Fund Managers’ Operating Models and Future Use of Fund Administrators in 2025
When asked about their current or expected operating models, nearly half (46.0%) of fund managers indicated a preference for outsourcing, highlighting a strong reliance on external service providers to handle core operational functions. Co-sourcing, a hybrid approach where responsibilities are shared between in-house teams and external partners, was the choice for 29.8% of respondents, reflecting a balanced strategy between maintaining control and accessing specialist expertise. Meanwhile, insourcing remains relevant for 21.8% of fund managers, who prefer to keep full control over their operations.
Commenting on this trend, Michael Johnson noted,
The increasing preference for outsourcing and co-sourcing demonstrates that fund managers are seeking flexibility and cost-efficiency in their operations. These models allow managers to focus on core investment activities while leveraging external expertise for operational support. Our CAMMI data shows a strategic shift towards flexible and scalable operational models in 2025.
This growing reliance on outsourcing is further evidenced by fund managers' widespread use of fund administrators. In the past, 30.3% of managers used administrators for fund administration, investor liaison, or transfer agency services, making it the most common function outsourced. Fund reporting was also a major area of reliance, with 24.8% of respondents seeking external support.
Other significant uses included loan servicing or agency roles (16.2%) and compliance or regulatory support (15.0%), both reflecting critical operational areas that are often outsourced to ensure accuracy and compliance. Technology-related services, though less commonly used, were employed by 9.4% of respondents, indicating a smaller but growing trend of using external tech solutions. Notably, only 4.3% of managers had not used a fund administrator at all, reinforcing the importance of external support across the industry.
31.5% of respondents plan to use fund administrators for fund administration, investor liaison, or transfer agency services, with 18.7% expecting to rely on them for fund reporting. Additionally, 17.0% of respondents anticipate using fund administrators for loan servicing or agency roles, while 16.6% expect to require compliance or regulatory support.
Interestingly, the projected use of technology-related services rises to 11.6%, indicating a growing recognition of the importance of technological solutions in fund management.
Michael further commented, "The future reliance on fund administrators highlights the importance of outsourcing operational tasks as managers focus on core investment activities. With fund administration and compliance remaining key areas, administrators will continue to play a vital role in helping managers navigate complex regulatory landscapes and investor expectations."
These findings illustrate a clear trend toward more flexible and scalable operational models, with fund managers increasingly turning to fund administrators to support their operations in the evolving investment landscape of 2025.
