Asian fund managers not yet ready to outsource back office

Custodians keen to take on the responsibilities, but only if the scale of the contract warrants the effort.

With outsourcing of non-core functions becoming a key concept in a wide range of industries over the past few years, it was widely predicted that fund managers, under pressure to deliver good investment returns for their clients, would begin to outsource everything not central to the management of portfolios. Growing complexities in back and middle office systems linked to an increase in cross-border trading has helped push this concept.

The whole STP discussion means that whether youre a custodian, manager, or broker dealer you need to put in the resources to understand the issues and meet the requirements, says K.K. Tse, State Street's chief executive for investor services Asia. Certainly for fund managers...

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