PFS-PAXUS is an integrated application system intended specifically for use by the hedge fund administration industry. Unlike other applications that are in use in the industry which were intended for banks or conventional fund management situations, PFS-PAXUS was designed specifically with the needs of the hedge fund administration industry. Major gaps in existing systems such as multi-series unit pricing, partnership allocation, administration fee calculation, management fee calculation, incentive fees, high watermarks, hurdle rates and equalisation are all supported by PFS-PAXUS.

PFS-PAXUS consists of a securities module, general ledger module, share registry module, corporate secretarial module and reporting modules. All these modules are integrated in the one application which uses open relational database technology. Trading transactions are entered into the system through either the securities module, the general ledger module or loaded from external sources via an upload feature. Share registry transactions are entered through the share registry module or via the upload feature. Calculations of administration fees, management fees and incentive fees are automatically performed by the system and posted to the general ledger. The incentive fee calculations currently support the "Series of shares and consolidation" Method of insuring the equitable allocation of incentive fees, and includes high watermarks and hurdle rate calculations. An equalisation model is also supported.

The system is multi-currency and has an automated currency revaluation feature. The securities module support FIFO and average cost inventory methods and can handle short sales.Calculation of Net Asset Value is achieved via the press of a button, whereby securities revaluations, currency revaluation, administration fees, management fees, incentive fees and NAV per share are all automatically calculated. Valuations can be re-run at the push of a button should an adjustment be made in an underlying item. Pacific Funds Systems can build customised shareholder contract notes and statements for each installation site, and for specific funds within a site should this be required. This development is relatively simple given the nature of the open relational database technology behind PFS-PAXUS.

The system features a high level of security , with transactions journalised, password lock outs, security event log and separate authorization of transactions. In addition access by users of the system can be limited to specified funds. The system database (Microsoft SQL server) permits desktop queries to be executed on the database (subject to security restrictions) and for users to write their own reports direct from the database if desired. Because the system is client/server it can be operated over a wide area network or even over the internet.