Shadow Processing Service

Fund Shadow Processing and Shadow Accounting Service

  • A cost efficient way to provide comfort to investors by having fund assets verified and valued by an independent, experienced third party
  • The level of shadow processing and accounting can be either a high level review or detailed daily review over a defined timeframe
  • Validity, reasonableness, and consistency are tested against market practice and the fund’s own offering documents
  • Confirm that investor capital movements are consistent with cash movements reported by the fund’s bank
  • Obtain the necessary counterparty reports and verify the market value of the fund’s assets
  • Obtain the necessary broker or bank reports and verify that each cash balance reflected in those reports reconciles to the primary NAV (Net Asset Value)
  • Review all pricing components
  • Review and recalculate profit and loss allocations
  • Review and recalculate tax calculations
  • Verify that the GNAV (Gross Net Asset Value) based fees, such as management and incentive fees, are calculated in accordance with the offering documents
  • Review and recalculate fee calculations