WRITERS NOTE: NEW PAGE
Before you use the system to calculate Weighted Average Life and Weighted Average Maturity values for master funds, review the options you can select at the master fund level and their impact.
...
The Calculate NAV process can use the master fund-level WAM and WAL elections to determine which options to use to calculate Weighted Average Life and Weighted Average Maturity, rather than rely on default hardcoded options. If you select no WAM/WAL option on the entity setup for a money market portfolio composite type, the system calculates Weighted Average Maturity using the default election of Call Schedule and Exclude Currency Holdings, and it calculates Weighted Average Life using the default election of Call Schedule and Include Currency Holdings.
...
Master Funds Other Than Money Market Funds
When you run the Calculate NAV panel/event, the system can calculate Weighted Average Maturity and Weighted Average Life value for master funds with a Master Fund Type other than Money Market. The process is similar to that used for money markets.
However, while you do not need to set up the master fund-level WAM Election and WAL Election settings for a Money Market type master fund and calculate WAM and WAL, this does not apply to master funds that are not money market funds. You must specify the master fund entity elections of Wam Election and Wal election for mutual fund portfolio composite types to enable the system to calculate the WAM and WAL. If the Calculate NAV events determine that the master fund is not a money market portfolio, and if you do not specify the WAM/WAL elections for the master fund, then the system cannot calculate the Weighted Average Maturity and Weighted Average Life values. The system does not use the default hardcoded values associated with a null value for mutual fund portfolio composite types.
WRITERS NOTE: does this logic apply to any master fund that does not have a Money Market type, or does it apply only to master funds that have a Mutual Fund type? That is, does the product support WAM/WAL calculation during NAV calculation for any master fund or only for money market and mutual fund type master funds?
About Master Fund Setup
The system can use master fund-level WAM and WAL elections during the NAV calculation process, when the system runs the Weighted Average Maturity or the Weighted Average Life reports.
...