Fund Accountant Test

Fund accounting is the process of accounting for a portfolio of investments such as securities, commodities, and/or real estate held in an investment fund such as a mutual fund or hedge fund. Fund accountants are primarily responsible for all aspects of day-to-day accounting for a group of assigned funds, including calculating/reporting the daily NAV (Net Asset Value) per unit, compiling standard weekly and/or monthly financial statements, and income and expense accruals.

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Fund accountants work for organizations that manage funds. Some organizations both manage and sell funds, some just sell funds, and some just manage funds. Fund accountants are not typically employed by firms that just sell funds as their role is primarily related to funding management (e.g., daily calculations of fund values, etc.).

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The major Responsibilities of a fund accountant include the following:

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• Prepare timely and accurate Net Assets Values, yields, distributions, and other fund accounting output for subsequent review.
• Record accurately and in accordance with the Department policies and procedures, such accounting records as securities positions, corporate actions related, and journal entries.
• Reconcile various accounts or review reconciliations prepared by others, and promptly research and correct any variances.
• Identify exceptions and problems affecting accounting records and prices, communicate the same to management, and assist in their resolution.
• Assist, as assigned, in preparing audit schedules, compliance reports, N-SARs, tax returns, financial statements, or other reports.
• Write reports periodically to management on Fund activities and other related issues.
• Research, as assigned, certain securities in Fund portfolios for the purpose of ensuring proper accounting treatment (such as the nature of distributions, original issue discounts, and international valuations) and compliance with SEC, tax, and prospectus restrictions and limitations.
• Institutional fund accounting processes also include preparing, reconciling, and distributing reports to/from marketing, separate custodians, and investment management.
• Participate in the regular rotation of trade processing and other accounting processes to prepare the fund accounting system for the next day.

KEY SKILLS REQUIRED:

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• Demonstrate Microsoft Office skills - Microsoft Excel Basics
• Problem-solving - Quantitative Aptitude and Spatial Intelligence
• Ability to communicate professionally through effective verbal and written skills - Verbal Ability and Verbal Reasoning
• Attention to detail
• Basic understanding of accounting concepts, general ledgers, and financial statements - Accounting Fundamentals and Financial Analysis
• Basic understanding of various securities - Equity, Fixed Income, and Derivative Instruments