Mainstream Fund Services wins middle-office mandate from Redpoint

Fund administrator to offer middle-office services for $10 billion of assets managed by investment manager.

By Jonathan Watkins

Australian-based Mainstream Fund Services has been appointed by Redpoint Investment Management to provide a range of middle-office services

Mainstream – which rebranded from FundBPO in September 2017 – will provide trade management and instructions, position keeping, shadow valuations and post-trade compliance for $10 billion of assets managed by the investment manager.

The contract will run for three years and the transition from Redpoint’s previous provider is expected to be completed by March 2020.

“We are seeing an emerging trend for outsourcing of middle-office services with managers wanting to focus on front-office activities, including research, performance, product manufacturing and distribution,” said Martin Smith, chief executive officer at Mainstream.

Mainstream has offered middle-office services since 2014 when it acquired HFO Limited’s middle-office business in Hong Kong. In September 2019, Mainstream appointed SS&C Eze to support its middle-office capabilities and it will leverage the full front-to-back office technology solution, to provide its trade management and shadow valuation services to Redpoint. 

“We see middle-office services as a big opportunity for Mainstream and the deployment of SS&C Eze Investment Suite builds on our middle-office operations acquired from HFO. This opportunity gives us significant scale to compete using best-of-breed technology to enable efficiency. We are excited to be working with such a high-calibre investment manager as Redpoint and supporting efficient investment and risk management in their operations.”

Redpoint is a Sydney-based boutique fund manager specialising in listed asset classes, including Australian equities, international equities, global infrastructure and global property.

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