The distribution of own and third-party funds can be:
• Identified, where the client's data is disclosed to the fund manager – responsible to the regulatory bodies and to the shareholders (statements, income reports, Suitability, etc.)
• On account and order, where the customer's data is retained by the distributor – which becomes responsible to the regulatory bodies and the shareholder.

In this process, the distributor can distribute own-issued and third-party securities – where the distributor negotiates the rate and amount raised for individual distribution among its customers.

In cases of own issuance, the operational flow occurs directly with the treasury of the distributing financial institution.

The rebate amount is a benefit or a "commission" paid by the administrator or manager of a portfolio (fund, club or investment portfolio), and the calculation of this amount is based on the administration and/or management fee charged directly on the Shareholders' Equity of this portfolio.

It is important to monitor the rebate calculation in two views, such as expenses (administrators/managers) or revenues (distributors/officers/portfolios).

Shareholder control services (liability control) of investment funds and clubs include:
booking of quotas; nominative registration of the holders of such shares; registration of movements and events involving such quotas; calculation and withholding of taxes; provision of information to regulatory bodies and information to shareholders.

The control of shareholders of offshore funds comprises:
control of umbrella funds with their various classes and series, hard and soft lockup processes, holdback, series rollup and quota disclosure controls in a periodicity other than daily and monthly.

The control of structured fund shareholders must respect some parameters:
different series, share values of each series, profitability and taxation consistent with each type of fund and management of the number of shareholders, to preserve tax benefits.

The administration of liquid funds, structured funds and investment clubs entails some ancillary obligations that have a specific flow for generating reports.

These vary depending on the destination regulatory or legal entity and the type of investment.

Shareholder control services (liability control) of portfolios and investment clubs include:
booking of quotas; nominative registration of the holders of such shares; registration of movements and events involving such quotas; calculation and withholding of taxes; provision of information to regulatory bodies and information to shareholders.

Comparison of assets against a benchmark and/or other investment options is made based on the expected gross return.

Incentivized assets that have some type of exemption have their profitability estimated based on the "gross-up" in which the tax benefit increases gross profitability.

A managed portfolio or a consolidated portfolio is created to demonstrate the global profitability, gross and net of taxes.

From this consolidation, it is also possible to demonstrate the gross-up profitability of incentivized bonds to make it easier for the client to compare investment options and evaluate past performance by comparing similar conditions.

Generation of report books with the consolidated view of the portfolio, graphical or tabular view of consolidated positions by class and by asset, movement statement by period and by asset, including cash and return statements with the respective comparatives.

Availability in a query portal (or via webservices) for dynamic data visualization.

Consolidating positions and operating histories presents several challenges. When we include operations in different places and currencies, the difficulties of comparison and calculation of profitability increase.

Consolidation into portfolios and simultaneous assessment of profitability in different currencies, compared to different benchmarks, can be carried out according to management needs.

Market risk is defined as the potential for an adverse outcome due to changes in prices or market parameters. There are several applicable methodologies such as parametric or non-parametric value at risk (VaR), risk under stress conditions, diversifiable risk, etc.

The fund explosion process – in which shares are replaced by their equivalents in market assets – is fundamental for the correct measurement of such parameters.

Liquidity risk determines procedures to measure the risk of a given fund:

• not being able to meet your current and future obligations without affecting your day-to-day operations; or

• not being able to trade a given position at the market price (position size/market volume), and may therefore incur significant losses.

The new control procedures and legal requirements oblige the fund manager to monitor the book entry controls carried out by the administrators and custodians, and may use portfolio mirroring, replicating the data sent by the administrator in the manager's environment.

The system allows the creation of end-of-day framing rules or simulations during the day to ensure compliance with legal and managerial requirements.

In this daily process, the movement, valuation of assets, classification, control of expenses, revenues and quota fluctuations are replicated in the manager's environment and reconciled with the data sent by the administrator.

More and more financial asset distributors are now managing their clients' checking accounts and investment portfolios at different institutions and in different places and currencies, regardless of whether the client has a managed or consolidated portfolio, or simply trades in securities.

Marking to market allows you to know how much you would receive today if you sold the respective asset, be it fixed income, variable income, derivatives or other.

This process is essential for investment funds and also in managed portfolios or individualized investments.