Services

Advanced Fund Administration’s commitment to state-of-the-art technology is what sets us apart from other fund administrators.  We constantly evaluate new products to provide our clients with the very best service we can offer.   The cornerstone of AFA’s fund administration offering is a fully integrated accounting platform to include SunGard (VPM & Investier) and Paxus, allowing AFA to service hedge funds, private equity funds, fund of funds and hybrid hedge/PE funds.   Both VPM and Paxus are comprehensive, multi-currency, and fully integrated investment management solutions that support all aspects of fund portfolio management. With a true General Ledger tightly integrated at the core of the system, VPM and Paxus store investment activity to provide a complete audit trail for efficient drill down analysis, and proper auditing and reporting.  VPM and Paxus provide firms with accurate information, transparency and foresight into a fund’s performance.  SunGard Investier serves assists with the fee calculations, investor allocations, financial and account statement generation, and other reporting functionality.

AFA is a SSAE 16 Type II compliant fund administrator offering a comprehensive and cost effective solution to hedge fund managers, remaining flexible in providing fund administration services to address varying client needs. AFA’s Hedge Fund expertise services all types of hedge fund structures and investment instruments including Arbitrage, Emerging Markets, Event Driven, Fixed Income, Fund of Hedge Funds, Futures and Options, Global Macro, Long/Short Equity, Venture Capital, Real Estate, Life Settlements, Market Neutral, Multi-Strategy, PIPEs, Distressed Debt, Loans, etc. A critical factor separating AFA from other fund administrators is our in-depth knowledge of the hedge fund industry and our commitment to fully understand a fund’s structure and investment strategy, while ensuring the governing fund documents properly reflect these economics prior to the commencement of operations

AFA utilizes a fully integrated accounting platform to include SunGard VPM and Paxus, allowing AFA to service hedge funds, fund of funds and hybrid hedge/PE funds.   Both VPM and Paxus are comprehensive and multi-currency investment management solutions that support all aspects of fund portfolio management. With a true General Ledger tightly integrated at the core of the system, VPM and Paxus store investment activity to provide complete audit trails for efficient drill down analysis, and proper auditing and reporting. The SunGard and Paxus platform provides fund managers with accurate information, transparency and foresight into a fund’s performance, and facilitates fee calculations, investor allocations, financial and account statement generation, and other reporting functionality.

Investment Tracking and Analysis

AFA serves as the official books and records of the fund, recording all aspects of a fund’s trading activity, validating pricing in accordance with the fund’s pricing policy and prices published by third party pricing sources such as Bloomberg, IDC, etc., performing position and cash reconciliations, recording expense accruals, corporate actions, etc. In addition, we have the flexibility to customize reports, providing the investment manager with a comprehensive analysis of fund performance and transparent communication of fund results to investors.

Investor Allocation and Reporting

The SunGard and Paxus platform features an integrated allocation engine which can perform complex calculations such as waterfalls, tiered hurdle rates, and clawbacks, as well as an extensive design allowing AFA to customize fee calculations for its clients. AFA’s reporting platform provides complete transparency, while offering multi-currency support and flexible reporting. For distribution of investor statements, AFA also offers a secure investor web-portal featuring a two-factor authentication process and the ability to securely partition folders inside the data room for controlled access

Accounting Services

  • Maintain tax lots of investments, record Fund investment transactions in the Fund’s general ledger accounts, and update accounting records for corporate actions on Fund investments
  • Verify the market value of portfolio using independent pricing sources
  • Reconcile portfolio positions and cash balances to prime broker/custodian bank
  • Calculate and accrue all income and expenses
  • Calculate gains and losses (security and currency)
  • Prepare and deliver financial reports and analysis to fund managers

Investor Services:

  • Perform AML/KYC due diligence
  • Facilitate the subscription/contribution and redemption/withdrawal process
  • Maintain share register and related activity
  • Calculate economic allocation to investors of book profit and loss
  • Calculate management fees and investor incentive fees and reallocation (or payment) of profit to Advisor
  • Prepare and distribute investor statements via web-based investor portal and respond to investor inquiries

Cash Management Services:

  • Establish escrow account in the Fund’s name and serve as signatory on the account
  • Coordinate/assist with the movement of money for subscriptions/redemptions, distributions, and vendor invoice/expense payments

Year-End Financial Services:

  • Coordinate audits by independent accountants
  • Prepare initial draft of fund’s annual financial statements with footnotes
  • Regulatory Reporting Assistance

Provision of Registered Office Services

FATCA Reporting Services

  •     Validate Forms W-8 and W-9 and other documentary evidence pursuant to IRC §1441 & §1471-1474
  • Prepare Foreign Financial Institution (“FFI”) agreements between Subscriber and the Internal Revenue
  • Service (“IRS”), and register such FFIs with the IRS as required
  • Serve as Authorized Third Party (“ATP”) for purposes of IRS FFI registration or completing FFI Agreement as well as managing ongoing correspondence regarding same
  • Provide status updates for pending FFI agreements, along with FFI global intermediary identification numbers generated from approved FFI agreements
  • Validate account holder taxpayer identification numbers as required, including social security numbers, employer identification numbers, and global intermediary identification numbers
  • Provide calculations of withholding pursuant to IRC §1441, §6041 and §§1471-1474
  • File required Form 8966, Form 1042-S and other information reporting with either the IRS or local government