Månedsarkiv: december 2013


A Fund Managers Duty

Fund Administration, a set of activities that are carried out in support of the actual process of running a collective investment scheme, whether the scheme is a traditional mutual fund, a hedge fund, Pension fund, unit trust or something in between –a duty of a fund manager.

Fund manager often choose to outsource some or all of these activities to external specialist companies such as a fund’s custodian bank; these companies are often known as fund administrators. These administrative activities may include the following administrative functions which may include fund accounting functions. Some of these items may be specific to fund operations in the US and some pertain only whether the fund is an SEC registered fund:

  • Calculation of the Net asset value
  • Preparation of semi-annual and annual reports to shareholders
  • Maintenance and filing of the fund’s financial books and records as the fund accountant
  • Payment of fund expenses
  • Settlement of daily purchases and sales of securities, ensuring collection of dividends and interests
  • Calculation and payment to the transfer agent of dividends and distributions (if required)
  • Preparation and filing of the fund’s prospectus
  • Preparation and filing of other SEC filings/reports
  • Calculation of the total returns and other performance measures of the fund
  • Monitoring investment compliance with SEC, prospectus or U.S. Internal Revenue Code restrictions
  • Supervision of the orderly liquidation and dissolution of the fund (if required)


As a fund administration manager, whether the process is internal or external, you need to manage every aspect of fund administration and fund accounting in a cost-effective manner. And a good fund administration system tool helps you to do just that, providing fully automated workflows and regulatory reporting across a broad range of complex and sophisticated fund structures – efficiently and effortlessly.

The primary goal of fund administration system tool is to put an ease to the process as a whole. This tool will provide fund managers the capability to handle increasing transaction volumes, reducing time-to-market for new funds and scaling your business without an increase in marginal costs. Fund administration system will also enable you to adapt to various regulations simultaneously, and you benefit from the transparency available throughout the entire investment process.

fund accounting

The Process of Fund Accounting

By definition, fund accounting is an accounting system focusing more on accountability rather than profitability. This is often used by non-profit organizations, governments and corporations for the purpose of providing accurate records and analysis of the flow of cash of the company. In this system, a fund is a self-balancing set of accounts, chosen for specific purposes in lieu with laws and regulations or special restrictions and limitations.


In this line, it is important to keep a record of all the monetary transactions to determine how the money was spent and relatively how the money is earned. The accounting records take the form of a collection of funds, each fund having a distinct purpose, ranging from operating expenses to funding the various activities of a particular organization.


The label, fund accounting, has also been applied to investment accounting, portfolio accounting or securities accounting – all relatively describing the process of accounting for a portfolio of investments such as securities, commodities and even real estate held in an investment fund such as a mutual fund or hedge fund.


The Track of Fund Accounting


Fund accounting keeps track of revenues and expenditures unlike financial accounting which tracks income and expenses. Fund accountants work with non- profit organizations and governmental agencies. These entities use general funds or special funds on this process. General funds are used to finance activities and expenditures; accounting, marketing, fundraising, rent, and/or utilities while special funds are used for specific activities or purposes; school and office activities, including taxes implemented.


Revenues and expenditures are tracked as if each fund were a separate entity, with its own accounting chart of accounts. Fund accounting is a mixture of both cash basis and accrual basis or modified accrual depending on the nature of the asset or expenditure. Fund accounting plays as the working chain of the company. It relatively holds the company’s portfolio and delivers a very critical role in providing accuracy and stability of a company. Establishing an effective way of accounting funds will create a sustainable and firm system that will be the key to continuous growth and development of the company as a whole.


cash and securities management

Five Tips for Effective Insurance Risk Management

Effective insurance risk management is seen as an essential element of delivering successful projects. With an  insurance risk management process and system, risks to the project can be identified early and minimized. Also, teams can seize opportunities as they occur. Use the five tips below to help deliver projects on time and on budget with the highest quality results.

