PeopleSoft Cash Management 9.1 PeopleBook

Managing Investment Pools

This chapter provides an overview of investment pools and discusses how to:

Set up investment pools.
Add participants to an investment pool.
Manage participants' funds.
View investment pool positions.
Maintaining investment pool positions.

Understanding Investment Pools

Agencies and organizations use investment pools to collect and concentrate surplus funds from various departments and programs for investment purposes. The departments and programs that deposit their surplus funds into the investment pool are referred to as participants. Each participant is assigned an individual account number in order to track their fund transactions within the investment pool.

An investment pool administrator organizes the investment pool and manages the fund's investments similar to that of a portfolio manager. The funds in the investment pool are invested by either the pool administrator or by an external investment manager. The system stores only the investment manager's contact information.

Participants do not enter transactions into the investment pool system, but rather communicate their requests to deposit, withdraw, or transfer funds to the pool administrator. The pool administrator then enters the appropriate data—participant and transaction information—into the system. Participants may transfer funds from one account to another within the same investment pool, but may not transfer funds from one account to an account belonging to another investment pool.

If the pool is set up using share accounts, then shares are distributed to the participants pool account. Share balances are then updated periodically for deposits, withdrawals, and transfers.

Interest and fees are periodically distributed among the participants of the pool.

The method used for transferring funds depends on the structure of the organization and pool's participants. Funds can be transferred by way of accounting book entries or between the participant's bank and the investment pool's bank through electronic wire transfers and Automated Clearing House (ACH) transactions.

Periodically, the investment pool transfers funds to an external investment manager (if applicable) or to the internal investment system. The investment manager provides the pool with reports containing the current market value, income, interest and fees data. Using these data, the pool administrator updates the pool with this information by entering the market value information online and in turn updates the market value for the pool and each participant. The new share price (if applicable) is also computed based on the new market values and the number of shares in the pool.

Besides providing investment and fund management expertise to the participants, the pool administrator also provides accounting and financial reporting for each participant's funds as well as consolidated reporting for the entire investment pool.

Setting Up Investment Pools

To define investment pool information, use the Investment Pool component (TRP_POOL_DEFN).

This section discusses how to:

Set up an investment pool.
Define pool investment limits.

Pages Used to Set Up an Investment Pool

Page Name	Definition Name	Navigation	Usage
Pool Information	TRP_POOL_DEFN	Cash Management, Investment Pools, Pool Information	Define the fee, interest, and accounting ChartField information of the investment pool.
Concentration Limits	TRP_POOL_LMT_SEC	Cash Management, Investment Pools, Pool Information Click the Concentration Limits link on the Pool Information page.	Define the securities to which the investment pool funds will be invested, as well as the maximum percentage of the pool's funds that can be invested in each security.
Contact Information	TRP_POOL_CNT_SEC	Cash Management, Investment Pools, Pool Information Click the Contact Information link on the Pool Information page.	Enter contact information for the external investment managers who are investing pool funds.

Defining an Investment Pool

Access the Pool Information page (Cash Management, Investment Pools, Pool Information).

Fee Type

Specify how the fee charged to participants for maintaining the investment pool will be assessed. The options are:

Fee Rate: The fee is based on a percentage of the income transactions the participant has present in the pool. Selecting this option requires that a value be entered in the Fee Rate (%) field.

Flat Fee: Participants are charged a flat fee. Selecting this option requires that a value be entered in the Fee Amount field.

N/A: No maintenance fees are assessed.

Fee Accounting Template

Select an existing accounting template to enter the correct accounting and debit and credit configuration for the maintenance fee.

Fee Document Type

If using document sequencing, select a document type for tracking maintenance fee transactions.

Fee Rate (%)

Enter the percentage rate for the maintenance fee charged to participants. This is a required field if Fee Rate was selected in the Fee Type field.

Fee Amount

Enter the amount for the maintenance fee charged to participants. This is a required field if Flat Fee was selected in the Fee Type field.

