2. End of Day Activities

One of the main tasks carried out by the Fund Manager is performing the End of Day (EOD) and Beginning of Day (BOD) activities. These activities perform important functions in the system, and prepare it for the next business day. The system cannot logically close operations at the end of a working day or begin operations on the next business day if the End of Day and Beginning of Day processes are not performed.

Typically, only the following users or groups that are authorized to perform the End of Day activities in the Fund Manager component:

No other user or group will have access to this function.

This chapter contains the following sections:

2.1 End of Day Processes – Workflow

Maintaining the Functions to be executed by the End of Day processes

Before you run the End of Day processes at any installation, you must first set up the functions that must be performed by the End of Day processes, through the End of Day Maintenance screen.

The End of Day Processing Sequence

The End of Day processes in the system follow a certain sequence of events, as explained below:

  1. Pre-End of Day checks
  2. End of Day processing
  3. Beginning of Day processing

Pre-End of Day Checks

The Pre-End of Day checks will indicate any activities that are pending, that must be executed and completed by the Fund Manager before the End of Day process can be run. These pending activities can be viewed in the Fund Manager Pre-EOD Processing screen.

The pre-EOD checks could indicate unauthorized transactions, missing fund maintenance or processing information such as fund prices, exchange rates, signing off branches, and so on. The Fund Manager must complete these activities before the End of Day processes can be run.

The End of Day Processing

After all pending activities indicated by the Pre-End of Day processes have been completed, the End of Day processes can be executed, through the Execute End of Day option in the End of Day menu category of the Fund Manager component.

The functions scheduled as part of the End of Day processes are executed according to the sequence defined for them, and the frequency defined for their execution.

If a function whose successful execution is critical for the progress of the EOD process fails to execute, the EOD is aborted.

The End of Day processes perform important processes such as allocation of transactions, updating the unit holder balances, audit trail activities, running of jobs scheduled through the Scheduler Services, execution of interfaces and so on.

Reports scheduled to be generated during the EOD execution are also printed.

The Beginning of Day Process

After successful execution of all the End of Day processes, the Beginning of Day processes can be executed through the Execute BOD screen, that you can access from the End of Day menu category in the Fund Manager main menu.

The Beginning of Day processes set the application date of the system to the next business day.

Reports scheduled to be generated during the EOD execution are also printed.

After the whole EOD cycle (Pre-EOD, EOD and BOD) has been successfully completed, the system is ready for the next business day.

2.2 Execution of EOD and BOD Processes

The End of Day and Beginning of Day processes can be performed manually, as well as automatically, as scheduled jobs through the Scheduler Services. Depending upon this mode of operation, the sequence of activities would be as follows:

Manual execution

Automatic execution

  1. Manual execution of the Pre-End of Day processes through the Fund Manager Pre-EOD Processing screen. Pre-EOD cannot be scheduled to run automatically, but must be performed manually.
  2. On successful completion of Pre-EOD, automatic execution of EOD through the mandatory EOD task. The execution of EOD can be scheduled as an event-based job that must be run by the Scheduler, when the successful completion of Pre-EOD raises an event in the system.
  3. On successful completion of EOD, automatic execution of BOD as an event-based job scheduled through the Scheduler Services. The execution of BOD can be scheduled as an event-based job that must be run by the Scheduler, when the successful completion of EOD raises an event in the system.

Therefore, for automatic execution of EOD, you must set up the following event-based jobs through the Scheduler:

Also, the following pre-defined tasks will be maintained at installation time for the automatic execution of EOD:

Note

If a report is scheduled to be printed as a job based on the BOD, the job must be manually executed after logging out of the Fund Manager module, so that the data as of the required date is obtained.

During automatic execution of EOD, the progress of the run can be viewed through the Scheduler Monitor. You must refresh the scheduler monitor frequently to view the status of the job.

During EOD, if an event is raised in the system, system extracts a file with the details of the contact person, their phone numbers and the message applicable for the event.

The execution and successful completion of each task and job is logged by the system.

2.3 EOD Activities associated with Interfaces

The End of Day processes also execute and process any authorized interface that has been defined with an external system, using the Online Execution of Interfaces menu item in the Batch menu category.

