Edit Fund of Funds Theoretical Targets

In the Edit Fund of Funds Theoretical Target panel, you can update the rates if you want to see theoretical allocations with different target rates than those used for the daily allocations. You can change the fund of funds theoretical targets for a top-level fund that uses the fund of funds cash allocation process.

This panel behaves in a similar manner to the Edit Fund of Funds Target panel. It uses a two-step process to update the target percentages. When you edit fund of funds theoretical targets, you can change the target percentage values for the current active set of fund of funds targets for the fund's underlying fund/securities. When you edit fund of fund theoretical targets, you must ensure that the sum of the target percentages for the underlying fund/securities, entered in decimal format, is equal to 1.0 after you make your edits.

You can use the Edit Fund of Funds Theoretical Target panel if you want to temporarily exclude an underlying fund/security from the theoretical fund of funds cash allocation process. You can add a zero allocation for a security, which results in that security being excluded from the allocations. Then you adjust all other underlying target percentages for the top-level fund so that the sum is equal to 1.0.

You can add Target Percentage 2 values, previously only used for the User Defined allocation method, regardless of the fund’s assigned method, so that User Defined may be used on a theoretical basis.

To edit a fund of funds theoretical target:

In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Fund of Funds > Edit Fund of Funds Theoretical Target.
You see the Edit Fund of Funds Theoretical Target panel.
In the Entity ID and Entity Name fields, specify the unique identifier or name of the master fund, or top-level fund, associated with the targets you want to edit.
Click the Start Date field, and specify the beginning date for the theoretical rates to include.
Click the End Date field, and specify the ending date for the theoretical rates to include.
You do not have to specify a value.
Click Submit.
You see a row for each underlying fund/security that currently has fund of funds targets for the selected entity in the Show All tab.
Select the check box for each row you want to edit, and then click Change Fund of Fund Theoretical Targets.
In the Change Fund of Fund Theoretical Targets grid, you see a row for each selected current fund of funds target for the top-level entity.
In the Start Date and End Date fields, specify the starting and ending date for the theoretical target.
You do not have to specify an end date. This allows you to add multiple periods of fund of funds theoretical target ratios.
In the Asset Class Type field, you can change the value of BOND or EQTY for each underlying fund/security, as needed.
In the Target Percentage box, you can change the theoretical target percentage, in decimal format, for each underlying fund/security, as needed.
You can enter a value of zero to exclude an underlying fund/security from the theoretical fund of funds cash allocation process.
In the Total Target Percentages box, review the values displayed to ensure they are equal to 1 when you finish editing all Target Percentage values.
The system updates this value for all rows as you edit the fund of funds theoretical targets for the entity shown in the grid. For example, if you edit Target Percentage values with initial values of 0.1, 0.4, and 0.5, and change them to 0.0, 0.5, and 0.5, the corresponding total value in each row changes to 1.0.
In the Target Percentage 2 box, you can change the additional target percentage, in decimal format, for each underlying fund/security, as needed.
This option applies to a top-level entity that uses the User Defined fund of funds allocation method. You can specify Target Percentage 2 values regardless of the fund’s assigned method, so that you can use the User Defined allocation method on a theoretical basis.
In the Total Target Percentages box, review the values displayed to ensure they are equal to 1 when you finish editing all Target Percentage 2 values.
This option applies to a top-level entity that uses the User Defined fund of funds allocation method. You can specify Target Percentage 2 values regardless of the fund’s assigned method, so that you can use the User Defined allocation method on a theoretical basis.
Click Submit.