1. Convert benchmark to portfolio base currency

You can select this option to convert the benchmark specified in the report to the base currency of the portfolio. If a profile contains multiple entities with benchmarks in multiple base currencies, selecting this option converts each benchmark into its corresponding fund's base currency. Otherwise, leave the check box cleared.

If you select this option, option 2, which allows you to specify an alternate currency, becomes unavailable.

2. Convert each Entity's base currency to:
First Alternate Currency

You can specify an alternate currency to convert the returns and other values to this currency.

If you select a value, option 1. Convert benchmark to portfolio base currency, becomes unavailable, and the system converts each benchmark to the specified alternate currency.

Second Alternate Currency

If the specified First Alternate Currency currency has a start or a stop date, for example, the Euro has a start date of 1/1/99, the Currency Start Date or Currency Stop Date is noted and the Second Alternate Currency box becomes available.

For example, for a request to convert the report to the EURO (start date of 1/1/99). The report calculates a 3-year return as of 1/31/2000 for a USD-based fund. If a Second Alternate Currency is not defined, then PACE is not able to convert the return. However, if the French Franc (FRF) is selected as the Second Alternate Currency then PACE converts the return using the USD to FRF return from 1/31/1998 to 1/1/1999 and the USD to EURO return from 1/1/1999 to 1/31/2000.

3. How would you like to fetch your foreign exchange rates?

For handling missing exchange rates. Select , select the appropriate Fetch option, either the effective date of the report, or X number of days from the effective date.

In other words, if you have the fetch set to 3 days and there is no FX rate for the effective date of the report, FX rates up to 3 days prior to that effective date can be used in the report. The report tries to use the FX rate for the effective date first, if a rate does not exist, then the exchange rate for the day before the effective date is used.

4. Override Currency conversion if an entity family member exists?

If this option is selected, the report references an entity with an associated, predefined list of entities with different base currencies, and uses the entity from the list whose base currency matches the target currency of FX-conversion.

For example, you can store the returns for benchmarks in several different currencies and the report retrieves those if you decide to convert returns to another currency. It looks for and uses the data calculated and published by the vendor in the specified base currency instead of convert the returns dynamically.

Cross currency process is <ON/OFF> using currency <CURRENCY>

The system displays the cross currency calculation settings you chose at the PACE system level. It identifies whether you enabled cross currency calculations and shows the reference currency used for storing FX rates. These settings are needed for triangulation. For more information, refer to " Enabling Cross Currency Calculations in PACE."