fund accounting catalog

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2009MUTUAL FUND ACCOUNTINGCOURSE CATALOG

APROFESSIONAL DEVELOPMENT PROGRAM

FOR MUTUAL FUND ACCOUNTANTS

ACCELERATION PARTNERS,LLC

4101 N. Port Washington Road

Milwaukee, Wisconsin, 53212

414-961-7776

October, 2008


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Acceleration Partners, LLC

2009 Mutual Fund Accounting Course Catalog


i

TABLE OF CONTENTS

About Acceleration Partners ........................................................................................................... 1

Mutual Fund Accounting Curriculum ............................................................................................. 2

Our Approach.................................................................................................................................. 3Course Components ........................................................................................................................ 3

How Organizations Have Successfully Used This Curriculum ...................................................... 6

Clients: Our Most Valued Asset ..................................................................................................... 7

Meet Your Experts .......................................................................................................................... 2

Getting Started in the Mutual Fund Business Curricu lum

Fundamentals of Investing .............................................................................................................. 4

Fundamentals of Mutual Funds ...................................................................................................... 5How to Read a Prospectus .............................................................................................................. 6Mutual Fund Fees and Expenses ..................................................................................................... 7

Entry-Level Mutual Fund Accounting Curriculum

Introduction to Mutual Fund Accounting Practices ........................................................................ 8Accounting for Stocks & Stock Funds............................................................................................ 9Accounting for Bonds & Bond Funds .......................................................................................... 10Accounting for Cash Equivalents & Money Market Funds.......................................................... 11Introduction to Performance and Yield Calculations.................................................................... 12Daily Simulation of Entry-Level Fund Accounting ...................................................................... 13

Intermediate Mutual Fund Accounting Curriculum

Accounting Practices Revisited .................................................................................................... 14Accounting for Complex Equity Securities .................................................................................. 15Accounting for Complex Fixed-Income Securities ...................................................................... 16Accounting for Derivatives ........................................................................................................... 17Accounting for Futures ................................................................................................................. 18Accounting for Options................................................................................................................. 19Accounting for Multi-Class Funds................................................................................................ 20Accounting for Money Market Funds........................................................................................... 21Accounting for International Funds .............................................................................................. 22

Appendix A: Our 2009 Pricing .................................................................................................. 23

Appendix B: Our Fund Accounting Guru ................................................................................ 24


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Mutual Fund Accounting Course Catalog

2009 Fund Accounting Course Catalog 1

ABOUT ACCELERATION PARTNERS

For more than twenty years, Acceleration Partners has designed, developed and facilitated high

impact professional development and training programs for many of the most prominent andsuccessful investment, insurance, broker dealer and banking organizations in the industry.

With six decades of collective experience building and leading top financial services organizations,the principals of our firm are subject matter experts. Proven industry veterans, we apply the directhands-on experience and practical knowledge we gained as senor level executives in order tolink youre learning strategies with your business strategies.

Together with our world class team of program developers, instructional designers and faculty, wecreate results-oriented professional development solutions that get to the heart of what mattersmost to your organization. Our real world approach to training goes far beyond ivory towertheory to provide an extensive range of industry-related curriculums.

The foundation of our success is based on a simple fact: We offer relevant learning programs,targeted exclusively to the financial services industry, that are grounded in leading-edge adultlearning methodologies.

LINKING LEARNING STRATEGIES WITH BUSINESS STRATEGIES


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MUTUAL FUND ACCOUNTING CURRICULUM

In our experience, entry-level mutual fund accountants come to their jobs with varying degrees of

basic mutual fund and investment knowledge. Many of our clients have found that its importantfor fund accountants have acontext for their work. Understanding basic investment fundamentalsand mutual fund concepts not only helps the fund accountant understand how they are doingtheir work, but why.

Our mutual fund accounting curriculum is designed so fund accountants understand what to do if asystem is not available to do calculations electronically. It also enables fund accountants to knowwhen the system they are utilizing may have calculated something inaccuratelybecause theyknow the whys behind it.

Our curriculum for mutual fund accountants integrates mutual fund industry knowledge with fundaccounting knowledge. The curriculum framework is based on a 3-year professional development

path. It covers Three levels of experience: Our Getting Started curriculum is designed for any person new to the mutual fund industry. Our Entry-level curriculum is designed for fund accountants with zero to 18 months of

fund accounting experience.

Our Intermediate-level curriculum is designed for fund accountants with 18 months to threeyears of fund accounting experience.

Getting Started

(limited experience inmutual fund industry)

Entry Level

(0 18 months of fundaccounting experience)

Intermediate

(18 months 3 years of fundaccounting experience)

Fundamentals of Investing Fundamentals of Mutual

Funds

How to Read a Prospectus Mutual Fund Fees and

Expenses

Introduction to Mutual FundAccounting Practices

Accounting for Stocks andStock Funds

Accounting for Bonds andBond Funds

Accounting for CashEquivalents & MoneyMarket Funds

Introduction to Yield andPerformance Reporting

Simulation of Daily FundAccounting

Review of Fund AccountingAccounting for Complex

Equities Securities

Accounting for ComplexFixed Income Securities

Accounting for DerivativesAccounting for FuturesAccounting for OptionsAccounting for Multi-Class

Funds

Accounting for Money

Market FundsAccounting for International

Funds


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OUR APPROACH

ADULT LEARNING IS THE KEY TO PRACTICAL AND IMMEDIATE TAKE HOME VALUE.

Weve built each of our self-paced programs on proven adult learning principles to encourage truelearner participation and foster practical problem solving. Our blended learning instruction (e-learning multimedia, self-study workbooks, recorded webcasts, and knowledge checks) is a proveneducation method that combines a variety of teaching techniques and formats to achieve the bestpossible result.

Our curriculum has been designed to move learners fromconcepts toapplication, from knowingto doing. Our clients report that this approach has been particularly effective for new hiretraining. When combined with a mentors review of materials, fund accountants/administratorsdemonstrate confidence in their ability to perform their job responsibilities.

Our clients find that the skills their fund accountants acquire in our courses have had a measurable

impact on their business including more efficiency and accuracy, the ability to more quicklyidentify that red flags, and an overall increased satisfaction and motivation in their role.