For a fuller description of this menu item, refer the ‘Interfaces’ User Manual.

2.4 System Status

This section contains the following topics:

2.4.1 Types of System Status

The status of the Oracle FLEXCUBE Investor Servicing system changes during the course of each business day. At any point during the day, the system may be in one of three possible states:

The normal sequence of operations during a business day would result in changes of state as explained below:

Start of a Business Day

At the start of a business day, the system is online (status ‘O’), and both the Fund Manager and the Agency Branch are open for the acceptance of unit holder transactions and other operations.

Course of a Business Day

During the course of a business day, the system is still online (status ‘O’), and both the Fund Manager and the Agency Branch are still open for the acceptance of unit holder transactions and other operations.

Agency Branch Pre-EOD

When the Pre-End of Day processes are performed at the Agency Branch, the system is still online (status ‘O’), and both the Fund Manager and the Agency Branch are still open for the acceptance of unit holder transactions and other operations. The pre-EOD checks applicable for the branch alone are performed by the system during this phase. This Pre-EOD check mainly comprises of pending activities like authorization of transactions, etc., at an Agency Branch level.

Agency Branch EOD

When the End of Day process for the Agency Branch is performed, the system is still online (status ‘O’). The Agency Branch is signed off, and only allows inquiries and report printing activities, whereas the Fund Manager is still open for the acceptance of unit holder transactions and other operations.

Fund Manager Pre-EOD

When the Pre-End of Day process is performed for the Fund Manager component, the system is online (status ‘O’) till the successful completion of the pre-EOD. During this phase, the Agency Branch is signed off, and only allows inquiries and report printing activities, whereas the Fund Manager is still open for the acceptance of unit holder transactions and other operations. The pre-EOD checks for the Fund Manager are performed at this time.

Upon successful completion of Pre-EOD, the system status changes to ‘B’ (indicating that Pre-EOD has been successfully completed).

Fund Manager EOD

When the End of Day process is performed for the Fund Manager component, the system status is ‘B’ (indicating that Pre-EOD is successfully completed) till the successful completion of the EOD. During this phase, the Agency Branch is signed off, and only allows inquiries and report printing activities. The Fund Manager also allows only report printing during this phase, and it is not open for the acceptance of unit holder transactions and other operations.

Upon successful completion of EOD, the system status changes to ‘E’ (indicating that EOD has been successfully completed).

Fund Manager BOD

When the Beginning of Day process is started at the Fund Manager component, the system status is ‘E’ (indicating that EOD is successfully completed). The system date is changed to the next business day during this time.

Upon successful completion of EOD, the system status changes to ‘O’, indicating that both the Agency Branch and Fund Manager are now online and open for unit holder transactions and other operations.

2.4.2 Menu Items in End of Day Menu

The menu options for the End of Day processes are found in the Batch menu category of the Browser menu

For a fuller description of all the activities with respect to Validation and Allocation, refer the ‘Confirmation and Allocation’ chapter in this User Manual.

2.5 End of Day Maintenance

This section contains the following topics:

2.5.1 Invoking the EOD Maintenance Detail Screen

You can use this screen to view and schedule the functions that must be executed during the End of Day process run at the Fund Manager. You can assign a frequency and a critical status to each function.

The functions to be executed by the End of Day Process are set up by the implementers at the time of installation. You cannot add any new functions in this screen or edit any of the functions displayed. You can, however, schedule each function to be executed.

You can invoke the ‘EOD Maintenance Detail’ screen by typing ‘UTDEODMT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button. You can retrieve the data through F8 function only and make the required changes. Each of the schedules you set up must be authorized to be effective, and can be amended after authorization.

You can perform the following operations can be performed in the EOD Maintenance screen:

 

You can specify the following fields in this screen:

EOD/BOD Activity

Specify the EOD or BOD activity. Choose one of the following options from the drop-down list:

EOD Sequence Number

Numeric, Mandatory

Enter the sequence number of the Function to be run at the End of the Day. All the EOD functions will be run sequentially in the order defined by this field.

EOD Activity Description

Display Only

The name of the Object / Function to be run is displayed here. This is the name of the client/ server application that has to be run.

Function Schedule

Enter the functions which are scheduled to be run during EOD. Only those functions which have been scheduled will run the job during EOD.

