What is a Fund Administrator? Fund Administration vs Fund Management

Q: What is the difference between a fund administrator and a fund manager?

The fund manager makes investment decisions and is the regulated entity. The fund administrator handles accounting, NAV, investor records and reporting.

Q: Do all funds need an administrator?

Many do, because LPs and regulators expect independent records, and some structures and incentives require one. Small funds sometimes administer in-house, supported by software.

Q: What is the difference between a fund administrator and a custodian?

The administrator keeps the books and investor records. The custodian safeguards the fund's assets.

By aama.io Fund Operations Team · Last reviewed 2 October 2026

A fund administrator is the firm, or in-house team, that runs a fund's back office: calculating NAV, keeping the books, processing capital calls and distributions, maintaining investor records and producing reports. It is distinct from the fund manager, which makes the investment decisions.

Sourced information — it can change

This page is compiled from public sources (listed at the bottom) and last reviewed on 2 October 2026. Regulations, thresholds, fees and market practice change, so it may not reflect the latest position. Check with MAS and your fund documents before acting.

Key facts

Core services	NAV, fund accounting, investor services, capital calls and distributions, reporting
Not the same as	The fund manager (investment decisions) or the custodian (safekeeping of assets)
Appointed by	The fund or its manager, under an administration agreement
Models	Third-party administrator, in-house administration, or software-assisted
Why it matters	Independent books and investor records are a core LP comfort point

How it works

The manager decides, the administrator records. The fund manager sources and approves investments. The administrator books the resulting transactions and keeps the fund's official records.
NAV and accounting. The administrator maintains the general ledger, applies valuations provided by the manager or valuation agent, and calculates NAV and capital accounts.
Investor servicing. It onboards investors, runs KYC and AML checks, issues capital call and distribution notices, reconciles receipts and answers LP queries.
Reporting. It prepares financial statements for audit and the periodic investor reports, such as statements and performance metrics.

Worked example: Who does what when a fund makes an investment

A fund approves a $5M investment and funds it through a capital call.

Decide and approve the investment	Fund manager
Calculate each LP's pro rata share of the call	Fund administrator
Issue drawdown notices and track receipts	Fund administrator
Hold the investment and cash safely	Custodian / bank
Book the transaction and update NAV	Fund administrator
Audit the year-end financials	Auditor

The administrator never decides what to invest in. Splitting these roles gives LPs independent records alongside the manager's decisions.

Common mistakes

Conflating the fund administrator with the fund manager. They are different roles with different regulation and liability.
Assuming the administrator verifies valuations. It usually applies valuations supplied by the manager.
Choosing a provider on headline price without checking multi-currency, sub-fund and LP reporting support.

The Singapore and APAC angle

The fund manager is the entity MAS regulates, and tax incentives such as Section 13O require a Singapore-based administrator. For VCCs, administration must work at the sub-fund level, with books and NAV kept per sub-fund. Whether a particular administrator needs any authorisation depends on the services it provides, so confirm with MAS.

Frequently asked questions

What is the difference between a fund administrator and a fund manager?

Do all funds need an administrator?

What is the difference between a fund administrator and a custodian?

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SPV Administration Cost Calculator (Annual Run-Rate)Capital Call Schedule Builder (Drawdown Pacing)

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Go deeper

Fund Management Licensing in Singapore (2026)

Related terms

Capital Call

A capital call, also called a drawdown, is a formal request from a fund manager for limited partners to pay in part of the capital they committed. Funds call capital as needed for investments, fees and expenses, rather than collecting the full commitment upfront, and each LP pays pro rata to its commitment.

Net Asset Value (NAV)

Net asset value (NAV) is the total value of a fund's assets minus its liabilities at a point in time. Dividing NAV by the number of units or shares gives NAV per unit, the price at which investors subscribe or redeem in open-ended funds and the basis for reported value in closed-end funds.

Side Letter

A side letter is a separate agreement between a fund and an individual limited partner that grants that investor rights or terms beyond the limited partnership agreement, such as fee discounts, co-investment rights, extra reporting or excuse rights. Most LPs of meaningful size also negotiate a most-favoured-nation (MFN) clause.

Section 13O and 13U Tax Incentives

Sections 13O and 13U of the Singapore Income Tax Act are tax incentive schemes that exempt qualifying income of a fund managed from Singapore. 13O is the onshore scheme, usually for single family offices from S$20M AUM; 13U is the enhanced tier for larger or multi-vehicle structures from S$50M AUM.

Sources

MAS — Fund management

General information, not tax, legal, accounting or investment advice. This content is sourced from the references above and from public regulatory material, and it can become outdated. Always confirm the current position with MAS and your fund documents, and take professional advice for your specific situation, before relying on it.