  1. End the ‘walk on by’ culture and involve the whole project team. Insurance risk management should be part of your project embraced by all team members. Instead of teams looking blindly to the project manager and assuming he is managing all risk for the project, the whole team should be involved.
  2. Identify risks early, even in the bid-phase. Before the project even starts, the team should already work to identify risks in insurance risk management. Start by gathering all project members into workshops and brainstorm potential opportunities and risks, all the while consulting the project plan, online resources, outside experts and even old project plans.
  3. Communicate. To ensure that risks are continuously identified and appropriately communicated in your insurance risk management, add project risks and opportunity discussions as a standing topic to the regular meetings of the team. With open communication, project managers have better information to report to the project principal or sponsor.
  4. Analyze, prioritize, and reprioritize. Because risks are identified during an insurance risk management project, teams should know how to prioritize them. Risks should be measured by the impact they can have on the project goals, and start with those that can cause the biggest losses and gains, and those with the highest probability of occurrence.
  5. Plan and implement risk responses. After you have indentified, analyzed, and prioritized your insurance risk management, the risk response is the activity that adds value to your project. The right responses can prevent a risk from occurring or minimize its harmful effects. Responses should include risk avoidance, risk acceptance, risk transfer and risk minimization.

By implementing insurance risk management into a project early, and ensuring that risks are openly communicated throughout the project, teams can be more successful in delivering on time and on budget, by avoiding unexpected risks and sticking to the project timeline.


The Outcome of Putting Up Investment Accounting Software

Intensive researches must be conducted to fully identify the suitable one. Various options are provided in the market; with the skills of smart investment choices, you will be able to determine all possibilities in this tract. There are a lot ofinvestments accounting software ready for installation to your computer.

It is important to be keen on these things since it plays a very big the role investment accounting takes part in every company and management. Majority of the investment accounting software includes a module to help the investment accounting specialist take a clearer picture on records, investments and funds of the company. With the help of the software you will then be able to experience the benefits you reap from it.

The process is easy and with no long waiting time, you can project these outcomes as you use investment accounting software:

Management and deployment of tasks will be quick and seamless. Managing your portfolio can be crucial. Once you have a reliable investment accounting software with you, then you will be able to confidently work on the things to be done.

Experience a comprehensive accounting and reporting system once software is installed. There are multiple accounting methodologies and auditable data in store for you on an investment accounting software.

You will be versatile working into a complex environment. You can be sure that whatever regulatory compliance is needed, you will be able to respond to it with no hesitations.

The investment accounting software will even give you access to a variety of funds; mixed funds, multi-class funds, pooled funds and some other funds. This will also include financial database and client defined data plus it will give you updates on changes and progress in real time. In that way you can set plans for future development.

When it comes to choosing the best, it will be critical, but of course risks and endeavors are a part of it. Uncertainty and failure are sometimes two things inevitable, but with the help of critical thinking, intensive researches observations, then identifying the best investment accounting software will go on your way.


Photo credit: www.rbwm.gov.uk


Asset Management made Easy

The success of business relies on how it is managed by the company. We all knew that the better your plan is, the more chances of success; but not as simple as it is said. Proper assessment and effective risk control is critical to all kinds of business. However companies are challenged with this matter but overcoming it by the use of enhancement programs that technology offers, making portfolio management easier.


The primary objective of portfolio management is to achieve the optimum return of an investment for a given risk level. And investors must balance risk and performance in making portfolio management decisions. Portfolio risk management software will put an ease to companies to make the management more transparent and fast. In fact this program software is always available and ready to be installed in your computer.


Once the company invested to portfolio risk management software it will cost both time and money to learn the program. Not to mention the period between the times you bought it until you are able to accurately use it. Compared to how much was spent for the program, how well this program can handle your needs and in fact, it is easy to use makes it a factor for the company.


The management software is spontaneous; it has a platform that can help you improve the daily investment processing for your portfolio managers. Using portfolio risk management software, portfolio managers can do trade simulation, pre-trade compliance and order entry for multiple portfolios easier, faster and more confident without risking a real situation with real money.


