Funds of Hedge Funds
Funds of Hedge Funds continue to be the fastest growing product area in asset management. Institutional and private investors use them as a secure route to the superior performance of the rapidly expanding universe of alternative investments. A one stop shop solution would include:
- Administration
- Trading and Custody
- Financial Products
- Middle Office Systems and Services
- A Senior dedicated point of contact for all services
KEY ATTRIBUTES
- Specialized Fund of Hedge Fund Administration
Posting of trade and non-trade activities
- Recording of corporate actions
- Receipt/payment of dividends
- Booking of interest received/paid on cash balances
- Booking of purchases, sales, transfers, switches and purchases in kind
- Booking of bank accounts:
- Follow-up of pending trades with custodian
- Portfolio reconciliation with Custodian
- Fee Calculations (accruals for administration, custody, management, performance, etc)
- Monthly investor level P&L attribution (client dependent)
- Processing investors' capital transactions
- Compliance to offering document review, including monitoring of investment restrictions
- Monthly independent reconciliation of all bank and cash accounts
- Booking of fees and rebates
- Booking of FX cash transfers and other cash movements
- Tracing of estimated and final month-end prices of underlying non-listed hedge funds
- Monthly financial statement preparation
- Balance sheet
- P&L statement
- Statement of changes in net assets
- Supporting schedules
- Investor/Class/Series Reports:
- Assist auditors with annual audit
- Arranging payment of Fund's operational expenses
- Web enabled reporting for investment manager
- Middle Office Services
Posting of trade and non-trade activities
- Unique portfolio management and administration tool
- Dedicated Middle Office team per client
- Portfolio planning and order processing
- Cash management and reconciliations
- Liquidity monitoring
- Cash Projection
- Hedging and calculations and monitoring
- Investment and FX ordering
- Transaction processing
- Verification of Banking and Custodial data
- Pricing - daily feed of prices and ROR
- Valuation production - monthly and ad-hoc
- Valuation reconciliation. Reports (Standard and Customized)
- CRM - control and sign off
- PPM gathering and maintenance
- Various other Tasks
- Centralized Pricing Services
- Specialized Pricing Department Team
- Actively chases Hedge Fund prices on a daily basis
- Efficient and accurate portfolio valuation
- Database keeps track of Corporate Actions
- Hedge Fund Prices fed into Accounting system
- Price back-ups stored in Pricing Database
- Price source maintained in Pricing Database
- Reports can indicate if prices are RoR's; Est. RoR's; Est. or Final Administrator Prices
- Market Value overview compares valuation with previous month figures
- Investor Relations Services
- Investor identity verification in accordance with application KYC & AML procedures
- Communication services with investors and the Fund's thirds parties, including investors' due diligence Questionnaires
- Reporting services including dissemination of newsletters, NAV's and holding statements
- Shareholder register and NAV's maintenance
- Record keeping of all capital transactions (Subscriptions/Capital Contributions, Redemptions/Withdrawals, Transfers, Switches, Subscription in kind. Dividends)
- Transfer agency services
- Web enabled reporting for investors
Other services