The Training Environment For Financial Services

Introduction to Fund Pricing and Asset Valuation

06 Nov 2019, London

9:15am to 4:45pm

Course Outline & Objectives

Asset / Fund Managers, Administrators and Depositaries all need to ensure funds are fairly and accurately priced as prescribed by regulation. Today, this is a greater challenge than ever because of the wider range of assets, increased number of share classes and their expense components, plus the challenges extra regulation brings as a whole. Demands for increased efficiency and robust risk management processes only add to the complexity to which the industry is subjected.

This focused one day workshop will provide delegates with a thorough understanding of NAV calculation, the challenges of share class fund accounting, fair value pricing, illiquid securities treatment and pricing options for derivative instruments. The course will also address pricing errors using examples and the measures that could be used to identify and prevent them.

The course will give practical answers to key challenges, such as:

  1. How a fund is constructed and valued, including fair value pricing
  2. Understanding dilution levy and swing pricing
  3. Apportioning capital and income 
  4. Preventing, identifying and resolving pricing errors
  5. UCITS IV regulation and reporting
  6. Maintaining oversight of fund accounting: SLAs, KRIs and KPis
  7. Meeting FCA and Depositary expectations of oversight and controls

Who will benefit?

This event will be of value to those seeking a practical introduction or refresher to fund accounting. This will include individuals working in Fund Accounting, NAV / Valuation Production, Fund Taxation, Fund Operations, Fund Oversight, Depositaries and Third Party Administrators.

Training Approach

This workshop uses a combination of trainer input, interactive syndicate work and case studies. Group size is limited to ensure a high quality learning environment.

Course Tutor

Vivien Crayston has over 26 years’ experience in fund administration, transfer agency and fund accounting for both traditional and hedge funds. She has occupied senior fund administration positions in the UK and South Africa and has been a investment / fund management consultant for over 10 years, advising both large and smaller boutique asset managers. Vivien is a Chartered member of the Chartered Institute forSecurities and Investments holding MSCI qualification.

Course Programme

Session Content
Fund Construct and Valuation
  • Cost sheet construction and asset valuation
  • Key components of the NAV
  • Dual and single pricing
  • Applying fair value pricing (FVP)
  • International best practice
  • Controls and governance over FVP
Share Class Accounting
  • Why the need for different share classes
  • Apportionment of capital and income
  • Controls over share class accounting
Dilution Levy and Swinging Pricing
  • How dilution occurs
  • Dilution levy vs swinging pricing
  • Developing an effective dilution policy
Developing effective Control Environments
  • Controls over valuation of individual securities
  • Income and expense accruals
  • Daily fund level checks
  • Periodic checks
  • ISAE3402 Control Reporting
Pricing Errors
  • What consitutes a pricing error
  • How pricing errors arise
  • Key controls for early identification
  • Process for resolution
  • Compensation calculations
  • What is the UCITS IV Directive
  • Report and Accounts
  • Long vs short terrm reporting
  • Role of the SORP and IFRS
Roles and Expectations of the Depositary
  • Review of the managers systems and controls  
  • oversight of the ACD / AFM  
Fund Accounting Governance
  • Service Level Agreements  
  • Identification of key SLAs  
  • Key Risk Indicators 
  • Key Performance Indicators
Outsourcing Oversight and the FCA Review
  • Three lines of defence
  • Administrator oversight
  • FCA review, findings and expectations

This course can be delivered in-house at a time and location to suit your business and tailored to suit your people and organisation. We can also create bespoke training when something very specific is needed.Please contact us to discuss your requirements in more detail and at no obligation.

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