Are you an EPFL student looking for a semester project?
Work with us on data science and visualisation projects, and deploy your project as an app on top of Graph Search.
Concept
Fund administration
Summary
Fund administration is the name given to the execution of back-office activities including fund accounting, financial reporting, net asset value calculation, capital calls, distributions, investor communications and other functions carried out in support of an investment fund, which may take the form of a traditional mutual fund, a hedge fund, a private equity fund, a venture capital fund, a pension fund, a unit trust, or other pooled investment vehicle.
Managers of funds often choose to outsource some or all of these activities to external specialist companies, such as the fund's custodian bank or transfer agent. These companies are 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 ("NAV"), including the calculation of the fund's income and expense accruals and the pricing of securities at current market value, is a core administrator task, because it is the price at which investors buy and sell shares in the fund. This involves trade capture; security valuation (for highly illiquid securities, considerations include whether counterparty valuations are available and/or appropriate and whether the securities can be valued by independent vendors); reconciliations; expense calculation; and NAV calculation and reporting. The accurate and timely calculation of NAV by the administrator is vital.
Preparation of semi-annual and annual reports to shareholders
Maintenance and filing of the fund's financial books and records as the fund accountant, including reconcilement of holdings with custody and broker records
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.
Official source
About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
Ontological neighbourhood
Related courses (5)
MGT-301: Foundations in financial economics
The aim of this course is to expose EPFL bachelor students to some of the main areas in financial economics. The course will be organized around six themes. Students will obtain both practical insight
FIN-405: Investments
The course covers a wide range of topics in investment analysis
MSE-101(a): Materials:from chemistry to properties
Ce cours permet l'acquisition des notions essentielles relatives à la structure de la matière, aux équilibres et à la réactivité chimique en liaison avec les propriétés mécaniques, thermiques, électri
Related publications (7)
Related concepts (5)
Investment fund
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages include an ability to: hire professional investment managers, who may offer better returns and more adequate risk management; benefit from economies of scale, i.e., lower transaction costs; increase the asset diversification to reduce some unsystematic risk.
Mutual fund
A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital') and open-ended investment company (OEIC) in the UK. Mutual funds are often classified by their principal investments: money market funds, bond or fixed income funds, stock or equity funds, or hybrid funds.
Private equity
In the field of finance, private equity (PE) is an investment fund, usually a limited partnership, which invests in and restructures private companies. A private-equity fund is both a type of ownership of assets (financial equity) and is a class of assets (debt securities and equity securities), which function as modes of financial management for operating private companies that are not publicly traded in a stock exchange.