Net Investment Income

michella0410michella0410
in CCIR.Instructions

Hello There,

I feel confused about the Net investment income formula in Wiki where it equals the Gross Investment Income + other items. However, in the screenshot below (from OSFI PC2 Validation rule):

  • Gross Investment income (line 250) = Total Realized Gains (Losses) on Sale + Total Fair Value Gains (Losses) + Dividends + Real Income + Other investment incomes.
  • Net Investment Income (line 430) = Gross Investment Income (line 250) - Investment Expense (line410) - Investment Taxes (line420).

this is making more sense to me by just looking at the name Gross vs Net, and the difference is the expense and tax.

Could you please help me understand the difference between Wiki's formula and the PC2 validation rule? And which one I should apply in the exam.

Thanks very much,
Michella

Comments

  • Staff-T1Staff-T1

    I'll get back to you on this

  • Staff-T1Staff-T1

    Yup I can confirm that gross investment income is the sum of the prior terms as per your interpretation. I'll fix the wiki

  • rlessardrlessard

    Battle Quiz 3 of CCIR section has an error in the solution.
    It always include Gross Investment income as a part on Net Investment Income (in addition of the Total Realized Gain on sale + Total fair value... + Dividends +...).

  • Staff-T1Staff-T1

    Yes, its fixed now

  • grahamgraham

    The changes will be reflected next time the Battle Cards are uploaded to the server which should be in a day or two.

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