Series accounting / equalisation

Under series accounting, every subscription date creates a separate series with its own NAV and high-water mark. When the fund crystallises, series that are above their high-water mark are rolled up into the lead series. It is simple to explain and audit but multiplies the number of NAVs the administrator publishes.

Equalisation keeps a single NAV per class and instead tracks an equalisation credit or contingent redemption per investor. It is harder to explain to investors and is less common in new funds.

POD uses series accounting: each dealing creates a series with its own high-water mark, and series above the mark roll up at crystallisation.