Range of Services Extended - Outsourcing for Management Companies

‘Since 2015, INFINITUM Group of Companies [1] has been providing management companies with the services of outsourcing[2], registration of the property of unit investment funds (of all types and complexity levels), various processes and activity areas of management companies,’ Dmitry Shlogin, CDO, tells. ‘This business line is based on international experience, which presupposes running of most internal processes of management companies by various institutions, such as Fund Administrator and others, while management companies can directly manage the assets entrusted to them.’

Business is always looking for opportunities to reduce its costs, and in difficult economic times it becomes even more relevant. One of the obvious options is cost reduction through passing a part of the services to outsourcing. The net cost of an outsourcer is lower, as a rule, due to the scale effect — using a single technology and ‘knowledge base’ to provide similar services to the client pool.

‘Transfer of accounting and reporting to an outsourcer will enable the management company to reduce the total cost of the investment process. This is possible through avoiding duplication of the functions associated with analysis and primary documents, maintenance of software and technologies at a level compliant with the modern changes in legislation, and due to the absence of necessity to maintain a large staff of qualified back-officers,’ Ekaterina Osipova, Head of Specialized Depository Services Dimension, says.

‘In addition, by virtue their industry-specific nature and stream processing technology, the total cost of reporting and accounting services in accounting infrastructural will be lower, and the price-quality ratio is better than independent development and maintenance of similar systems in management companies,’ Dmitry adds. ‘Our clients are interested in this service, so we intend to continue developing this area.’