Deutsche Bank's Global Transaction Banking (GTB) division has launched an integrated solution for the processing of hybrid funds. The bank says the new offering combines its loan administration and fund administration platforms to provide a seamless service for these increasingly popular fund structure characterised by a varied portfolio of stocks and bonds.
Hybrid funds typically share characteristics of private equity funds such as a closed-end structure and fee and waterfall calculations, notes Deutsche Bank, adding that they have the flexibility to invest in multiple asset classes and financial instruments similar to hedge funds.
However, hybrid funds present a challenge for fund administrators, particularly as they invest in illiquid asset classes such as structured credit or private debt. These complex structures require an advanced operating model to manage and administer the funds efficiently.
Investment managers therefore expect a highly integrated, scalable solution which supports loan administration investment portfolio accounting for illiquid asset classes, complex fund structure accounting and closed-end partnership accounting. In addition, they are demanding transparency reporting including multi-layer look-through performance reporting from investor to underlying securities.
Deutsche Bank says its end-to-end service delivers reports at investor, fund and portfolio level with full visibility of the underlying investment and its performance. Fund managers can access their report via the Bank’s online platform “Autobahn” and the respective App.
