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.


  1. Portfolio valuations, financial statements and other (customized) reports;

  1. Compute the Net Asset Values and maintain accounting records;

  1. Compute and accrue for Performance fee and Management fee attributable to the Investment Manager, Custodian Fees, Administrator fees;

  1. Payment of the Fund’s expenses and invoices;

  1. Maintaining the fund’s General Ledger;

  1. Assist in Corporate Governance;

  1. Processing of investment trade related transactions and corporate actions;

  1. Portfolio position reconciliation per independent broker/custody statement;

  1. Cash reconciliation of the fund’s bank and broker accounts;

  1. Accruing for dividend and interest and reconcile such to the broker/custody statement;

  1. Preparation of accounting or accounting related reports to the investment manager and the auditor.

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Equalization accounting

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Equalization accounting Historically, hedge funds typically provide for some form of performance-based compensation to the investment manager of the hedge fund (as set out above under section 3).   This has generally been a percentage of the increase in the gross assets over the prior high water mark.  For example, if the prior performance fee period had a net asset value of 100 and the following period's net asset value was 120 then the further performance fee for the period will be paid on the amount of that increase which is 20 and the high water mark for this following period would be set at 120. Thereafter if the net asset value fell below 120, no performance fee would be payable.  Although relatively simple to understand, there were certain situations where individual shareholders would suffer a fee not in line with performance and, consequently, the investment manager would receive either too large or  too small a fee relative to the individual shar...
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PERFORMANCE FEE EQUALISATION

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When setting up a fund, one of the first decisions a manager has to make is the choice of fund structure. Partnership structures are very common in US domestic funds because they offer tax transparency to investors. Accounting calculations for partnership structures are relatively straightforward. Individual capital accounts are maintained for each partner and performance fees are calculated at the capital account level per partner. Therefore, there are no equalization issues for managers to contend with.   In Europe, a combination of other fund structures is frequently used which requires calculations of per share/unit price.   In calculating performance fees in these structures, the overriding concern among managers has been in determining how to fairly reward the manager for positive performance while at the same time ensuring investors are treated equitably. Essentially, this is where the various forms of performance fee Equalisation come in.   One of t...
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Equity Swap - Accounting

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