This section provides an example of how the rounding options are used, assuming your system administrator has set the options for rounding or truncating the offer price and reinvestment shares.
Rounding options affect the decimal precision and rounding method of intermediate values in the Mutual Fund Performance (MFP) calculation process. You can define a system-wide set of 11 rounding options, and can optionally create additional sets of rounding options that you can assign to entities and use in place of the system level settings for selected entities. For more information about setting up rounding options, see the Retail Fund Performance Configuration Guide.
This example uses the following sample database profile: MF Multiperiod Returns 6.0 – Configurable Rounding.
First, you show the calculation of returns with the default options to not round the offer price or the reinvestment shares. In Performance Center, from the left navigation, select Setup > Performance Options to configure rounding options.
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The results of this setting are shown in the following figure.
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The spreadsheet in the following figure shows how these returns are calculated.
Note the offer price and reinvest shares used to calculate the load-adjusted return are both used in their full precision.
Then, you change the performance options to round the offer price to two significant digits of precision and the reinvestment shares to three significant digits. See the following figure.
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Then you recalculate the returns. See the following figure.
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The spreadsheet in the following figure shows how these returns are calculated.
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Note that when you are calculating a load-adjusted return with the rounding option for offer price set, the offer price, begin shares, and reinvestment shares are all adjusted to reflect the new offer price.
To troubleshoot these results, you can select Performance Options under Performance Utilities to determine if the offer price or reinvestment shares rounding options are set. The log generated along with the report shows these messages if rounding is set:
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The log also informs you whether it used the system wide set of rounding options or a different set of rounding options to process a given entity. For more information about viewing the Performance Options window and viewing rounding information in report logs to troubleshoot your results, see the Retail Fund Performance Configuration Guide. Also see Using Performance Analysis Engine Logs.