Tillerman Fund Solutions- Offshore Fund Services
Services for Startup Funds
For managers who are launching new funds, Tillerman is a valuable resource that you can call on for advice and assistance. Although we do not provide legal or tax advice or opinions, our extensive experience enables us to guide fund sponsors through the process of setting up new funds. We assist in the identification and selection of other service providers including prime brokers (generally Tillerman), custodian banks, attorneys and auditors that specialize in hedge funds. In conjunction with the funds legal counsel and auditor, we will provide advice on the structure and terms of any new funds, review drafts of offering materials and make suggestions with regard to allocation issues, fee structures, administrative terms and marketing considerations.
Tillerman Securities Ltd. is a full service Securities Broker\ Dealer & Investment Fund Administrator, licensed by The Securities Commission of The Bahamas.
Benefits of Third Party Administration
As the hedge fund industry grows and matures, an increasing number of investment managers are turning to third party administrators to manage the operational and administrative aspects of their fund. A third party administrator will provide fund and investor accounting along with many client service related functions. Some of the benefits of outsourcing fund administration functions include:
- Increases investor confidence with regard to valuations and safety of investor capital
- Enables the fund manager to focus on investment activities
- Improves efficiency
- Reduces expense
- Access to state of the art accounting and reporting systems
- Work is performed by experienced industry specialists
- Scalability enables rapid increases in assets
- Outsourced functions are typically paid by the fund rather than the General Partner
Benefits of Combining Fund Brokerage & Administration
Generally, Fund Administrators rely on Brokers to deliver trade data that is timely and accurate in order for them to perform their functions. Conversely, Brokers rely on administrators to efficiently place investor capital into trading position. The ability to co-manage this activity produces powerful synergies. The entire Investment Fund workflow can be updated on a daily basis, as there is no waiting for third party delivery of pertinent data. Tillerman believes that an efficient Broker\ Dealer is best positioned to provide direct integrated Fund Administration Services to its Investment Funds Clients.
Fund Administration Services
Tillerman provides fund administration services to investment managers that include:
Monthly Accounting
At the end of each accounting period stand alone administrators will gather financial data from brokers, banks and other sources and reconcile internal records with this data. They then enter all financial and investor transactions into their fund accounting system and calculate management fees, loss carry forwards and incentive allocations in accordance with the terms of the funds offering documents. As Broker and Administrator, Tillerman will be position to perform these tasks on a daily basis. All entries and financial statements are then reviewed to insure they are accurate and complete.
Audit Assistance
Tillerman will collaborate with the funds auditors to help insure a timely and efficient completion of the annual audit. We will prepare all required schedules, create and distribute confirmation letters, explain all financial transactions and generally assist in the completion of the audit.
Third Party Control on Movement of Funds
Investors are becoming increasingly concerned about the lack of adequate controls on the movement of money from unregulated private investment funds. Tillerman will initiate a control system that requires the approval of both Tillerman and a representative of the fund before capital can be transferred out of the fund.
Processing of Subscriptions and Redemptions
We will perform the services necessary to process investor subscriptions and redemptions including review of all subscription documents, issuance of welcome letters, communications with the investor to obtain needed information not included with the subscription documents, determining how the investor wishes to receive communications (mail or email), verification of authenticity and eligibility of redemption requests, calculation of distribution amounts, the initiation of wire transfers and other activities related to this function.
AML Compliance
Tillerman will insure compliance with Anti-Money Laundering requirements as required by local regulatory bodies. We will apply appropriate AML policies and procedures, maintain required investor information and records of AML activities and respond to governmental and regulatory requests for information in accordance with Bahamian law and regulation.
Distribution of Communications to Investors
Tillerman will distribute monthly statements, notices and audit reports to investors and any other interested parties designated by an investor. When possible, these reports will be distributed via electronic mail by means of our Online Reporting System. This system enables the investor to receive documents by email or by visiting a secure website where the documents are archived.
Distribution and Tracking of Offering Documents
We will distribute Offering Documents to prospective investors, maintain a distribution list to comply with sound business practices and the private offering regulations and maintain files with signed original copies of all subscription documents.
Management Company Accounting
Tillerman can maintain the financial accounting records for the management company of the fund on a monthly basis. Each month, we will create a comprehensive set of financial reports for the management company including an Income Statement and Balance Sheet. (Management Company accounting must be paid by the manager).
Daily Reconciliation of Trades
For managers with a high or low volume of trading activity, Tillerman will reconcile trading data as a part of our routine Broker\ Dealer back office process. This will ensure that managers have data that is always current and accurate.
Calculation of Payments to Sales Personnel
Tillerman can calculate commissions or sales fees due to sales agents at multiple levels. Our sales tracking system accommodates a variety of payout structures. These include front end loads, percentages based on commissions, manager fees or management company fees or other fees. Fee payments can vary by sales representative or by individual client and may be delayed until after a specific amount of time has passed.
General Operational Assistance
Tillerman will provide advice and counsel on operational or administrative questions and will also assist in the creation of new funds. Our principals and staff have a wide range of industry contacts and experience in all phases of fund setup and management including operations, administration, compliance and marketing.
Other Customized Services
Tillerman can provide or develop other products or services on a customized basis to meet needs that are specific to individual funds.
Online Access to Investor and Fund Level Reports
Tillerman will enhance communications with investors by publishing investor account statements and other reports such as monthly newsletters to a secure website. This feature enables individual investors to view current and historical account statements as soon as they are produced through a secure connection that is accessed via a web browser. Alternatively, investors may elect to have their information sent directly to their email address.
Contact us today for more information.
