Asset Management & Hedge Funds Knowledge Center
Explore our verified library of Asset Management & Hedge Funds transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
How to record performance fee accruals
Accounting for performance fees earned by a hedge fund manager after exceeding the high-water mark.
How to book monthly management fees
Recording standard monthly management fees based on Assets Under Management (AUM).
How to account for ETF cash creations
Recording the receipt of cash from an Authorized Participant in exchange for new ETF creation units.
How to record fund seeding investments
Initial investment by the management company into its own newly launched UCITS fund.
How to record SMA client fee rebates
Adjusting revenue for fee rebates owed to Separately Managed Account clients based on volume tiers.
How to record UCITS fund audit fee accrual
Monthly accrual of estimated annual audit expenses to ensure the Net Asset Value (NAV) reflects current period liabilities.
How to book ETF in-kind creation units
Recording the receipt of a basket of securities from an authorized participant in exchange for new ETF shares.
How to record hedge fund crystallization
Moving accrued performance fees to a payable account upon the fulfillment of crystallization criteria, such as year-end or redemption.
How to account for side pocket transfers
The transfer of illiquid or hard-to-value assets from the main liquid portfolio to a segregated side pocket class.
How to record fund organizational costs
Accounting for legal, regulatory, and marketing costs incurred during the setup phase of a new investment fund.
How to record soft dollar credits
Records the accumulation of soft dollar credits generated through trading commissions to pay for research or services.
How to record mutual fund redemptions
Accounts for the decrease in net assets when investors redeem their shares in a mutual fund.
How to book master-feeder allocations
Records the transfer of capital from a feeder fund into a master fund structure for unified investment management.
How to record fund distribution payables
Records the declaration of dividends or capital gains distributions to fund shareholders.
How to record unrealized fund FX gains
Adjusts the value of non-base currency investments due to changes in foreign exchange rates at period end.
How to record fund custody fee accruals
Recording the monthly estimated cost for asset safekeeping and settlement services based on fund AUM.
How to record manager expense caps
Recognizing a receivable from the investment manager when the fund's Total Expense Ratio (TER) exceeds the agreed-upon cap.
How to record securities lending income
Accruing gross revenue earned from lending portfolio securities to borrowers, net of the lending agent's fee split.
How to book fund dividend income accrual
Recording dividend income for equity securities on the ex-dividend date rather than the payment date.
How to record performance fee clawbacks
Reversing or reducing previously accrued performance fees due to subsequent investment losses or performance falling below the high-water mark.
How to record fund transfer agency fees
Monthly recognition of fees paid to the transfer agent for shareholder record-keeping and processing operations.
How to record fund board director fees
Accrual of compensation for the fund's board of directors or trustees overseeing fund governance.
How to record fund regulatory filing fees
Recognition of mandatory costs associated with regulatory filings such as SEC Form N-PORT or UCITS KIID updates.
How to record fund interest expense on leverage
Accounting for interest costs incurred on margin balances or revolving credit facilities used by a hedge fund.
How to record fund listing fee amortization
Monthly amortization of initial exchange listing fees for ETFs or closed-end funds over their useful life.
How to record fund subscription receivables
Recording capital commitments from investors at the net asset value (NAV) date prior to the actual receipt of cash.
How to record realized gain on futures contracts
Accounting for the realized profit upon the closing of a futures position or the daily variation margin settlement.
How to book performance fee equalization
Recording equalization credits for new investors to ensure they do not pay performance fees on gains achieved before their investment.
How to record 12b-1 distribution fees
Accruing the ongoing operational expense paid by a mutual fund for marketing and distribution services.
How to record capitalized brokerage commissions
Adjusting the cost basis of a security purchase to include transaction-related brokerage commissions.
How to record swap financing costs
Recording the financing charges or interest expense associated with total return swap positions.
How to record portfolio valuation fees
Accruing the costs for third-party pricing services and independent valuation of illiquid assets.