Portfolio risk management software allows you to analyze portfolio and investment better because you can view reports not only the way you want it and also other types of reports you may or not currently using in your analysis. Using these functions can enhance your evaluation of your portfolio. Software programs like portfolio risk management software will provide certain asset allocation and gain/loss data at hand. This also gives you a detailed record of your history of transaction for guidelines for adjustment and improvement for your business.


It is a requirement for a company to have portfolio risk management software and other related software programs that is essential to the operation of the business. But companies see it more as an asset than merely a requirement.


Photo credit: accesstalentmanagement.com


How to Implement Financial Risk Management Software

Implementing financial risk management software involves the use of information technology systems in the consistent ascertainment, mitigation and evaluation of uncertain investment risks that are inherent in the financial markets. Every organization participating in financial markets is considerably exposed to financial risks, directly or indirectly. Therefore, the prospects of profitability can easily be eroded by heavy losses. Financial risks usually arise from numerous legal or financial transactions, mergers and acquisitions, new project investments, and debt financing. Financial risk management software can minimize risks by streamlining financial investment processes.

  1. Determine the range of financial risks posing threats to the operations and strategies to the company, and classify these risks according to the scope of their consequences. Do this by examining the organizational competitors, suppliers, customers, management, activities, products and prospective industry trends.
  2. Establish financial risk priorities that need urgent attention with the use of financial risk management software. This should be guided by the risk tolerance levels of the organization relative to the prevailing or likely risks.
  3. Indentify the financial risk management software for managing the identified financial risks as well as the number of people needed to use the system.
  4. Estimate the cost of purchase and installation of the hardware equipment and the financial risk management software, along with the staff training cost needed to fully implement the system. Attempt to minimize overall costs by comparing physical and online quotations from various equipment suppliers and software vendors to ensure the purchase of high quality equipments and software at the lowest price possible.
  5. Approve the financial risk management software and indentify the location for positioning the central computer servers and all user network points for the system. Acquire the identified hardware equipment and financial systems solutions software, and get then installed, tested and certified by qualified IT experts.
  6. Train all employees that were identified as users of the financial risk management software and allocate the user rights according to the scope and limitations of the job descriptions of the employees.
  7. Establish control, monitoring and maintenance mechanisms for ensuring the continuous effectiveness and efficiency of the financial risk management software.
cash and securities management

5 Easy and Essential Ways for Cash and Securities Management

When times get tough, money get tight. And when money is more expensive and difficult to borrow, it is especially important for small businesses to take steps in ensuring that their cash flows keep flowing. Below are five ways for cash and securities management to help your business ride out the storm.

  1. Keep your weather eye open. One of the key factors in weathering any storm is to know what is coming and what direction it is moving. To ensure good cash and securities management, keep an eye out for your businesses and prepare cash flow projections for the following year.
  2. Review credit policies and histories of customers. Managing the credit of your customers is important in cash and securities management. Weed out unprofitable customers and those that cost more to maintain than they add to the bottom line. Remember that you do not have to extend to credit to anyone.
  3. Take action to speed up payment. For one, invoice promptly. Otherwise, you are telling your customers that you do not care how long it will take to get your money. Another cash and securities management tip is to take measures to encourage prompt payment, such as clearly stating due dates and sending overdue notices.
  4. See if supplier payments can be extended. One the other side of the cash and securities management coin, check on the credit terms that your suppliers allow. There are those that allow 30 days to pay but you can get them to extend it, so you can keep the money in the cash flow pipeline longer.
  5. Renegotiate contracts. Contactors, landlords and lenders are not impervious to changing economic conditions so trying to negotiate with them for cash and securities management would be worth a shot. A less expensive lease will let you free up more of your cash every month and get more cash flow.

Keep in mind that the outflow part of cash flow is never a problem, and money will always run out of your business easily. Keeping the money coming in on a regular and sustained basis in the tricky part of cash and securities management.

More information here.