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Similar to the established Thomas Murray Custodian Bank Rating, the Alternative Investment Service Provider Rating is commissioned by an alternative investment custodian or fund administrator. Ratings are provided for custody, fund accounting, fund administration and transfer agency. Clients determine whether a rating is to be maintained on a private or public basis.
Each rating evaluates a service provider's credentials, core services, internal operations, and risk profile. The overall rating produced uses the familiar AAA to C ratings scale and is on an absolute basis.
Fund of Hedge Funds Custody Rating
The ratings for the custody component of the the rating address all the relevant topics and risk areas, such as:
- Trading - all orders from a fund of hedge fund (FOHF) manager acknowledged, tracked and reported from receipt, through execution, to pending and finally to settlement
- Compliance checking - underlying hedge fund investment instructions in accordance with investment restrictions
- Execution timely, accurate
- Settlement ties together original payment on execution to final contract note
- Equalisation is recorded on the system if applicable
- Transfers are properly recorded and controlled
- Corporate actions - dividends, cash calls, proxy voting, collapsing of series etc properly recorded, advised to FOHF manager as appropriate, any decisions chased
- Reconciliations - with, FOHF administrator and underlying hedge fund administrators
- Audit and compliance.
Hedge fund and FOHF Fund Accounting Rating
The ratings for the Fund Accounting component the rating address all the relevant topics and risk areas, such as:
- Transactions capturing - trades, corporate actions for underlying HFs
- Pricing - Ensuring prices for underlying investments are received on time and correct
- NAV Calculation - Ensuring timely and accurate NAV calculations are performed
- Equalisation - Ensuring correct performance charges are applied
- Fees - Ensuring the fees for the fund are allowed for in the NAV calculation in a complete, timely and accurate manner
- Reconciliations - with underlying HF administrator, custodian and transfer agent
- Audit & Compliance.
HF and FOHF Transfer Agent Rating
The ratings for the Transfer Agency component the rating address all the relevant topics and risk areas, such as:
- KYC & Anti-Money Laundering procedures
- Authorisation - maintained client signatory lists
- Subscriptions & Redemptions - Ensuring complete timely & accurate execution of trade instructions. Ensuring instructions are tracked and reported from receipt
- Data Integrity - Ensuring the register is updated and maintained
- Reconciliations - with FOHF manager, custodian, fund accountant
- Valuations - Ensuring timely, accurate & complete valuations are supplied to clients
- Client Liaison - Ensuring client queries/complaints are dealt with completely, timely and fully
- Audit & Compliance.
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For further information please contact Simon Thomas, Chief Ratings Officer, or Roger Fishwick, Director of Ratings, Tel: +44 (0)20 7830 8300
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Alternative Investment Service Provider Ratings 
