Fund administration is the activity carried out by a fund administrator: the accounting, valuation, investor servicing and reporting work that an investment fund needs in order to operate. The main entry describes the administrator as a firm, its appointment and its responsibilities; this entry covers how the name of the activity is used.
The term describes the function, whoever performs it. It normally includes fund accounting and the calculation of the net asset value, transfer agency services such as processing subscriptions and redemptions and keeping the investor register, preparation of financial statements, and regulatory and tax reporting. In European fund law, administration is one of the functions of the management company, which may delegate it to a specialist while keeping responsibility for it.
Usage varies by fund type. For private equity and other closed-ended funds the work centres on capital calls, distributions and investor capital accounts, and is covered under private equity fund administration. Administration is distinct from custody, which is the safekeeping of the fund's assets, and from portfolio management, which is the making of investment decisions.