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In the Create Fund of Funds Target panel, you can create fund of funds targets for a top-level fund that uses the fund of funds cash allocation process.
When you use this panel, you identify all the underlying securities held by the top-level fund, you select which underlying securities to use for the fund of funds cash allocation process, and you enter a target percentage and asset class type for each security selected. The sum of the target percentages, entered in decimal format, is equal to 1.0. If you want to review the underlying funds for a top-level fund before you begin, you can use the List Reference Data for Fund of Funds panel to list the fund of funds underlying holdings.
To create a fund of funds target:
- In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Fund of Funds > Create Fund of Funds Target.
You see the Create Fund of Funds Target 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 fund of funds target.
- Click Submit.
You see a row for each underlying fund/security held by the entity that met your criteria in the Show All tab. They are securitized mutual fund holdings for the top-level fund, where the security's processing security type is Mutual Fund (EQEQMF). - Select the row for each securitized mutual fund holding for which you want to create targets so that a check mark appears in the check box, and click Add Fund of Fund Targets.
In the Add FOF Targets grid, you see a row for each securitized mutual fund holding you selected. - Click the row for each underlying security/fund, and in the Effective Date field, specify the effective date for the fund of funds target.
- In the Asset Class Type list, click the asset class for the underlying fund/security.
Options include:
- BOND
- EQTY - In the Target Percentage box, specify the target percentage for the underlying fund/security, entered as a decimal.
- In the Total Target Percentages box, review the value displayed to ensure it is equal to 1 when you finish entering all Target Percentage values.
The system updates this value for all rows as you add each fund of funds target for the entity shown in the grid. For example, if you enter Target Percentage values of .1, .4, and .5 for an entity's three underlying funds/securities, the corresponding total value in each row changes to 1.0. - If the top-level fund uses the User Defined fund of funds allocation method, in the Target Percentage 2 box, specify the target percentage for the underlying fund/security, entered as a decimal.
When you create fund of funds targets for an entity that uses the User Defined fund of funds allocation method, you define two target percentages for each underlying fund/security, defining one for a positive cash flow and another for a negative cash flow. - If the top-level fund uses the User Defined fund of funds allocation method, in the Total Target Percentages 2 box, review the value displayed to ensure it is equal to 1 when you finish entering all Target Percentage 2 values.
The system updates this value for all rows as you add each fund of funds Target Percentage 2 value for the entity shown in the grid. For example, if you enter Target Percentage 2 values of .1, .4, and .5 for an entity's three underlying funds/securities, the corresponding total value in each row changes to 1.0. - Continue to enter the effective date, asset class type, and target percentage values for each underlying holding in the grid.
- Click Submit.
Create Fund of Funds Target Panel Options
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Option | Tag | Description |
|---|---|---|
Add FOF Targets | ||
| Account | 5 | Displays the account for the selected entity. The Account field is the primary key for the Entity table. This is the top-level fund for the fund of funds structure. |
| Inception Date | 1138 | Displays the date the entity was created in the marketplace. |
| Xref Security ID | 1233 | Displays the cross reference security identifier for the selected underlying fund/security. |
| Xref Type | 1234 | Displays the cross reference security type, such as SEDOL, CUSIP, and so on. |
| Xref Number | 1232 | Displays the cross reference number, which is the number of the security alias identifier. |
| Effective Date | 1109 | Specifies the effective date for the fund of funds target. |
| Asset Class Type | 11574 | Specifies the asset class for the underlying fund/security. Options include:
|
| Target Percentage | 11573 | Specifies the target percentage for the underlying fund/security, entered as a decimal. |
| Total Target Percentages | 40 | Displays the total of all Target Percentage values for the funds/securities associated with the targets. To create fund of funds targets for a top-level entity, the value must be equal to 1 for all Target Percentage values. The system updates this value for all rows as you add each fund of funds target for the entity shown in the grid. For example, when you enter Target Percentage values of .1, .4, and .5 for an entity's three underlying funds/securities, the corresponding Total Target Percentages value in each row changes to 1.0. |
| Target Percentage 2 | 16604 | If the top-level fund uses the User Defined fund of funds allocation method, specifies the target percentage for the underlying fund/security, entered as a decimal. This field appears if you select an entity assigned a fund of funds allocation rule that uses the User Defined fund of funds allocation method. This option allows you to define two target percentages for each underlying fund/security, defining one for a positive cash flow and another for a negative cash flow. |
| Total Target Percentages 2 | 45 | Displays the total of all Target Percentage 2 values for the funds/securities associated with the targets. This field appears if you select an entity assigned a fund of funds allocation rule that uses the User Defined fund of funds allocation method. To create fund of funds targets for a top-level entity that uses the User Defined fund of funds allocation method, the value must be equal to 1 for all Target Percentage 2 values. The system updates this value for all rows as you add each fund of funds target for the entity shown in the grid. For example, when you enter Target Percentage 2 values of .1, .4, and .5 for an entity's three underlying funds/securities, the corresponding Total Target Percentages value in each row changes to 1.0. |
WRITERS NOTE: for User Defined, does it matter whether you use first and second target percentages as positive cash flow and negative cash flow? Do you use negative numbers for one target percentage?You don't enter negative values.