Interest Information

Interest Type	Select how the interest on participants' pool investments is accrued. The options are: Fixed Rate: Interest is accrued based on the amount of a participant's investment multiplied by an interest rate. Selecting this option requires a value be entered in the Interest Rate (%) field. Percentage in Pool: Interest is accrued based on return on pool's investment multiplied by the percentage of the total investment funded by the participant.
Interest Rate (%)	Enter the rate at which income is allocated to the participants' pool account. A value is required here if fixed rate is selected in the Interest Type field.
Shares Distributed for Pool	Select if pool is based on share accounts. Share distribution is commonly used when the interest type is fixed rate.
Initial Share Price	If the investment pool issues shares, enter the initial share price. Most investment pools seek to maintain an initial net asset value of $1.00 USD per share.
Rolling Periods	Enter the number of periods, based on the calendar selected, for which to calculate the interest on the average participant position over the span of the number of periods entered. For example, using a monthly calendar with three rolling periods, the interest calculation is based on the average participant position over a span of three months.
Calender ID	Select the business calendar to be used for calculating accrued interest payments to the participants' pool account.
Interest Accounting Template	Select an existing accounting template to enter the correct accounting and debit/credit configuration for interest accruals.
Interest Document Type	If using document sequencing, select a document type to track interest accrual transactions.

ChartField Details

Enter the investment pool's ChartField information for accounting purposes.

Defining the Concentration Limits of an Investment Pool

Access the Concentration Limits page (click the Concentration Limits link on the Pool Information page.

Use the Concentration Limits page to identify the securities to which the investment pool funds can be invested, and the maximum percentage of the pool's total investment that can be invested in the specified type of security. The Investment concentration limits are set to ensure investment diversity and are defined by the organization's investment policy.

Note. Concentration Limits page is for information only. There is no underlying functionality to enforce the maximum investment percentages for each security. Thus, the total maximum investment percentages can equal more than 100 percent.

Sequence Number	Enter the unique identifier for the security type.
Security Type	Enter a security to which to invest pool funds.
Maximum Investment	Enter the maximum percentage of the pool's total funds that can be investment in a particular security.

Adding Participants to an Investment Pool

To define investment pool participant information, use the Participant Information component (TRP_PART_DEFN).

This section provides an overview of pool participant information and discusses how to:

Add an agency or department as a participant of an investment pool.
View and adding participants' contact information.

Pool Participation Information

When an entity joins an investment pool, the organizational entity's name, and the person who is authorized to act on behalf of the entity must be recorded. In addition, the participating entity may have alternative pools in which to invest based on their investment objectives.

Each entity can have one or more accounts that tie them to a pool:

One account that is used for making deposits to the investment pool. (required)
One account that is used for tracking investment income. (optional)

Participants typically set up both accounts—deposit accounts for the depositing new funds into the pool and income accounts for accruing income from the pool. Each pool account has at least one general ledger account and related fund.

Pages Used to Add Participants to an Investment Pool

Page Name	Definition Name	Navigation	Usage
Participant Information	TRP_PART_DEFN	Cash Management, Investment Pools, Participant Information	Define the account details of a participant of an investment pool.
Contact Information	TRP_POOL_CNT_SEC	Cash Management, Investment Pools, Pool Information Click the Contact Information link on the Pool Information page.	View and modify a list of external investment managers responsible for investing the pool's funds.
Contact Information (Detail)	TR_CONTACT_PNL	Cash Management, Investment Pools, Pool Information Click the Add Pool Contact link on the Contact Information page.	Enter detailed contact information for an external investment manager.

Entering Investment Pool Participants' Information

Access the Participant Information page (Cash Management, Investment Pools, Participant Information).

Note. You can import participant information by creating an ExcelToCI spreadsheet and using the TRP_PART_DEFN_CI component interface.

See PeopleTools PeopleBook: PeopleSoft Component Interfaces, "Using the Excel-to-Component Interface Utility."

Effective Date	Date current status took effect.
Business Unit	Enter the business unit to which the investment pool account belongs.
Pool ID	Enter the pool identifier to which the entity will participate.
Participant Account	Enter the account identifier for the participant's account for the specified investment pool.

Allow Withdrawal from Deposit

Select to allow the withdrawal funds from the participant's investment pool deposit account. Left unchecked, withdrawals will be allowed only from the a participant's investment pool income account.

Account Details

Enter ChartField information for a participant's investment pool deposit account, and, if required, its investment income account.

Managing Participants' Funds

This section provides and overview on participant transactions and discusses how to:

Create a transaction between an investment pool and a participant.
View and approve transactions between the pool and a participant.

Understanding Participant Transactions

A participant invests in a pool by moving cash into it's pool deposit account and making a request to pool administrator to deposit the cash into the pool. The pool administrator makes a record of this request using the Participant Transactions page. The actual cash transaction, however, is tracked outside of investment pools.

Because withdrawals entail an actual transfer of cash, participants have the option of creating an electronic fund transfer (EFT) for a withdrawal of funds from the bank. Clicking the Create EFT link on the Participant Transactions page accesses the EFT Request - Origin page that displays the key information required for the cash transaction. The pool administrator can save the EFT. The EFT is reconciled and accounted for in Cash Management. The relevant book entry is tracked in the investment pools component.

