Hedge Fund Platform Solution

If you’re not yet familiar with Swiss-Asia, we are a Financial Institution offering insourced and outsourced platform solutions. We offer high-touch, tailored hosting services to Private Funds, Hedge Funds, and Investment Advisers (Wealth Managers). We like our clients to think of us as an extension of their staff. Outsourcing or insourcing non-investment functions to Swiss-Asia as an extension of their staff allows our clients to focus on their core business while keeping overheads low. This concept is becoming especially important in the world we are living in today. We headquartered in Singapore with offices and presence in Hong Kong and Luxembourg. We are regulated by MAS, SFC, CSSF and registered with the CFTC.

 Our team has decades of experience operating the critical non-investment functions across the alternative and registered fund space. Our experience includes Legal, Compliance, Operations and Corporate Governance for all types of strategies ranging from non-conventional asset classes such as Crypto and Venture Capital in frontier markets to Equity, Derivatives strategies, Private Equity and solutions for Wealth Management teams and start-up Family Offices.

Quality at the forefront - The Swiss-Asia label

TAILORED SOLUTIONS. In the face of an ever-changing modern global business environment, we take an open architecture approach to building a tailored ecosystem for each client. We analyse the market for each and every fund launch and propose the most adequate tailored solution available keeping cost and quality considerations at the centre of discussions. 

Creativity is always at play.

CREATIVE SOLUTIONS. We’re not afraid to be creative and we believe in constantly challenging ourselves to see things from a fresh perspective and not afraid to jump into unchartered territory adopting the latest technologies. We are committed to finding simpler, faster and smarter ways to help those we work with reach their full potential. We keep our clients and our clients-clients at front of mind at every stage, in everything we do.

Emerging Managers and the Platform Solution

OUTSOURCING. In the current state of the asset management industry, managers are looking for ways to focus on their core strengths - generating returns for their investors and no longer involved in managing the business. This strategic focus can be largely attributed to changes in the asset management industry such as increased regulations coupled with rising expenses and the growing need for transparency from investors and regulators. Managers, especially emerging managers, are increasingly turning to outsource critical business functions as a cost-effective alternative to building out expensive specialized internal teams and infrastructure.

Traditionally, hedge fund managers have always engaged third party administrators, prime brokers and custodians to maintain official books and records of their funds. However, these service providers can only go so far in achieving the desired results of running an asset management firm. The daily functions of trading, trade settlement, portfolio and corporate accounting, IT and compliance are becoming increasingly complex and time-consuming and most of all progressively falling under regulatory supervision. We are seeing funds increasingly turn to platforms to enhance their operations and improve their business model.

COMPLIANCE. Regulatory and Compliance support is an essential pillar of any financial Business today. Fund managers are tasked with the difficult choice of hiring in-house knowledge to build infrastructure around the everchanging compliance and regulatory framework or engage a reputable third-party expert to manage the compliance issues that arise in a more cost-effective way. Platforms that house a fully fledged Regulatory and Compliance team is a hugely valuable resource to managers. We believe that compliance and regulatory support functions can only be outsourced to highly experienced firms. Managers should be aware the named Chief Compliance Officer (“CCO”) of a regulated financial institution must have boots on the ground and sufficient seniority within the firm to address complex regulatory & compliance issues.

OPERATIONS. The outsourced Middle and Back office support should primarily offer a middle and back office team and technology to the fund manager. This would de-facto include leading portfolio management systems and middle/back office capabilities. The integration of the Execution Management Software to the middle office Portfolio Management Software through the technology component can prove to be a cost-effective alternative to building out proprietary internal systems and staff. Well documented processes and strong accounting knowledge of the staff are components that provide guarantees for smooth post trade operations as well as a smooth and successful Financial Audit process at the year-end.

CORPORATE GOVERNANCE. All major financial jurisdictions require fund directors to exercise responsibility, care, skill and diligence in the performance of their duties. Fund directors are bound by the usual rules applied to company directors, yet their ability to ensure they discharge the duties laid upon them is curtailed by the fact that day-to-day activities and management of the fund are delegated to service providers, including the investment manager. Moreover, although independence of judgement is a crucial requirement for fund directors, there is often a very close relationship with managers to ensure that all operations and investment are made in accordance with international and local regulations.  Expertise: the board collectively must have sufficient knowledge and expertise not just to understand the manager’s investment strategy and the risk profile this creates for the fund, but also to monitor compliance with the investment strategy and evaluate performance. The governance codes recognize that having a person affiliated to the manager on the board is a necessary component of maintaining sufficient oversight of the fund, i.e., directors being able to monitor and supervise the manager’s strategy, performance and operations.  

As you can see, there are several factors to consider when determining if and what functions an asset manager should or can outsource. A fund manager that wants to staff up with experienced investment and sales and marketing staff can effectively outsource many of the day to day non-investment and non-sales related tasks to an experienced firm that can act as an extension of the fund manager’s staff. The benefits of outsourcing can be numerous if implemented correctly, including the elimination of fixed costs like overhead and healthcare. In addition, hiring an experienced platform partner can completely remove the steep learning curve that a newer employee or employee turnover must face.

We believe the investor perception has changed over the last ten years and the platform model has become not only a long term viable option but an important one for all managers. As AUM significantly increases over time and fund managers move upstream with their investor profile, the platform solutions remain very valid as the complexities of the growing fund are also increasing and managed by experienced teams. 

As the premier choice for Hedge Fund Platform Services, we constantly look for new alternatives to cater to the evolving needs of our clients. Take a look at www.swissasia-group.com and get in touch if you need some insights on launching a Fund.

Written by Steve Knabl

Managing Partner & COO

Swiss-Asia Financial Services Pte Ltd 

Swiss-Asia Asset Management (Hong Kong) Limited

Swiss-Asia Sarl (Luxembourg)

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