Funds of Hedge Funds - Understanding the Specifics of Accounting and Custody

The objective of the training is to provide participants with an applied understanding of the specifics of fund of hedge fund accounting and custody. The module will take participants through different perspectives including: investors, trade processing, accounting and reporting.

The course covers the following topics:

Introduction to Hedge Funds and Funds of Hedge Funds (FoHF)

• History and concept of asset management

• Major strategies and why FoHF?

• Distribution and regulation

Trade processing

• Target Fund TA (account opening; reconciliations)

• Custody & Settlement

• Valuation & Accounting:  

  • Equalisation factors of target funds

  • NAV estimates

  • Fair valuation

  • Key regulation: IFRS

Trade Management and Custody

• Overview of fund of fund portfolio trading

• Subscriptions/redemptions/switches: the liquidity issue

• Settlement & cash monitoring

• Corporate actions

• Depositary liability under AIFMD

Accounting and Reporting

• Valuation of a FoHF portfolio

• Performance fees and equalization

• Accounting of subscriptions/redemptions /switches

• Side pockets

• Gates

• Reporting

Risk Management and Compliance

• Operational risk

• Portfolio risk

For this training course, an optional exam is available. In case of interest, candidates can choose a date from the list of proposed examinations sessions. Registration for the exam must be made at least five days before the chosen exam date. The exam is subject to a registration fee.

At the end of the training, the participants can download a certificate of attendance from their client portal House of Training.