How to record fund tax withholding
Accounting for foreign withholding taxes deducted at source from dividend income.
How to record unit class conversions
Recording the reclassification of investor capital from one share class to another.
How to record marketing expense recovery
Recognition of marketing expenses to be reimbursed by the Investment Manager under an expense cap agreement.
How to record fund legal fee accruals
Accounting for estimated legal professional fees incurred by the fund for ongoing compliance and corporate governance.
How to record short sale borrowing fees
Recording the cost of borrowing securities from a prime broker to maintain short positions in a hedge fund portfolio.
How to record cash collateral for margin
The transfer of cash from a fund's operating account to a restricted broker account to satisfy margin requirements.
How to record fund liquidation cost accrual
Recognizing the estimated costs to wind down and dissolve a fund structure, including terminal audit and legal fees.
How to record SMA investment management fees
Recording the earned revenue for managing a Separately Managed Account (SMA) for an institutional client.
How to record fund administrator fee accrual
Monthly recognition of fees due to the third-party administrator for NAV calculation and reporting services.
How to record reverse repo interest income
Recording the daily interest accrual on cash lent via a reverse repurchase agreement.
How to record research payment account funding
Recording the allocation of fund assets to a Research Payment Account (RPA) for third-party investment research.
How to book fund credit facility commitment fees
Recording the expense for maintaining an unused credit line used for fund liquidity management.
How to record ETF creation fee income
Accounting for transaction fees paid by Authorized Participants (APs) to the ETF during the creation process.
How to book ETF redemption transaction fees
Records the fee charged to an authorized participant (AP) when they redeem creation units of an ETF to cover processing costs.
How to record fund shareholder report costs
Accounts for the accrual of costs related to printing and distributing semi-annual and annual reports to fund investors.
How to record CFD mark-to-market valuations
Records the unrealized gain or loss on Contracts for Difference (CFDs) held within a hedge fund portfolio.
How to record fund D&O insurance accruals
Records the monthly expense for Directors and Officers (D&O) liability insurance coverage for the fund's board.
How to record SMA trade settlement liabilities
Accounts for the liability to pay for securities purchased in a separately managed account (SMA) that have not yet settled.
How to record fund KIID preparation fees
Accounting for the professional fees associated with drafting and updating Key Investor Information Documents (KIID) for UCITS funds.
How to record partner incentive allocations
Recording the reallocation of capital from limited partners to the general partner as an incentive allocation rather than a fee expense.
How to record fund proxy voting fees
Accrual of monthly service fees for third-party proxy research and voting execution services.
How to record fund risk monitoring fees
Recording fees for independent risk reporting and Value-at-Risk (VaR) monitoring services required by regulators.
How to record fund printing and postage costs
Accounting for the costs associated with the physical production and mailing of shareholder reports and prospectuses.
How to record fund FATCA reporting fees
Accounting for professional service fees related to FATCA and CRS regulatory compliance and reporting.
How to record fund CDS premium payments
Recording periodic premium payments for Credit Default Swaps (CDS) held in the fund portfolio.
How to record fund blue sky compliance fees
Accounting for US state-level Blue Sky registration and filing fees for fund offerings.
How to record fund capital call receivables
Recording the legal obligation of investors to contribute capital following a formal call notice.
How to record fund performance tax distributions
Accounting for cash distributions made to the investment manager to cover tax liabilities on performance allocations.
How to record fund registration fee accruals
Accounting for estimated costs associated with maintaining fund registration in various regulatory jurisdictions.
How to book fund index licensing fees
Recording fees paid to index providers for the right to use benchmarks or track specific indices within a fund.
How to record fund tax reclaim receivables
Recording potential tax refunds from foreign governments for withholding tax on dividends paid to the fund.
How to record fund data terminal expenses
Booking costs for real-time market data terminals and financial information feeds allocated to specific funds.
How to record fund credit rating agency fees
Accounting for fees paid to agencies like Moody's or S&P to maintain a credit rating for a debt or money market fund.
