Page Comparison

A fund of funds allocation rule identifies which fund of funds allocation methodology the system uses for an entity when you process fund of funds cash allocations. It also defines the cash ledger rule, cash bounds, and broker to use.

 The fund of funds allocation rule allows you to choose whether to include or exclude capital stock activity, capital stock reinvestment activity, and settlements. And it lets you determine whether to use the prior or current day security price when the trade shares are purchased or sold. After you create a fund of funds allocation rule, you can assign it to each top-level entity that plans to utilize the fund of funds cash allocation process based on those criteria. 

The system uses the reference data in the fund of funds allocation rule to calculate the cash flow and final allocation amounts for each underlying security. The six available fund of fund allocation methods include Actual, Rebalance

Asset

Class, Rebalance

Over

/Under, Rebalance

Target, Security

Level Target with Rebalance, and User

Defined. For more information about how the system uses each method during processing, see

Calculate Fund of Funds Allocations using the Allocation

Method. The system uses the cash ledger rule associated with the fund of funds allocation rule to retrieve the cash balance used in the cash flow calculation. The cash bounds on the rule determine the final cash flow

to allocate down to the underlying funds. The system uses the broker code on the fund of funds allocation rule as the broker code when

it produces the pending trades. 

You can create, edit, and delete fund of funds allocation rules. You can also view the active fund of funds allocation rules or view a history of all the updates to the fund of funds allocation rule.