During setup, you can create NAV rules and assign them to each closed-end fund eligible for preferred shares processing. With the NAV rule, you can select ranges of ledger accounts from the income statement or the trial balance . (ledger account 3000000000 – 5999999999) that the system uses during the Valuation Close NAV Calculation process to calculate a net asset value for the fund.
By defining your own NAV rule, you can prevent the Valuation Close NAV Calculation process from taking the total amount of the ledger accounts from the income statement of the trial balance. (ledger account 3000000000 – 5999999999) by excluding certain accounts. For example, you can exclude preferred stock accounts from the total net assets.
WRITERS NOTE: Discuss the following. What panel do clients use to do this and how do they assign it to the entity? Is this custom?
Additionality if the fund choses The system uses the ledger accounts to generate the total net assets of the fund used in the NAV per share calculation. You can use the NAV rule for the master fund to exclude series specific ledger accounts for the fund's total net assets.
Additionally if the fund chooses to calculate net asset value during the start of day or transaction close event groups, then you need to create a new ledger item editor profile will need to be created and used and use it for the entity. The new ledger item editor profile should reflect the same ledger account range as the NAV calculation rule.