Review the following to become familiar with the Dynamic NAV Returns report.
The dynamic Mutual Fund Performance fields (MFP fields) are the mechanisms for calculating returns based on NAVs and distributions. The Dynamic NAV Returns report (MFP report) not only supports the calculation of these fields, but also allows you to commit the results back to the PERFORM database.
The report is located under the Performance Calculations section of the report explorer. This section is dedicated to the three report types that can commit returns (and other calculated data) back to the PERFORM database (Performance Returns, Composite Weighted Returns, and Dynamic NAV Returns).
This is a single date calculation report. However, it supports the committing of multiple performance periods. For example, a report is run as of a single effective date (6/30/2008) but can contain several MFP fields, each representing different performance periods (one month return as of 6/30/08, three month return as of 6/30/08, and so on).
The report can create performance records for three distinct sub period frequencies: daily, monthly or quarterly. The frequency of the performance record does not dictate, nor does it restrict the performance periods that can be included. This is an important distinction between the Dynamic NAV Returns (MFP Calc) report and the Performance Returns (Perf Calc). An MFP Calc report set to daily (monthly, quarterly) frequency does not mean you can only commit a daily (monthly, quarterly) return. For example the MFP Calc report allows you to calculate several dynamic returns (one day, MTD, QTD, YTD, Rolling one year and so on) and commit those returns to the database each day.
The 'begin effective date' stamped onto the performance record has nothing to do with the return values. It is set according to the frequency of the report. A daily report sets the begin effective date to the report's effective date - one day. Similarly, a monthly report subtracts one month. A quarterly report subtracts one quarter. Note that the begin effective date is not used by other Eagle Performance modules.
Each client has different storage requirements with respect to which returns are required and the frequency for which they must be stored. Therefore, Eagle does not have a suggested best practice. Note however, that the dynamic MFP fields are also supported in the Data Mart.One anticipated workflow can include using the MFP commit report to store sub period returns only. This includes committing the one day return each day and/or the one month return each month. This provides integration with the risk and composite modules. In addition, it also provides the ability to perform basic trend analysis in the Query Tool. Longer term returns (1Y, 5Y, 10Y) and other variations (load adjusted, post tax, gross of expense) can be sent to the Data Mart for use in reporting applications.
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The Dynamic NAV Returns report profile and the Data Mart are separate methods, and can be used independently of one another. The key distinction is that the Dynamic NAV Returns report profile pushes data to the Eagle PERFORM database where it becomes accessible to other Eagle modules. A Data Mart solution can include the same fields as a Dynamic NAV Returns report profile. However, the values are sent to the Data Mart (instead of the Eagle PERFORM database) where they are readily accessible to external reporting tools and processes. |