At this point you know how to establish convertible relationships between funds and how they are used. This section explains how to configure the system defaults necessary for calculating convertible returns.
Before proceeding, there are two important concepts to note: anniversary date and conversion date.
The anniversary date is the period of time after which a fund is subject to conversion. In contrast, the conversion date is the actual date that the physical conversion takes place. For example, firm's B shares might convert into A shares after 5 years, but the conversion may actually take place on the 1st business day of the month after the 5 year anniversary.
PACE provides system settings to allow you to customize each of these variables.
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