EPIC Model Overview
Many county and state institutions tend to run their investments in a pooled environment instead of an SMA (separately-managed) approach. This means you may have hundreds or even thousands of participants investing money in your pool and you are responsible for allocating earnings appropriately. MaxQ has made the process simple and efficient with the introduction of EPIC. With simple fund entry and customized balance recording, EPIC creates a one-touch pro-rata allocation for your monthly or quarterly earnings to your participants. EPIC can create journal entries, pre and post allocation reports, and customized exports for your ERP system. Given the important scope and potential complexity this process can present, EPIC is the perfect asset to manage your earnings allocation.
Fund Balance Tracking
In order to track pro-rata earnings for any individual fund, EPIC needs to track the daily balances for participating funds over the earnings period. EPIC can utilize customized data feeds to capture daily balances and ultimately track any specific fund's contribution to the portfolio. EPIC also maintains a list of fund participants and can even re-direct interest earnings for funds that are unable to retain interest.
Fund Allocation
Most institutions pay interest earnings monthly or quarterly, but EPIC was created to be flexible and allows interest allocations to occur over whatever desired timeframe the user needs. EPIC can create a pre and post allocation report showing fund contributions and earnings on a gross and net earnings basis. This allows our users to show any interest redirect and ultimate beneficiary of interest earnings.
Fund Journal Entries
Some institutions will also need to create journal entries associated with the interest earnings for each fund. EPIC has built in JE capabilities allowing users to define the debit and credit accounts and custom journal ID settings. EPIC will produce the requisite ledger entries for each fund and can even be customized to export JE data to internal ERP systems.
