Solutions
Fund of funds
A fund that invests in other funds rather than directly in companies or assets.
No credit card. Nothing is charged until your first 30 days are over.
What this kind of fund is
A pool whose assets are positions in other funds, valued from their statements, with your own investors holding units in yours.
What the administration actually involves
A fund of funds is administratively simpler than what it invests in and harder than it looks. The assets are positions in other funds, valued from their statements, which means your own month cannot close until theirs have reported. On top of that there are two layers of cost, and investors who reasonably want to see them separately rather than netted into one number.
Here each underlying position is an account whose month-end value you enter, and the engine computes your fund's return, koers and every investor's value from those figures. The underlying funds' costs are booked as expenses in the month they fall in; your own management and performance fees are computed per series on top of that. The two layers stay visibly separate because they enter the calculation at different points.
What makes it hard
Waiting on other people’s numbers
Your close depends on statements arriving. What you need is a process where entering the last value completes the month rather than starting a rebuild of it.
Two fee layers netted into one
If the underlying costs disappear into the return before your own fee is applied, nobody can see the total cost of the arrangement, which is the first thing a professional investor asks about.
A blended result with nothing to compare it to
A fund of funds is judged on whether the selection added anything. Without a benchmark on the same chart, that question gets answered from memory.
How FundFlow fits
Your NAV from their statements
Enter the month-end value of each underlying position as an account balance, and the engine computes your fund's return, koers and each investor's value from it.
Two fee layers kept separate
The underlying funds' costs are booked as expenses in the month; your own management and performance fees are computed per series above that.
Benchmarks for the blended result
Set a weighted benchmark mix and see it against your own return since inception on the NAV chart.
Where FundFlow stops
Positions in underlying funds are entered as values, not held as a look-through portfolio. FundFlow does not consolidate the underlying funds' holdings or exposures.
Questions managers ask
Do you look through to the underlying funds’ holdings?
No. Positions in underlying funds are entered as values, not held as a look-through portfolio, and the underlying funds' own holdings and exposures are not consolidated. What you get is your fund's NAV, koers, fees, investor values and reporting computed from the values you enter.
Can we show the two layers of cost separately?
Yes, because they enter at different points. The underlying funds' costs are booked as expenses against the month, which affects the fund's return. Your own management and performance fees are computed per series from the rates on the series. The fee summary in a report lays out the second layer explicitly.
Read how these parts work
The parts of FundFlow this kind of fund leans on most.
Price your own investors off their statements
Enter last month's value for each underlying position, close, and check your koers and every investor's value against the figures you produced by hand.
In your first session
- Create the fund and register one account per underlying fund you hold a position in.
- Anchor an opening position with your own investors' units, then enter each underlying value for the month.
- Close the month and check the koers, the two cost layers and every investor's value against your own working.
No credit card. Nothing is charged until your first 30 days are over.