Deposit transactions created on the Participant Transactions page are saved as "pending" transactions. These transactions are approved on the Approve Transactions page by the pool administrator once it has been verified that the actual funds have been received through the EFT.

Besides deposits, the pool administrator also uses the Participant Transactions page to maintain records of all requests to withdraw, or transfer investment pool funds on behalf of its participants. All transactions are managed from within the pool by the pool administrator. Some of these transactions can be scheduled in advance. Records of recent pending activity and completed activity are retained. Participants can also view a listing of transactions on the View Transactions page, which is similar to the Approve Transactions page, but without the transaction approval functionality.

Pages Used to Create Participant Transactions

Page Name	Definition Name	Navigation	Usage
Participant Transactions	TRP_PART_TXN	Cash Management, Investment Pools, Participant Transactions	Used by the pool administrator to record a participant's request to deposit, withdraw, or transfer funds among a participant's investment pool accounts.
Approve Transactions	TRP_TXN_APPR	Cash Management, Investment Pools, Approve Transactions	Review and approve or reject transactions initiated by participants of an investment pool.
View Transactions	TRP_TXN_APPR	Cash Management, Investment Pools, View Transactions	View all investment pool transactions matching the defined search criteria. Note. Provides a view of transactions related to an investment pool to users who do not have access to the Approve Transactions page because they are not authorized to approve or reject transactions. The View Transactions page is identical to the Approve Transactions page without the approval functionality.

Creating Participant Transactions

Access the Participant Transactions page (Cash Management, Investment Pools, Participant Transactions).

Note. You can import participant transactions by creating an ExcelToCI spreadsheet and using the TRP_PART_TXN_CI component interface.

See PeopleTools PeopleBook: PeopleSoft Component Interfaces "Using the Excel-to-Component Interface Utility."

Transaction Type	Displays the type of transaction being initiated by the pool participant. The options are: Deposit: Participants can make a deposit only to a pool deposit account and selecting Deposit from the To Account Type field. Withdrawal: Participants can withdraw funds from income accounts. They can also withdraw from a deposit account only if Allow Withdrawal from Deposit is selected on Participant Information page. Transfer: Transfers are allowed between different accounts of a participant within the same pool, however, a participant cannot transfer funds from a deposit account to an income account.
Status	All newly created transactions are given a status of Pending until the pool administrator has approved or denied them. Pool administrators can Deny the transaction or Approve it. Approval for withdrawal transactions are contingent upon verification of the transfer of funds from the bank by the pool administrator.
To Account	Used only for fund transfer requests. Enter an account to which to transfer the funds.
To Account Type	Used only for fund transfer requests. Select either Deposit or Income. Transferring funds from an deposit account to an income account are not allowed.
Date	Enter a date for completing the transaction. The transaction date must be after the last accounting date for transactions of the pool (viewable in the Position Details grid on the Participant Position page), or the transaction will be rejected.
Transfer Template ID	Select a transfer template to facilitate the transfer of funds with parties with which you conduct regular, specific transactions. Fields from the template selected here are used as default values when creating an EFT for withdrawal transactions. Note. Expired templates are not available for selection.
Transaction Accounting Template	Select the accounting template that depicts the correct accounting and debit/credit configuration for the particular transaction.
Document Type	Select the document type that the system uses to assign document sequence numbers.
Create EFT	Click to access the EFT Request - Origin page to request a physical transfer of funds—withdrawal—based on the parameters of the current participant transaction request defined on this page and fields from the selected transfer template. This link appears on the page only for withdrawal transactions.

See Also

Defining Document Sequencing

Creating and Approving Funds Transfer Templates

Accounting Templates

Setting Up External, Internal, and Netting Accounts

Approving Investment Pool Transactions

Access the Approve Transactions page (Cash Management, Investment Pools, Approve Transactions).

Use the Search Criteria to define the transactions related to a business unit and investment pool. To approve a transaction, check the corresponding Selectbox and click Approve. To deny the transaction, click Deny.

Viewing Investment Pool Positions

This section discusses how to:

View pool positions.
View participants' positions.
View position details for a single participant.

