In the Post Fund of Funds Allocation panel, you can process fund of funds cash allocations.
When you process fund of funds cash allocations, the Fund of Funds Cash Allocator calculates and allocates the cash flows for each underlying fund/security held in the fund of funds structure. If you set cash buffer targets for the fund of funds allocation rule, the system calculates the cash flow based on cash buffer targets that include lower bound and upper bounds. It calculates the cash flow of the top-level fund and allocates cash flows using percentages derived from the allocation method/rule, then uses this cash flow and applies it to each underlying fund of funds security held by the top-level fund. Then, it creates trades of the underlying securities based on those allocated dollars. It calculates the trade amount for each underlying security based on a calculation for the appropriate fund of funds allocation method. For detailed information about the fund of funds allocation process, see Understand the Fund of Funds Allocation Process.
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When you process fund of funds allocations, the system creates pending trades only if you set the allocation rule's NAV Price option to Prior. Otherwise, if you set the allocation rule's NAV Price option to Current, submitting the Post Fund of Funds Allocation panel does not create pending trades, and you must use the Run Fund of Funds Pending Trades panel to create pending trades. |
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In Accounting Center, in the left navigation pane, click Fund Accounting > Allocations > Post Fund of Funds Allocation.
You see the Post Fund of Funds Allocation panel.In the Entity ID and Entity Name fields, specify the unique identifier or name of the master fund, or top-level fund.
You must select a master fund with a fund of funds allocation rule assigned in the FOF Allocation Rule field at the entity level.In the Valuation Date field, specify the valuation date for the entity.
- In the Re-create Pending Trades field, indicate whether you want the ability to override a workflow manager error and generate pending trades when you are rerunning the fund of funds allocation process.
Options include:
- Yes. If you created or released pending trades before running the fund of funds allocation process, the system allows you to generate pending trades. When the system alerts you with a workflow manager error that pending trades already exist or have been released, you can override the error and generate pending trades.
- No. Default. If you created or released pending trades before running the fund of funds allocation process, the system alerts you with a workflow manager error that pending trades already exist or have been released. You cannot override the error and generate pending trades. Click Submit.
When you set the allocation rule's NAV Price option to Prior, the fund of funds allocation process creates trades in a Pending status. Depending on your business needs, you can export the trades in a report format for review purposes, delete the pending trades, and have the accounting system receive the trades at a later time. Or if you choose, you can use Accounting Center to review and update the pending trades, and then manually release those trades to the STAR accounting engine after you review them. For more information, see List Pending Trades for Fund of Funds Allocations and View Loopbacks for Fund of Funds Pending Trades. You can also use the List Fund of Funds Allocation & Cash Flow panel to review the detailed results of the allocation process.