes, diverse asset classes, and complex reporting requirements without additional headcount. Digital transformation enables fund administrators to integrate new tools and workflows that evolve with business needs.
• Compliance: Regulatory demands are constantly shifting, and staying compliant requires meticulous documentation and timely reporting. Automation simplifies this by generating audit-ready reports, tracking regulatory changes, and flagging anomalies. AI tools can also automate AML screening and transaction monitoring, reducing compliance risk.
• Cost savings: By reducing manual effort and tedious tasks, automation lowers operational costs and reallocates resources to higher-value tasks. Robotic Process Automation (RPA) and AI can increase workforce efficiency by 25-30%. This translates into fewer errors, less rework, and more strategic bandwidth for teams.

Transforming fund administration with automation

Forward-looking fund administrators are using automation to cut through complexity, reduce operational risk, and deliver faster, more accurate service to clients. From accounting to reconciliation and investor reporting, digital tools are transforming the way teams work. Here are a few examples of how automation has brought in transformation.

1. Faster NAV calculation: A US private equity fund administrator that previously spent 8 hours a day finalizing net asset values was able to cut that time down to just 4.5 hours after deploying automated systems. Accuracy and compliance checks were seamlessly integrated into the new workflow, providing both efficiency and reliability.
2. Streamlined fund updates: A global asset manager handling updates for over 350 funds had been spending 145 hours per quarter on manual processing. Automation brought that number down to just 100 hours, freeing staff to focus on analysis, client interaction, and growth initiatives rather than administrative overhead.
3. Improved reconciliation: A large institution grappling with manual loan reconciliation faced high staff dependency and frequent data mismatches. Adding automation and standardizing operating procedures, dropped processing time 30%, and tripled account coverage, without a single headcount increase.
4. Faster client approvals: A firm experiencing delays in template sign-offs was able to cut approval turnaround by half, from up to three days to just one, by automating and optimizing the template workflow. This meant faster decision-making and better internal alignment.
5. Better reporting at lower cost: With rising data complexity and growing demands for transparency, one client used automation solutions to reduce reliance on external vendors, enhance report accuracy, and cut costs by 40%. Timeliness improved as well, strengthening stakeholder trust.

Here’s how DPA can help

DPA (Decimal Point Analytics) plays a pivotal role in helping fund administrators streamline their operations and stay ahead of industry demands. By embedding intelligent automation and domain expertise into everyday processes, DPA transforms the way fund operations are managed, bringing precision, agility, and scalability.

DPA’s automation-first approach to NAV calculation and fund accounting significantly reduces manual effort and improves turnaround times. Systems are designed to handle daily, monthly, or ad-hoc valuations with embedded compliance checks, ensuring consistency and accuracy across all calculations.

Whether it is trades, positions, or cash, reconciliation across multiple counterparties and data sources can be time-consuming and error-prone. DPA automates these tasks, reducing dependency on manual oversight and enabling exception-based handling. This ensures that discrepancies are flagged and resolved quickly, minimizing risk and improving transparency.

DPA provides fund administrators with custom-built dashboards that offer a consolidated view of key metrics, from performance indicators to compliance status. These tools empower teams to make timely, data-driven decisions while ensuring that audit trails and reporting standards are consistently met.

Recognizing the growing need for tailored communication, DPA offers custom investor reporting solutions. Whether it is quarterly factsheets or ad-hoc updates, these outputs are visually polished, data-rich, and aligned with regulatory and stakeholder expectations.

To extend operational bandwidth without compromising quality, DPA serves as an offshore fund administration provider and deploys dedicated teams trained in fund accounting, compliance, and automation workflows. These professionals serve as a seamless extension of the client’s in-house team, bolstering reliability, reducing talent risk, and driving continuous process improvements.

DPA doesn’t just support fund administrators, it partners with them to modernize operations, sharpen compliance posture, and deliver investor confidence at scale.

Reach out to one of our subject matter experts to learn more about how DPA can help power transformational change in your fund operations.