Function Status

Display

The system will display the status of the Function. The Function can be Running, Not Started, Aborted or Completed.

If the status is displayed as Aborted, you can change the status to Skip to allow the EOD to proceed with the rest of the functions.

EOD/BOD Activity

Display Only

The Code of the Function to be run at the End of the Day is displayed here. This will be a unique identification code for the function. No two or more functions can have the same Code.

Critical

1 Character Maximum, Boolean, Mandatory

Click this box to specify the criticality of the function as Critical or Non Critical

If you specify Critical, EOD will abort if this function is not successfully completed.

If you specify Non Critical, EOD will continue irrespective of the completion status of the function.

Display

The system will display the status of the Function. The Function can be Running, Not Started, Aborted or Completed.

If the status is displayed as Aborted, you can change the status to Skip to allow the EOD to proceed with the rest of the functions.

2.6 Executing Pre-End of Day Operations

This section contains the following topics:

2.6.1 Invoking Pre-End of Day Check – Execute Pre EOD Screen

To recall, the Pre-End of Day checks will indicate any activities that are pending, that must be executed and completed by the Fund Manager before the End of Day process can be run. These pending activities can be viewed in the Fund Manager Pre-EOD Processing screen.

The pre-EOD checks could indicate unauthorized transactions, missing fund maintenance or processing information such as fund prices, exchange rates, signing off branches, and so on. The Fund Manager must complete these activities before the End of Day processes can be run.

You can use the ‘Pre-End of Day Check – Execute Pre EOD’ screen to perform the pre-EOD checks. You can invoke this screen by typing ‘UTDPREOD’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

In this screen click ‘Fetch Pre-EOD count’ button and an information message will be displayed.

 

Click OK to return to the following screen in which the View Pre-EOD and Execute Pre-EOD button will be enabled.

 

 

In this screen, click ‘View Pre EOD Results’ button to display the activities that are pending completion before the end of day operations can be executed.

Click Ok to view the results in the Pre-End of Day Check – Execute Pre EOD screen:

The system displays the following activities in this screen, which must be competed prior to the End of Day Operations:

To sign-off branches, use the Branch Sign Off option.

To authorize fund rules, use the Fund Rule Summary option.

To enter fund prices, use the Fund Price Maintenance option to enter the fund price, and use the Fund Price Summary option to authorize the same.

To authorize loads, use the Load Maintenance (Summary) option.

To authorize unit holder related Information, use the UH New Account (Summary) option.

To confirm redemption transactions, use the Confirm Redemption Transactions option.

To check unit holder related information, use the UH New Account (Summary) option.

To allocate IPO / subscription transactions, use the Allocation option.

To authorize/verify SI related details, use the SI related verify/authorization (Summary) option. For authorization/allocation use the corresponding transaction allocation for which the SI has been generated.

The system can proceed with End of Day Operations even if the redemption transactions are not confirmed.

The Branch Sign-Off and Fund Prices must be completed.

To execute the Pre-End of Day processes, click ‘Execute Pre Eod’ button. The system prompts you to back up the database before the process can run.

Note

If, for a broker, you have specified that payment should be held back, by checking the box ‘Hold Back Payment’ in the Broker Maintenance screen, a count of such brokers will be displayed in the Execute Pre-EOD screen.

You can specify the following fields in this screen:

Serial Number

This is a number that indicates the particular activity. No two Activities can have the same Serial Number.

Description

Describes the various activities scheduled for EOD.

Mandatory

Indicates whether the activity is mandatory or can be skipped.

Note

The count of the mandatory activity shall be brought to zero before executing Pre-EOD orelse system will throw up an error message at the time of EOD execution.

Count

Indicates the number of records for which the activity is pending completion. For instance, if Number of Unauthorized Fund Rules has the Count ‘1’, it indicates that there is one fund rule that needs to be authorized.

You can check against one of the programs in Pre-EOD check results grid and then click on the detail button to view the Pre-EOD details of the selected activity in the PRE-EOD Details screen:

 

The system displays the following details of the chosen activity in this screen:

2.7 End of Day Operations

This section contains the following topics:

2.7.1 Executing End of Day Operations

You can use the End of Day Process screen to monitor the End of Day Activities (EOD) at Fund Manager.

