In the Calculate Theoretical Distribution panel, you can calculate multiple daily mil rates and yields to calculate the theoretical distribution yield on an ad hoc basis. This allows you to calculate multiple daily yields and report them to clients. The theoretical yield calculated is for informational purposes and does not impact the NAV. When you calculate a theoretical yield, the system calculates the yield and posts it to a table where you can extract it and deliver it to vendors/third parties.
In order to calculate theoretical distribution yields, you must select an NII distribution rule that defines the ledger account ranges to use. This allows you to calculate multiple theoretical daily mil rates and yields for a fund and share class, regardless of the distribution and NII rule applied at the entity level. This process does not post to the ledger or any associated subledger tables and thus has no accounting impact in Eagle Accounting.
The theoretical yield calculations uses the entity's Distribution Shares method. Distribution adjustments do not apply to theoretical mil rates and yields. NII entity level elections such as distribution absorption method (yield to minimum) and NII split method do not apply to theoretical yield calculations.
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