Fund of Funds Overview

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We have extensive experience providing fund of hedge funds clients with fund and portfolio accounting as well as investor servicing. With our technology platform we have specific fund of hedge funds functionality that adds significant value and effieciencies to the ongoing administration and accounting for these fund structures.

Please explore our service offerings for Fund of Hedge Funds Below:

Pre-Launch Services

We have extensive experience working with managers who are launching funds in various jurisdictions around the globe. IKONIC will provide an in-depth review of the current offering documents and will offer guidance from an administrative, accounting and corporate governance viewpoint. Our pre-launch services include:

  • Liaise with onshore and offshore legal counsel
  • Review of offering memoranda and constitutive documents
  • Consult on fund structures from an operational perspective
  • Review of equalization or series methodology
  • Coordinate business implementation, company secretarial, operations and the client’s legal counsel for finalization of all fund administration documentation, board resolutions and agreements
  • Coordinate the opening of the fund’s subscription and redemption as well as operational accounts through one of our partner' for alternative fund managers
  • Coordinate any necessary regulatory filing requirements
  • Assist with Stock Exchange Listing
  • Introduction to prime brokers, custodians, lawyers, audit firms and independent directors, if requested
  • Liaise with prime brokers to establish access via secure website to aid automation of transaction processing and holdings reconciliation
  • Develop operational procedures and workflow

Hedge Fund Accounting

IKONIC Fund Services provides back office portfolio and fund accounting services to investment companies and funds domiciled in onshore and offshore jurisdictions. Our accounting team is made up of experienced and qualified accountants, mainly Chartered Accountants, with prior hedge fund administration experience. We have selected PFS-Paxus® as our primary fund administration platform. The system consists of securities, general ledger, share registry, partner allocation and reporting modules. All modules are integrated in the single application. Our technology, staff and procedures are designed to offer our clients monthly, weekly or daily Net Asset Value calculations. Our services for Portfolio, Fund and Partnership Accounting include:

  • Calculate Net Asset Values for onshore and offshore funds, including automated calculation and allocation of administration, management, incentive fees and other accruals
  • Independently value securities using third party sources including Bloomberg and Markit Partners
  • Reconcile portfolio positions, activity and cash with prime brokers and custodians
  • Data consolidation across multi-prime brokers, multi-strategies and multi currencies
  • Resolve all trade breaks with brokers and adjustments for corporate actions and dividends
  • Automated multi-series, series consolidation, equalization and partnership accounting
  • Automated side pocket functionality
  • Prepare monthly and year-end fund financial statements
  • Liaise with auditors and coordinate audit timetables
  • Coordinate tax preparation
  • Design customized reporting using SQL tools

Fund of Funds Specific Accounting

Our best of breed technology has been developed to support Fund of Hedge Funds portfolio accounting and the specific functionality for these clients include:

  • Allow various series, side pockets and classes for underlying securities to be added to a “security group” and then reports can be produced by grouping
  • Price movements can be applied to the group when performing estimated NAVs
  • Designate series of underlying investments as “lead series”, allowing consolidation of series without realizing gain/loss on each investment
  • Allow for a percentage of a series to be liquidated into a side pocketed investment without realizing any gain/loss
  • Allow “side pocketed” investments to be allocated to only certain series/ groups of investors of the fund as well as the related gain/loss
  • Capture Fund Terms and Conditions: e.g. Redemption Terms, Gates, Fees, Lockups etc; a simple report can then be generated and custom reporting can also be designed to meet the managers requirements in this area
  • Allow for “post close” NAV prices to be entered into the system for underlying investments so that reports can be produced showing the difference between the final net assets values produced using estimates underlying prices versus what the net asset value would have been if final underlying prices had been used
  • Allow for pricing to be done on a percent change for estimates on a security by security basis
  • Provide a full range of Fund of Hedge Fund portfolio reports ( in PDF, Excel or text formats)
  • Allow for full multi-currency portfolio of investments
  • For investments in underlying funds which are onshore dividend / property funds allows for dividends to be processed together with the automatic posting and deduction of withholding tax
  • Allow for P&L to be reported on a series / class or investor by investor basis
  • Allow for the accounting of staggered payments from underlying funds on redemption (deferred payments)

Fund of Funds Custody and Credit

IKONIC has built strategic partnerships that can offer our Fund of Hedge Funds clients custody services and lines of credit.  Depending on our clients specific needs we can introduce them to the right partner.