Note

The End of Day process can be executed only if the Pre-End of Day processes at the Fund Manager have been successfully completed.

You can configure the BOD process to be executed immediately after the EOD process is completed, without manual intervention, by selecting the Include BOD Activities Also option, in this screen.

Use the End of Day Process menu option to monitor the EOD activities at the Fund Manager Branch. You can access this option by clicking the End of Day Process option under the End of Day Process menu item in the Batch Tab in Fund Manager.

To Run / Monitor EOD, follow the steps given below:

If EOD aborts, you can use the EOD Maintenance screen to change the status to Skip or Aborted and then continue with the EOD process.

2.7.2 EOD Functions

Transaction Allocations

All the transactions that have been authorized and not yet allocated will be done by these functions.

For a fuller description of all the activities with respect to validation and allocation, refer the ‘Confirmation and Allocation’ chapter in the Fund Manager User Manual.

Summary Reports

All the summary reports that have been scheduled for the day are printed.

For further details on summary reports, refer to respective summary report generation in the ‘Reports’ chapter in this User Manual.

Contract Notes

The End of Day processes on a given business day execute an EOD job that prints contract notes in respect of transactions allocated on a given business day. The job checks to see if the contract notes have already been printed from the menu. If so, duplicates will be printed only if the ‘Duplicates Required’ option in the task parameters static information for the job has been enabled and set to ‘Yes’. If the Duplicates Required option has been set to ‘No’, duplicate contract notes are not printed by the EOD job. The Duplicates Required option is configured by the implementers at your installation, according to your requirement in respect of printing of duplicate contract notes.

If the contract notes have not been printed through the Confirmation Reports menu, the EOD job prints the contract notes.

Also, if allowed, as explained above, the EOD job prints transaction contract notes for transactions involving only those unit holders for whom the ‘File’ option has not been set as the preferred mailing mode in the unit holder account details. For transactions involving any unit holders for which the ‘File’ option has been set in the account details, the EOD job suppresses the printing of contract notes.

Fiscal Year Updating

The system checks for the Fiscal year period according the Fund Rules and resets the Fiscal year as the previous year is completed.

Transaction Enabled Status Updating

Check for the Transaction start and end period as per the Fund rule set up and enables or disables a given transaction for a given fund as and when required.

Unit Holder Counter Updating

Updates the unit holder Free Counter and Limit Counter for the given transaction of the fund. The unit holder is further allowed the same transaction for the fund as per the latest available Free Counter and Limit Counter details.

Audit Trail Report

Prints the Audit trail report for the day. The report is printed for the entire Audit trail Ids that are maintained through the Audit Trail Format Maintenance.

Generation of SI Reminders

Generates reminders for all the standing instructions that have been generated and not yet processed. The reminders are generated if the option is set in the SI setup. They are generated both before and after the SI. The period is as per the SI set up.

Purge Activities

The data that is to be purged is checked up with Purge Frequency and once the period is reached, the corresponding data is purged. The purge check is done for the following frequencies - Daily, Monthly and Yearly. Once the data is purged, the last purged date for the given detail is set to the Application date.

Auto Redemption Intimation

This will print intimation to all such unit holders whose unit holder balance is below the minimum balance specified for the fund. The unit holders will be given some time to increase their balance failing which their Units will be automatically redeemed.

2.8 Beginning of Day Operations

This section contains the following topics:

2.8.1 Executing Beginning of Day Operations

You can use the Execute BOD screen to set up the system for the next day. The BOD functions can be executed along with the EOD functions, or separately, from the EOD / BOD Execute screen.

To configure the BOD process to be executed immediately after the EOD process is completed, without manual intervention, from the EOD /BOD Execution screen, by selecting the Include BOD Activities Also option in the Execute BOD screen.

2.9 Branch Sign On/Sign Off

This section contains the following topics:

2.9.1 Invoking Branch Sign Off/On Summary Screen

You can use this screen for Branch Sign-On/Sign-Off. The system will display a list of Branches that have not signed-off for the day. Invoke the ‘Branch Sign Off/On Summary’ screen by typing ‘UTDBSNOF’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

The check-box indicates the sign-on / off status of a Branch (if the check-box is checked, it indicates Signed-Off status and if the check-box is not checked, it indicates that the Branch is Signed-On).

