A consolidating global investment management sector faces the twin challenges of maintaining performance and maximising efficiency in a post downturn environment.

In recent years, outsourcing of non-core investment manager functions to third party service providers has emerged as an increasingly compelling proposition in an ever more competitive landscape. Now, as asset managers rationalise their business models and seek to expand the scope and complexity of their products, outsourcing is an opportunity that is attracting growing examination and consideration.

The trend for investment managers to outsource non-core functions has driven the expansion of RBC Investor Services’ outsourcing business, which now extends beyond traditional custody and fund accounting. RBC Investor Services offers a broad range of capabilities such as fund administration, transfer agency, risk management compliance monitoring and performance measurement.

Transitions to an outsourcing provider can be complex. RBC Investor Services has established a highly collaborative and disciplined approach toward establishing outsourcing partnerships. Our approach begins by conducting a detailed operational review that clearly captures all client requirements. This is followed by a comprehensive risk review process and the development of a detailed project plan that mitigates the probability and impact of operational, financial and reputational risks during transition.

Rigorous, systematic planning helps ensure a smooth transition of functions to RBC Investor Services and we have operational experts within our team that can help assist clients in outsourcing fund accounting, transfer agency, transitions and a range of other related areas.

Market information

In order to inform our clients and the broader market on the various outsourcing options available, RBC Investor Services has worked with market consultants to develop a number of related publications, including Outsourcing opportunities and strategies, a survey report produced in conjunction with the global consultancy Accenture which draws on the views and experiences of global fund managers active in the outsourcing market.

The report analyses key trends, drivers and concerns on outsourcing and examines ways in which global investment managers are implementing relevant outsourcing strategies. It also explores the key success factor for outsourcing projects and industry preferences for both offshoring and outsourcing.

RBC Investor Services has also published A practical guide to outsourcing partnerships, which provides an end-to-end view of the steps that should be considered when entering an outsourcing partnership. Developed by Kingston Smith Consulting LLP, the guide features 11 key topics from making the initial decision to outsource through to live operations.

To learn more, we encourage you to download these free publications. And for more information on RBC Investor Services’ outsourcing capabilities, please contact us.