In the Calculate Theoretical Distribution panel, you can can calculate multiple daily mil rates and yields to calculate the theoretical distribution yield on an ad hoc basis. This allows you to calculate multiple daily yields and report them to clients. The theoretical yield calculated is for informational purposes and does not impact the NAV. When you calculate a theoretical yield, the system calculates the yield and posts it to a table where you can extract it and deliver it to vendors/third parties.
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The theoretical yield calculations uses the entity's Distribution Shares method. Distribution adjustments do not apply to theoretical mil rates and yields. NII entity level elections such as distribution absorption method (yield to minimum) and NII split method do not apply to theoretical yield calculations.
To calculate theoretical distribution:
In Accounting Center, in the left navigation pane, click Fund
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Accounting >
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Distributions > Net Investment Income
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> Calculate Theoretical Distribution.
You see the Calculate Theoretical Distribution panel.In
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the Entity ID
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and Entity Name
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fields, specify the
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unique identifier or name of the entity.
In
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the Portfolio Currency
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field, specify the base currency in which the account is valued.
In the
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Accounting Date
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field, specify the accounting date.
In the Net Investment Income Profile field, select the NII distribution rule that defines the ledger accounts to use for calculating the theoretical distribution yield.
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Click Submit.
After you calculate theoretical distribution, you can use the Theoretical Distribution Yield report to view the theoretical distribution calculation results.