Click on the check box to sign-on / off the branch. For an online branch, the system will display the list of unauthorized transactions.

To proceed further with the End of Day activities, the following has to be done:

2.10 End of Day Log Report

This section contains the following topics:

2.10.1 End of Day Log Report Description

The End of Day Log Report will print a Log of the EOD functions’ status.

Refer the ‘Reports’ user manual for information about generating and printing a report.

2.10.2 Tax on Commissions

When you initiate commissions processing in the Broker Comm Payment screen, the commission that is due to each broker is computed as on the current date. For each individual broker, any applicable tax (as defined for the broker category in the WHT Details or the overridden tax percentage specified in the Broker Maintenance) is deducted from the accrued commissions, to arrive at the actual commissions that would be paid out.

Tax is computed based on the commissions earned in the current tax year, which you have defined in the Defaults Maintenance. It is also deducted individually for each broker, independent of the broker hierarchy.

For brokers for whom payments are to be held back (as designated in the Broker Maintenance), commissions earned are paid out only if the commission amounts exceed the tax liability for that period, and the ‘hold back’ option has been revoked.

2.10.3 Clearing of Payment Instruments

The payment of the commission accruing from a specific transaction is deferred till the payment instrument for the transaction is cleared. In the event of non-clearance of the payment instrument before the next commission payment date, the commission is processed and accrued, but the payment is deferred till the instrument is cleared. The accrued commission is paid out on the next commission payment date, provided the instrument is cleared.

2.11 Commission Payments for Various Entities

This section contains the following topics:

2.11.1 Processing Commission Payments for Various Entities

The Entity Commission Payment process consolidates the accrued commission for each entity at a fund-level and the payment is processed based on the IDS options defined for each entity in the Entity IDS, with payment being made in the base currency of the fund. If no IDS options have been maintained, the default mode of payment for the entity is used for processing.

The Entity Commission Payment process can be executed either as a batch process as part of EOD. Invoke the ‘Entity Commission’ screen by typing ‘UTDECPYP’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button. Select the type of entity for which commission payment needs to be processed, and then select the ID of the entity.

 

Enter the details of the entity for which you wish to process the commission payments. Entity commission payments are processed only for those entities for which the Entity Payment Details have been maintained, even if entity commission has been accrued.

2.12 Extraction Form for Data

This section contains the following topics:

2.12.1 Invoking the FIC Extraction Screen

FC-IS provides a facility that enables you to extract data to FLEXCUBE Information Center or FIC.

In order to extract data, you must set up the parameters that will govern the extraction of this data in the system. Use the FIC Setup screen in the Authorization Menu of the Fund Manager component to perform this task.

Once you have set up the parameters, you can use the Extraction Form to execute the extraction. To invoke the Extraction screen, click FIC Extraction under the FIC Extraction menu item in the Maintenance menu of the Browser.

You can specify the following fields in this screen:

Segment Name

Alphanumeric, Mandatory

Select the segment to which the source table belongs, from the options in the drop-down list. The source table is the table in which the data to be extracted must reside.

MIS Date

Date Format, Mandatory

The application date is displayed here by default, and all the tables that are pending extraction as on this date according to their frequency of extraction, are displayed in the Extraction Details section.

If you chose another date here, click the Show button to view all the tables that are pending extraction as on this date according to their frequency of extraction.

The MIS date can be changed to a value prior to the system application date. The date cannot be changed to a future date.

Extraction Details

When the MIS Date is specified, all the destination tables that are pending extraction are displayed in this section along with the following details:

This information is picked up by the system from the Destination Table Details Maintenance record for each of the destination tables, and displayed here.

If the extraction is to proceed, you must click the Extract button, and the data will be extracted to the output area. As and when a destination table is fully extracted, the table row will disappear from the list in the Extraction Details section. The system displays a confirmation message upon successful completion of the extraction.

2.13 Executing EOD Operations

Use the End of Day Process menu option to monitor the EOD activities at the Fund Manager Branch. You can access this option by clicking the End of Day Process option under the End of Day Process menu item in the Batch Tab in Fund Manager.

