From Chaos to Clarity – Overcoming Data Disasters When Migrating to a New Fund Administrator

Changing fund administrators is rarely a straightforward process. It can often feel like stepping into a storm of messy data, outdated systems, and investor demands that seem to change by the minute.

But in a recent conversation between three leading voices in fund administration, Yegor Lanovenko, Global Co-Head of Fund Services; Charlotte Cruickshank, Global Head of Fund Onboarding and Solutions; and Richard Hansford, Head of European Business Development for Fund Services, they broke down how these challenges are being tackled head-on, with clarity, strategy, and a wealth of hands-on experience.

Between them, they’ve overseen over 85 fund migrations in just two and a half years, managing data for more than 650 entities. When it comes to navigating the complicated world of fund administration, especially in the dynamic and constantly evolving alternative fund space, they’ve seen almost every scenario.

In this discussion, they explored the most common pitfalls that arise during data migrations, the rising need for clean, real-time data and how fund administrators are evolving to meet increasingly sophisticated investor expectations.

Watch on YouTube or read the transcript summary below.

When data migration gets messy

It’s no secret that switching fund administration companies often reveals the less polished side of fund data. Often, the incoming data has extensive gaps, inconsistencies and errors. This is largely due to competitors using legacy systems in ways they weren’t intended, often relying on manual entries and offline calculations to patch things together.

These workarounds might function in the short term, but they create significant problems down the line. One of the biggest challenges is reconciling financial data. It's common to find audited financial statements that don’t align with management accounts or capital account statements for investors.

Offline calculations, typically maintained in spreadsheets, tend to grow in complexity and accumulate errors over time. These discrepancies can grow quarter after quarter, resulting in figures that are dramatically off from reality.

To address this, the team strips the data back to its essentials and rebuilds it properly within their platform. This process ensures that everything is accurate, automated and no longer reliant on manual intervention. The outcome is clean, reliable data that fund managers and investors can trust.
 

Clean data is a necessity 

The need for clean data isn’t just about operational efficiency anymore. Fund managers and investors alike, require near real-time access to detailed and accurate data. The expectation for continuous investment visibility has made traditional quarterly reports obsolete for stakeholders.

This shift has made data quality a non-negotiable priority. Clean data is now the foundation for modern data systems, including data lakes, data warehouses and automated dashboards. Without high-quality, structured data, these tools simply can’t function as intended.

Legacy systems, which were sufficient for basic reporting needs five or ten years ago, now struggle to meet these demands. Many of these systems weren’t designed to support real-time analytics or deliver the level of detail that’s now expected. As a result, fund administrators are finding that migration to more modern platforms is essential.

To succeed in this environment, fund managers must think proactively about their data architecture, deciding in advance what data points to capture, how to control them and how they will be processed. This kind of upfront planning wasn’t always a focus, but it’s become crucial in delivering the clean, real-time data that investors now require.
 

The investor-driven push for granular data

Investors today are playing a major role in shaping fund administration practices. They are pushing for more detailed insights into their investments, expecting granular, portfolio-level information that offers a clear view of their position within a fund.

This increased demand has significantly raised the stakes for CFOs and fund managers, who are under more pressure than ever to ensure the accuracy of their data. In some cases, fund administrators take on clients who already know their data quality is poor, and the initial discovery process can reveal even more extensive issues than anticipated. Despite these challenges, experienced administrators manage these transitions smoothly, working through the problems systematically.

Larger investors are driving the trend toward bespoke reporting. Rather than settling for standard reports, these investors expect customised reports and tailored insights that reflect their specific needs. This level of customisation adds complexity to the reporting process, requiring fund administrators to develop flexible, automated solutions that can handle diverse requirements without sacrificing accuracy.
 

Customised fees add another layer

The traditional "2 and 20" management fee model is rapidly disappearing, replaced by highly customised fee structures. These new arrangements introduce additional complexity into fund accounting as there are often multiple rates to be applied to investors at different times during the fund life.

To manage it effectively, fund administrators must implement automated systems that can accurately calculate and allocate fees for each investor, according to the specific terms of their agreements. Manual processing simply isn’t sustainable at this level of complexity as mistakes can easily creep in.

The key to successful fund migrations
What truly sets a capable fund administrator apart is experience. Having managed dozens of migrations and handled data for hundreds of entities, the team is well-versed in identifying potential issues early and addressing them efficiently.

Their deep knowledge allows them to anticipate common pitfalls and apply proven strategies to mitigate risks. This experience translates into smoother transitions for clients, who benefit from accurate data, timely reporting, and the assurance that their systems are built to handle future demands.

The goal is to clean up existing data and put in place robust systems that enable long-term success. By focusing on quality reporting, real-time access, and scalable solutions, the team helps fund managers stay ahead in a competitive and data-driven landscape.
 

How can Ocorian help?

Migrating to a new fund administration company might begin with the daunting task of fixing broken data, but it doesn’t have to remain that way. With the right approach, a strong team, and the right tools, what starts as a chaotic process can lead to greater clarity, better reporting and ultimately, stronger relationships with investors.

For fund managers who want to keep pace with rising expectations, partnering with a fund administrator who can transform data challenges into streamlined, effective solutions can make all the difference.

Ocorian has over 30 years of experience in delivering operational excellence across our fund administration, AIFM, accounting and depositary services to the world’s largest institutions along with dynamic start-up fund managers and boutique houses.

Contact our team today to find out more.