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The role of the fund accountant vs the fund administrator - Coggle Diagram
The role of the fund accountant vs the fund administrator
Fund admin plays a significant role in the chain of events before the accountant steps in
Many funds have a substantial amount of daily processing that is required in order to run a fund; frequently these roles are outsourced to external admin companies
Top 10 admin companies of multi-managed funds with regards to AUM
SS&C GlobeOp
Citco
State Street Bank
BNY Mellon
Northern Trust
MUFG
SEI
Renaissance Technologies
J.P Morgan
Hedgeserv
Fund admin companies are responsible for carrying out the day to day operations of the fund such as
Processing of investor subscriptions and redemptions, issuing contract notes and bookkeeping these transactions
Investor relations - Dealing with all investor queries and keeping investors up to date with info as required
Sending NAV statements to investors
Maintenance of records with regards to investment purchases and sales and bookkeeping these transactions
Maintenance of the fund's books and records
Many admin companies have in house accountants carrying out the accounting function although this can be outsources
The fund accountant will rely on the info input by the admin team in order to facilitate their work
The accountant will cary out a high level review of the information boom kept in the system with regards to investor subscriptions and redemptions and investment purchases and sales
Any discrepancies identified will be discussed and resolved with the admin
Fund accountant will generally be responsible for bookkeeping any movements with regards to the valuation of investment portfolios based on info provided from the investment manager
Where the fund is a mutual fund with investments in listed securities or bonds where prices are readily available from sources such as Bloomberg, updating the investment prices and therefore values can be carried out by the investment manager, the admin team or accountant depending on how straight forward the investments are
Fund accountant will then be responsible for calculating and processing any creditors and accruals that are required
Fund accountant is often required to attend board meetings to discuss and explain the financial information produced