To run/ monitor EOD, follow the steps given below:

If EOD aborts, you can use the EOD Maintenance screen to change the status to Skip or Aborted and then continue with the EOD process.

2.14 Asynchronous Processing

This section contains the following topics:

2.14.1 Monitoring Asynchronous Processing

The system provides a facility to monitor processes that are being run in the background during a current session. Such processes could typically be scheduled jobs or tasks, being run by the Scheduler Services. They are called asynchronous processes.

A typical example of an asynchronous process is the processing of dividend payment for many funds during one session.

To monitor the progress of asynchronous processes, the batch operator user can use the 'Process Status’ screen.

You can invoke this screen by typing ‘UTDPROST’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You must specify:

All jobs retrieved by the search operation are displayed in the lower grid portion, with their type, status, description and the name of the procedure being run. To view the details of the job, such as descriptions of errors, click the View button. The job details are displayed in the Asynchronous Processing Details screen.

To clear all asynchronous processing jobs, click the Clear All link in the Asynchronous Processing main screen.

2.15 Batch Processing for Guaranteed Funds

This section contains the following topics:

2.15.1 Invoking the Guaranteed Funds Screen

You need to update the revised fund prices to process adjustments. The Guaranteed Funds batch process will process the adjustments due to price revisions for a period. This is done in the ‘Guaranteed Funds’ screen. You can invoke this screen by typing ‘UTDUFUND’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can specify the following fields in this screen:

Processing Type

Mandatory

Choose whether the batch processing is Interim or Year End Processing.

From Date and To Dates

Date Format, Mandatory

Enter the period for which the price revision is applicable.

Mock Processing

Optional

Check this box if you require the system to carry out a Simulation (Mock GF correction) run. The Simulation run is possible on an Interim as well as Year End basis.

The system uses the Mock GF Fund Price for its calculations during these runs. After the successful completion of a Simulation run, the system generates a 16- digit Batch number that you can use for reporting purposes. If you leave the box unchecked, the system treats the run as an Actual run and uses the Actual GF Fund Price.

Note

Click ‘Process’ button to execute the batch process. Consequently, the system will consider all transactions recorded during the mentioned period for Unit Holder – Policy- Fund combination. The system will store the following information from the impacted transactions:

The system then re-calculates and stores the units allotted, settlement account and unit price for all the relevant transactions.

Note

The system ignores adjustment subscriptions and adjustment redemptions done in the current fiscal year and balance transfer in transactions.

The formula used to compute difference in units for Subscriptions with transaction mode as amount is as follows:

The formula used to compute difference in units for Redemptions with transaction mode as amount is as follows:

The formula used to compute difference in units for Redemptions with transaction mode as Unit is as follows:

Depending on whether the batch processing is Interim/Year End, the system will generate the allotted subscriptions/redemptions as follows:

Example:

22nd Jan 2007 - S1 - UH1 - F1 - 1000 ZAR – 100 Units @ 10ZAR

First Interim: On 30th Mar 2007 the price is revised to 10.10 ZAR the transaction would be 1000/10.10 = 99.01 units. Now, the difference is 0.99 units.

Second Interim: On 29th Jun 2007 the price is revised to 10.15 ZAR the transaction would be 1000/10.15 = 98.52 units. Now, the difference 1.48 units but we have already subscribed for 0.99 units hence redeem only for 1.48 - .99 ➔ 0.49 units.

2.16 Fund of Funds Processing

The EOD batch process ‘Process fund of funds investments’ is used to generate transactions from the main fund to the underlying funds. Reftype ‘FF’ identifies the Fund of Fund transactions generated by the system. The transactions are generated for the unit holder maintained in ‘fund linkage details’ section and the transaction currency will be the fund base currency of the main fund.

For ‘Non-net’ transactions, during EOD, the system finds the sum of inflow amounts and sum of outflow amounts for all transactions allotted on that day, and generates a subscription and redemption transaction in the underlying funds accordingly.

For ‘net’ transactions, the system finds the (sum of inflow amount – sum of outflow amount) and generates either subscription or redemption transaction in the underlying funds.

Inflow amount considers subscriptions, switch ins, reversed redemptions and reversed switch outs that are allotted on the application date for the main fund.

