Running Pool Allocation Processing

Running Pool Allocation Processing

Pool Allocation Processing allocates the values of all confirmed Transactions from General Ledger and all of the gains, losses, interest, and fees that you entered on the Reconcile tab to the appropriate Funds.

NOTE: You can allocate multiple Pools simultaneously (if all their accounts are reconciled).

1. In FACTS, click the Reconciliation supertab and then click the Processes tab.

2. Select Pool Allocation Processing from the Reconciliation Processes list, and then click the Run Process button. The Pool Allocation Processing window opens.
 
Pool Allocation Processing Window

3. Select the Pool(s) you want to allocate from the left-hand panel and then click the Add button. You can also click the All Unposted Pools button to add them all.

4. Click OK. The Pool Allocation Process Account Summary report opens in the FIMS Viewer. This report totals the Ending Balances for each Investment Account.

Example: Pool Allocation Process Summary Report

5. Review the report, and if you are ready to proceed, click Allocate on the FIMS Viewer menu bar. A confirmation window opens to ask if you are sure you are ready to allocate the selected Pool(s).

6. Click Yes. FACTS performs all allocations and tracks each Fund on a unitized basis.

By tracking when Transactions (receipts and disbursements) occurred, the allocation process calculates the following:

• The daily unit price for the units within the Pool.
• The number of units purchased or sold by any Fund within the Pool, by date. The purchase and / or sale price is calculated based on the applicable price on the day of the activity.
• The average daily number of units owned by the entire Pool, as well as for each Fund within the Pool.

NOTE: This is the equivalent of the average daily balance, but on a unitized basis.

Since the system calculates the average daily balance for each Fund and the entire Pool, allocation of shared revenues and expenses within the Investment Pool is extremely accurate.

The allocation process first determines the balance of the pool for every day of the cycle. Then it prorates the allocable values, gains, dividends, interest, fees, etc., for every day of the cycle. Then for every day it determines fund's percentage ownership and the fund receives it's percentage of those daily allocable values.

The allocation column is the prorated allocable values, gains, dividends, and interest.