Fund Migration: from challenge to opportunity

March 22, 2024

A 5-step guide to master investment fund migrations


Fund migration introduces opportunities for fund managers, acting as a catalyst for operational optimization, improved investor outcomes, and the opening of new avenues for growth.

By strategically choosing service providers and refining operational processes, fund managers can better position their funds for heightened success in a competitive market environment.

Recognizing the potential advantages that fund migration offers to fund managers is key, whether it involves enhancing operational workflows, penetrating new markets, or improving compliance measures.

The decision to migrate funds between service providers requires thoughtful consideration of various factors and necessitates a strategy deeply rooted in industry expertise. Specialized knowledge plays a pivotal role in guiding fund managers through the intricacies of migration, aiding them in achieving their strategic goals. With the right expertise, what may appear as a challenge to a fund manager can be effectively addressed.

This guide explores key aspects of fund migration, offering insights for a thorough understanding and effective execution of the process.


1. Understanding the Landscape & Setting the Right Approach

Fund migration is not a uniform process, demanding a comprehensive and up-to-date understanding of the regulatory environment, market dynamics, and investor expectations. It also requires the ability to differentiate between different fund structures and characteristics, in order to define the right migration strategy.

Migrating a sub-funds is not as migrating a standalone entity. While migrating a sub-fund within an umbrella structure might necessitate a closer look at tax and regulatory issues, the transition of a standalone entity may focus more on operational matters. At the same time, the specific characteristics of a fund may imply different migration strategies: parallel testing is effective to ensure seamless transitions for funds with complex activity and high valuation frequencies, whereas it is typically unnecessary for alternative funds investing in illiquid assets.


2. Prioritizing Investors Interests

The foremost aim of fund migration is to safeguard and enhance investor interests.

Making decisions that prioritize investor benefits, and devising migration strategies that bolster transparency, boost returns, and protect investor assets—while carefully considering legal and tax implications—is crucial for earning stakeholder trust and confidence.


3. Legal Preparedness & Regulatory Compliance

The meticulous preparation and review of legal documents are crucial for a smooth fund migration, ensuring compliance with regulatory norms and enabling an effortless transition.

Timely and precise submissions to regulatory authorities, like the CSSF in Luxembourg, are vital for fulfilling all regulatory obligations effectively and adhering to legal and regulatory mandates.


4. Operational Efficiency and Risk Management

Achieving an effective fund migration entails the enhancement of operational efficiency and the minimization of related risks. Conducting comprehensive risk assessments and operational evaluations to pinpoint and rectify possible improvements is key to significantly boosting process efficiency and the resilience of systems.

Ensuring the continuity of operations is paramount during fund migration. The aim should be a seamless transition that upholds business as usual, leveraging expertise and resources to sidestep any operational hitches.


5. Project Coordination and Accountability

Fund migration necessitates the coordination among various stakeholders and the management of numerous tasks. Designating dedicated project managers to helm the coordination efforts is instrumental in keeping communication clear, ensuring tasks are completed on schedule, and achieving the intended results.

Thriving on collaborative partnerships and the exchange of knowledge is fundamental to successful fund migration. Establishing partnerships with promoters to devise migration plans tailored to their goals, and tackling challenges collectively, amplifies value and leads to favorable outcomes.


This guide empowers fund managers with the methodology to approach migrations confidently, enhancing efficiency and fostering success in the dynamic landscape of fund management.  

In this context, selecting the right partner is crucial. With Adepa, you can trust that your fund migration will be handled with precision, professionalism, and a proven track record of success.

At Adepa, we bring a wealth of experience to the table, having successfully executed numerous fund migrations in the past.  Our standardized process ensures efficiency and consistency, while our dedicated team of experts is committed to guiding you through every step of the journey. 

Contact Adepa today to speak with our experts and streamline your fund migration process.

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