Adjusted NAV Expense Calculation Examples

A few calculation examples follow for adjusted NAV expenses.

Ledger Based Expense Rule

In this example, you set up an Adjusted NAV Expense Rule to include ledger account balances from all ledger accounts in the capital and income ledger accounts. (Ledger account range 3001000000 – 4999999999). The ledger account amount displayed by the query is 23,516,010.00.

The variable expense uses a tier rule shown in the following table.

Using the previous tier rule and the ledger based NAV component amount of 23,516,010.00, the system calculates the variable expense as shown in the following table.

NAV Based Expense Rule

In this example, you set up an Adjusted NAV Expense Rule to exclude all short positions of a security for the income statement ledger account range (3001000000 through 5999999999).

You set up the variable expense to have a NAV component of prior night assets and you include the Adjusted NAV Expense Rule on the variable expense setup.

The prior night net assets for the fund are 5,273,000.00. The total amount of the adjusted NAV expense rule is -34,500.00. Summing up the Prior Night Assets plus the adjusted NAV Expense rule amount gives a total adjusted NAV amount of 5,307,500.00 (5,273,000.00 + -34,500.00). Using the same tier rule used in the previous Ledger Based Expense Rule example, the system calculates the variable expense as shown in the following table.