Create Fund of Funds Targets

To create a fund of funds target: 

1. In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Fund of Funds > Create Fund of Funds Target.
   You see the Create Fund of Funds Target panel.

2. In the Entity ID and Entity Name fields, specify the unique identifier or name of the master fund, or top-level fund.
   You must select a master fund with a fund of funds allocation rule assigned in the FOF Allocation Rule field at the entity level. 

3. In the Valuation Date field, specify the valuation date for the fund of funds target. 

4. Click Submit.
   You see a row for each underlying fund/security held by the entity that met your criteria in the Show All tab. They are securitized mutual fund holdings for the top-level fund, where the security's processing security type is Mutual Fund (EQEQMF).

5. Select the row for each securitized mutual fund holding for which you want to create targets so that a check mark appears in the check box, and click Add Fund of Fund Targets.
   In the Add FOF Targets grid, you see a row for each securitized mutual fund holding you selected. 

6. Click the row for each underlying security/fund, and in the Effective Date field, and in the Start Date and End Date fields, specify the date range for the fund of funds target.
   You do not have to specify an end date. This allows you to add multiple periods of fund of funds target ratios when the data is available.

7. In the Asset Class Type list, click the asset class for the underlying fund/security.
   Options include:
   - BOND
   - EQTY

8. In the Target Percentage box, specify the target percentage for the underlying fund/security, entered as a decimal. 

9. In the Reinvestment Ratio box, you can specify the amount of cash from the allocation to reinvest back to the underlying fund/security, entered as a decimal.

10. In the Total Target Percentages box, review the value displayed to ensure it is equal to 1 when you finish entering all Target Percentage values.
    The system updates this value for all rows as you add each fund of funds target for the entity shown in the grid. For example, if you enter Target Percentage values of .1, .4, and .5 for an entity's three underlying funds/securities, the corresponding total value in each row changes to 1.0. 

11. If the top-level fund uses the User Defined fund of funds allocation method, in the Target Percentage 2 box, specify the target percentage for the underlying fund/security, entered as a decimal. 
    When you create fund of funds targets for an entity that uses the User Defined fund of funds allocation method, you define two target percentages for each underlying fund/security, defining one for a positive cash flow and another for a negative cash flow.

12. If the top-level fund uses the User Defined fund of funds allocation method, in the Total Target Percentages 2 box, review the value displayed to ensure it is equal to 1 when you finish entering all Target Percentage 2 values.
    The system updates this value for all rows as you add each fund of funds Target Percentage 2 value for the entity shown in the grid. For example, if you enter Target Percentage 2 values of .1, .4, and .5 for an entity's three underlying funds/securities, the corresponding total value in each row changes to 1.0. 

13. Continue to enter the start and end date, asset class type, and target percentage values for each underlying holding in the grid.

14. If you use a fund of funds allocation rule with the User Defined allocation method, you can click Add Row to add an unheld security to the fund of funds target allocation. This adds a row to the Add FOF Targets grid, allowing you to enter the unheld security asset ID into the panel.

15. Click Submit. 

An example and detailed field descriptions follow.

Create Fund of Funds Target Example

In this example you use the Create Fund of Funds Target panel to identify the top-level fund and validation date for the targets you want to add, and you click Submit. 

Open

In the Show All tab, you see a row for each underlying fund/security with holdings for the selected master fund. You select the check box for each underlying fund you want to include in the targets for use in the fund of funds cash allocation process, and then click Add Fund of Fund Targets.

Open

You see the Add Fund of Fund Targets panel. In the grid, you see a row for each underlying fund/security you selected in the Show All tab. You can enter the effective date, asset class type of Bond or Equity, and target percentage for each underlying fund security. The Total Target Percentage value changes as you enter information for each row, such that it shows a total of 1.0 for all the underlying funds/securities. In this example, the combined target percentages in decimal format of 0.1, 0.4, and 0.5 total to 1.0, or 100 percent. 

Open

When you create fund of fund targets for top-level entities that use the User Defined fund of funds allocation method, you additionally see a Target Percentage 2 field and a Total Target Percentage 2 field. The system allocates the cash flow using the percentages defined in the target fields. It allocates the positive cash to underlying securities using the percentage defined in the Target Percentage field. It allocates the negative cash using the percentage defined in the Target Percentage 2 field.

Create Fund of Funds Target Panel Options

In the Create Fund of Funds Target panel, you can identify the high-level fund and valuation date for which you are adding fund of funds targets. The following are the options in the Create Fund of Funds Target panel.

Add Fund of Fund Targets Panel Options

In the Add Fund of Fund Targets tab, an action entry panel used with the Create Fund of Funds Targets panel, you can add fund of funds targets for the underlying funds/securities you selected for the top-level fund. The following are the options in the Add Fund of Fund Targets tab.