All Managed Funds are obliged by law to be regulated by one or more Trustees. The Trustee in turn, may appoint an administrator to assist with the day to day operation of the fund.
This accounting and administration function is quite separate from the important role played by the Fund Manager in carrying out the investment policy that is published in the Funds’ Information Memorandum which forms part of the Trust Deed under which the Fund operates.
A4 Funds’ role is to ensure that the interests of investors are well served from the time they apply for units in the fund, when they need to withdraw or deposit funds or if they need to redeem their investment.
Investors need to know the status of their holding in the fund every month. A4 Funds liaises with the Fund Manager, brokers and other sources of data to mark the fund’s value to market at the end of each month. By maintaining a detailed Unit Register, the administrator is then able to issue a Unit Certificate and Performance Report to investors each month.
Fund Managers usually also report to investors about the market and their tactics and strategies that are being applied in achieving their goals for investors’ benefit.
The list below indicates in some detail, the tasks that A4 Funds carries out in order to ensure the fund is professionally managed according to the Trust Deed that underlies its operational requirements.
- Daily maintenance of the Funds’ financial and accounting records.
- Daily processing of non-trade related transactions (cash movements etc.).
- Reconciliation of bank accounts.
- Monthly, and at the request of the Trustee, Net Asset Value (NAV) calculation, including accruals for custody, administration, accounting, management and performance fees and other associated costs, in accordance with the Trust Deed and Information Memorandum.
- Monthly reporting of financial statements including Profit and Loss, Balance Sheet, Investment Position, Unrealised/Realised gains or losses and Investor capital account statements.
- Annual distribution calculations and processing of distribution payments declared by the Trustee.
- Monthly arrangement of payments of the Funds’ operational expenses.
- Monthly Management and Performance Fee calculations and the raising of appropriate invoices.
- Annual preparation of records (including specific schedules and analysis) to facilitate external audit.
- Annual review and verification the Fund’s tax accountant’s calculation of Fund income tax payable.
- Provide for Investors a statement of taxable income derived from the Fund.
- Ongoing provision of accounting or accounting related reports and/or support schedules as agreed between the Administrator and the Fund Manager and/or the Trustee.
- Provide the required records to the Fund’s tax accountant to assist in preparing annual income tax returns including associated schedules and the annual investment income reports for the Fund and for Investors.
- Prepare and lodge Business Activity Statement (BAS) returns for the Fund.
- By 31 August each year, calculation of periodic and year-end distributions and provision of statements to clients confirming income distribution.
Unit Registry & Investor Services
Manage the ongoing maintenance of the Unit Register for the Fund including:
- Process applications, deposits, withdrawals, redemptions, transfers and changes to Unitholders’ registered details or elections;
Perform due diligence identification and monitoring procedures in respect of Unitholders and prospective Unitholders in the Fund including:
- Anti-money laundering/counter terrorism Act (AML/CTA);
- Know Your Customer (KYC);
- Foreign Account Tax Compliance (FATCA) and any other notification that is required from time to time;
- Ensure compliance with legislative and regulatory requirements, including AML / KYC, Politically Exposed Persons (PEP), FATCA and Common Reporting Standard (CRS) obligations; and
- Prepare and lodge quarterly activity statements and Annual Investment Income Reports with the Australian Tax Office;
Manage payments including withdrawals, redemptions, distributions, management and performance fees for each Fund including:
- Calculate payments and provide confirmation statements to Unitholders;
- Reviewing and accepting subscriptions for Units, and accepting payment therefore;
- Issue credits via Electronic Funds Transfer if required;
- Facilitate the return of any unclaimed monies;
- Manage investor and/or advisor enquiries relating to the Unit Register or administrative matters received via telephone, email and/or post.
- For existing Unitholders, manage the approval of additional deposits into the Fund and the issuing of the appropriate series of Units.
Prepare and provide investor correspondence including:
- Investor confirmations;
- Welcome packs;
- Unit Certificates stating investor holding and market value;
- Acknowledgements of changes of registered details;
- Distribution statements;
- Other periodic statements and/or Certificates;
- Exit statements; and
- Annual tax statements.