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- Load exchange rates to the database.
For general information about foreign exchange rates data, refer to the Performance Calculation User Guide. - In the Performance IRR Analysis field, ensure that the underlying fields you select as the Beginning Market Value, End Market Value, and Cash Flows fields have their respective Currency Process fields set correctly. Specify the underlying field as:
Beginning Market Value should always have its Currency Process field set to Begin Value. Eagle Performance converts the beginning market value with the FX rate that has an effective date prior to the effective date of the beginning market value, unless the field is an inception-to-date field. If the field is an inception-to-date field, Eagle Performance converts the beginning market value at the FX rate from the inception date of the entity.
End Market Value should always have its Currency Process field set to End Value. The ending market value uses the FX rate from the effective date of the ending market value or the final cash flow.
Cash Flows should have its Currency Process field set as follows. If you use a:
Daily frequency and set the Currency Process field set to End Value, Eagle Performance uses the FX rate from the effective date of the cash flow in converting that cash flow.
Daily frequency and set the Currency Process field set to Begin Value, Eagle Performance uses the FX rate from the previous business calendar day in converting that cash flow.
Monthly frequency and set the Currency Process field set to End Value, Eagle Performance uses the FX rate from the effective date of the cash flow in converting that cash flow.
Monthly frequency and set the Currency Process field set to Begin Value, Eagle Performance uses the FX rate from the previous month end date of the cash flow in converting that cash flow.
The Performance Analysis report uses the correct FX rate based on cash flow effective date, frequency, and the Currency Process value selected.
An example of a cash flows field in shown in the following figure.
For more information about setting the Currency Process attribute for Regular fields, refer to the section that describes Performance Database Field Attributes in the Performance Calculation User Guide. - Within the Performance Analysis report profile, click Options, then select the appropriate currency conversion settings on the Select the Currency tab of the Advanced Options dialog box.
To illustrate, two examples follow:
The IRR field is a one year IRR field as of 12/31/07. Cash flow Currency Process is set to End Value. The frequency is Monthly. The system converts the begin market value using an FX rate from 12/31/06 (beginning market value effective date), and converts the end market value using an FX rate from 12/31/07 (End Market Value effective date). It converts the cash flows with the FX rate with the effective date of the cash flows.
The IRR field is an inception to date field with the entity inception date of 01/15/07. Cash flow field Currency Process is set to Begin Value. The report as of date is 12/31/07. The frequency is Monthly. The system converts the beginning market value with the FX rate with the effective date 01/15/07 (the entity inception date). It converts the cash flows using the FX rate from the previous month end date. It converts the ending market value with the FX rate from the ending market value effective date.
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