...
Fund of funds cash allocation processing enables you to allocate a master fund’s cash inflows and outflows across its underlying fund investments. The available allocation methods use the market value of its underlying funds. The system calculates the investment ownership in each fund of funds by dividing each underlying security’s market value to the total market value of all underlying securities. Given the nature of the FOF fund structure, it is necessary to allocate the master fund’s cash inflows and outflows across the underlying funds, utilizing set allocation ratios. Several fund of funds allocation methods are available. The system puts the trades created by the fund of fund allocation process into a pending transaction status, and allowing you have to review the trades and manually release the trades to the STAR accounting engine after you review them. Releasing the pending trades is optional. You may prefer to receive the trades from an upstream system at a later time.
| Child pages (Children Display) |
|---|