Tax Transparent Fund (TTF) Operational Readiness Analysis

Developing a new growth service for a third party administrator, enabling them to provide new tax transparent fund capabilities to their clients.

Client Challenges

Our client had been issued an RFI to evaluate their capability to provide UK TTFs. They believed they could perform some of the required functionality, but needed assistance in identifying operational gaps and understanding the costs and efforts required to bridge them.

The client viewed their ability to offer UK TTFs as a potential area for growth and wanted to build a business case to develop the capability initially for the RFI, then later as a wider offering.

Alpha Approach

  • Alpha provided a project manager for 10 weeks
  • We worked with the head of asset owner solutions and the heads of the fund accounting, transfer agency, global custody and tax functions to understand the current capabilities and document their gaps and the actions required to close them
  • Alpha continued to work with function heads to develop accurate estimates of the implementation timeline and its associated costs
  • From the data gathered we created three key deliverables; a target operating model for the TTF capability, a draft prototype of the TTF solution for each functional area and marketing materials to walk prospective clients through the TTF offering

Client Benefits

We could quickly relate a detailed understanding of how fast our client could build TTF capabilities in the UK, and were able to respond to the original RFI on time and with confidence in the proposed solution.

The client was also able to submit a thorough business case for the funding required to develop UK TTF capabilities – both for the original RFI and for a wider future offering of the service.

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Client Types

  • Global third party administrator

Sponsor

  • Head of AO Solutions
  • Head of Product, UK
  • Head of Product, Paris

Functions

  • Fund accounting
  • Global custody
  • Transfer agency
  • Tax

Geographic Scope

  • UK

Fund Types

  • UK TTFs (ACS)