Definition: Internal records maintained by a fund to independently track positions, transactions, valuations, and balances alongside the official records maintained by a fund administrator or custodian. Shadow accounts help firms verify accuracy and maintain greater control over financial reporting.
Example: A hedge fund may maintain shadow accounts internally to track portfolio positions and cash balances while the fund administrator calculates the official NAV. The internal records allow the fund to reconcile differences and verify the administrator’s figures.
Explore IVP Shadow Accounting Services
IVP Shadow Accounting Services help buy-side firms maintain accurate shadow accounts to independently monitor positions, cash balances, and valuations. The service enables hedge funds and asset managers to seamlessly outsource comprehensive or partial accounting functions, improving operational efficiency and scalability while supporting a wide range of fund structures and accounting platforms.
