SBAI » Administrator Transparency Reporting (ATR)

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Administrator Transparency Reporting

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:

  • Independent verification of the fund’s net asset value (NAV)
  • Confirmation of fund assets and liabilities, incl. summary balance sheet
  • Verification of pricing sources (third parties vs. sourced from manager)
  • Reporting of counterparty exposures
  • Reporting of fair value hierarchy level
  • Optional: Reporting of related party co-investment in the fund

Examples of issues ATRs can likely flag:

  • Build-up of large exposures to single counterparties (across multiple funds)
  • Changes in unverified assets/liabilities
  • Increasing proportion of instruments priced by the manager
  • Build-up of potentially less liquid level III assets.

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.