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Fund Accounting Services

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The excel allows for capturing of trades and price information provided by the major prime brokers, custodians and data vendors. Further, we administer both master-feeder structures using equalization or series processing as well as partnerships. Portfolio valuations, financial statements and other (customized) reports; Compute the Net Asset Values and maintain accounting records; Compute and accrue for Performance fee and Management fee attributable to the Investment Manager, Custodian Fees, Administrator fees; Payment of the Fund’s expenses and invoices; Maintaining the fund’s General Ledger; Assist in Corporate Governance; Processing of investment trade related transactions and corporate actions; Portfolio position reconciliation per independent broker/custody statement; Cash reconciliation of the fund’s bank and broker accounts; Accruing for dividend and interest and reconcile such to the broker/custody statement; ...
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Overview of Interest Rate Swaps

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Overview of Interest Rate Swaps An Interest Rate Swap represents a contractual arrangement between two parties, often referred to as "counterparties." These counterparties agree to exchange payments based on a specified principal amount over a fixed period. In an interest rate swap, the actual principal amount is not swapped between the counterparties. Instead, they exchange interest payments based on a "notional amount" or "notional principal." Each counterparty commits to paying either a "fixed" or "floating" interest rate to the other. As mentioned earlier, the notional amount is used solely for calculating the size of the cashflows to be exchanged. The most common type of interest rate swap involves one counterparty paying a fixed rate (known as the swap rate) while receiving a floating rate, typically based on LIBOR. The fixed leg of the swap is the part that is sensitive to changes in interest rates, akin to a fixed-rate bond. Con...
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Forward Contracts - Accounting

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1. Learning Objectives Learn the key features of a Forward Contract (FWC). Explain the reasons why an investor would engage in FWC trading. Understand the complete cycle of a FWC trade, including initiating, valuing, liquidating, and taking delivery of a contract. 2. Content 2.1. Key Features of a FWC A Forward Contract (FWC) is an agreement to buy or sell an asset, typically a currency, at a predetermined price on a future date. Key features of FWCs include: 2.1.1. Underlying Asset: FWCs are often based on currency exchange rates. 2.1.2. Trading Venue: FWCs are traded over-the-counter (OTC), meaning they are privately arranged contracts facilitated by brokers. Despite being OTC, they are highly liquid. 2.1.3. Cash Settlement: Unlike some other derivatives, cash settlement in FWCs occurs on the contract's maturity date rather than during the closing trade. This means that profits or losses are realized only at maturity. 2.2. Why Investors Use FWCs Hedge funds engage in FWC tradi...
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Equity Swap - Accounting

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1. Learning Objectives Gain an understanding of the three primary components of equity swaps. Recognize distinctive features of equity swaps. Comprehend the motivations behind investors engaging in equity swap transactions. 2. Content An equity swap is an over-the-counter (OTC) derivative where two parties exchange cash flows. One cash flow mirrors the performance of a commonly traded stock, while the other represents interest. Cash changes hands solely at the contract's closure, either during a sale or a cover transaction, which is a characteristic shared with most derivatives. 2.1. Three Profit/Loss Components of an Equity Swap 2.1.1. Equity Leg This component reflects the performance of the underlying stock. 2.1.2. Interest Leg or Financing Leg This component signifies the interest payment the "long" side of the contract pays to the "short" side in return for benefiting from the stock's performance. Consequently, the "long" side is termed the ...
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