We are seeing growing interest in our fund administration services from US managers. A year ago they were just fact finding and getting educated as to the merits of fund administration as opposed to doing the administration 'in-house'. The benefits are now clear in that it saves the US managers money, experienced administrators have impressive technology and investment allocations insist on independent administration.

My concern is that some managers are picking the cheapest administrator and not ones that have proper controls and independent pricing. SAS 70 or its new version coming this year should be a minimum requirement. It is a risk to the reputation of fund administrators globally if some are take short-cuts to keep pricing low. I would encourage the US and any fund domicile that currently doesn't regulate fund administration to do so. Quality is important in this game as it reduces the risk of fraud.