QED Financial Systems - Investment Fund Accounting


		Q2 for Investment Accounting
		For more than two decades, investment institutions have trusted the reliability and accounting integrity of QED systems for their books of record. Upholding this tradition of excellence, Q2 offers incomparable investment accounting and cash management. Q2 investment accounting solutions completely automate: Securities Processing Corporate Actions Pricing Extensive data scrubbing and relational validation checking ensure accurate posting and provide immediate error notification. Reversals and corrections to posted activity automatically adjust subsequent history and flows through to all accounting results. Q2 also provides extensive security and audit trails, including an online, real-time update monitor that displays system-wide changes as they occur. Q2 automatically generates all accounting journal entries, including: Transactions Cash Activity Earnings Accruals Bond Amortization Realized Gains/Losses Market and Foreign Exchange Valuation Furthermore, detailed or summary journal entries can be exported to third-party or proprietary general ledger systems using customizable charts of accounts.

		Processing for Diverse Security Types
		The security types processed by Q2 are client definable. Out of the box, Q2 includes processing for an extensive list of security types, including: Fixed Income and Structured Debt Equities Cash and Cash Equivalents MBS/ABS/CMO Variable and Stepped Rate Foreign Securities and Currency Contracts Mutual Funds, UITs, and Conduits Options, Futures, and Limited Partnerships Collateral Adjustments Esoteric Instruments

		EXPANDED FUNCTIONALITY! Complete Cash Accounting and Cash Management
		Q2 also features complete cash accounting and cash management. This payment centric cash movement and settlement control system manages intra-day cash balances, disbursements, and receipts across multiple banking institutions and depositories. The system provides acknowledgement and verification of all payment flows released to deposits, withdraws, security settlements and transfers by individual account, payments type, netting basket, and institution. Activity released to money and security movements is identified and queued for internal verifications, funds transfer instructions, and counterparty acknowledgement through secure inter-enterprise communications channels using industry standard protocols. Real-time event monitors track the status of each cash event from inception to confirmation and settlement acknowledgement to provide up-to the moment control of cash dynamics affecting the organization. The sweep process gathers available cash from individual or groups of investment funds to a cash management fund that provides a single point of cash management for short term investing. On the following business day, the return sweep process returns to the individual funds the invested balance and the pro-rata portion of the earnings. Managing multiple settlement locations often presents clients with a need to provide funding to the various settlement locations.The netting procedure combines multiple cash transactions for the same settlement locations, based on a client-established set of criteria. This produces a net wire to transfer between settlement locations, reducing wire fee and the hidden time cost associated with analyzing and producing multiple wires. Additional Cash Track fields allow the further classification of items. Cash Track fields can be customized to support client's business practices and reporting requirements. Upon receipt of cash, Q2 can automatically redirect income and or corpus items from one fund to a variety of sources. Redirection can occur between funds within Q2 or between a Q2 fund and external sources.

		NOW AVAILABLE! Integrated General Ledger Accounting
		A versatile general ledger module has been layered into the Q2 workspace to provide financial statement reporting through automatic journal posting of investment activity and market valuation. This new module extends Q2's investment accounting reach by providing single entity and consolidated financial accounting statements such as trial balance, income statement, and flow of funds reporting. A flexible mapping scheme supports multiple charts-of-account, hierarchical entity roll-ups, and multiple fiscal accounting periods. In addition to Q2's standard GAAP and FASB evaluation basis, the system supports customized, client-specific business rules that can be incorporated into the evaluation process. The Q2 G/L generates and posts dual-entry journal transactions for each aspect of investment accounting and includes descriptive detail of each event that is directly linked to the underlying security holding and transaction record. In addition to automated portfolio evaluation, the system provides for manual journal posting and provides flexible methods for importing externally generated journal data. User-crafted and customized export procedures can also be used to pass updates to other data consumers on a scheduled or ad-hoc basis allowing Q2 to feed external systems as desired. An extensive chart of accounts includes: Change in Value (market, par, book) Amortization/Accretion Realized/Unrealized Gain/Loss Currency Revaluation Gain/Loss Payables/Receivables Deferred Gain/Loss Accrued Income/Fees Income Capital Contributions/Withdraws Equity/Retained Earnings Cash Balance The Q2 G/L also provides customized extensions to the COA roster within established mapping schemes allowing for support of clients' unique business practices without having to settle for workaround solutions. By combining the extensive investment accounting of the Q2 sub-ledger with this versatile general ledger system, clients can streamline operational workflow, maintain tighter accounting controls, and offer more comprehensive reporting of enterprise financial result -- all with less effort and time. Basic investment accounting general ledger functionality is included with the standard implementation of Q2. Custom rules and configuration by QED Professional Services is required for clients who want to use the enterprise features of the G/L system for other accounting needs.

		EXPANDED FUNCTIONALITY! Hard Close Accounting
		Hard close accounting is a method of record keeping that recognizes accounting entries in the period they are discovered, rather than the actual period they occur. That is, missing or restated values from one period that are discovered and recorded in a later period are treated as original entries in the posting period -- not the intended period. This process allows accounting periods to be closed, reported, and permanently locked-down on a workflow basis by pushing the full impact of later, out-of-period updates to the period they are posted. Q2 provides hard close investment accounting in addition to actual, entitlement record keeping (street trade/settlement records). Once configured, Q2 tracks and captures the full impact of out-of-period redactions and remands as they occur and allows these values to flow through to the general ledger and even performance measurement evaluation. Such changes include market valuation, interest accruals, payables, receivables, book-value, amortization, cash flows, gain/loss, FX bifurcation and various other accounting metrics. Q2's hard-close-enabled reporting and general-ledger update modules incorporate these values automatically into the current period and also account for cascading changes that ripple through multiple historical periods. Since this near seamless feature operates "behind the scenes" and is virtually transparent to the user, established operating procedures can remain virtually intact. Best of all, there are no reporting drawbacks as Q2 simultaneously provides the same accurate trade, settlement, and cash basis accounting for trade settlement, cash control, and portfolio management.

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