Inflow amount = units allotted across all transactions * NAV as of the application date

Outflow amount considers reversed subscriptions, reversed switch ins, redemptions and switch outs that are allotted on the application date for the main fund.

Outflow amount = units allotted across all transactions * NAV as of the application date

If the transaction generation basis is ‘Non Net/Transaction Mode’, then during EOD the system find the sum of all amount based subscription and sum of amount based redemption transactions allotted on that day, and generates amount based subscription and redemption transaction in the underlying funds.

Units and percentage based transactions will be generated as amount based subscription and redemption transaction in underlying funds, in maintained ratio. The amount of the allotted transactions will be ‘Units allotted * NAV as of application date’.

Example:

Assume that JPMORG is a Fund of Hedge Fund. JFCHNF and JFHKDF are underlying hedge funds having percentages 50 and 40 respectively. Also, assume that 000000000272 and 000000000277 are the unit holder IDs for JFCHNF and JFHKDF respectively.

Transactions allotted on JPMORG as on 01/09/2009 (Assuming TBC is FBC, NAV is 10 and fund has no load)

Transaction Number

Transaction Mode

Transaction Value

Transaction Amount

Transaction Number

Transaction Mode

Transaction Value

Transaction Amount

SUB1

Amount

1000

1000

SUB2

Amount

2000

2000

SUB3

Unit

100

1000

SUB4

Unit

200

2000

RED1

Amount

2500

2500

RED2

Unit

50

500

Total Subscription Amount

6000

Total Redemption Amount

3000

Total Unit Subscription

300

Total Unit Redemption

50

Total Amount Subscription

3000

Total Amount Redemption

2500

Net Transaction value

3000

Transaction will be generated as given below

Transaction Generation Basis is ‘NET’

Fund ID

Unit holder ID

Txn Type

Txn Mode

Txn Value

JFCHNF

000000000272

SUB

Amount

1500

JFHKDF

000000000277

SUB

Amount

1200

Transaction Generation Basis is ‘NON NET’

Fund ID

Unit holder ID

Txn Type

Txn Mode

Txn Value

JFCHNF

000000000272

SUB

Amount

3000

JFCHNF

000000000272

RED

Amount

1500

JFHKDF

000000000277

SUB

Amount

2400

JFHKDF

000000000277

RED

Amount

1200

Transaction Generation Basis is ‘NON NET/TXN MODE’

Fund ID

Unit holder ID

Txn Type

Txn Mode

Txn Value

JFCHNF

000000000272

SUB

Amount

1500

JFCHNF

000000000272

RED

Amount

1250

JFHKDF

000000000277

SUB

Amount

1200

JFHKDF

000000000277

RED

Amount

1000

JFCHNF

000000000272

SUB

Amount

1500

JFCHNF

000000000272

RED

Amount

250

JFHKDF

000000000277

SUB

Amount

1200

JFHKDF

000000000277

RED

Amount

200

2.17 Master Feeder Funds Processing

The transactions that happen in a feeder fund are fed to the master fund based on the value of ‘Transaction Generation Basis’ (N-Net, O- Non Net) maintained at fund level for the percentage specified in ‘Fund linkage details’ section in ‘Hedge Fund Processing Rules’ screen.

The transactions from the feeder funds to the master fund are generated using the ‘Process master feeder investments’ batch process. Reftype ‘MF’ identifies the master feeder transactions generated in this batch.

If ‘Transaction Generation Basis’ is ‘N-Net’ basis then system posts the transactions as follows:

If ‘Transaction Generation Basis’ is ‘O-Non Net’ basis then system posts the following two transactions during EOD batch:

Total inflow amount considers subscriptions, switch ins, revered redemptions and reversed switch outs that are allotted on the application date for all the feeder funds.

Inflow amount = units allotted across all transactions * NAV as of the application date converted to master fund FBC using the default exchange rate, if the currency is different

Total outflow amount considers reversed subscriptions, reversed switch ins, redemptions and switch outs that are allotted on the application date for all the feeder funds.

Outflow amount = units allotted across all transactions * NAV as of the application date converted to master fund FBC using the default exchange rate if the currency is different.

A percentage of the inflow and outflow amounts, as maintained in the ‘fund linkage details’, is fed to the master fund.

