Use case · Administrator transition
Switch your fund administrator without missing a NAV
Changing administrator is a controlled migration of books, investors and history. We run it in four gated phases, with a parallel run before anything is handed over.
In one minute
Switching fund administrator means moving a fund’s books, investor register, capital accounts and reporting from one administrator to another without interrupting NAV production or investor dealing. Fundtec runs administrator transitions in four gated phases, including a parallel run and full reconciliation of historic data, with the core cut-over typically completed around 90 days from kick-off.
Managers at a decision point: a fund to launch, an administrator to change, or an operating model that has to scale.
A 30-minute scoping call, then a written plan: scope, the transition timeline and indicative pricing. No generic proposal.
Weeks 1–4 to Week 17 onward, in 4 gated phases.
Signs it’s time to switch fund administrators
- 01
NAVs arrive late or keep moving
Final NAVs slip past the agreed timeline, or restatements and late adjustments have become routine.
- 02
Your team re-does the work
Your staff maintain shadow books because they do not trust the administrator’s numbers.
- 03
Team turnover on your account
A new accountant every few quarters, each relearning your fee terms and structure.
- 04
Complexity has outgrown the provider
New strategies, OTC derivatives, side pockets or series accounting are handled with manual workarounds.
- 05
Audit and investor queries pile up
Auditors raise the same findings each year, or investor queries take days to answer.
- 06
Fees rise without service improving
Price increases, new line-item charges or licence pass-throughs without a matching change in scope or quality.
The fund administrator transition timeline
Timings are indicative and depend on the number of funds, history and counterparties. Each phase gate is confirmed with you before the next begins.
Onboarding and design
Process mapping, document and fee-term review, operational handbook, systems access and data requests to the outgoing administrator. We agree the target operating model and SLAs. No change is visible to investors.
Validation and parallel run
The full team joins. Historic data is loaded and tied out, and we run NAVs in parallel with the outgoing administrator. Month-end cycles are compared line by line, differences explained and cycles signed off.
Structured handover
Responsibility moves pillar by pillar: trade operations and reconciliations first, then treasury, fund accounting and NAV, then investor reporting. The outgoing administrator produces its final NAV and closing records.
Full operations
Business as usual under the agreed SLAs, with daily huddles, weekly open-items reviews and a monthly service review.
How the parallel run works
During the parallel run both administrators calculate the NAV for the same periods. We load positions, cash, accruals and investor balances as at a fixed opening date, then process the live period independently. Our NAV, P&L by share class, fee accruals and investor allocations are compared with the outgoing administrator’s results.
The scope of what we take over is the same full service described on hire a fund administrator. Every difference is logged, explained and resolved: a pricing source, an accrual convention, a rounding rule or an error on either side. We target at least one full month-end, and ideally two, of explained parity before handover. Where the outgoing figures contain an error, we document it and agree the treatment with you and the auditor rather than silently carrying it forward.
What data migrates and how it is validated
| Data set | What we collect | How we validate it |
|---|---|---|
| Historic NAVs | NAV per share or unit by class and series for every dealing date | Recompute recent periods and tie published NAVs to the ledger |
| Capital accounts | Opening balances, contributions, withdrawals and allocated P&L by investor | Sum of capital accounts ties to fund net assets |
| Investor register | Holdings, KYC files, bank details, tax forms and side letters | Register ties to units in issue; KYC files reviewed for completeness |
| Series and equalization history | Series issue dates, high-water marks, equalization credits and roll-ups | Recalculate performance fees for the last crystallization period |
| Positions and cash | Holdings, tax lots and cash balances at the opening date | Three-way reconciliation to administrator, prime broker and custodian |
| General ledger | Trial balance, chart of accounts and open accruals | Opening trial balance agrees to last audited or reviewed figures |
| Private markets data | Commitments, calls, distributions, waterfall and carry balances | Recompute waterfall to the last distribution |
Communicating with investors, auditors and counterparties
- 01
Investors
A notice explaining the change, the effective date, any new bank details for subscriptions and where statements will be delivered. We draft it; the manager or board approves it.
- 02
Auditors
Early briefing on timing, opening balance evidence and access to both administrators’ records, so the audit is not surprised by the change.
- 03
Prime brokers, custodians and banks
Authorization letters, data-feed setup and updated contacts, arranged before the parallel run starts.
- 04
Board and regulators
Board resolution, updated service-provider details and any regulatory notification the jurisdiction requires, coordinated with counsel.
