How Palmer is simplifying fund administration pricing.

Fund administration is an essential service for asset managers, yet it’s pricing has become an increasingly material source of frustration. Today, fund managers face an intricate web of opaque fees and additional charges that can obscure value and create unnecessary hassle.

So what are the most common fee frustrations?

1. The Complexity of Modern Fund Administration Pricing

The structure of fund administration fees has become a significant frustration for fund managers across the industry. As funds grow in size and regulatory demands increase, so too does the range of additional services required. Fund administration now encompasses far more than simple bookkeeping and reporting and many of the additional services are added mid-life of the fund.

While these additional services are necessary and add value, the associated costs can lead to a challenging reconciliation process. Each additional service may come with its own fee structure, which varies by complexity and frequency, making it difficult for fund managers to accurately track costs over time. This not only adds administrative burden but also hampers the manager’s ability to demonstrate efficient spending to investors who are increasingly focused on the total fees charged to the fund.

2. Hidden and Surprise Costs

In many cases, asset managers are caught off guard by hidden or surprise fees that arise over the course of their relationship with a fund administrator. Additional costs can crop up for tasks such as ad-hoc reporting, technology integrations, or custom investor requests—charges that weren’t initially outlined but become necessary as the fund’s needs evolve.

Surprise costs not only strain fund budgets but lead to friction between fund managers and administrators. Many large fund administration firms are driving these fees, adding layers to pricing to maximise revenue in order to justify their own expansion and acquisition strategies. In recent years, industry consolidation has been a prominent trend among larger firms looking to increase their footprint and capabilities. However, the cost of these mergers and acquisitions is often passed on to clients, contributing to the creeping complexity of pricing.

For fund managers, this lack of transparency and the resulting cost surprises presents a dual challenge: not only must they navigate an increasingly complex pricing structure, but they also have to explain unexpected expenses to investors who are focused on value for money. In an industry where trust is paramount, these hidden fees can undermine the manager’s reputation and raise questions about operational efficiency.

3. Technology Promises More, But Delivers No Tangible Benefit

One of the most significant developments in the fund administration industry has been the leap forward in technology and data capabilities. In recent years, firms have invested heavily in advanced tools, from data visualisation dashboards to automated reporting systems, all of which come with a sales pitch about “state-of-the-art” technology. Yet for most fund managers, these technological upgrades have only led to higher fees, with little to no impact on reducing costs or increasing process efficiency.

Too often, the focus of technology investment has been on developing new services to upsell to clients, rather than streamlining and improving core administrative processes. As a result, technology becomes just another expense, with little tangible benefit to clients in terms of efficiency or cost savings. Fund managers may feel that while they’re paying for “cutting-edge” tools, they’re not seeing reduced costs or increased value in their fundamental service.

Palmer’s Approach: Simple, Transparent, All-In Pricing

We believe fund managers deserve a simpler, more transparent approach to pricing. We recognise that every fund has unique needs and challenges, and our pricing model is designed to accommodate those without adding complexity. Here’s how we’re addressing the industry’s frustrations with a straightforward, client-focused approach:

1. Predictable All-in Annual Fees that Eliminate Surprises and Complexity

We offer a simple, all-in annual fee that covers all core fund administration services. This approach removes the hidden costs and surprises, providing fund managers with a predictable fee structure they can depend on. Instead of worrying about added charges for routine services or facing unexpected invoices for ad-hoc requests, clients can focus on managing their portfolios and building investor relationships.

2. Customised Initial Pricing Construction to Ensure Transparency and Value for Money

At the outset of each engagement, we collaborate closely with clients to develop a detailed pricing structure tailored to their specific fund needs. This process ensures that our fee reflects the scope of services provided, the fund’s complexity, and any particular requirements from day one. By starting with a clear, customised pricing structure, we’re able to deliver demonstrable value for money, enabling fund managers to clearly communicate the cost-efficiency of our services to their investors.

3. Technology-Driven Efficiencies for True Cost Savings

By focusing on technology that improves our internal processes rather than only add-on features, we’re able to pass on real savings to our clients. Our advanced data architecture and streamlined workflows reduce manual errors, increase consistency, and enhance compliance. This approach allows us to offer clients genuinely competitive pricing while ensuring the highest standards of regulatory compliance and output consistency.

4. Annual Reviews to Account for Evolving Needs

We recognise that funds evolve over time, and their administration needs often change accordingly. To accommodate this, we conduct an annual review with each client to reassess service requirements, regulatory demands, and the overall complexity of the fund’s structure. This once-a-year review enables both parties to understand any changes to the service needs before they happen, ensuring that pricing adjustments are anticipated and justified.

Palmer's Fee Commitment 

Our commitment to transparency, predictability, and efficiency means that fund managers are never surprised by new costs or left reconciling complex pricing breakdowns. Instead, they have the confidence of knowing that their administration expenses are both reasonable and clearly aligned with the services they receive. We take pride in this clarity, as it allows managers to demonstrate value for money to their investors with confidence and ease.

In an industry where trust is paramount, we’re committed to building relationships based on transparency, predictability, and value. By simplifying the pricing process and investing in technology to drive genuine efficiencies, we’re helping fund managers focus on what they do best—delivering value to investors and growing their portfolios.