Glossary · Operations
Fund Operations
Fund operations is everything that happens after an investment decision so a fund can trade, account, report and serve investors correctly. It is usually split into the front office (investing and trading), the middle office (trade support, risk and data) and the back office (settlement, accounting, NAV and investor services).
A portfolio manager decides what to buy; fund operations makes sure the trade is booked, confirmed, settled, valued, reconciled and reported, and that investors receive accurate statements. The work spans many systems and counterparties, which is why operations teams rely on written procedures, reconciliations and review.
Managers run fund operations in-house, outsource parts of it, or combine the two. The middle office and back office are the most commonly outsourced, because they need specialist skills and coverage across market hours.
What do the front, middle and back office do?
| Office | Main functions | Examples |
|---|---|---|
| Front office | Investment decisions and execution | Portfolio management, trading, research |
| Middle office | Trade support, risk, data and controls | Trade capture, confirmations, P&L, IBOR, valuations |
| Back office | Settlement, accounting and investor services | Settlement, reconciliation, NAV, financial statements, investor statements |
Related terms
Where this comes up in our work
Managed Investment Operations
We run defined operations for your funds on our own platform, with a dedicated team that owns the process. You get the technology and the people to…
Read more →Investment OperationsMiddle Office
The middle office turns investment decisions into a clean, reconciled record the administrator, auditors and investors can rely on. Fundtec runs it…
Read more →Tell us where your operations need to be in twelve months.
A 30-minute scoping call with our team. You leave with a clear view of scope, transition timeline and indicative pricing.