Hedge funds within Avaloq

Manage the full life-cycle of positions

Special Services

Hedge funds position keeping

Hedge funds are generally managed with performance related fees which are due when predefined criteria have been reached. From this point on, the fund manager participates in the performance gain and he can reserve a percentage of the earnings above the minimum. The corresponding amount is periodically booked aside and will be taken out of the fund at the end of the year. When investors are subscribing to or redeeming fund units across the year, they participate in fee allocation with use of a so-called equalisation process. This process must be reflected in the position keeping in customers’ deposits.

Functionality within Avaloq Banking Suite

The Avaloq Banking system offers you a set of functionalities to manage hedge funds along the full life-cycle of a position in the investor’s deposit; from subscription to redemption of fund units. Even more complex types of hedge funds with equalisation/depreciation positions can be handled in Avaloq without manual booking efforts.

The Avaloq Banking System offers great flexibility and the functionality to customise it to your individual needs:

– A service center for order piping
– Straight through processing of orders
– Adapters to interface with fund brokers via SWIFT/MX such as CITCO, UBS and more.
– Automatic settlement via external price feed
– Bank specific definition of cut-off capture/-calculation
– Parameterisation of country specific requirements (e.g. grouping G1/G2, capital gain calculation methods, Funds prospects)
– Fund positions with additional Equalisation/depreciation positions

How to get there?

The functionality is available with the latest ACP release and needs to be parametrised according to the customer’s requirements.

Profit from our expertise

Ayaval was part of the original development of SDS and we have already successfully implemented it at a large private bank in Switzerland. We look forward to supporting your implementation of SDS.

Want to know more about our Hedge funds services?

Send us an email and will get in touch with you.