Course Components

Each course has a minimum of two components for some courses, six components are utilized.In each case, we have indicated average times to complete each course component.

e-Learning Readings WorkbookRecordedWebcast

KnowledgeCheck Mentor

PowerPoint

1:00 hr 1:00 hr 3:00 hrs 1:00 hr 0:30 hr Available

e-Learning

Many of our courses have e-learning,multimedia components. Our modular e-learningprograms are engaging and encourage userinteractivity to help learners comprehend and retain

principles and practices.

Each e-learning module has a short self-learning checkto ensure learners understand the concepts presented.

When included in a course, the e-Learning componentshould generally be used as the first step in the learningprocess.


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Self-Study Workbooks

Our workbooks are written in a narrative form and include accounting

examples, fund accounting tips, learning exercises, calculations, test-your-thinking questions and more. Our workbooks provide the opportunityto integrate fund accounting concepts with simulated real-worldexperiences.

Here are some examples from our workbooks.

Learning Exercise Sample

1. The Market Street Balanced Fund has just sold1,000 shares of Sears at $34/share. The stocks wereoriginally purchased for $32/share. There is a$0.05/share commission on the sale.

Complete the trade ticket (not shown here) on thenext page and the accounting entries to the right toaccurately reflect this transaction.

Answers to learning exercises may be included at the back of the workbook or in a separate

document. Our graduates tell us their completed workbooks become much-used upon request

references for reviewing fund accounting concepts.

Fund Accounting Tips Sample

Fund accounting tips highlight key concepts of a discussion. They provide succinct instruction forfund accounting practices and are easy to find within each workbook.

Fund Accounting Tips 1. Review trade confirmations received from DTC - identify discrepancies.

2. Determine if the stock or bond is a new position in the fund.If new, enter security information.

Sample Test Your Thinking

These questions are intended to stimulate discussion between a learner and his/her mentor. Many

of these questions are discussed further in our pre-recorded webcasts.

Test Your Thinking

Can you predict what a dividend will be before it is declared?

What is more predictable, a preferred-stock dividend or a common-stock dividend?

Settlement Date (5/15/xx)

CreditDebit

$32,000Cost $32,000Cost

Trade Date (5/12/xx)

Sell

A/RA/R

Loss on SaleLoss on Sale

CashCash

Gain on SaleGain on Sale

A/RA/R


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Suggested Readings

Suggested readings are available through the ICI.

Recorded Webcasts

While our self-study workbooks guide learners through the course "content," our pre-recordedwebcasts are designed to reinforce the content, and provide an opportunity for learners to listen inon how our fund accounting experts complete the exercises and respond to relevant questions.

Knowledge Checks

Our mutual fund accounting curriculum requires candidates to demonstrate proficiency at every

step. Besides completion of their workbooks and the short quizzes at the end of each module in oure-learning modules, courses may also have an online knowledge check associated with them.

At the end of each online knowledge check the learner is given their results. Detailed resultsindicating how each question was answered by each learner can be emailed separatelyto supervisors upon request to serve as an additional review vehicle.

Mentor PowerPoints

Upon request, the PowerPoints used for our webcasts will be made available to mentors orsupervisors to facilitate additional discussion and review of the fund accounting topics studied in

the workbook.


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HOW ORGANIZATIONS HAVE SUCCESSFULLY USED THIS CURRICULUM

Case Studies

A LEADING MUTUAL FUND SERVICE PROVIDERwas experiencingrapid growth and expansion in their fund accounting andadministration operations which required the addition of many newmutual fund accountants; all college graduates with degrees inaccounting or finance, but no industry experience, and little if anyinvestment or mutual fund knowledge. In addition, the manager ofthe fund accounting department was concerned that his staff wasrelying too heavily on the accounting system (i.e., the technology).He worried that they did not have the depth of understanding of the

transactions they were responsible for, to pick up on irregularitiesor out-of-the-ordinary data. Acceleration Partners licensed our e-learning curriculum for three years to this client, who successfullyrelied on the curriculum as its exclusive entry-level and remedialtraining program.

A PROMINENT MULTI-BILLION DOLLAR MUTUAL FUND COMPLEX determined that it had outgrown itson-the-job, learn as you go training approach, which had been used for two decades in the fundaccounting department. The head of fund accounting operations decided that to achieve herambition for the highest skill level in the industry for the several dozen fund accountants pricingfunds daily, a more formalized training program with built in accountabilities would have to be

developed, and a full-time trainer assigned to taking the department to the next levels ofexcellence. After several months of in-house planning, this firm determined that AccelerationPartners fund accounting curriculum offered everything they had planned to build internally.Additionally, the quality of Acceleration Partners materials, and the 24/7 availability of the e-learning platform offered the flexibility and personalization which the supervisors and managerwere after. The firm utilized a combination of e-learning and virtual instructor-led instruction tosuccessfully achieve their objectives.

Great job! You made a subject that could have been boring very interesting. Thanks for a greatclass, and for your significant insights.

AccountantUS Bank Mutual Fund Services


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CLIENTS:OUR MOST VALUED ASSET

This is a partial list of organizations whose fund accountants have benefited from our fundaccounting curriculum.

Aim Management GroupAmerican Century Investments

Caterpillar Investment Management

Commonwealth Group

Conseco Capital Management

Dodge & Cox

Founders Asset Management

Goldman Sachs

Harbor Capital Advisors

HartfordHarris Associates

Hewitt Associates

Heartland Advisors

ICON Funds

Ivest Services

Jackson National Asset Management

Janus Funds

Jefferson Pilot

John Hancock FundsLegg Mason

Lutheran Brotherhood

Mutual of Omaha

Mutual Fund Services Company

National Railroad Retirement InvestmentTrust

Navallier & Associates

Nicholas-Applegate Capital Management

Normura Asset Management

Nottinghan Fund Services

Nuveen Investments

Northwestern Mutual Investment Services

Oppenheimer Management

Pacific Life Insurance CompanyPax World Management Corp.

PFPC Worldwide

Pioneer Investment Management

Principal Financial Group

Prudential

Reich & Tang

RS Investments

Safeco

SEI Investments

Sunstone Financial Group

Unified Fund Services

US Bank Mutual Fund Services

This course was designed to fill a void. A tremendous need exists in investment companies fora reliable, unbiased and comprehensive review of fund accounting. The well- designedquestions located at the end of each module are critical for trainees to digest the most importantissues. Another advantage is that it uses brief and clear sentences to explain complicatedprinciples and theories.

