PFS-PAXUS performs equalisation for offshore funds. In general, equalisation is a process of adjustments to the numbers of shares held by shareholders to compensate for the effect of changing levels of capital on the calculation of inventive fees. Equalisation calculations can be complex, which is why many funds have adopted the multi-series approach to ensure fairness in the treatment of investors and investments managers. Despite its complexity, equalisation may be preferable in some situations e.g. where only one series is practical because of stock exchange listing requirements. Equalisation is required when the fund has an incentive fee, has only one series of shares and shareholders are permitted to enter or redeem on dates when the incentive fee payment is not made.

The models calculate equalisation deficits and credits depending on whether the NAV is ahead or behind of the NAV at the time of the last payment of performance fees (or resetting of the high watermark). Shares are redeemed or issued to liquidate the equalisation deficit/credits , depending on the subsequent performance of the fund. PFS-PAXUS will calculate and store the initial equalisation amounts and generate share registry transactions for the settlement of equalisation transactions. Reports showing the accrued value at the current NAV of equalisation amounts will also be available, as will this information for contract notes and statements.

Please contact PFS personnel for more information.