Use Adjusted NAVs to Calculate Variable Expenses

You can set up variable expenses and variable group expenses to use an adjusted underlying NAV amount that the system uses to calculate a variable expense accrual. With adjusted NAV expenses, the system can adjust or derive the total net assets used to calculate daily expenses of a fund by including and excluding various components of fund activity. 

When calculating a fund’s daily variable expense, the system can use adjusted NAV expense rules to retrieve an adjusted NAV amount. Adjusted NAV expense rules can allow the system to adjust a fund’s net assets by including and/or excluding activity from a fund’s total net assets when the NAV component used to create a variable expense accrual is dollar based, such as Prior Day Total Net Assets, Adjusted Net Assets, or Average Net Assets. The rule also defines if the system should include or exclude long/short positions, security type, and general ledger accounts in the total net asset amount. You can also apply external values to the rule.