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.

PAXUS provides leading fund administrations with the technical and servicing competencies to keep customers satisfied today and into the future.

PAXUS is revolutionary in that it integrates all the processes that are normally performed on multiple systems, including: securities portfolio, allocation system, general ledger, fee calculation, share registry, investor communications and web portal.

Benefits of this approach include increased efficiency, reduced risk of error, faster valuations, a simplified technical landscape and the ability to support complex investment structures whilst vastly reducing IT costs. PAXUS also brings all the benefits of a modern relational database design such as reliability and scalability.

The award winning PAXUS system supports wholesale fund administration and the administration of all manner of open and closed ended traditional and alternative funds, including hedge funds and private equity investment vehicles.

Please contact us to find out more about how PAXUS could assist with your Shadow Accounting services.

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