About Us
What do we do?
Fundhost hosts funds! We are a financial services business for boutique fund managers. We provide essential services to managed investment schemes, operating a series of registered schemes for a group of fund managers. The managers do the investing and Fundhost handles the back office, investor-related compliance, audit, reporting, distribution and other requirements.
We promote funds to the gatekeepers — the master trusts, the wraps and research houses. In a way, Fundhost can be thought of as a conduit between fund managers and the gatekeepers of the swelling pool of savings.
Who do we do it for?
Fundhost provides services to Australian fund managers that prefer to outsource some of the back-office functions: Responsible Entity, compliance, administration, product development and distribution. We also provide these services to off-shore fund managers.
Frequently Asked Questions
- What does Fundhost do for fund managers? Fundhost provides a complete service made up of product development, administration, compliance, marketing and distribution.
- Why do fund managers use Fundhost? There are 3 key benefits for our clients:
- Focus — the fund manager can focus on his primary purpose of investing, while outsourcing non-core tasks to Fundhost
- Reduced cost — compliance and admin are expensive.
- Access to sticky retail money.
- But funds do operate without Fundhost currently, don't they? Yes, but managers have largely been confined to wholesale funds under management. This is despite the fact that retail superannuation funds are the largest and fastest growing segment of the managed funds industry.
- Does Fundhost take equity in the fund managers' business? No, definitely not. Boutiques are usually run and owned by one or two talented individuals that have chosen to move away from large corporates — they do not wish to be taken over.
- Is Fundhost involved in funds management? No. Unlike some service providers, Fundhost does not have funds management operations that might compete with our clients. This is what differentiates us from competitors.
- Does Fundhost appeal only to Australian fund managers? No, Fundhost is a very cost-effective entry point for offshore managers too.
- Are there any other companies like Fundhost? Not Quite. But if you want to look at business models that have some similarities you might consider the Boston based company Affiliated Managers Inc (NYSE: AMG) or perhaps the Melbourne based Treasury Group Ltd (ASX: TRG) which partners with the like of Investors Mutual.