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Hedge Funds

European Fund Administration provides specialised, bespoke solutions to cater for hedge funds and funds of hedge funds. EFA HF Services help you service your investors, manage reports and risk.

Our specialised professionals benefit from extensive industry expertise and multi-lingual skills with exposure to a great variety of investment vehicles.

Alongside its competent staff, EFA's absolute added value most certainly lies in being a market leader in a regulated environment like Luxembourg, offering an unmatched combination of technical competence and experience in complex financial instruments and regulatory reporting in various jurisdictions. EFA HF Services provides services to European onshore structures located in Luxembourg, like UCITS, Part II public funds, SIFs, to regulated funds located in France and Italy, as well as offshore structures such as Malta PIFs, BVI mutual funds, Cayman Islands investment companies or Australian unit trusts.

EFA services a wide variety of hedge fund investment strategies:
 

  • Relative value strategies: convertible arbitrage, equity market neutral, fixed income arbitrage
  • Event driven strategies: merger arbitrage, distressed securities, high yield
  • Opportunistic strategies: global macro, long/short equities, emerging markets, managed futures
  • Funds of Hedge Funds.

 

EFA HF Services provides a comprehensive service range to single strategy hedge funds, taking into account the full operational process, from trade capture to NAV calculation and financial reporting.


Connectivity

For a number of strategies where quantitative models play an important role, it is vital for the fund administrator to be able to follow the rapid and voluminous daily investment cycle. EFA HF Services uses a dedicated trade interface team that ensures maximum connectivity between EFA, the fund manager and the prime/clearing broker.

As an independent administrator, EFA works with 97 custodians, the major prime/clearing brokers and a growing number of managers and CTAs.


Derivatives' Literacy

For a number of strategies using OTC derivatives, the fund administrator must accompany the fund manager and provide guidance and control when it comes to booking and following up complex instruments. Experience and literacy in derivative instruments are key. As a market leader in Luxembourg, EFA HF Services can count on a dedicated team of specialised professionals accustomed to following up complex trades and aware of OTC derivatives' valuation pitfalls.

EFA HF Services offers valuation and valuation control services for OTC derivatives, structured products and illiquid financial instruments.


Collateral accounting and Risk Monitoring

For OTC derivatives trading, EFA HF Services ensures collateral accounting, follow-up and valuation as well as specific counterparty risk analysis. In addition, EFA provides risk monitoring, Value at Risk and risk attribution reports for hedge funds and sophisticated UCITS.

 

EFA is a Luxembourg pioneer in servicing Funds of Hedge Funds. Since its inception in 1996, EFA has provided comprehensive services to Funds of Hedge Funds through a dedicated accounting and valuation team.


Monitoring Underlying Funds

In order to cope with the specific needs of FoHF, EFA HF Services maintains a database of targeted hedge funds and has a team of specialised professionals and valuation agents with extensive experience of underlying administrators, fund brokerage desks and target fund NAV issues.

EFA HF Services is able to provide its clients with clear information on NAV calculation details, equalization factor accounting and recalculation, side-pocket investment administration and gating-related issues.


EFA's service to FoHFs includes :
 

  • Equalisation factor accounting and revaluation
  • Valuation snapshot reports: providing at any time a report on available estimate NAVs of the underlying funds
  • Valuation historical reports: showing deviation of estimates used in the FoHF NAV from the final underlying NAV prices
  • Corporate action processing
  • Position reconciliation with custodian bank
  • Side-pocket investment administration
  • Cash forecast reports
  • Validation NAV reports
  • Intermediary/Estimated NAV and validation NAV

As a leading specialised administrator and registrar, EFA uses an innovative technological infrastructure, with particular focus on connectivity, reporting and calculating flexibility. EFA HF Services has dedicated modules for performance fee calculation, derivatives' accounting and performance fee equalization that are built into EFA's core systems in order to automate and secure transaction input, position reconciliation and audit trail.


Detailed reports on Net Asset Value, investments and commissions are made available on our proprietary Web-based reporting tool, EFAnet.