The Islamic Asset Management module as the name suggests is a comprehensive asset management product based on the concept of a fund. With this module, you can create a fund and manage all the activities during its lifecycle.
The product definition function, the mainstay of Oracle FLEXCUBE’s design, enables you to create products for specific funds that you set up. The module gives you the flexibility to define, upfront, components (such as charge, and tax), restrictions (such as branch and currency), preferences, events and accounting entries into ‘Classes’. When defining a product, you merely need to associate it with the different classes that you have built.
Definition of Classes
In Oracle FLEXCUBE, a ‘Class’ embodies a generic set of attributes. A class could represent a:
As part of your one-time set up, you can define several sets of classes of a particular type. In Oracle FLEXCUBE, therefore, you do not have to specify restrictions, preferences, and components every time you create a product. You only need to associate the different set of classes that you have already maintained.
This feature eliminates redundancy, and saves processing time.
The procedure to create a class is discussed in the Securities User Manual of Oracle FLEXCUBE.
Creating Products
When setting up the module, you can define the various fund schemes that your bank offers as products. For each product, you can also define ‘attributes’, or in other words, the terms and conditions. When a user at the bank actually processes a finance, it can be associated with a product. The finance acquires the terms defined for the product that it involves. (However, the bank can allow a user to change the inherited attributes of a fund.
This offers you flexibility and at the same time streamlines your operations based on the categories of business segments you operate in.
Creation of Funds
You can create and maintain both Mutual and Portfolio Funds. You can link a fund to a Corpus account. All the investments of the fund would be routed through this account. Besides, you can also define a pricing strategy for a fund.
The Islamic Asset Management module is designed to handle all the events in the life cycle of a fund. You can process the following corporate actions for a fund:
Net Asset Value Computation
The NAV of all funds that are created or maintained in Oracle FLEXCUBE can be calculated at a frequency that you specify.
The NAV can be arrived at after the revaluation process has been run in the Securities, Finances, Deposits, and Money Market modules of Oracle FLEXCUBE. The assets and liabilities of a fund are computed by aggregating the GL + MIS balances for the fund.
Funding Finances, Securities, and Money Market Deals
A fund can invest in various activities like Finances, Securities, and Money Market placements.
While processing a Finance, Securities, or Money Market deal, you can indicate the fund investing in the transaction. This would create an asset for the fund but not for the bank. Hence these entries will be reflected in the books of the fund and not of the bank.
Interface with FP-IS
The Asset Management module of Oracle FLEXCUBE, can interface with Oracle FLEXCUBE IS. Funds are broadly categorized into Internal and External. Internal funds are those that are created and managed solely in Oracle FLEXCUBE. External funds are those that are created in another system and managed in Oracle FLEXCUBE.
The interface involves the following information flow:
Specialized Services Branch
Oracle FLEXCUBE supports the ‘Specialized Services Branch’ concept. If you have Asset Management expertise only at one branch, say, the Head Office (HO) and funds of any branch are created and processed only through HO, Oracle FLEXCUBE offers absolute ease of operations.
You can indicate whether a branch can create and process funds in the Branch Parameters screen. A branch can create or process funds only if it has been marked as a ‘Fund Branch’.