Report on Share Class Hedging

The Hedge Ratio report calculates the hedge ratio for each share class within an entity that elects share class hedging. The report calculates the hedge ratio by dividing the market value of the forward currency contracts held in the hedge sector by the total net asset value of the hedge share class. The hedge sector/hedge share class relationship is determined when setting up the entity.

You should run this report after portfolio valuation completes for the entity. For details on setting up and running the report, see Hedge Ratio Report. The Capital Stock Adjustments option in the report panel allows you to enter in an amount for capital stock adjustments and compare the hedge class adjusted net assets to the calculated forward currency contract market value. You can select this option only when you run the report at the share class level.

The following figure shows sample Hedge Ratio report results. The HedgeRatio% column value is highlighted.

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The following figure shows additional sample Hedge Ratio report results. The Capital Stock Adjustment column value is highlighted. When you ran this report, you specified a Capital Stock Adjustment value for a share class. This allows you to compare the hedge class adjusted net assets to the calculated forward currency contract market value.

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