Set Up Entities for Preferred Shares Processing

There are several entity-level fields that you must set up for each master fund that uses preferred shares processing. You can use the Create Master Fund panel or the Edit Master Fund/Sector panel to set up master funds for preferred shares processing.

To set up a master fund for preferred shares processing:

1. In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Mutual Funds > Create Master Fund. 
   You see the Create Master Fund panel where you can add a master fund. Otherwise, you can select the Edit Master Fund/Sector option to change a master fund.

2. In the Open/Closed-end Fund list, click Closed.
   This indicates that the entity is a closed-end fund.

3. In the Preferred Shares Processing list, click Yes. 
   This indicates that the fund is eligible for preferred shares processing. When you do so, in the Fund Distribution Fields section, the Daily Distribution Method field displays a value of Preferred Stock Distributions. Under Allocation Fields, the panel hides the Class Allocation Rule and the Sector Allocation Rule fields.  

4. In the NAV Rule field, select the NAV rule that defines the ledger accounts that the system uses when calculating a net asset value at valuation close.

5. Complete the remaining options in the panel, as appropriate.

6. Click Submit.