While thinking about the post trade life cycle of your Hedge Funds, outsourcing shadow accounting has become a trade that assures automation, scalability, efficiency and customization along with increase in transparency.
In today’s complex investing environment, fund managers have to face various challenges. Shadow-accounting can be considered as an opportunity to build scalability and increase transparency. It is going to provide an access to numerous capabilities.
By presenting shadow accounting, the managers can go about as an extra security net, which can recognize and filter out any error made by the administrator. In addition this is going to maintain an organised book of records and provide data for regular reporting. This in turn introduces a transparency to the system which satisfies the regulators and attracts the investors.
Another advantage of outsourcing involves the achievement of better quality work at a reasonable cost. This automatically addresses their skill-set limitation issue. And also provides them with an opportunity to process more jobs and scale their operations.
Adopting the concept of shadow accounting will not solve all the issues. A successful shadow-accounting solution must have a predefined work flow such as: the prime broker, the administrator and of course the manager.
Whenever the front office is dealing with any complex portfolio, they need the best quality current. They also require historical information while trading, accounting and valuation. In such a case, the experience and tested processes of shadow accountant can produce reliable and customized reports. These reports will further help the front desk to compare the pros and cons of the trades.
While working with a cluster of managers, the shadow-accountants have developed such practices which can save time as well as efforts. New clients automatically get the benefit of their shadow-accountant’s experience.
Related Services:
Fund of Fund: IBN Back Office Outsourcing Services are renowned to Fund of Hedge Funds & Hedge Funds, Funds Administrators and have over 10 years of experience in the providing back office funds services and Financial Statements Preparation to Hedge Funds & Fund of Funds clients, many of whom are leading names in alternative investment sector.
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