When you’re running $3 billion with a senior team of ten, spare hands for the work behind each unit price can be hard to find. Someone still has to value every holding, reconcile cash with the custodian, calculate fees and distributions, and prepare accounts an auditor will sign. That’s fund administration, and for many Australian managers it’s handled by a specialist provider rather than an in-house team.
Outsourcing the work doesn’t outsource the responsibility for it, though. When a price is wrong or a report is late, it’s still your fund, and your investors still come to you. Knowing what an administrator actually does, and where its work meets yours, makes it easier to choose one or to judge the one you already have.
Fund administration is the back- and middle-office work that keeps an investment fund’s records accurate and its obligations met. An administrator maintains the fund’s accounts, values its assets, calculates the net asset value (NAV) and unit price, works out fees and distributions, and prepares the financial statements, tax information and reports that investors, auditors and regulators rely on.
Investors rarely see the work itself. They see its output: the unit price on a platform, the distribution in their bank account, the tax statement after 30 June. Each of those depends on the administrator getting the underlying numbers right, on time, every period.
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Function |
What it involves |
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Fund accounting |
Recording every transaction across the portfolio, including listed and unlisted securities, property, private equity and fund-of-fund holdings. Reconciling cash and positions with custodians and prime brokers, and tracking income, expenses and realised and unrealised gains. |
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NAV and unit pricing |
Valuing each holding from independent pricing sources, calculating the NAV and unit price at the frequency the fund requires, and applying buy/sell spreads. ASIC and APRA set out good practice in RG 94 Unit pricing: Guide to good practice. |
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Fees and distributions |
Calculating management and performance fees and distributions. For closed-ended private funds, this extends to capital calls, distribution waterfalls and carried interest. |
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Financial reporting and audit |
Preparing annual financial statements and monthly NAV packs for the manager, and coordinating with the fund’s auditor through the annual audit. |
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Tax |
Calculating taxable distributions, providing the data behind AMIT member annual (AMMA) statements for attribution managed investment trusts, and lodging BAS and IAS. |
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Regulatory and investor reporting |
Supplying data for regulatory filings and FATCA and CRS reporting, feeding fund information to investment platforms and research houses, and producing performance reporting for investor updates. |
Open-ended unit trusts that take applications and redemptions every day need frequent, fast pricing and tight coordination with the registry. Closed-ended private equity, venture capital and private credit funds work differently. Investors commit capital that is drawn down over time, distributions follow a waterfall, and performance is measured in IRR and multiples of invested capital. Valuations may be less frequent, but they rely more heavily on judgement, which is exactly where regulators are now looking.
Three operational functions sit behind most Australian funds. The administrator keeps the fund’s books and values it. The registry keeps the record of who owns units and processes applications, redemptions and distributions. The custodian holds the fund’s assets and settles its trades. Each function relies on data from the other two.
The unit price the administrator calculates is the price the registry uses to issue and redeem units. The holdings the administrator values are the holdings the custodian reports. When the three sit with different providers, part of every period goes on reconciling one provider’s numbers against another’s, and the manager’s team ends up refereeing whichever break nobody owns.
That’s the practical case for running the three together. One operator working from one set of data removes most of the reconciliation between providers, and a question about a unit price, an investor’s holding or a settlement goes to a single team. Automic runs fund registry, fund administration and custody this way, on one platform.
The Responsible Entity or trustee. Outsourcing moves the work to a specialist provider, but legal responsibility for the fund stays with the entity whose name is on it. ASIC has been direct about this in its private markets work, stating in its private credit update ahead of 30 June 2026 reporting that these obligations cannot be outsourced and that everyone in the funds management value chain must meet their responsibilities.
This is why REs and trustees run due diligence on the administrators, registries and custodians a manager proposes, and why many keep a panel of providers they’re comfortable recommending. ASIC’s RG 132 expects Responsible Entities to monitor and supervise the service providers they appoint. For a manager, an administrator the RE already knows shortens the path from choosing a provider to launching a fund.
Investors look at the arrangement too. Institutional investors and asset consultants commonly review who administers a fund as part of their operational due diligence. An independent administrator calculating the NAV and keeping the books means the numbers investors rely on aren’t produced by the same team whose performance is being measured, and that separation is increasingly treated as a basic governance standard.
Both of those audiences shape what a manager should expect from an administrator. Good administration produces evidence as well as numbers: documented controls, clear audit trails, independent assurance over those controls, and reporting that shows the RE how the work was done.
Scrutiny has increased on the parts of fund operations administrators touch most: valuations, reporting and investor identification. Two developments matter for Australian managers this year.
ASIC called on private credit funds to make sure their 30 June 2026 valuations were current, accurate and based on realistic assumptions, and asked Responsible Entities, trustees, boards and auditors to test their practices against the ten principles it published in November 2025. It has also said surveillance across wholesale and retail funds is well advanced and several enforcement investigations are underway. Separately, ASIC has flagged a pilot of recurring fund-level reporting across retail and wholesale funds during FY26–27.
