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:
- 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. - In the Open/Closed-end Fund list, click Closed.
- In the Preferred Shares Processing list, click Yes.
When you do so, in the Fund Distribution Fields section, the Daily Distribution Method field displays a value of Preferred Stock Distributions. - 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.
- Complete the remaining options in the panel, as appropriate.
- Click Submit.
The following are the options in the Master Fund Setup panel that affect preferred shares processing. For a complete list of panel options, see Create Master Fund Panel Options.
Create Master Fund Panel Options - Fields That Affect Preferred Shares Processing
Option | Tag | Description |
---|---|---|
Master Fund Identification | ||
Open/Closed-end Fund | 1855 | Indicates whether the entity is an open-end or closed-end fund. Options include:
|
Preferred Shares Processing | 16858 | Indicates whether the master fund is eligible for preferred shares processing. This field appears if you set the Open/Closed-end Fund field to a value of Closed. Options include:
|
NAV Processing | ||
NAV Rule | 16850 | Identifies the name of the NAV rule for the master fund. The NAV ledger rule defines a range of ledger accounts that the system uses to calculate a total net asset value. When you use preferred shares processing, you can specify a NAV rule for the master fund to exclude preferred shares ledger accounts from the total net asset calculation amount. |
Fund Distribution Fields | ||
Daily Distribution Method | 3904 | Specifies the method the system uses to calculate the daily income distribution amount. Options include:
WRITERS NOTE: last bullet is new. |
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