Subsequent Events Considerations for Investment Companies

Posted by John Braun on Oct 21, 2021 9:44:17 PM

Preparing the Financial Statements

As part of the preparation of financial statements, Management should actively search for events occurring and information available after the fiscal year-end but before financial statements are issued– commonly known as subsequent events. In the context of an investment company, most subsequent event considerations of a material nature are one of a handful of events – for example valuation of investments, litigation, liquidation or reorganization, or significant capital changes.

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Introducing BBD's Industry Insights Video Series

Posted by admin on Aug 17, 2021 5:25:34 PM

Welcome to Industry Insights, BBD’s new video series that offers our clients and industry friends a brief look into important and timely developments in the investment management industry.

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Converting Separately Managed Accounts into Exchange Traded Funds: Tax Implications

Posted by Cory Stewart on Jul 21, 2021 2:38:12 PM

As investors continue to search for new ways to drive alpha, lower costs and increase accessibility, there has been increased discussion across the investment management industry about converting separately managed accounts (“SMA”s) into exchange traded funds (“ETF”s).

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Should an ETF Investing in Foreign Securities Utilize Fair Value Adjustment Factors?

Posted by Jonathan Mather on Jun 28, 2021 5:02:57 PM

Should an ETF investing in foreign securities utilize fair value adjustment factors? Before answering this question, we should address why investment companies use fair value adjustment factors. Funds that invest in international securities could be subject to market timers looking to take advantage of the arbitrage that may occur between the time a foreign stock exchange closes and the time the U.S. stock exchange closes. The market timer buys into the fund and then sells out of the fund the next day, driving up costs and diluting the share value for long-term investors.

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Hedge Fund Start-Ups: GAAP Departure Out of the Gate

Posted by John Braun on Jun 25, 2021 1:25:00 PM

Hedge funds can incur start-up costs called organization and offering costs. Oftentimes, the treatment of these costs for Generally Accepted Accounting Principles in the United States (GAAP) purposes can cause headaches during the audit process. The key to avoiding this particular headache is understanding the issue and then coordinating with your auditor on a plan of action during the organization of the fund.

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Starting a Private Fund? We're Answering Your Questions About Audits.

Posted by John Braun on Jun 9, 2021 11:38:53 AM

We often have conversations with portfolio managers who have experience managing a portfolio in a large shop and decide to break away and start their own investment advisory business. Many of these managers have an interest in launching their own pooled investment vehicle, often a product that they have been working “on the side.”

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Thinking About Investing in the SPAC Attack? Important Valuation Considerations.

Posted by Richard Wagner on May 28, 2021 5:12:00 PM

When investing in a SPAC, at the IPO or after, you are not investing in an actual company with fundamentals. 

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Mutual Fund and ETF Audits: Key Differences

Posted by Jim Kaiser on Apr 15, 2021 10:26:00 AM

Given that mutual funds and ETFs are both types of regulated investment companies with audits subject to the requirements of the Public Company Accounting Oversight Board, there are certainly many similarities in the audit process for both. However, there are some key differences to note, particularly in the areas of:

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Eight Investments That Could Cause a Tax Headache For Your Registered Fund

Posted by Richard Wagner on Mar 25, 2021 11:26:33 AM

As the saying goes, "You don't know what you don't know."  Below we have detailed eight investments that could cause a tax headache if not approached carefully.

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On-Demand Webcast- The SEC's New Derivatives Rule: Understand the Significance For Your Funds

Posted by admin on Feb 18, 2021 11:48:26 AM

In BBD's latest Webcast, John Braun and Cory Stewart teamed up with Karen Aspinall from Practus and Terry Gallagher from UMB for a dynamic discussion on the SEC's new Derivatives Rule.

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