Solutions
Mutual fund
Money pooled from many individual investors and managed professionally.
No credit card. Nothing is charged until your first 30 days are over.
What this kind of fund is
An open-end pool where investors come and go at a published price, which is precisely the model the engine implements: units issued and redeemed at a koers computed each period.
What the administration actually involves
An open-end pool where investors come and go at a published price is precisely the model the engine implements, so there is very little translation to do. Units are issued and redeemed at a koers computed each period, the koers is the sum of holder values over units outstanding, and share classes with different fee terms are separate series each with their own rates and price history.
The one thing to establish before you start is the frequency. FundFlow values the fund once per calendar month. If your prospectus commits you to a daily NAV, this is not the right tool, and no amount of trial will change that. There is also no transfer-agency function, no distributor feed and no regulatory fund reporting: this administers the fund and produces investor statements.
What makes it hard
A price that has to be publishable
If the price investors transact at was computed in a file that has since changed, the fund cannot show how it was arrived at, which is the one thing an open-end price has to be able to do.
Share classes maintained in parallel
Different fee terms kept as separate copies of the same working means two sets of formulas that drift, and a class that quietly stops matching its own terms.
Dealing at the wrong price
Issuing or redeeming units at a stale or estimated price is how the unit count and the NAV come apart, and the gap has to be absorbed by the other holders.
How FundFlow fits
A koers you can publish
Computed each month per series as the sum of holder values over units outstanding, in exact decimal arithmetic, reproducible from stored inputs.
Subscriptions and redemptions at that price
Units are issued and redeemed at the period's koers, and the app tells you which month's price applies before anything is committed.
Share classes as series
Different fee terms for different classes of investor are separate series, each with its own rates and koers history.
Where FundFlow stops
One valuation per calendar month. FundFlow does not produce daily NAV, and it does not handle transfer-agency, distributor feeds or regulatory fund reporting.
Questions managers ask
Do you support a daily NAV?
No. FundFlow produces one valuation per calendar month. If your fund deals daily, or your prospectus commits you to a daily price, this is not the right tool for it.
How are share classes handled?
As fee series. Each class is a series with its own management and performance rates, its own high-water mark setting, its own launch price and its own koers history, and units are issued and redeemed at that series' price for the period. A participant can hold units in more than one.
Read how these parts work
The parts of FundFlow this kind of fund leans on most.
Publish one month’s price from the engine
Set the fund up with your real share classes, close a month, and compare the koers per class against the price you published for it.
In your first session
- Confirm a monthly valuation is enough for your fund before you go further.
- Create the fund with one series per share class, using each class's real fee terms.
- Anchor an opening position, close a month, and compare each class's koers against your published price.
No credit card. Nothing is charged until your first 30 days are over.