For administration, the practical effect is more weight on how a valuation was reached: the pricing source, the review before a price is released, and a record the RE and auditor can follow.
Reforms to the AML/CTF Act took effect for existing reporting entities on 31 March 2026, bringing updated AML/CTF program and customer due diligence requirements. Existing reporting entities also had to notify AUSTRAC of their AML/CTF compliance officer by 30 May 2026. Funds need the investor identification, monitoring and record-keeping behind these obligations to hold up across their registry and administration arrangements. Automic’s AML/CTF reform update covers the detail.
For most lean managers, outsourcing is the default. Running administration in-house means carrying fund accountants, systems, pricing data licences and backup for every role, which is hard to justify for a senior team of ten. The backup matters more than it sounds. A fund priced daily needs someone trained to produce the NAV when the usual person is on leave, unwell or has just resigned, and building that second layer in-house means paying for capacity that sits idle most of the year. Replacing that person is slow too, because experienced fund accountants and operations staff are hard to hire. An administrator carries that depth across its team as standard, so continuity doesn’t depend on one or two people.
What managers keep is oversight: reviewing NAV packs, signing off valuations for hard-to-price assets, and owning the relationship with investors and the RE. Some managers co-source, keeping one function such as cash management in-house and outsourcing the rest. The harder decision is usually when to move from one administrator to another. That tends to be triggered by a problem the current provider can’t fix, a contract renewal, or a new fund the current provider can’t support.
Look past the service list. Most administrators offer similar functions, so compare how the work gets done: where pricing data comes from, who answers when something needs fixing, how administration connects to registry and custody, and whether the arrangement will stand up to your RE’s due diligence. These questions help separate providers.
Administration fees are commonly quoted in basis points on assets under administration, with a minimum annual fee per fund and some services charged separately. Complexity drives the price more than size: pricing frequency, the number and type of assets, the number of funds and unit classes, investor numbers and the reporting required all move it.
When comparing quotes, check what sits outside the base fee. Tax work, audit support, platform data feeds, ad hoc reporting and transition costs are common extras, and a low base fee with a long list of them can cost more across a year than a higher, more inclusive one.
Automic’s funds business already supports more than 120 fund managers and over 850 listed and unlisted funds, representing approximately $100 billion in assets under administration. In September 2026 it launched full-service fund administration and custody alongside its fund registry, so managers can bring all three to one team of Australia-based specialists. Every client has a dedicated client success manager who knows their funds and their calendar.
That team works on one platform, supported by a single data layer. The unit price, the investor register and the custody position come from the same trusted data, which cuts manual reconciliation between functions and gives managers real-time visibility of their funds. Administration runs on institutional-grade systems and market data from recognised global providers, and Automic is certified to ISO/IEC 27001 for information security and ISO 9001 for quality management.
Across the business, Automic has moved around 150 clients from other providers over the past five years, using a disciplined transition method designed to minimise operational risk and keep investor reporting running without interruption. Automic’s team does the process mapping, data migration and coordination with the outgoing provider, and the manager’s involvement sits at the decision points.
Planning a new fund, heading into a contract renewal or reviewing how your administration is run? Talk to Automic’s fund administration and custody team about what the arrangement would look like for your structure.
Fund accounting is the core of fund administration, but administration covers more. It also includes unit pricing, fee and distribution calculations, tax, financial reporting and support for regulatory obligations.
There’s no general legal requirement to appoint a third-party administrator. Responsible Entities and trustees must have adequate resources and arrangements to meet their obligations, and many REs and institutional investors treat independent administration as part of good governance.
The Responsible Entity is the legal issuer of a registered managed investment scheme and answers for it under the Corporations Act. The administrator is a service provider, usually engaged by the RE or trustee, that performs the fund’s accounting, valuation and reporting.
It depends on the fund. Open-ended funds that accept daily applications and redemptions are usually priced daily, while unlisted property, private equity and private credit funds may be priced monthly or quarterly. The fund’s offer documents set out the frequency.
It depends on the number and complexity of funds and where the move falls in the reporting calendar. Transitions are planned around continuity for investors, with the new provider running in parallel before the old one is switched off. Switching to Automic explains how Automic runs them.
Automic Group is Australia’s expert partner for registry, fund administration and investor services, giving companies, funds and their investors confidence in every moment.
Combining proven experience, exceptional service and a highly scalable, modern technology platform, Automic helps reduce operational risk and deliver stability, security and resilience, while providing clients with trusted data, greater visibility and control.
Automic supports approximately one in three ASX-listed companies, more than 120 fund managers and over 850 listed and unlisted funds across Australia and New Zealand.
Talk to Automic’s funds team about bringing registry, administration and custody for your funds onto one onshore platform.