Accounting SupervisorSafeco

The class was terrific; it got everyone on the team up to speed on financial reportingrequirements.

Accounting SupervisorGoldman Sachs


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MEET YOUR EXPERTS

Terry Gallagher

Terry Gallagher is a CPA and a mutual fund industry lifer who earned hislaw degree from DePaul Law School. Terry began his professional career atStein Roe Investment Management, where he rose to Manager of Mutual FundAccounting. In 1987, Terry joined the fledgling AAL Mutual Funds as ChiefFinancial Officer. In addition to also serving as Treasurer of The AAL MutualFunds, Terry was involved in all operational aspects of the company.

A founding partner of The Academy of Financial Services Studies, Terry developed theAcademys Mutual Fund Accounting and Mutual Fund Administration curriculums, and gainednational recognition as an outstanding classroom and web-based instructor.

A member of the Investment Company Institute Accountants/Treasurers Committee, Terry

helped author several industry white papers while a member of the ICI Accounting PolicyCommittee.

Terry is currently the Executive Vice President, Director of Mutual Fund Accounting andAdministration with UMB Fund Services, Inc. Terry Gallagher is responsible for the companysfund administration, fund accounting, tax and compliance functions.

When not working or at soccer games, Terry a long-time youth sports coach is also an avidreader.

You can learn more about Terry from the Fund Accounting Guru article found at the end of ourcatalog.

Rochelle Lamm

Rochelle Lamm is the CEO of Acceleration Partners, LLC. Her organizationprovides distribution, sales, marketing and training services exclusively to thefinancial services industry.

For Rochelle Lamm, building successful sales and marketing organizations isnt ajobits a calling. For nearly three decades, she has created and managed severalnationally- recognized investment management and broker/dealer organizations,from the ground up. During this time, her passionate, commonsense approach tobuilding assets under management has earned her kudos as one of the financialservices industrys most dynamic and respected sales and marketing executives.

Before launching her current firm, Rochelle founded and as Chairman & CEO built TheAcademy of Financial Services Studies and Precision Marketing Partners into businesses withseveral million dollars in annual revenue. She was affiliated with Strong Funds where, asPresident of Strong Intermediary Services and Strong Retirement Plan Services, 401(k) andintermediary distribution assets grew to more than $10 billion under her direction. Rochellejoined Strong from the AAL Mutual Fund organization, which she founded in 1986. During hereight-year tenure as the chief operating officer of AAL Capital Management Corporation, mutualfund assets were built from zero to over $2 billion. Rochelle also held a number of senior


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executive sales management roles, both with Integrated Resources, where she helped foundIntegrated Asset Management Corporation, and Oppenheimer Management Corporation, whereshe began her investment industry career.

Rochelle is the author of the financial services industry best seller, On the Road Again: How to

Succeed in the Competitive World of Wholesaling, a sales management text, which for 15 yearswas used by most sponsors in the investment and insurance industries to train their wholesalersand sales support staff. The revised version, The 21st Century Wholesaler: PrecisionWholesaling in the New Millennium and its companion Understanding How Adults Learn: AWholesalers Ultimate Competitive Edge are her latest publishing efforts. Rochelle co-authoredThe Complete Seminar Selling Manual and her bookOatmeal on My Blazer: Having It All andOther Myths was published in 1995.

One of the first to receive the Certified Financial Planner (CFP) designation in 1975, Rochelleearned an MBA from the University of Denver and a Bachelor of Arts degree from LorettoHeights College. She is one of the first 50 graduates of the Harvard Business Schoolsprestigious World Presidents graduate program in business. A firm believer in civic

responsibility, Rochelle has served on two non-profit boardsChildrens Hospital of Wisconsinand The Childrens Hospital Foundation, as well as two corporate boards. She was co-founderand Chairman of the Board of the Fox Cities Childrens Museum in Appleton, WI.

Deborah Bentley

Deborah Bentley is the principal and owner of Interactive Design Basics. Shehas over 20 years of experience as an educator and training developmentprofessional for product, technical, and human resources programs. She hasled the design and development of several instructor-led and self-pacedinteractive programs for major corporations. Deborah specializes in

developing multimedia programs for presentations, training, and interactiveself-study. In addition, she is an artist who knows how to combine yourgraphics with photographs, clipart, and original drawings to heighten theusers interest and the learning experience.


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Getting Started Courses


Fundamentals o f Investing

In the daily course of business, mutual funds may buy or sell stocks, bonds, and/or cashsecurities. Understanding each of these investment instruments and how they are traded, helpsnew mutual fund accountants understand their role in pricing and accounting for mutual fund

portfolios.Fundamentals of Investing is designed for entry-level mutual fund accountants andadministration personnel to help develop an appreciation for fundamental concepts of investing -enabling learners to understand the context within which the mutual fund industry has grown andwithin which the proliferation of mutual fund choices has evolved.

Learning Outcomes

When learners have completed this course, they will be able to:

Explain fundamental investment concepts such as components of total returns,compounding, inflation, risk and diversification.

Differentiate between saving and investing, and the basic concept of asset allocation. Explain the building blocks of financial planning. Describe five types of investment risk and ways to minimize each type of risk.

Course Outline

Four Building Blocks of FinancialIndependence

Three Things You Can Do WithYour Money

Three Enemies of Wealth Creationo Enemy #1: Inflation

More on Inflation Calculating the Annual

Inflation Rateo Enemy #2: Taxes

Impact of Inflation andTaxes

Impact of Tax Deferralo Enemy #3: Procrastination

The Importance of anEarly Start

The Rule of 72 More on Compounding Dollar Cost Averaging Investment Returns

Types of Investment Risko Company Risk

o Market Risko Inflation Risko Interest Rate Risko Liquidity Risk

Four Ways to Reduce Risko Diversificationo Professional Managemento Asset Allocationo Time

Course Components


KnowledgeCheck

MentorPowerPoint

Not available 1:00 hr 2:00 hrs 1:20 hr Not available Available


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Fundamentals of Mutual Funds

Fundamentals of Mutual Funds, is designed for entry-level fund accountants to introduce mutualfunds - what they are, how they work, and who the players are in the mutual fund industry.

Learning Outcomes

When learners have completed this course, they will be able to: Describe a mutual fund and the various types of mutual funds. Define and discuss the five investment characteristics common to most mutual funds. Describe the organization of a mutual fund and its players.

