Understand User Defined NAVs

Owned by Nancy Cohn (Deactivated)
Last updated: Mar 07, 2024
3 min read

You can manually input the asset value used to calculate a variable expense on a daily or case by case basis for a single accounting date. When you do so, the system ignores all other adjusted NAV expense rule criteria or NAV components, and calculates the variable expense based on the asset amount that you manually entered. You can also manually adjust the asset value used to calculate a variable expense. 

Use User Defined NAV as the NAV Component for a Variable Expense

If you want to manually input the asset value used to calculate a variable expense on a daily basis, you can use a User Defined NAV Component for a variable expense to have the system use a user defined or an external NAV amount rather than calculating the NAV. 

If you want to use user defined NAVs to determine the total net assets used to calculate daily expenses of a fund:

  1. Be aware that you do not need to set up an adjusted NAV expense rule.

  2. Set up a variable expense or a group variable expense that has a NAV Component set to User Defined NAV. 
    For information, see Create a Variable Expense or Create a Group Expense. 

  3. Manually input a Net Asset Value for every processing date.
    For information on manual NAV overrides, see Manage Manual NAV Overrides and Adjustments for Adjusted NAV Expenses.

  4. Process the expense accruals.

Override NAVs on an Ad Hoc Basis

When you use adjusted NAV expenses, you can manually input the asset value used to calculate a variable expense on case by case basis for a single accounting date. 

You can override an expense's NAV component by supplying an external NAV amount for: 

  • Variable and variable group expenses that have a dollar based (Prior Day Total Net Assets, Adjusted Net Assets, Average Net Assets) NAV component and use a NAV based adjusted NAV expense rule. 

  • Variable and variable group expenses that have a Ledger Based NAV component and use a Ledger Based adjusted NAV expense rule. 

When you calculate accruals for the variable or variable group expense, if a manual override value is present, the system uses this external Net Asset Value first in the tiered expense calculation. For information on manual NAV overrides, see Manage Manual NAV Overrides and Adjustments for Adjusted NAV Expenses.

Adjust NAVs on an Ad Hoc Basis

When you use adjusted NAV expenses, you can manually adjust the net asset value used to calculate a variable expense on case by case basis for a single accounting date, a range of dates, or for an open ended period. 

You can add a manual adjustment to an existing NAV component by supplying an adjustment amount for: 

  • Variable and variable group expenses that have a dollar based (Prior Day Total Net Assets, Adjusted Net Assets, Average Net Assets) NAV component and use a NAV based adjusted NAV expense rule. 

  • Variable and variable group expenses that have a Ledger Based NAV component and use a Ledger Based adjusted NAV expense rule. 

When you calculate accruals for the variable or variable group expense, if a manual adjustment value is present, the system uses it in the expense calculation. For information on manual NAV adjustments, see Manage Manual NAV Overrides and Adjustments for Adjusted NAV Expenses.

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