Create Fund of Funds Allocation Rules

In the Create Fund of Funds Allocation Rule panel, you can create a fund of funds allocation rule.

To create a fund of funds allocation rule:

In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Fund of Funds > Create Fund of Funds Allocation Rule.
You see the Create Fund of Funds Allocation Rule panel.
Complete the options in the Create Fund of Funds Allocation Rule panel.
Click Submit.

After you create a fund of funds allocation rule, you can assign that rule to a master fund when you create or edit it.

Create Fund of Funds Allocation Rule Panel Options

The following are the options in the Create Performance Fee Rule panel.

Option	Tag	Description
Add Fund of Fund Allocation Rule
Fund of Fund Allocation Rule Name	11524	Specifies the name of the fund of funds allocation rule.
Fund of Fund Allocation Method	2786	Identifies the fund of funds allocation method that the fund of funds allocation rule uses. Each method allows the system to calculate how to apply the cash flow on the top level fund to each underlying securitized fund. For a description of the calculations associated with each method, see Understand the Fund of Funds Allocation Methods. Options include: ACTUAL. The Actual fund of funds allocation method. REBALANCE_ASSET_CLASS. The Rebalance Asset Class fund of funds allocation method. REBALANCE_OVER_UNDER. The Rebalance Over/Under fund of funds allocation method. REBALANCE_TARGET. The Rebalance Target fund of funds allocation method. SECURITY_OVER_UNDER. The Security Level Target with Rebalance fund of funds allocation method. USER_DEFINED. The User Defined fund of funds allocation method.
Ignore Same Day Cap Stock Settlements	680	Determines whether the system includes same day capital stock settlements in the cash flow calculation. This scenario occurs when you book and settle cap stock on the same day. Options include: Yes. The system does not include, or ignores, same day cap stock settlements in the cash flow calculation. If you book and settle cap stock on the same day, the system leaves the settled cash amount out of the cash buffer until the next day, and does not double count the capital stock. The system continues to include the cap stock amount in the current day's total cap stock and adjusted NAV. . No. Default. The system includes same day cap stock settlements in the cash flow calculation. If you book and settle cap stock on the same day, the system includes both the capital stock and the capital stock settlement in the gross cash flow, double counting the capital stock. As a result, a NAV calculation error can occur.
Cash Upper Bound	11525	Specifies the cash upper board for the rule. The rule's cash bounds determine the final cash flow used to allocate down to the underlying funds. You must specify a cash upper bound that is greater than the cash lower bound. The value has a decimal format. For example, .10 for ten percent.
Cash Lower Bound	11526	Specifies the cash lower board for the rule.The rule's cash bounds determine the final cash flow used to allocate down to the underlying funds. The value has a decimal format. For example, .05 for five percent.
Cash Buffer Target	11527	Specifies the cash buffer target for the rule. The cash buffer target value falls in between the cash upper bound and cash lower bound values, and has a decimal format. For example, the cash upper bound is .10, the cash lower bound is .05, and the cash buffer target is .07.
Fund of Fund Cash Ledger Rule	16155	Specifies the fund of funds cash rule to use for the fund of funds allocation rule. The system uses this cash ledger rule to retrieve the cash balance used in the cash flow calculation. For more information, see Manage Fund of Funds Cash Rules.
Broker Name	1235	Specifies the name of the primary broker.
Broker Code	88	Specifies the code that represents the broker. The fund of funds allocation process uses the broker code when it produces the pending trades.