Course Outline

History of Mutual Funds What is a Mutual Fund?

Who Owns Mutual Funds Why Mutual Funds Are Attractive Characteristics of Mutual Funds Organization of Mutual Funds Types of Mutual Funds

o Equity Fundso Bond Fundso Money Market Fundso Hybrid Funds

Course Components


KnowledgeCheck

MentorPowerPoint

2:00 hr 1:00 hr 2:00 hrs 1:00 hr Not available Available

*There are two other courses associated with this course:

Mutual Fund Fees and Expenses How to Read a Prospectus

The outlines for these two courses follow on the next pages.


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How to Read a Prospectus

This course provides a comprehensive review of the mutual fund prospectus. It is based on Tom

Lemkes and Gerald Lins book How to Read a Mutual Fund Prospectus. This course includesreferences to specific rules, sample pages, and additional disclosure statements.

Learning Outcomes


Identify and explain the major components of a prospectus. Describe how a prospectus can be used better investment decisions.

Course Outline

Prospectus Overviewo What is a Prospectus?

o How Do I Get a Prospectus?o Prospectus Requirements

Prospectus Covero Basic Identifying Informationo Fund Nameso How Assets are Investedo Back Covero Statement of Additional

Information

Risk/Return Summaryo Investment Objectives/Goals

o Riskso Performance Informationo Fees and Expenses

The Funds Financial History inNumbers

o Financial Highlights Tableo Per Share Data

o Ratio/Supplemental Data Understanding Risk the Risk

Profileo Determining a Funds Risk

Profileo Understanding Three

Categories of Mutual Fundso Other Issues

Fund Management and ShareholderServices

o Investment Advisor

o Portfolio Advisoro Purchases and Redemptionso Check writingo Other Services

Course Components



PowerPoint

1:00 hr 1:00 hr 1:00 hr Not available 0:15 hr Available


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Mutual Fund Fees and Expenses

Mutual funds are a distinct legal entity or company. Like allcompanies, they have expenses that need to get paid. Unlike most

companies, mutual funds have no employees; they outsource allservices. This course discusses the basic fees and expenses of mutualfund companies and how they are paid by shareholders.

Learning Outcomes


Describe types of shareholder fees. Classify operating expenses. Explain the impact of different fees and expenses on mutual fund investors.

Course Outline

Investment Fundamentals Shareholder Fees

o Load Sales Charge Front-End Load Back-End Load Level Load No Load Funds

o Transaction and RedemptionFees

Operating Expenseso

Management Fee

o 12b 1 Feeo Custody Feeo Audit & Legal Feeso Director Feeo Professional Feeso Administrative Feeso Other Fees

Investor Impacto No Load Fundo Front-End Loado

Back-End Load

Course Components



PowerPoint

1:00 hr 1:00 hr 2:00 hrs Not available 0:15 hr Available


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Entry Level Courses


$34,000A/R

$34,000Cash

Settlement Date

$32,050

$34,000A/R

CreditDebit

Cost

Gain on Sale $1,950

Trade Date

Introduction to Mutual Fund Accounting Practices

Introduction to Mutual Fund Accounting Practices focuses onproviding an understanding of investment and financial marketfundamentals. It provides a solid foundation of the accountingprinciples and regulatory requirements that govern mutualfund accounting on a daily and periodic basis, and helps youdevelop an appreciation for the unique requirements ofspecific categories of mutual funds and how requirementsapply to shareholders, boards, regulators, and tax authorities.

When learners have completed this course, they will be able to: Describethe mutual fund pricing process. Complete the daily trial balance. Strike the NAV for a mutual fund. Demonstratethe correct usage of key financial statements prepared for mutual funds and

their shareholders. Explainthe basic guidelines and laws that govern mutual funds so fund accountants clearlyunderstand their regulatory responsibilities.

Course Outline

Mutual Fund Accounting Practices The Fund Accounting Process

o Preparing the Trial Balance Shareholder Activity Cash Reporting Accruals

Portfolio Transactions Sample Trial Balance Review of the Trial Balance

o Striking the NAV Communicating the NAV Pricing Errors

Mutual Fund Financial Reportingo Statement of Assets and Liabilitieso Statement of Operations

o Statement of Changeso Financial Highlights Calculations

Mutual Fund Tax Reportingo RIC Qualification Benefitso Qualifying as a Regulated

Investment Companyo

Capital Gainso Methods of Determining Cost Basiso Wash Saleso Excise Tax Ruleso Calculating Distributionso Information Sent to Shareholderso Cost Basis for the Shareholdero Shareholder Tax Reporting

Course Components

e-Learning Workbook RecordedWebcast


PowerPoint

Not available 3:00 hrs Not available Not available Available


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Entry Level Courses


Accounting for Stocks & Stock Funds

This course is designed for entry-level mutual fund accountants and other financial professionalswho need to understand the characteristics of equity securities and their application to mutualfunds, daily net asset calculation and financial reporting.

While the work of a mutual fund accountant will focus on mutual funds, its critical to have asolid understanding of both stocks and stock markets to really understand the fund accountingpractices.

Learning Outcomes

When learners have completed this course, they will be able to: Explain stock basics and how they are positioned within a mutual fund. Use expertise about stock funds to more accurately perform daily accounting for stock

mutual funds. Demonstrate the ability to complete daily fund accounting transactions and entries for stock

purchases and sales, stock dividends, stock splits, and other equity transactions.

Course Outline

Review of Investment Fundamentalso Three Ways to Invest Money

Stock Basicso Types of Stockso How Stocks Are Tradedo Why Stock Prices Change

Dividend Yield Price/Earnings Ratio

o

How to Read Stock Tables andQuotes Overview of Stock Mutual Funds

o Classification of Stock MutualFunds

o Different Types of Stock MutualFunds

o How to Read Stock FundPerformance Tables

Accounting for Stocks & Stock Fundso Daily Fund Accounting

Responsibilitieso Stock Trade Transactionso Fund Accountings Role with Stock

Funds New Issues Sample Transaction Stock

Purchase Accounting Entries American Depository Receipts

o Dividends and Splits

Course Components

e-Learning WorkbookRecordedWebcast


PowerPoint

Accounting for Stocks,

Bonds, and Money

Market Instruments

1:00 hr 3:00 hrs 1:00 hr Not available Available


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Entry Level Courses


Accounting for Bonds & Bond Funds

Accounting for Bonds & Bond Funds is designed for entry-level mutualfund accountants and other financial professionals who need tounderstand the characteristics of fixed income securities and theirapplication to mutual funds, daily net asset calculation and financialreporting.