Example

Assume that JPMorgan Fund (JPMORG) is a master fund. JF Greater China Fund (JFCHNF) is a feeder fund, which invests 89% of its net assets in a unit of JPMorgan Fund (Master fund). JF Hong Kong Fund (JFHKGF) is another feeder fund, which invests 90% of its net assets in a unit of JPMorgan Fund (Master fund).

In the fund rules setup of JPMORG you can capture the split percentage details as follows, in ‘Fund linkage details’ section.

Feeder fund ID

Fund Name

Percentage

JFCHNF

JF China Fund

89

JFHKGF

JF Hong Kong Fund

90

If an investment happens in JFCHN fund for 100 units, then an amount 890 (89% of the inflow amount) gets invested in JPMORG fund.

If an investment happen in JFHKGF fund for 100 units, then an amount 900 (90% of the inflow amount) gets invested in JPMORG fund.

Note

The above example assumes that both the master and feeder fund FBCs are same and without any loads at the master and feeder level. It also assumes an NAV of 10 for the funds.

If the feeder and master fund FBCs are different, then the feeder fund investment is converted into master fund FBC.

2.18 Refresh Rules Maintenance

This section contains the following topics:

2.18.1 Invoking the Refresh Rules Screen

In service provider installations, if a new rule is maintained or an existing rule is modified at any of the Line of Business (LOB) schemas available, the same needs to be replicated to all available LOB schemas for that particular installation.

You can replicate the rules maintained in one LOB schema to all available schemas in ‘Refresh Rules’ batch screen.

You can invoke this screen by typing ‘UTDREFRU’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

 

You can specify the following details in this screen:

Refresh Option

Mandatory

Select any of the following refresh options:

Rule ID

Alphanumeric, Optional

Specify the rule Id to be replicated to LOB schemas or select the rule Id from the option list provided.

Note

This is applicable only if you have selected ‘Specific’ as the refresh option.

Rule Description

Display

The description associated with the Rule Id selected gets displayed here.

Action

Optional

Select the option to indicate whether the rules should be refreshed during EOD or immediately. The following options are available in the drop-down list:

Click ‘Execute’ button to refresh the rules as per the options specified.

You can also use the EOD batch ‘Refresh PF Rules across LOB’ to refresh all available LOB schemas of a given service provider, whenever a new rule is created or existing rule is modified.

For more details on maintaining rules for performance fee calculation, refer the section titled ‘Maintaining Rules for Performance Fee Calculation’ in this user manual.

2.19 US Indicia Check Batch

This section contains the following topics:

2.19.1 Processing US Indicia Check Batch

The US Indicia Check batch verifies the existing unit holder or entity records to check whether the UH or entity is 'US Indicia Available' or not. The batch classifies the UH and entity records based on this check. You can trigger the batch using the function ID STDFATCL.

This batch checks the following records:

If one of the following US Indicia is available for an entity, then the record will be marked as “US Indicia Available”.

2.20 FATCA Status Check Batch

FATCA status check batch is a mandatory BOD batch. It checks the existing unit holders, broker, customer, single entity and auth rep and marks them as 'Recalcitrant' or 'Compliant' based on the expiry status of proof documents.

If a standard document for any of the above entities has expired, the system changes the status of such entity from 'Compliant' to ‘Recalcitrant'.

If there are more than one documents maintained, the system checks the expiry status of each document. If any one document is expiring as of that day, the batch marks the entity as recalcitrant.US Indicia entity with status 'Pending Classification' may have 90 days lag maintained as part of system parameter. In case any such entity has not given the required set of document within the 90 days period, then this batch will change the status of the entity as 'Recalcitrant’.

Note

The 90 days lag is calculated based on the US Indicia status ‘Yes’.

2.21 Integration Batch Process Screen

This section contains the following topics:

2.21.1 Invoking Integration Batch Process Screen

You can invoke ‘Integration Batch Process’ screen option by typing ‘UTDINTBT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

 

You can specify the following details:

Batch

Alphanumeric; 8 Characters; Optional

Specify the batch process. Alternatively, you can select batch process from the option list. The list displays all valid integration batch process maintained in the system.

Click ‘Process’ button to process the integration batch.