01 Jun 2015

ATR Data Structure in Excel

Institutional investors require independent verification of key fund information. The Administrator Transparency Report (ATR) is a template for providing this information to allow investors to focus their conversations with asset managers. This ATR template can be provided to fund administrators for completion to provide this verification.

As part of due diligence on alternative investment funds, institutional investors require independent verification of the net asset value, the pricing sources used and the diversification and quality of counterparties. This due diligence helps address investor concerns on misappropriate of funds, strength of valuation processes and evaluate counterparty risk.

The ATR is a tool for investors to better understand specific risk factors and focus their conversations with asset managers on the relevant risks.

Examples of issues that the ATR can help flag during due diligence include:

  • Significant exposures to a single counterparty
  • Increasing levels of less liquid assets
  • Increasing number of assets being priced by the asset manager
  • Changes in the amount of assets and liabilities that have not been independently verified.