Learning Outcomes

When learners have completed this course, they will be able to: Explain bond basics and how they are positioned within a mutual fund. Calculate and perform the basic fund accounting ledger entries for bonds and bond funds.

Course Outline

Bond Basicso

Bond Lingoo Types of Bondso Factors Affecting Bond Yield

Fundamental Rule of Bonds How To Read Bond Tables Classification of Bond Funds

o Durationo Credit Quality

Different Types of Bond Fundso Taxable Bond Fundso Tax-Exempt Bond Funds

Overview of Bond Fundso Corporate Bond Fundso High-Yield Bond Fundso Government Bond Fundso National Municipal Bond

Fundso State Municipal Bond Funds

o Fund Accountings Role withBonds and Bond Funds

o How to Read Bond FundPerformance Tables

Accounting for Bonds and BondFunds

o Daily Fund AccountingResponsibilities

o Fund Accountings Role withBond Funds

o Bond Interest Corporate Bonds

Interest Calculation Government Bonds

Interest Calculationo Bond Fund Managero How Bonds are Tradedo Pricing Bonds and Bond

Funds

Course Components

e-Learning WorkbookRecordedWebcast


PowerPoint

Accounting for Stocks,

Bonds, and Money

Market Instruments

1:00 hr 3:00 hrs Not available Not available Available


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Entry Level Courses


Accounting for Cash Equivalents & Money Market Funds

Accounting for Cash Equivalents & Money Market Funds is designed for entry-level fundaccountants.Its critical for fund accountants to have a solid understanding of both cashequivalents and money market funds to really understand the fund accounting practices

associated with each.

Learning Outcomes

At the end of this course, learners will be able to:

Better understand the basics of cash equivalents andprovide greater clarity to how they arepositioned within a mutual fund

Use and applyexpertise about money market funds to accurately daily account for moneymarket mutual funds

Clearly demonstratethe ability to complete daily fund accounting transactions and entries formoney market trades.

Course Outline Review of Investment Fundamentals Cash Equivalent Basics

o Characteristics of Money MarketsInstruments

o Types of Money Market Instruments Overview of Money Market Investing Rule 2a-7

o Portfolio Quality Credit Risko Average Maturity Average Date

Repaido Portfolio Diversification Placement

of Assets

Pricing Methodso Amortized Costo Penny Roundingo Downgrades

Accounting for Cash Equivalents &Money Market Fundso Daily Fund Accounting

Responsibilitieso Money Market Tradeso Accrual of Interesto Maturity of Investmentso Sale & Pricing of Short-Term

Investments

Financial Reporting for Money MarketFundso Schedule of Investmentso Statement of Assets & Liabilitieso Statement of Operationso Statement of Changes in Net Assetso Footnoteso Financial Highlights

Course Components



PowerPoint

1.0 hr 3:00 hrs 1:00 hr Not available Available


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Entry Level Courses


Introduction to Performance and Yield Calculations

Introduction to Yield and Performance will teach you the basicconcepts required to perform simple mutual fund performance

and yield calculations.

Learning Outcomes


Identify the major federal agencies and self-regulatoryorganizations that govern mutual fund companies and their employees.

Gather mutual fund performance information from various resources available to thepublic.

Differentiate between the various performance calculations used by mutual funds. Complete basic mutual fund performance and yield calculations.

Course Outline

Overview of Mutual Fund Performanceo The Rule Makers

Securities and Exchange Commission (SEC) National Association of Securities Dealers Regulation (NASDR) Association for Investment Management and Research (AIRM)

o Locating Performance Data Rating Companies Prospectus Fund Reports

Newspapers Financial Magazines Investment Newsletters Internet

Basic Performance Calculationso Net Asset Value

Net Changeo Yield

Distribution Yield Standard Yield Total Returns

Course Components


KnowledgeCheck

MentorPowerPoint

1:00 hr 1:00 hr 2:00 hrs Not available 0:45 hr Available

Market Street Funds:


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Entry Level Courses


Daily Simulation of Entry-Level Fund Accounting

Daily Simulation of Entry-Level Fund Accountingbrings it all together stocks, stock funds,bonds, bond funds, cash equivalents, mutual funds, money market funds, yield and performance.

Learners will be walking through a day in the life of a fund accountant.

Learning Outcomes


Create and post daily fund accounting entries for the Market Street Balanced Fund. Post closing market value entry. Calculate net asset value. Understand the impact of net asset value errors.

Course Outline

Review of Mutual Fund Accounting Practiceso The Fund Accounting Processo Preparing the Trial Balance

Shareholder Activity Cash Reporting Accruals Portfolio Transactions Preparing the Trial Balance Review of the Trial Balance

o Striking the NAV Communicating the NAV

Pricing Errors Mutual Fund Financial Reporting

o Statement of Assets and Liabilitieso Schedule of Investmentso Statement of Operationso Statement of Changeso Financial Highlights Calculations

Course Components



PowerPoint

Not available 3:00 hrs Not available Not available Available


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Intermediate Level Courses


Accounting Pract ices Revis ited

Most intermediate fund accountants have priced a specific fund or group of funds and may havebecome specialists. For example, a fund accountant has priced five equity funds and is theresident expert on those five funds. Because of the specialty, that same fund accountant may

have, early in his or her career, been introduced to bonds or bond funds, but has not beenexposed to bonds in a while. For this reason, we begin our intermediate level courses with areview of the basic responsibilities of a fund accountant. This course is designed for intermediatefund accountants. We start with a review of some basics to ensure all learners are on the samepage.

Learning Outcomes


Calculate and perform the basic fund accounting ledger entries for equity funds. Calculate and perform the basic fund accounting ledger entries for bonds and bond funds. Explain the relationship(s) between mutual fund accounting and mutual fund financial

reporting.

