Administrator transparency reports (ATRs) play an important role in investor due diligence and ongoing monitoring of managers. They are produced by the Fund Administrator on behalf of the fund and provide independent confirmation of fund assets and liabilities, pricing sources and counterparty exposures.
In May 2015, the SBAI published the first ever standardised ATR data structure to improve comparability and understanding of these documents for hedge fund investors, and allow for easy aggregation of ATR data across multiple funds.
Overview of the Standardised SBAI Administrator Transparency Report:
Examples of issues ATRs can likely flag:
It should be noted that ATR reports do not allow investors to detect all types of issues, including incorrect valuations, fake track records, attribution of illegitimate expenses to funds, etc.