FundCalcs was requested by a Fund Administrator to deliver a solution for a Hedge Fund client with monthly series funds to implement a performance fee calculation that requires a netting of Investors holdings held across multiple different series within the fund. The solution was delivered on budget and on time and allowed the Fund Administrator to migrate their client from an internal system to a new TA platform thus removing high risk excel processes from their operations.
FundCalcs operates a DevOps model which enables us to build effective customer solutions flexibly and in short timeframes. Our engineers work with operations, product and testing resources daily and all our team possess a range of skills to facilitate our model of faster software deployments.
- Several single Investors owning holdings across multiple series within the fund
- Initial calculation of performance fee uses LIBOR rate hurdle
- Once performance fee calculation is calculated it must be netted against all of an Investors holding across other series.
- If an Investors position within a series is eligible to pay a performance fee, any losses from the same Investors holdings from all other series within the fund must be netted.
- Once netting is complete only if ‘in profit’ position is still above threshold is a performance fee payable.
- If all an Investors positions are eligible for a performance fee then no netting is required.
- Automation not possible within clients FA system, making process time-consuming, manual and prone to error.
- Client provides FundCalcs with NAV and TA information on a monthly basis.
- Clients FA Team processes monthly calculations within the FundCalcs application.
- Clients FA Team reviews results and calculation breakdowns in browser based user interface.
- FundCalcs application outputs a file containing finalised calculations to be uploaded to Client’s Fund Accounting System.
- Monthly calculation breakdowns
- Reporting to be provided at both series and Investor level.
- Investor Statements – Formatted PDF’s
- Historic data queries
- Application allows for roll back and re-run of calculations
- FundCalcs Analyst / Dev Team work with clients FA team to understand processes and requirements
- Allocation Sheets and Capital Activity inputs are analysed and additional input files are collaboratively designed if necessary
- Calculations and Processing are defined for approval and SOW purposes
- FundCalcs Analyst / Dev Team implement agreed configuration
- Staged show cases demonstrate and allow refining of core functionality
Phased delivery of operationally ready configurations are brought into operation by Client FA team.