Course Outline

The Basicso Daily Fund Accounting

Responsibilitieso Mutual Fund Trial Balance

Accounting for Equity Funds Reviewo How Stocks Are Tradedo Fund Accountings Role with Equity

Funds

New Issues Sample Transaction Stock

Purchase Dividends Splits Preferred Stock

Accounting for Bonds and Bond FundsReviewo Bond Basics

Types of Bondso Factors Affecting Bond Yield

Quality Maturity Fundamental Rule of Bonds

o Fund Accountings Role with Bonds andBond Funds Bond Interest Corporate Bonds Interest Calculation Government Bonds Interest

Calculation Bond Fund Manager How Bonds Are Traded

Mutual Fund Financial Reportingo Schedule of Investmentso Statement of Assets and Liabilitieso Statement of Operationso Statement of Changes (2 years)o Financial Highlights Table (5 years)o Regulated Investment Company (RIC)

Course Components


KnowledgeCheck

MentorPowerPoint

Not available 3:00 hrs 1:00 hr Not available Available


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Accounting for Complex Equity Secur it ies

Mutual fund accountants must have a thorough understanding of all the types of complexsecurities that may be purchased by the portfolios that they service.Accounting for Complex

EquitySecurities focuses on the specific concepts and accounting issues associated with complexequity securities. It is designed for individuals who have some experience as a mutual fundaccountant or administrator.

Learning Outcomes


Calculate and account for complex equity securities such as:o Rights and warrantso REITso PFICs

Describe tax issues associated with REITs. Value the position of short sales on a daily basis to account for gains or losses. Identify parties and terms involved in security lending; describe the fund accountants

role with security lending.

Explain how spin-offs and class action lawsuits affect mutual funds and account for them.

Course Outline

Rights & Warrants Real Estate Investment Trusts (REITs)

o REIT Tax Issues Passive Foreign Investment Companies (PFICs)

Short Sales Security Lending

o Setting Up a Lending Programo Security Lending Footnotes

Other Corporate Actionso Spin-Offso Class Action Lawsuits

Course Components



PowerPoint

1:00 hrs 2:00 4:00 hrs 1:00 hr Not available Available


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Accounting for Complex Fixed-Income Securit ies

Accounting for Complex Fixed-Income Securities focuses on the specificconcepts and accounting issues associated with complex fixed-incomesecurities. It is designed for individuals who have some experience as amutual fund accountant or administrator.

Learning Outcomes

At the end of this course, learners will be able to calculate and account for complex fixed-incomesecurities such as:

Zero-Coupon Bonds Bond Discount and Premium ABSs MBSs CMOs

Munis Other complex fixed-income securities

Course Outline

Zero-Coupon Bonds Bond Discount and Premium

o Fundamental Rule of Bondso Original Issue Discount (OID)o Rule Changes Implementation & Tax Issues

Asset-Backed Securities (ABSs)o Mortgage-Backed Securities (MBSs)

o Mortgage-Backed Bondso Collateralized Mortgage Obligations (CMOs)o Municipal Bonds/Tax-Exempt Bonds

Other Complex Fixed-Income Securitieso High-Yield Bondso When-Issued Securitieso Treasury Inflation-Protected Bonds (TIPs)o Repurchase Agreements (Repos)o Convertible Bonds

Course Components



PowerPoint

1:00 hrs 3:00 hrs 1:00 hr Not available Available

Mortgage PoolMortgage Pool

TranchesTranches


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Accounting for Derivatives

Accounting for Derivatives focuses on the specific concepts and accountingissues associated with complex derivatives. It is designed for individuals who

have some experience as a mutual fund accountant or administrator.

Learning Outcomes

At the end of this course, learners will be able to

Explain how interest-rate swaps work. Calculate and account for complex derivatives such as:

o Swapso Mortgage Dollar Rollso Floaterso Inverse Floaterso Structured Notes

Course Outline

Interest-Rate Swapso How Interest-Rate Swaps Worko Currency Swapso Equity Swapso How to Value Swapso Swaptions

Mortgage Dollar Rolls (MDR)o MDR Issueso

Types of Mortgage Dollar Rollso MDR Examples Structured Note Securities Pay-in-Kind (PIK) Bonds Step Bonds

Course Components



PowerPoint

Not available 2:00 hrs 1:00 hr Not available Available

Party AParty AParty AParty A

Party BParty BParty BParty B

Fixed(4.5%)

Floating(T-Bill minus 0.5%)

Principal Amount$100,000


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Market Drop$400 Market Drop$400

Initial Margin$1,000 Initial Margin$1,000

$0

VariationMargin

Accounting for Futures

Accounting for Futures focuses on the specific concepts,accounting, and reporting issues associated with futuressecurities. It is designed especially for individuals who havesome experience as a mutual fund accountant or administrator.

Learning Outcomes

At the end of this course, learners will be able to calculate and account for index and interest ratefutures including these transactions:

The purchase and sale of futures. The daily valuation that involves a variation margin calculation. The settlement or close of a futures contract.

Course Outline

Futures Overviewo Futures Historyo Futures Exchanges

The CommodityExchange Act

Who Trades? Types of Futures

Trading Types of Futures

Trading Futures Examples

o

Futures Charting Accounting for Futures

o Daily Fund Accounting forFutures

Margino Index Futures

About Stock-IndexFutures

Buy/Sell Daily Valuation Sale of Index Futures

o Interest Rate Futures (IRFs) Debt Obligations Buy/Sell Settlement

Financial Reporting for Futureso Schedule of Investmentso Statement of Assets and

Liabilitieso

Statement of Operationso Statement of Changeso Footnote Disclosures

Futures Tax Adjustmentso Section 1256

Tax Ruleso Distribution Calculations

Course Components



PowerPoint



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More risky because theasset is not owned

Must be purchased ifthe option is exercised

Less risky becausethe asset is owned

Naked OptionsCovered Options

More risky because theasset is not owned

Must be purchased ifthe option is exercised

Less risky becausethe asset is owned

Naked OptionsCovered Options

Accounting for Options

Accounting for Options focuses on specific concepts,

accounting, and reporting issues associated with options. It isdesigned especially for individuals who have someexperience as a mutual fund accountant or administrator.

Learning Outcomes


Explain how options differ from other investments. Calculate and record options accounting transactions. Identify the financial reporting information unique to options.

