Introduction to Fund Accounting

New or recent recruits to fund accounting.  Previous knowledge is not required but a basic understanding of how funds operate would be of benefit. 

At the end of the Introduction to Fund Accounting course, participants will be able to

• Describe what is meant by net asset valuation
• Disuss why a NAV is calculated
• Explain what is meant by the NAV cycle
• Describe what is meant by subscriptions and redemptions
• Discuss some of the implications of a NAV error
• Describe the key elements of an equity trade
• Discuss the significance of trade date and settlement date
• Explain how equity positions affect the NAV
• Describe how interest income is recognised by an investment fund
• Discuss the accruals concept
• Calculate interest accruals on cash deposits
• Describe what is meant by a cash dividends
• Explain how cash dividends affect the market price of the share
• Identify when a cash dividend affects the net asset valuation of a fund
• Describe how fixed and variable expenses are calculated and accrued
• Account for prepaid expenses
• Explain how expenses affect the NAV
• Describe how an investment fund prices the instruments held in the portfolio
• Discuss the key elements of a valuation pricing policy
• Calculate a net asset valuation