 

Investor Services

Our Investor services include the following:

  • Maintain the investor records and respective share and partnership registers
  • Monitor ERISA asset levels in accordance with the terms of the Offering Document
  • Process subscriptions/contributions, redemptions/withdrawals and share/capital account transfers, if any, in accordance with KYC/AML/ATF procedures
  • Reconcile and confirm payments of subscriptions/contributions and redemptions/withdrawals
  • Process and disburse the payment of any dividends declared by the Board of Directors
  • Process share transfers subject to Board of Directors approval, as required
  • Seek to ensure investor compliance with the money laundering regulations of the jurisdiction where the fund is domiciled and the applicable  regulations in the domicile of the administrator
  • Distribute confirmations of investor holdings
  • Issue and cancel share certificates, if any
  • Report to investors by email, web or fax their respective holdings and values at each period end
  • Distribute Investment Management Reports to Investors as and when required
  • Publish the Net Asset Value per share as requested by the Funds
  • Deal with and reply to all investor correspondence and other communications to the Funds relating to subscriptions/contributions, redemptions/withdrawals and transfer of securities
  • Distribute all Investor notifications including updated offering documents
  • Distribute Audited Financial Statements to Investors each year and any interim statements as requested
  • Disburse payments of approved third party fees and expenses incurred by the Funds
  • Facilitate the payment of duly authorized redemptions
  • Facilitate the transfer of subscription monies to the Fund’s accounts with its prime broker/custodian

Cash Administration

IKONIC Fund Services offers cash management solutions through JP Morgan and Wintrust. IKONIC Fund Services Ltd. has established a banking platform with these institutions in order to facilitate the opening of multi currency bank accounts and treasury services for fund clients.

  • Establish and maintain bank accounts through JP Morgan’s or Wintrust's Bank Account Platforms for alternative fund managers
  • Disburse payments of approved third party fees and expenses incurred by the Fund
  • Facilitate the payment of duly authorized redemptions
  • Facilitate the transfer of subscription monies to the Fund’s accounts with its prime broker/custodian

Anti Money Laundering / Know Your Customer

Manage investor due diligence: anti-money laundering (AML) and USA PATRIOT Act compliance (KYC) review

  • Verify that Investor’s funds are remitted from a Financial Action Task Force (“FATF”) recognized bank and if a redemption request is made, that the funds are sent back to the wire instructions on file.
  • Utilize World-Check© to run investor names and associated parties through a database that checks names against different anti-terrorism government lists.

Our processes also include ensuring that our staff is current on the latest AML / KYC laws and ensuring that our policies and procedures are current.

Corporate Secretarial Services

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IKONIC Fund Services has three employees dedicated to the provision of corporate secretarial and regulatory compliance services with over 40 years combined experience with providing corporate secretarial services to funds, companies, partnerships and unit trusts (Investment Vehicles) that are domiciled in Bermuda, Cayman Islands, and The British Virgin Islands. Our team understands the time constraints and documentation required in carrying out intricate fund transactions as well as completing regulatory requirements for funds and companies in various jurisdictions. They are able to effectively and efficiently coordinate with directors, officers and other parties to ensure the timely and accurate completion of regulatory and corporate deliverables related to the fund transactions are accomplished. Services include the following:

  • Liaise with legal counsel on creation/amendment of constitutional and offering documents
  • Comply with all legislative and regulatory requirements including the requirements of any stock exchange
  • Organize and attend meetings with the Board of Directors by preparing meeting notice and agenda, distribute meeting materials, record decisions, prepare and finalize minutes of meeting
  • Organize and attend shareholder meetings to ensure approval requirements are met, record decisions, prepare and finalize minutes of meetings
  • Prepare written resolutions for specific transactions and coordinate the execution
  • Organize regulatory filings and the payment of government and other domiciliary fees
  • Provide the Registered Office for Bermuda and Cayman funds
  • Provide an individual or corporate entity to act as company secretary, segregated account representative and director
  • Maintain minute books & corporate records
  • Advise on best corporate governance practices

IKONIC Fund Services Corporate Secretarial Group uses the best of breed technology to ensure the accurate management and administration of the Investment Vehicles we service. Our corporate database is ViewPoint which was founded in 1994 and is the world’s leading software in the management of different entity structures. It is currently used in over 40 jurisdictions and relied on by over 5,000 users. ViewPoint’s Administrator module assists our team in organizing key attributes and events for servicing our Investment Vehicles including, but not limited to:

  • Registered office & statutory addresses
  • Annual return details & dates
  • Memorandum & Articles/ Bye-Laws details
  • Change of name details
  • Business registration details
  • Directors – min required, max allowed
  • Share registration and ownership analysis
  • Statutory officers and general relationships

Financial Statements

Our experienced team of qualified and experienced accountants will prepare financial statements, including the financial highlights that comply with the stated accounting standards of the respective investment vehicle.

  • Prepares financial statements including relevant note disclosures under GAAP or IFRS accounting standards
  • Assist in the audit process by preparing and submitting accounting records and supporting schedules to auditors

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Global Sales 1-704-927-1860

Bermuda 1-441-295-8282 | Charlotte 1-704-927-1859 | New York 1-646-801-5640 | Cayman 1-345-945-0982

Licensed by the Bermuda Monetary Authority under the Investment Funds Act 2006