How to record fund AML KYC screening costs
Accounting for periodic anti-money laundering and know-your-customer verification costs for fund investors.
How to record ETF dividend reinvestment
Recording the automatic reinvestment of dividends into additional shares of an ETF portfolio holding.
How to record fund performance audit fees
Accruing for specialized audits such as GIPS compliance or track record verification fees.
How to record fund pricing vendor fees
Accounting for subscription fees to market data providers for portfolio security valuations.
How to record fund compliance software fees
Accounting for SaaS platform costs used for regulatory monitoring and investment restriction testing.
How to record management fee waivers
Accounting for the reduction of management fee expenses when an investment advisor voluntarily waives their contractual fee to lower the fund's expense ratio.
How to record fund storage fees for bullion
Recording the monthly accrual for physical storage and insurance costs for precious metals held within a commodity-focused fund or ETF.
How to record fund redemption gate fees
Recording fees charged to redeeming shareholders during periods of liquidity constraints, which are usually retained by the fund to protect remaining investors.
How to record realized loss on options
Closing out a derivative position at a loss, reflecting the difference between the premium paid and the closing proceeds or expiration value.
How to record fund ESG certification fees
Accounting for the professional fees paid to third-party agencies for ESG scoring, rating, or sustainable finance labeling.
How to record fund LEI registration fees
Accounting for the annual registration and maintenance of the Legal Entity Identifier required for regulatory reporting.
How to record fund swing pricing adjustments
Adjusting the Net Asset Value per share to protect existing investors from dilution caused by transaction costs of large inflows or outflows.
How to record fund professional indemnity fees
Recording the accrual of professional indemnity (PI) insurance premiums to cover errors and omissions in fund management.
How to record fund branding and design fees
Accounting for professional fees related to the design of fund logos, pitch books, and investor presentation materials.
How to record fund website hosting fees
Monthly accrual of technology costs for the fund's public factsheet website or secure investor portal.
How to record fund translation adjustments
Recording the impact of currency fluctuations on the translation of foreign currency denominated net assets into the fund's reporting currency.
How to record sec lending collateral income
Accounting for the income generated from reinvesting cash collateral received from borrowers in a securities lending program.
How to record fund restructuring costs
Recording expenses associated with the legal and operational reorganization of a fund's investment mandate or share class structure.
How to record fund merger transaction fees
Accounting for transaction-related costs incurred during the merger of two mutual funds or sub-funds within a SICAV.
How to record fund GIPS verification fees
Recording the fees paid to external third-party verifiers to ensure the fund's performance claims comply with GIPS standards.
How to record fund trade error losses
Accounting for losses incurred due to execution errors or operational failures in fund trading.
How to record placement agent fees
Recording fees paid to third-party marketers for securing capital commitments to the fund.
How to record fund-of-fund rebate income
Accounting for management fee rebates received by a Fund-of-Funds from underlying investment managers.
How to record deferred sales charge amortization
Amortizing the commission paid to distributors for back-end load mutual fund shares.
How to record fund seed capital withdrawals
Recording the withdrawal or redemption of initial capital provided by the fund sponsor.
How to record fund dilution levy income
Recording the levy charged to investors during subscriptions or redemptions to offset the cost of buying or selling underlying assets.
How to record fund VAT refund receivables
Accounting for the recognition of Value Added Tax (VAT) reclaims on management or professional fees in eligible jurisdictions.
How to record fund NAV error compensation
Recording the liability and expense associated with compensating investors due to an error in the Net Asset Value calculation.
How to record fund share class hedging gains
Recording unrealized gains from currency forward contracts specifically allocated to a hedged share class.
How to record fund regulatory levy expenses
Accruing for periodic fees and levies imposed by financial regulators such as the SEC, FCA, or CSSF.
Need a specific Asset Management & Hedge Funds entry?
Our team is constantly updating the hub. If you can't find what you need, suggest a new entry below.
Contact Expert