Course Outline

Options Overviewo What an Option Is (and Isnt)o Who Trades Optionso Why Invest in Optionso How Options Worko Application of Optionso Advanced Options Concepts

Accounting for Optionso Daily Fund Accounting for Optionso Covered Call Optionso Put Options

Financial Reporting for Optionso Schedule of Investmentso Statement of Assets and Liabilitieso Statement of Operationso Statement of Changeso Footnote Disclosureso Tax Differences

Course Components



PowerPoint



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Accounting for Mul ti -Class Funds

Mutual fund accountants face a wide range of funds and fundclasses that they service. This course focuses on the specificaccounting, tax and reporting differences for multi-classfunds. It is designed especially for individuals who have someexperience as a mutual fund accountant or administrator.

Learning Outcomes


Account for the differences between classes of shares. Calculate and account for interest, dividends, expenses and capital gains in a multi-class

fund.

Calculate the net asset value for each share class.

Course Outline

Share Class Basicso What are Multi-Class Fundso No-Load Shareso Class A Shareso Breakpointso Letter of Intent (LOI)o Rights of Accumulation

(ROA)o Class B Shareso

Class C Shareso Other Class Shares

Multi-Class Fund Regulationso Rule 18f-3o Fund Level Income and

Expenseso Class Level Expenseso Allocated Expenses

Accounting for Multi-Class Fundso Recording Daily Activityo Income and Expense

Allocationo Net Asset Value Calculationo Dividend and Distribution

Allocation

Financial Reporting for Multi-ClassFunds

o Schedule of Investmentso Statement of Assets and

Liabilitieso Statement of Operationso Statement of Changeso Footnotes Disclosureo Performance Calculations

Course Components



PowerPoint

Not available 3:00 hrs Not available Not available Not available

Annual ly1%LevelLoad

Class C

Sell8.5%-0%Declines

Back-EndLoad

Class B

Purchase0%-8.5%Front-End

LoadClass A

0%0%No LoadClassNo Load

WhenAccessed

% ofInvestment

Type ofLoad

Class


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Accounting for Money Market Funds

Accounting for Money Market Funds focuses on the specific accounting and tax issuesassociated with money market funds.

Learning OutcomesAt the end of this course, learners will be able to:

Describe the characteristics of money market funds. Identify the key regulatory elements require under Rule 2a-7 to qualify as a money

market fund.

Calculate the regulatory compliance tests for money market funds. Calculate and record the basic account transactions of money market funds. Describe the differenced in money market financial statements.

Course Outline

Overview of Money Market Investingo Characteristics of Money Markets

Instrumentso Types of Money Markets Fundso Money Market Fund Benefits and

Disadvantages

Rule 2a-7 Regulatory Requirementso 1. Portfolio Quality Credit Risk

Ratings Guarantees

o 2. Average Maturity Average DateRepaid Average Maturity Requirements Adjustable, Variable & Floating

Rate Securities Demand / Put Features Repurchase Agreements Other Money Market Funds

o 3. Portfolio Diversification Placement of Assets Special Diversification Rules

o Pricing Methods Amortized Cost Penny Rounding Downgrades

Accounting for Money MarketInstruments & Fundso Money Market Purchases

Interest Bearing Notes Discounted Notes

o Accrual of Interest Daily Interest on Interest-Bearing

Notes Daily Interest on Discounted Notes

o Maturity of Investments Interest-Bearing Notes Maturity Discounted Notes Maturity

o Sale & Pricing of Short-TermInvestments

Financial Reporting for Money MarketFunds

Course Components



PowerPoint



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Accounting for Internat ional Funds

The growth of the global economy has increased the interest in investinginternationally. In this course, we consider the appeal of international investing, thebenefits and risks associated with international investing, the special accountingconsiderations of international securities and mutual funds, financial reporting forinternational mutual funds, and tax issues which affect international funds andshareholders.

Learning Outcomes


Identify key differences between domestic and foreign investments. Calculate and record basic accounting transactions for foreign investments. Describe the differences in financial statements for international funds. Identify the tax issues unique to international funds.

Course Outline

International Investing Overviewo Why Invest Internationallyo Risks of International

Investmentso Differences in Domestic and

International Investing

International Fund AccountingBasics

o American Depository

Receiptso Foreign Stock Transactionso Stock Purchaseo Trade Settlementso Currency Exchangeo Dividendso Foreign Withholding Taxeso Stock Sale

o Hedging and Futureso Receivables/Payables

International Fund Financial Reportso Schedule of Investmentso Balance Sheetso Statement of Operationso Statement of Changeso Footnote Disclosures

International Fund Tax Adjustments

o Tax Issueso Section 988 Currency

Transactionso Section 1256 Foreign

Currency Exchange Contractso Passive Foreign Investment

Companieso Foreign Tax Credit

Course Components



PowerPoint

1:00 hrs 3:00 hrs 1:00 hr Not available Available


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APPENDIX A:OUR 2009PRICING (FOR10 PARTICIPANTS)

Pricing for individual courses or for a complete suite of courses covers tuition forup to 10learners. Tuition for each additional learner over 10 is $50.00 per course. Tuition includes 10Study Workbooks for each course, and access to our online learning components for six months.Discounts are extended when an entire suite of courses is purchased.

eLearning Readings WorkbookWebcast-Recorded

KnowledgeCheck

MentorPowerPoint

Pricing(10

Participant

Getting Started in the Mutual Fund Business

1-Fundamentals of Investing $5992-Fundamentals of Mutual Funds $5993-How to Read a Prospectus $5994-Mutual Fund Fees & Expenses $599Discount rate for Getting Started Suite $2,099

Entry-Level Fund Accounting Courses

1-Introduction to Mutual FundAccounting Practices $1,599

2-Accounting for Stocks & Stock Funds $1,5993-Accounting for Bonds & Bond Funds $1,5994-Accounting for Cash Equivalents &

Money Market Funds $1,5995-Introduction to Perf & Yield Calcs $1,5996-Daily Simulation of Fund Accounting $1,5997-Fund Accounting Knowledge Check -

Pre or Post Test $599Discount rate for Entry-Level Suite $8,599

Intermediate Fund Accounting Courses

1-Review of Daily Fund Accounting -Accounting Practices Revisited $1,599

2-Account for Complex EquitySecurities $1,5993-Accounting for Complex Fixed Income

Securities $1,5994-Accounting for Derivatives $1,5995-Accounting for Futures $1,5996-Accounting for Options $1,5997-Accounting for Multi-Class Funds $1,5998-Accounting for Cash Equivalents and

Money Market Funds $1,599

9-Accounting for International Funds

$1,599Discount rate for Intermediate Suite $12,19

Discount rate for entire curricu lum $19,99


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APPENDIX B:OUR FUND ACCOUNTING GURU

