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Before a mutual fund entity can use the share class hedging process, you must identify the hedge share classes eligible for share class hedging processing. In addition, you must set up sector exclusions for the mutual fund entity.

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Option

Tag

Description

Share Class Hedging

18045

Determines if the share class elects share class hedging. Share class hedging allows a share class to have exposure to assets/securities denominated in a foreign currency without the associated currency risk of the base currency of the fund. A share class can elect to use share class hedging in order to allow Eagle Accounting to allocate the currency gain/loss directly to the hedge class. Options include: 

  • Yes. The share class is eligible to process share class hedging. Realized gain-loss on capital stock settlements is fully allocated to the hedge share class. The system posts any calculated gains or losses associated with hedge share classes directly to that share class.

  • No. Default. The share class is not eligible to process share class hedging. Realized gain-loss on capital stock settlements is not fully allocated to the hedge share class. The system posts any calculated gains or losses associated with hedge share classes to the total fund to be allocated to all share classes within the entity.

WRITERS NOTE: revised after review

For more information about setting up share classes, see Manage Share Classes and Create Entity Share Class Information Panel Options. For more information about setting up master funds, see Create Master Fund Entities and Create Master Fund Panel Options.

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