A master fund entity can have multiple share classes. A share class is a designation, usually alphabetic, given to a fund's shares. Typically, "A" class is used for front end load funds, "B" class is used for back end load funds and "C" class is used for level load funds. The costs associated with buying, holding, and redeeming the shares define the differences between the share classes.
In Eagle's Accounting solution, all classes are tracked as well as the original or total fund from which the amounts are allocated. The allocation ratios between the classes are calculated and the resulting ratios are then used to allocate the appropriate amounts. All figures are stored for reporting purposes.

A master fund entity can have multiple sectors as well as multiple share classes. The sectors represent investment strategies of the master fund entity and are usually run by different managers in an attempt to mitigate risk across the fund. All sectors are tracked. The allocation ratios between the sectors are calculated and the resulting ratios are then used to allocate the appropriate amounts. All figures are stored for reporting purposes.

Share Class Allocation Methods

Eagle's Accounting solution offers the following methods for allocating activity, such as income, expenses, capital gains/losses, and unrealized gains/losses, among the different share classes:

• Relative Net Asset
• Fair Value Settled Shares Outstanding
• Shares Outstanding
• Prior Night Net Assets
• Settled Shares
• Settled Shares without Prior Day Adjustment
• Class Fixed Percentage
• Relative Net Assets at Market Value

Sector Allocation Methods

Eagle's Accounting solution offers two methods of allocating activity, such as cash, distributions, dividend reinvestments, expenses, redemptions, subscriptions, and short term investments, among the different sectors. These include Sector Percentage of Total Net Assets and Sector Fixed Percentage.

During sector allocation, the system allocates cash to transfer cash activity from the master fund to its sector funds to facilitate accurate reporting and mutual fund performance calculations at the sector level.

Add or Update Class Allocation Rules

In the Add/Update Allocation Rule panel, you can add and update a class allocation rule.

To add or update a class allocation rule:

1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
2. Enter Add/Update Allocation Rule in the Start Search text box.
3. Click the Add/Update Allocation Rule link to access the panel.
   You see the Add/Update Allocation Rule panel.
4. In the Add or Update Allocation Rule field, specify whether you are adding or updating an allocation rule. 
   Options include:
   –  Add. Default. Used to create a new allocation rule and enter related rule criteria.
   –  Update. Used to enter additional rule criteria for an existing allocation rule. For example, after you add an allocation rule and assign a class activity type/method of Income and Class Fixed Percentage, you can update that allocation rule and assign a class activity type/method of Unrealized Gain/loss and Current Day Adjusted Net Asset.
5. In the Chart of Account Name field, specify the name of the Chart of Accounts associated with the allocation rule.
6. In the Allocation Rule ID field, specify the name of the allocation rule you are adding or updating.
7. In the Sector/Class field, indicate whether you are adding or updating an allocation rule for a sector or share class. 
   If you are adding an allocation rule for a share class, select Class. Otherwise, if you are updating an existing class allocation rule, this field is locked, and displays Class.
8. In the Activity Type field, if you set the Sector/Class field to Class, this field specifies the type of activity you are allocating among the different classes. 
   Options include:
   –  Capital Gain/Loss
   –  Expense
   –  Income
   –  Unrealized Gain/Loss
   You can also add your own activity type for classes.
9. In the From General Ledger Account field, specify a beginning general ledger account for the allocation rule. 
   The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.
10. In the To General Ledger Account field, specify an ending general ledger account for the allocation rule. 
    The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.
11. In the Class Method field, specify the method of allocating activity among the different share classes for the allocation rule. 
    Options include:
    –  Relative Net Asset.
    –  Fair Value Settled Shares Outstanding.
    –  Shares Outstanding.
    –  Prior Night Net Asset.
    –  Settled Shares.
    –  Settled Shares Without Adjustment.
    –  Class Fixed Percentage. If you select this value, you need to add a fixed allocation percentage for the share class. See the Manage Fixed Allocation Ratios section.
    –  Relative Net Asset at Market Value.
    –  Current Day Adjusted Net Asset. Incorporates dilution activity into the allocation ratio.
12. Click Submit.
13. Close the Add/Update Allocation Rule bottom tab.

Add or Update Sector Allocation Rules

In the Add/Update Allocation Rule panel, you can add and update a sector allocation rule.

To add or update a sector allocation rule:

1. From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
2. Enter Add/Update Allocation Rule in the Start Search text box.
3. Click the Add/Update Allocation Rule link to access the panel.
   You see the Add/Update Allocation Rule panel.
4. In the Add or Update Allocation Rule field, specify whether you are adding or updating an allocation rule. 
   Options include:
   –  Add. Default. Used to create a new allocation rule and enter related rule criteria.
   –  Update. Used to enter additional rule criteria for an existing allocation rule.
5. In the Chart of Account Name field, specify the name of the Chart of Accounts associated with the allocation rule.
6. In the Allocation Rule ID field, specify the name of the allocation rule you are adding or updating.
7. In the Sector/Class field, indicate whether you are adding or updating an allocation rule for a sector or share class. 
   If you are adding an allocation rule for a sector, select Sector. Otherwise, if you are updating an existing sector allocation rule, this field is locked, and displays Sector.
8. In the Activity Type field, if you set Sector/Class to Sector, this field specifies the type of activity you are allocating among the different sectors.
   Options include:
   –  Cash
   –  Distributions
   –  Dividend Reinvest
   –  Expenses
   –  Redemptions
   –  Sector "Catch All"
   –  Short Term Investment
   –  Subscriptions
   You can also add your own activity types for sectors.
9. In the From General Ledger Account field, specify a beginning general ledger account for the allocation rule. 
   The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.
10. In the To General Ledger Account field, specify an ending general ledger account for the allocation rule. 
    The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.
11. In the Sector Method field, specify the method of allocating activity among the different share classes or sectors for the allocation rule. 
    Options include:
    –  Sector Percent Total Net Assets
    –  Sector Fixed Percentage. If you select this value, you need to add a fixed allocation percentage for the sector. See the Manage Fixed Allocation Ratios section.
12. Click Submit.
13. Close the Add/Update Allocation Rule bottom tab.

List Allocation Rules

In the List Allocation Rules panel, you can view a list of allocation rules for a given chart of account.

To list allocation rules: