FundWatch: An Operational Response to the Growth of Alternative Funds

In recent years, the growth of alternative investment funds has significantly increased the operational pressure on depositary banks. The expansion of assets under custody, combined with increasingly stringent regulatory requirements, now demands greater data control, more structured processes, and more rigorous document management.

In this context comes the launch of FundWatch, the platform developed by Armundia Luxembourg for depositary banks managing alternative investment funds (AIFs).

A rapidly evolving landscape

In Luxembourg, the growth of alternative fund assets under custody has been particularly significant in recent years, accompanied by more complex supervisory requirements from regulatory authorities, including the Commission de Surveillance du Secteur Financier and the European Securities and Markets Authority.

Depositary banks are now required to strengthen controls on ESG restrictions and illiquid asset valuations, while maintaining operational efficiency and full traceability of their activities.

Centralizing fragmented processes

FundWatch was designed to consolidate into a single platform activities that are often managed through separate tools.

The solution enables the centralization of:

  • core fund data
  • transactions and movements
  • regulatory controls
  • document management

According to Paolo Maceratesi, CEO of Armundia Luxembourg, the platform automates tasks that are still largely manual and ensures full traceability of controls, contributing to reduced operational risk and improved process efficiency.

Tangible operational results

A use case at a Luxembourg-based depositary bank has demonstrated measurable results in a short timeframe:

  • 90% reduction in manual errors in control processes
  • 40% reduction in onboarding time
  • overall 50% reduction in time and operational effort

Among the key features is a document suggestion system that identifies the required documents at each stage of the workflow, reducing errors related to missing or incomplete documentation.

The platform supports multiple alternative asset classes, including private equity, real estate, debt, and OTC derivatives, and represents the first module of the 3SIXTY FUNDS platform, designed to cover fund management across the entire operational value chain

Beyond technology: the role of operations

Complex document workflows, manual activities, and data management remain critical elements in ensuring reliable controls and operational continuity.

In this context, Armundia Factory, through its operational hub in Tirana, supports financial institutions with dedicated Business Process Outsourcing services, including data quality, document management, and operational process support.
The objective is to contribute concretely to maintaining data integrity and operational stability over time – both increasingly critical factors in the management of alternative funds.

Contact us at info@armundiafactory.com for a free consultation and discover how we can support your digital transformation.