Is outsourcing the best way to cut costs?

Tue Mar 1, 2005

Funds find ways to cut costs that don't involve nailing down the admin fee

Controlling costs is now at the top of the agenda for many funds, thanks in part to a realization that saving outgoing capital helps boost returns in a lower return environment. But the imperative to cut costs, or at least keep costs under control, isn't always as straightforward as it would seem. Slash too many costs and staff get demoralized, brokers stop offering you a decent level of service and your systems start to creak. As a result, many managers are beginning to turn to outsourcing companies for help and, in some cases, are finding big savings.

What has helped push the cost cutting drive is the fact that across the board costs are rising. The price of audits, in the wake of corporate accounting scandals and rising insurance, has risen some 40% in the last...

ISSN: 2151-1845 / CDC10004H

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