An Entire Career in Mutual Funds

The Teaching Guru

"By education I was trained to be a lawyer and anaccountant but really have never done either," saysTerry Gallagher. "I have never been in a court roomand have never worked as a CPA. Instead, I have usedthe skills learned in both of these fields in a veryspecialized regulation-driven industry, mutual funds.As a manager, and now as a trainer, I have relied onthe teaching training that I received with my

undergraduate degree in history."Gallagher has spent his entire 20 working years in the mutual fund industry. He started at SteinRoe & Farnham, a well-known mutual fund organization, as a fund bookkeeper in 1980. Whenhe left in 1987, he was the Fund Accounting Manager overseeing 12 degreed accountants whowere responsible for the daily accounting and regulatory oversight of 15 mutual funds withcombined assets of $5 billion under management. That same year, Aid Association forLutherans, a large life insurance company and the largest fraternal benefit society in the country,recruited him.

"I was the Chief Financial Officer and part of the management team of AAL's start-upinvestment advisor and broker/dealer," explains Gallagher. "We launched the AAL MutualFunds in July 1987, 90 days before the largest market correction in history on October 19, 1987,with three mutual funds which we offered through AAL's national captive sales organization of2,000 life insurance agents. When I left AAL in 1998, The AAL Mutual Funds and The AALVariable Annuity represented assets of more than $5 billion. AAL Capital Management, theportfolio management and broker/dealer company, had grown to over 200 employees and anannual budget of $50 million."

Switching Gears

For the past three years, Gallagher has worn an entrepreneurial hat as one of the three foundingpartners of Precision Marketing Partners and The Academy of Financial Services Studies.Precision works closely with organizations to bring discipline and rigor to their sales andmarketing efforts through a strict six-step methodology developed over the last 20 years. "As

hands-on sales and marketing strategists, we partner with financial services firms to develop anddeploy focused and disciplined sales and marketing strategies on behalf of our clients, alongsideour clients, or as an extension to our clients' sales and marketing organization." When dealingwith our mutual fund and insurance clients, we help them to identify their sales and marketingstrategy. We work with them to prepare and implement a well thought out plan to address thatmarket. Training inside the firm and outside to financial professionals, and even the investors,remains a critical component of everything we do."


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At the Academy of Financial Services Studies, Gallagher points out that in the fiercelycompetitive mutual fund industry learning is not an option for our clients its a competitivenecessity. "We offer industry-specific educational curriculums, both customized and off-the-shelf to support and advance financial services organizations business plans by helpingemployees quickly develop the core work skills and essential competencies needed to perform

effectively." In its first three years of operation, the Academy has developed trainingcurriculum and learning programs for many of the largest and most prominent names in themutual fund and insurance business (e.g., American Family, American Express, CIGNA and TheEvergreen Funds). It has led the training for new mutual fund accountants at many firmsincluding, The Hartford for three years and is entering its third year of training for all levels offund accounting at Prudential.

Gallagher says that what he found as a fund accounting manager at Stein Roe and AAL, and nowwith mutual fund companies throughout the industry, is that technology has progressed to such apoint that fund accountants have become increasingly reliant on automated computer systemsand other technology. "Because of this, we rarely teach basic accounting principles with thethought process and rationale behind the financial aspects of the mutual funds for which they are

responsible. In the main, the problem is that many companies hire professionals, mostlyaccounting and finance majors, and then, provide them with little or no industry-specific trainingand wonder why they cannot provide critical analytical skills to their work."

In the Classroom

At the academy, Gallagher has developed a comprehensive mutual fund accounting curriculum,"the only one that is available in the industry," he maintains. "In the introductory course, I teachthe basics of the industry, the structure and responsibilities of various parties in the industry, andthe fundamentals of the investments for what fund accountants are asked to account. We use aparticipative case study approach to take our students through a complete day of fund accountingthe old fashioned way by having them make debit and credit entries on a trial balance in order to

have them understand the basic operations and acquire the competence and proficiency of whatthey do. Unlike other companies, mutual funds close their books every day. This is how investorsare able to see the prices on their funds in the newspapers. Mutual fund accounting is notcomplex because of the accounting activities; it is complex because of the strict rules andregulations that govern financial services firms, the tight nightly time frames that are required,and the absolute accuracy that is essential."

In other classes, Gallagher covers more advanced issues such as complex investments, tax andfinancial reporting, performance calculations, and what it takes to be a mutual fund accountingsupervisor. All of these classes are taught from the same perspective. What are the investmentsreally designed to do and what are the rules surrounding the tax, reporting, and performancerequirements? "I often find industry personnel who are responsible for completing tasks but have

never been taught the rules and requirements. For fund accounting supervisors who usuallybecame supervisors because they were the best fund accountants, I talk about some very stronglyheld beliefs regarding the role of the manager, which includes training as a primary function. Toreinforce our training we utilize customized 'Learning Journals' that contain exercises anddiscussion points for the participants to use and discuss."


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Choice Investment

According to Gallagher, mutual funds have become the investment of choice in the UnitedStates. "While mutual funds have stayed true to their original mission of offering professionallymanaged, liquid and diversified investment choices, investment professionals frequently take asimple concept and complicate matters. With over 8,000 funds and 20,000 fund classes, investorsare literally screaming for advice and guidance in managing the very critical financial aspect oftheir lives. Mutual funds have enjoyed a virtually unblemished record for over 50 years, whichcontinues to reinforce the confidence investors have in mutual funds. To retain publicconfidence, mutual funds must remain committed to keeping the cost of investments low, goabove and beyond compliance with rules and regulations, and keep investor education as thecornerstone of what they offer to the public.

Gallagher says that independent accountants who offer investment advice have the benefit ofalready knowing the financial affairs of the client. "My biggest concern is that when accountantsbranch out in order to meet more client needs, they do so without being qualified. Even though Ihave spent 20 years in the mutual fund business, I have decided to work with an investment

professional who I believe is better equipped to help me make objective and timely investmentdecisions. What I learned is not unlike the tax lawyer who seeks out legal counsel when in someother form of trouble. CPAs who expand their business to offer investment advice should do itfor reasons other than just adding revenue. Like other financial professionals, they need tounderstand that helping clients with investment decisions has a lot to do with their clientsachieving their hopes and dreams."

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