This section describes setting up a return to be grossed up using the Annual Ratio method. There is a single check box on the Dynamic Mutual Fund Performance field called Gross (Use Ratio). If checked, the return is grossed up according to the prescribed methodology. If not checked, the return is not grossed up.
The following figure shows a field that has been configured to calculate a one-month gross of expense return based on the Annual Ratio method. Note: When the Gross (Use Ratio) option is enabled, the per share option (titled Gross of Expenses) is disabled. A field can only be defined to use one of the two gross return methodologies.
Figure : One-Month Gross of Expense Return using Annual Ratio Method
Eagle Performance supports the calculation of gross of expense returns (Annual Ratio method) for all three return types:
- Pre-Liquidation Pre-Tax
- Pre-Liquidation Post-Tax
- Post-Liquidation Post-Tax
Note:
In the absence of an official statement on the taxability of expense adjustment activity, Eagle provides a way to optionally ignore the shares from expense reinvestment during post-tax and post-liquidation processing.
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