Shadow accounting is growing in popularity as investment managers offer their clients the additional level of comfort that an outside firm is verifying their portfolio reporting, administrative processes and NAV calculations.
The desire to have a contingent NAV that is prepared independently of the relevant third-party administrator is a strongly emerging requirement for many funds. This has been triggered by increased market awareness of the issue and re-enforced by ongoing regulatory attention globally. The common intent being to prompt firms to be cognisant of their fiduciary responsibilities in terms of oversight and resilience for functions that have been outsourced to a TPA.
In line with increasing regulations, the growing investor demands for transparency and the ever-increasing requirements of the large institutional investors demanding sophisticated systems with built-in internal disciplines, engaging a third party to ‘shadow’ the funds manager, or the fund manager directly or the fund appointed administrator has become an industry norm.
Proactively protecting investors and the firm’s brand from the costly and time-consuming remediation of NAV errors, continues to be at the forefront of asset manager concerns when it comes to performing oversight of outsourced fund accounting operations.
PAXUS is a specialist accounting and administration system that is the product of choice for both alternative and traditional funds across the globe. Whether utilised for the full fund administration role or for shadow accounting alone, PAXUS is an established market-leading product in its field that offers a complete back-office fund accounting, portfolio valuation, fund pricing and shareholder recording keeping administrative solution on a single, fully integrated system that will satisfy the needs of even the most sophisticated fund administrators.