Pages Used to Manage Investment Pool Positions

Page Name	Definition Name	Navigation	Usage
Pool Position	TRP_POOL_POS	Cash Management, Investment Pools, Pool Position	View the current position of an investment pool.
Position History	TRP_POOL_POS_DTL	Click the Market Values/Incomes link on the Pool Position page.	View the historical market values and income transactions of the investment pool. Income updates are added using the Update Pool Position page.
Participant Position	TRP_PART_POS	Cash Management, Investment Pools, Participant Position	View the cash investment, balances, and income of an investment pool's participants.
Position Details	TRP_PART_POS_DTL	Cash Management, Investment Pools, Pool Position Click the Details link for specific investment pool. Cash Management, Investment Pools, Participant Position Click the Details link for specific participant.	If accessed from the Pool Position page, you can view the cash investment, balances, and income of a specified investment pool. If accessed from the Participant Position page, you can view the cash investment, balances, transactions, and income of a participant of a specified investment pool.
Participant Transaction	TRP_PART_TXN	Cash Management, Investment Pools, Participant Position, Details link Click the Transaction ID link of a specific transaction.	View details of a specific transaction of a pool's participant.

Viewing Pool Positions

Access the Pool Position page (Cash Management, Investment Pools, Pool Position).

Market Value

Displays the current value of the investment pool based on the last reported sale price of securities to which the pool funds are invested.

Book Value

Displays the previous market value of the pool.

Change in Market Value

Displays the change in the market value of the pool since the last time the pool position was updated.

Shares

If shares are used, this field displays the number of shares of the investment pool.

Share Price

Displays the current price of investment pool shares.

Update Pool Position

Click to access the Update Pool Position page to manually update the pool's cash position.

See Updating Pool Positions Manually.

Market Values/Incomes

Click to access the Position History page to view the historical market values and position updates of the investment pool.

You can generate a report of a pool's position as well as the positions of each pool's participants for a specified business unit.

See Also

Cash Management Reports: A to Z

Viewing Participants' Pool Positions

Access the Participant Position page (Cash Management, Investment Pools, Participant Position).

This page displays the position and information of all participants' accounts for a specified pool.

Details

Click to access the Position Details page that lists the participant's transactions. Details of the transactions can be accessed from the Position Details page.

You can generate a report of a pool's position as well as the positions of each pool's participants for a specified business unit.

See Also

Cash Management Reports: A to Z

Maintaining Pool Positions

This section provides an overview of the investment pool maintenance process discusses how to:

Import pool position data from an external investment management source.
Manually update pool positions.
Distribute investment pool income.

Updating Investment Pools

In order to have an accurate view of an investment pool's position, as well as the position of its participants, you must periodically update the investment data. To do so requires importing income and fee data from external investment managers into the pool and distributing it among the pools participants.

There are two ways to update investment pool data:

Import the data in a flat-file format from the Import Pool Position page.

A file layout already provided will need to be modified along with its transformation code.
Obtain a hard copy of the data and manually enter it using the Update Pool Position page.

Once the pool has been updated, run the Income Distribution Application Engine process (TRP_INC_DIST) to update the pool's participant positions by distributing the income and maintenance fees among them.

Pages Used to Update Pool Positions

Page Name	Definition Name	Navigation	Usage
Layout Catalog	PMT_FORMAT_CATLOG	Banking, Administer Bank Integration, Layout Catalog	Define and configure the files that will be used to import a flat file containing pool position data into the system. Note. Modify the POOL file layout to define your pool-position, flat file. See Configuring Bank Statement, Payment, and Payment Acknowledgment Layouts.
Import Pool Position	BSP_IMPORT	Cash Management, Investment Pools, Import Pool Position	Update an investment pool's position by importing data in a flat file format from an outside investment source.
Update Pool Position	TRP_POOL_POS_ADD	Cash Management, Investment Pools, Pool Position Click the Update Pool Position link.	Manually update the pool's cash position with current values obtained from outside investment sources. Obtaining the updated pool data may require running the Import Pool Position process.
Income Distribution	TRP_INC_RUN	Cash Management, Investment Pools, Income Distribution	Run the Income Distribution Application Engine (TRP_INC_DIST) process to disburse investment pool income and maintenance fees among participants based on the parameters set on the Pool Information page.

Importing Pool Position Data

Access the Import Pool Position page (Cash Management, Investment Pools, Import Pool Position).

