Månedsarkiv: februar 2014

compliance management software

What is the Purpose of an Investment Management System?

An investment management system is a plan of action undertaken by an organization to ensure that its infrastructure and assets are employed to deliver a desired standard of service. Such investment management systems are normally employed where the available assets are co-dependent in nature and are as such meant to work cohesively for the achievement of optimal results.

The main purpose of an investment management system is to clarify how a given standard of service will be provided using designated assets in a manner that is both optimal and justifiable. The term “optimal” attempts to describe a scenario where a superior standard of service can be best achieved at a minimal overall cost. Justifiably, on the other hand, has to do with a full presentation of all the costs and benefits for scrutiny purposes to gauge the effectiveness and efficiency of the activity.

An organization undertakes an investment management system to have a workable system that looks into three major facets of physical assets management: maintenance, upgrading and operation. When the framework for these three tasks is set, it becomes easier for an organization to fully understand the nature of its capital assets and respective values. An organization also becomes better placed to make sound investment decisions.

One of the most relevant purposes of an investment management system is to help an organization make informed planning decisions. A sound investment management system gives a useful framework that helps measure overall performance and gives vital information to help in internal long term and short term planning.

An investment management system is successful when the desired standard of service translates into measurable benefits that can be monetary, social or environmental. While it may be hard to quantify some of these benefits, it is essential to give some kind of assessment that will indicate if the investment management system is worth the ongoing costs with respect to the benefits accrued.

accounting

Fund Management Software for Hedge Funds

Hedge funds have complex accounting needs. Many of them report their returns ti multiple parties, like financial authorities, prime brokers and investors. They also have to handle complex transaction histories. Because of this, many hedge funds use fund management software packages to deal with their accounting needs. These software packages work alongside other software that they use.

Most hedge fund management software packages work with other software used by the hedge fund. For instance, a hedge fund might have a software package from its prime broker, which it uses to calculate profits, losses and cash positions every day. That package can feed a list of transactions and price changes into the accounting software of the company. The output will then be the fund’s profit and loss, which can be send to investors. This allows the fund management software to partially automate the profit and loss calculation process.

FundCount Accounting Software

One popular fund management software is FundCount, which handles a wide range of hedge funds, including typical funds and funds of funds. It is designed to handle as many accounting functions as possible. This fund management software imports information from other reporting sources, and outputs the correct financial results and filings. This is designed to reduce fund management expenses without sacrificing reporting quality. FundCount is a popular choice among larger funds, but its full feature makes it less viable for smaller companies.

Fitek’s Hedge Fund Software

Fitek is another big provider of hedge fund management software. Just like FundCount, this software is designed for several different, related industries, including hedge funds, funds of funds and private equity firms. The key benefit of this fund management software is that it creates an online portal for investors. Through the portal, investors can access all of the information needed to understand the reported results of the company. This streamlines the process for investors, so fund managers spend less time talking to outside investors and more time managing their assets.


financial asset management

A Quick Tutorial on Fund Accounting

If you have worked in a school, church or government office, you have probably heard the term fund accounting. This accounting method is chosen by most nonprofit organizations. It is required for all government bodies by the generally accepted accounting principles. Fund accounting allows such organizations to separate income and expenses by class, giving the reviewer of the financial statements a proper accounting of all like activities.

Simply speaking, fund accounting is like having an entire financial record set, including the balance sheet, income statement and statement of cash-flows for separate sub-entities in an organization. It is a method of accounting that allows the user to classify income and expense items according to a specific fund. For example, a church may have a general fund, benevolence fund, building fund and a mission’s fund. All these receive revenue and have expenses associated with the individual fund, even when they are part of the same larger group. Fund accounting helps keep track of the individual funds and the overall entity.

Governments and religious organizations receive money from donors who impose regulations, restrictions and limitations to its use. Fund accounting helps ensure the observance of limitations and restrictions placed on these resources. While the individual fund is accounted for in accordance with the imposed donor restrictions, fund accounting also allows management to view all funds in a consolidated statement to determine the financial states of the entity as a whole.

There is a wide range of accounting products especially design for nonprofit organizations looking to set up this type of accounting system. Fund accounting can be set up in a basic software like QuickBooks by using their classes to structure your accounts. However, depending on the size of the nonprofit organization, it would be better to buy a software that has been designed especially for fund accounting.

Most fund accounting programs have some form of consulting and training program that is bought with the software. Shelby Systems, for example, offers their church accounting products with free training. It would be wise to get a solid understanding of accounting before you try to set up this kind of system.