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what is series accounting and Equalisation accounting
Asked by Vinod Chaudhary






Answer By Nicholas Roman

Series or Multi-Series Accounting is a procedure used by fund managers which issues multiple series of shares for their fund, not necessarily with the same NAV. This sometimes complicates calculation of performance fees. When applying Equalization Accounting all the shares of the fund have an equivalent NAV. When new shares are issued or dilution takes place a small number of new shares is assigned to current investors to maintain the value of their investment despite the drop in NAV of the individual shares.