If the cell is the basic building block of financial projections in AXIS, we might think of the subfunds, funds and offices as the walls, rooms and entire buildings.
The calendar year projections produced in a Cell, and saved with the assumption screen contents of the Cell, may be consolidated together in this hierarchy of higher level objects, until the projected results of a whole company or operating division may be obtained.
Subfunds are used to consolidate any number of Cells of the same module together. Subfunds allow a limited amount of recalculation or readjustment of the totaled projections as well.
You may have many different Subfunds for different purposes, and the same Cell may be referenced and used by more than one Subfund.
While most power and flexibility is obtained from AXIS by using the Cells to generate the base cash flows and financial projections, any Subfund may also reference a table of cash flows generated by another system or source, in which case that Subfund may or may not point to any AXIS Cells at all.
Funds and Offices are higher level consolidation objects, linking and aggregating the calculated results of Subfunds and Funds respectively. Again, each of these objects may also allow a limited amount of recalculation or readjustment of the totaled projections generated. Different options are also present to address different purposes appropriate to each level of object in the hierarchy.
Subfunds, and the Cells on which they are based, must all exist within a specific module of AXIS, and may only be defined, viewed and run interactively from within that module. Both Funds and Offices, however, are global, being common to and accessible from all modules of AXIS at once. Funds may therefore access Subfunds in, for example, Regular Life, Participating Life and Universal Life Modules, or Annuity and Asset Modules. Thus, Funds and Offices, unlike Subfunds, can be used for asset-liability modeling (ALM) work.
When Funds are used to link both Asset and Liability cash flows together, total investment income is defined by the combination of inforce Asset Subfunds and by reinvestment of net cash flows. Reinvestment is controlled by the Investment Earnings section of the Fund assumption screen, and may include the use of either or both of the Reinvestment Account or Reinvestment Strategies. In either case, reinvestments may be linked to a Global scenario to define the yield rate earned for the term of the reinvestment.
