Version 1.0 | July 2025
The global fund management industry, valued at over $103 trillion in assets under management, operates on infrastructure fundamentally unchanged since the Investment Company Act of 1940. This paper introduces the Fund Management Layer (FML), a novel architectural primitive that reconceptualises fund operations as modular, composable infrastructure rather than monolithic entities. Through systematic abstraction of fund management functions into standardised modules—creation, compliance, allocation, accounting, distribution, governance, and liquidity—FML reduces fund establishment costs by 99.98% (from >$500,000 to <$100) and setup time by 99% (from 180 days to 5 minutes). This paradigm shift enables previously impossible fund structures including micro-funds ($10,000 AUM), flash funds (1-hour duration), and globally accessible investment vehicles with $10 minimums. We present the theoretical framework, architectural design, and empirical analysis demonstrating how treating fund management as infrastructure rather than institution can democratise capital allocation while enhancing regulatory compliance and investor protection.