Eagle Investment Systems and Morgan Stanley Prime Brokerage have teamed up to jointly develop new partnership accounting and tax reporting software for the hedge fund industry.
The PT-Plus software will aim to provide hedge fund companies with improved partnership accounting and tax capabilities covering allocations, layering, tax compliance, flexible incentive and performance-based fee calculations.
Using the software, hedge funds will be able to track the capital investments of investors and shareholders; tailor multi-currency and/or multi-basis general ledgers for all required instrument types; automate pricing from unlimited sources; and fully automate the creation of annual financial and tax reports, such as K-1's and offshore client reports, say the companies.
Hedge funds will be able to run PT-Plus on their own hardware, or choose to have it hosted externally and accessible through a Web-based interface.
The software will also be integrated with Morgan Stanley Prime Brokerage's portfolio accounting system, MSPA. "We believe PT-Plus will become the industry standard, and combined with MSPA will provide a complete and powerful accounting solution for Hedge Funds," says Mark Rice, head of technology for Morgan Stanley Prime Brokerage.
The software is scheduled to be rolled out in fourth quarter 2002.
The move will be welcomed by hedge funds, which have become increasingly vocal about the poor quality of management information and IT support offered by prime brokers.