Investments & Assets

The fund may invest in a company, another fund or a property vehicle. An Investment records the position being tracked. Investment Activities record events affecting that position; Assets describe underlying exposures where those associations are maintained.

Separate the position from its underlying assets

The Investment identifies what the fund directly holds. An Asset association describes an underlying exposure of that position. Several assets can sit beneath one investment without becoming additional positions owned directly by the fund. This distinction prevents an exposure lookthrough from counting the investment and its underlying assets twice.

In a hypothetical property investment, the fund owns an interest in Oak Property Vehicle. The Investment tracks that interest. Oak's Warehouse North and Office South are underlying Asset records associated with it. They are not automatically two additional direct investments by the fund.

A Portfolio groups investments for review. An allocation scheme identifies which classes or subscriptions participate in a fund investment. Asset associations describe exposure; class allocations describe participation. One cannot substitute for the other.

Follow a manager call into payment

On the investment side, a manager's call asks the fund to provide capital to an existing position. The Capital Call activity records that expectation; the later Contribution activity records funding and refers to the call. A cash link then connects the contribution to the outgoing payment. This is the fund-to-investment perspective, separate from subscribers paying into the fund.

Suppose Oak issues a USD100,000 capital call to the fund. The notice explains the amount and due date. Record the Capital Call on Oak's investment. When the fund pays, its Contribution activity references that call, and the outgoing cash split links to the contribution.

Before payment, the call is expected funding. After the supported link, the contribution can be traced to cash. Accounting still needs its own supported treatment and journal status.

The saved fictional Cedarbridge investment is Harbor Example Software, not Oak. Its USD40,000 contribution and cash settlement illustrate the investment side; the explorer still reports Missing journal. Keep that existing fixture separate from the hypothetical property scene.

Read later events by their purpose

A distribution notice announces proceeds. Settlement activities classify what the fund received: return of capital and income, with recallable and non-recallable categories where applicable. For a hypothetical USD12,000 distribution described as USD10,000 returned capital and USD2,000 income, preserve those components rather than labeling the entire receipt income. Investigate any realized gain under its supported source and accounting treatment rather than inventing a distribution activity category.

A Purchase records an acquisition, and a Redemption records withdrawal of part or all of a position under that transaction. Redemption proceeds are not automatically an income distribution. A Fair Market Value activity records value at a date; Valuation Discount, Commitment and Commitment Adjustment record their own valuation or commitment events.

Use the actual category and evidence for the event. Do not create cash for a valuation merely because other activities have settlements.

Keep the two sides of the fund distinct

Subscribers fund the fund; the fund funds its investments. A call received from Oak is distinct from a call issued to the fund's subscribers. Their amounts and timing need not match. Subscriber redemptions also differ from redemption of the fund's underlying position.

Use Investments for investment Data, Activity and Record Explorer. Continue to Subscriptions & Capital Activity for investor-side events and Valuations & NAV for valuation and NAV review.