Risk controls during the switch
Phase gates
No phase starts until the previous one is signed off against agreed criteria.
Fallback
The outgoing administrator stays responsible until handover of each pillar is confirmed.
Open-items log
Every break and question is tracked with an owner and due date, reviewed weekly.
Four-eyes review
Migrated balances and first NAVs are prepared and reviewed by different people under the four-eyes principle.
Data security
Transfers via SFTP or portal under ISO 27001 controls; no data in email attachments.
Audit trail
Every migration adjustment is documented for the auditor.
Fund administrator switching checklist
Use this checklist to plan the move. We work through it with you during Phase 1.
- Review the notice period and termination terms in the current administration agreement
- Confirm board or GP approval and any investor notice required by the offering documents
- Agree the target cut-over date, avoiding year-end and audit fieldwork where possible
- Request full historic data from the outgoing administrator in an agreed format
- Obtain historic NAVs by class and series for every dealing date
- Obtain investor capital accounts, register, KYC files and tax forms
- Obtain series, high-water mark and equalization history
- Obtain the trial balance, chart of accounts and open accruals at the opening date
- Collect side letters and confirm how each term has been applied
- Issue authorization letters to prime brokers, custodians and banks
- Brief the auditor on timing and opening balance evidence
- Agree the parallel run periods and tolerance for sign-off
- Prepare investor notices and updated subscription bank details
- Update regulatory filings and service-provider records where required
- Confirm handover order and the outgoing administrator’s final deliverables
- Schedule the first post-handover service review
Engagement model
How an engagement is structured
Economics aligned to your growth. Scope, cadence and pricing are confirmed jointly in the first phase.
- 01 · Weeks 1–4
Onboarding & design
A phase-linked fee covers process mapping, the operational handbook, systems access and the SLA framework — before any handover.
- Target operating model
- Operational handbook
- SLAs agreed jointly
- 02 · From the parallel run
Monthly base fee
Your dedicated team, pod manager oversight and the governance cadence — daily huddle, weekly review, monthly service review, QBR.
- Named PM → SME
- Trained backup for every role
- Governance included
- 03 · As you grow
Scales with AUM
AUM-linked tiers and pre-agreed triggers for new mandates or counterparties — so growth never means renegotiating the contract.
- Transparent triggers
- No renegotiation
- Quarterly pricing review
Every engagement starts with a scoping call — no obligation, no generic proposal.
Request an indicative proposalQuestions
Common questions about Switch Your Administrator
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Ask a specialistFrequently asked questions
How long does it take to switch fund administrators?
A typical administrator switch takes around 90 days from kick-off to core cut-over, followed by full operations from about week 17. The timeline depends on the number of funds, how much history must be migrated, notice periods in the current agreement, and how quickly the outgoing administrator provides data. Fundtec confirms each phase gate with you before moving on.
Will investors notice when we change administrator?
Investors should see only a notice of the change and, where relevant, new subscription bank details and a new statement format. NAV timing and dealing continue as normal because the outgoing administrator remains responsible until each pillar is handed over. Fundtec drafts investor communications for the manager or board to approve.
Is it risky to switch fund administrator mid-year?
Switching mid-year is common and manageable with a parallel run. The auditor will need evidence of the opening balances at the cut-over date, so we agree that evidence with them early. Many managers avoid the weeks around year-end and audit fieldwork, but there is no rule that a switch must happen at a year-end.
What if the outgoing administrator is slow to release data?
Most administration agreements require the administrator to deliver books and records on termination. We send a specific, itemized data request early in Phase 1 and track each item on the open-items log. Where data is late or incomplete, we escalate through the manager and, if needed, rebuild figures from counterparty statements.
What happens to historic errors found during the migration?
Errors found in the outgoing administrator’s figures are documented, quantified and discussed with the manager and auditor before any correction. We do not silently carry forward or adjust a difference. The agreed treatment, whether a prior-period adjustment or a current-period correction, is recorded with a full audit trail.
How much does it cost to switch fund administrator?
Costs depend on the number of funds and share classes, the length of history to migrate, structure complexity and the length of the parallel run. Many administrators, including Fundtec, scope transition effort separately from ongoing fees. Termination fees or notice periods in your current agreement are the other cost to check.
Can Fundtec take over a fund with series accounting and equalization?
Yes. Series history, high-water marks and equalization balances are among the most important data sets in a switch because they determine future performance fees. We collect the full history, recalculate the most recent crystallization period, and agree every investor’s balance before we take over NAV production.
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