Parameters

Import Type	Select the method for importing the data file. The options are: FTP: Select if you are importing the file by using file transfer protocol, and enter a bank node through which to transfer the data. File: Select if you are importing a file, and complete the File Path and File Name fields. HTTP: Select if you are importing a file using a URL that is included as part of the node configuration. No file path or file name is required.
Integration Node	Enter the integration node used to transfer the data. This field appears only if FTP or HTTP is selected as the Import Type. See PeopleTools PeopleBook: PeopleSoft Integration Broker Administration, "Adding and Configuring Nodes." See PeopleTools PeopleBook: PeopleSoft Integration Broker Administration, "Using Listening Connectors and Target Connectors," Working With the AS2 Connectors. See Setting Up Electronic Banking Using Financial Gateway.
View Integration Node Details	Click to access the Integration Node Details page and review property details of the selected node. This link appears only if FTP or HTTP is selected as the Import Type.
File Path	Enter the complete file path location. To select files by using the Select File button, the file path must have a trailing backslash (\). You can also search for files of a specific type by entering an asterisk and the extension suffix. For example, to search all files with a .txt suffix enter \*.txt.
File Selection Help	Click to view help information on specifying file paths and file names.
File Name	Select the specific file to import. If you want to import multiple files based on extension, leave this field blank.

Advanced Options

Encryption Profile	Select an encryption profile to decrypt the data file. Encryption profiles contain both encryption and decryption information.
Use Integration Broker	Select this check box to format the files and publish the formatted document to PeopleSoft Integration Broker. Integration Broker then processes the formatted file accordingly. You select this option if you want to use the pool position information as a trigger for Integration Broker to perform other processes, or to integrate with other systems.
Post Process File Action	Select what action, if any, to be performed on the pool position data file after the data has been processed. The options are: Copy: Copy the file to the directory entered in the Post Process File Directory field. Delete: Delete the file after the data in it is processed. Move: Move the file to the directory entered in the Post Process File Directory field. None: Take no action. The data file remains unprocessed.
Post Process File Directory	Enter a file path to the directory to which the file will be moved or copied if either option is selected as the Post Process File Action.

See Also

PeopleTools PeopleBook: PeopleSoft Integration Broker, Configuring Nodes and Transactions

Updating Pool Positions Manually

Access the Update Pool Position page (click the Update Pool Position link on the Pool Position page).

Position Type

Select the type of position being updated. The options are:

Market Value: Update the current value of the investment pool based on the last reported sale price of securities to which the pool funds are invested.

Interest: Updated the interests accrued on the pool's investments.

Amount

Enter the new market value of the investment pool.

Accounting Template ID

Select the accounting template for the pool that depicts the correct accounting and debit and credit configuration for this update transaction.

Document Type

Select the document type that the system uses to assign document sequence numbers.

Participant Acctg Template ID

Select the accounting template for the participants account that depicts the correct accounting and debit and credit configuration for this update transaction.

Fee Type	Specify how the fee charged to participants for maintaining the investment pool will be assessed. The options are: Fee Rate: The fee is based on a percentage of the income transactions the participant has present in the pool. Selecting this option requires that a value be entered in the Fee Rate (%) field. Flat Fee: Participants are charged a flat fee. Selecting this option requires that a value be entered in the Fee Amount field. N/A: No maintenance fees are assessed.
Fee Accounting Template	Select an existing accounting template to enter the correct accounting and debit and credit configuration for the maintenance fee.
Fee Document Type	If using document sequencing, select a document type for tracking maintenance fee transactions.
Fee Rate (%)	Enter the percentage rate for the maintenance fee charged to participants. This is a required field if Fee Rate was selected in the Fee Type field.
Fee Amount	Enter the amount for the maintenance fee charged to participants. This is a required field if Flat Fee was selected in the Fee Type field.

Market Value	Displays the current value of the investment pool based on the last reported sale price of securities to which the pool funds are invested.
Book Value	Displays the previous market value of the pool.
Change in Market Value	Displays the change in the market value of the pool since the last time the pool position was updated.
Shares	If shares are used, this field displays the number of shares of the investment pool.
Share Price	Displays the current price of investment pool shares.
Update Pool Position	Click to access the Update Pool Position page to manually update the pool's cash position. See Updating Pool Positions Manually.
Market Values/Incomes	Click to access the Position History page to view the historical market values and position updates of the investment pool.

Position Type	Select the type of position being updated. The options are: Market Value: Update the current value of the investment pool based on the last reported sale price of securities to which the pool funds are invested. Interest: Updated the interests accrued on the pool's investments.
Amount	Enter the new market value of the investment pool.
Accounting Template ID	Select the accounting template for the pool that depicts the correct accounting and debit and credit configuration for this update transaction.
Document Type	Select the document type that the system uses to assign document sequence numbers.
Participant Acctg Template ID	Select the accounting template for the participants account that depicts the correct accounting and debit and credit configuration for this update transaction.