Edit Fund of Funds Targets

Owned by Nancy Cohn (Deactivated)
Last updated: Apr 04, 2024 by Kinga Huszno
3 min read

In the Edit Fund of Funds Target panel, you can change the fund of funds targets for a top-level fund that uses the fund of funds cash allocation process. When you edit fund of funds targets, you can change the asset class type, target percentage values, and reinvestment ratios for the active set of fund of funds targets for the fund's underlying fund/securities. When you edit fund of fund 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 Targets panel if you want to temporarily exclude an underlying fund/security from the fund of funds cash allocation process. For example, if you want to exclude a fund from the allocation process for one week, you can use the Edit Fund of Funds Target panel to adjust the target percentages of the fund you want to exclude to a value of 0 (zero). Then you adjust all other underlying target percentages for the top-level fund so that the sum is equal to 1.0. A week later, you edit the fund of funds targets again, returning the percentages to their original values so that they once again include the fund and the total percentages sum to 1.0.

To edit a fund of funds target: 

  1. In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Fund of Funds > Edit Fund of Funds Target.
    You see the Edit 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, associated with the targets you want to edit.

  3. In the Start Date and End Date fields, specify the beginning and ending dates for the target rates you want to edit.
    You do not have to specify an end date.

  4. 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. 

  5. Click Change Fund of Fund Targets.
    In the Change Fund of Fund Targets grid, you see a row for each current fund of funds target for the top-level entity. 

  6. In the Asset Class Type field, you can change the value of BOND or EQTY for each underlying fund/security, as needed.

  7. In the Target Percentage box, you can change the target percentage, in decimal format, for each underlying fund/security, as needed.

  8. 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.

  9. In the Total Target Percentages box, review the values displayed to ensure it is 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 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. 

  10. 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 appears if you edit fund of funds targets for a top-level entity that uses the User Defined fund of funds allocation method.

  11. In the Total Target Percentages box, review the values displayed to ensure it is equal to 1 when you finish editing all Target Percentage 2 values. 
    This option appears if you edit fund of funds targets for an entity that uses the User Defined fund of funds allocation method,

  12. Click Submit.