Fund Structures

The accounting, reporting and valuation needs of sophisticated fund structures continue to evolve. Multi-manager and master/feeder funds require the ability to account for financials and expenses at both the aggregate and sleeve level, while fund of funds need daily accounting and valuation with inter-fund dependencies across all tiers within the fund.

We provide advanced global accounting solutions so you can manage multiple fund structures. Our clients look to us for true fund- and sleeve-level accounting for master/feeder, fund of funds, multi-manager and pooled fund structures.

Multi-Manager Accounting

State Street’s enhanced multi-manager accounting solution lets you assess the sleeve-level performance of your fund structure and provides a unitized NAV, either net or gross, of the underlying fund- or class-level activity.

Tracking Performance — A key component of our solution is the ability to see manager performance at the sleeve level, so you can accurately evaluate the returns and benchmark daily performance of each sleeve within a fund structure.

Flexibility and Customization — Our solution offers the flexibility to allocate activity, including capital stock, distributions and expenses to specific sleeve and general ledger accounts as needed. The algorithms used in our system enable you to customize and manage NAV calculations, capitalization of allocations and expenses at the individual manager level for one-time allocation overrides, as well as the ability to adjust allocation rules and ratios on a go-forward basis.

Master/Feeder Accounting

Calculating a unitized NAV and managing financials and expenses between the feeder and sleeve levels are two challenges for master/feeder funds that are solved with our master/feeder solution.

Customization, Accuracy and Valuable Information

• Facilitates master fund to allocate income, expenses, realized/unrealized gains and losses according to each feeder’s ownership ratio

• Processes cash movements between master and feeders

• Provides user-defined allocation methodologies with automated ratio calculation and allocations and ability to browse general sub-ledger activity

Fund of Funds Accounting

Our fund of funds accounting solution addresses the challenges of daily accounting and valuation within this structure, such as your ability to obtain accurate and timely fund information and assess risk and attribution. We help mitigate these problems by giving you a reliable solution that automatically recognizes the relationships within fund of funds.

Accuracy and Automation — Our automated workflow safeguards the accurate step-by-step pricing of funds between multiple tiers of fund relationships. Calculations, valuations, corporate action events and post-approval changes of child funds are automatically communicated to the parent funds for actionable information.

Tailored Approach — You can set up complex, multi-tiered parent/child relationships for ongoing daily accounting and valuation that enables a child fund to calculate and approve a flexible, defined range of unit values.

Pooled Funds Accounting

With automated rebalancing and full sub-ledger reporting, we provide you with an end-to-end solution by accounting for the pooling entity while allowing different fund structures by market, based on tax requirements.

Transactions, expenses, cash allocations and other financials are automatically replicated to ensure the accuracy of individual accounts in the pooled fund. This enables investors to retain their own stand-alone tax profile for cross-border investment and achieve economies of scale for their pooled strategies.

Our system also factors in the relative ownership percentages in order to allocate the gains, losses, expenses and assets among investors and accounts for regulatory and legislative restrictions of different investor tax profiles.