Setting Up Investment Pools

Page Name

Definition Name

Usage

Pool Information Page

TRP_POOL_DEFN

Define the fee, interest, and accounting ChartField information of the investment pool.

Concentration Limits Page

TRP_POOL_LMT_SEC

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

Enter contact information for the external investment managers who are investing pool funds.

See the Pool Information Page.

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

Use this component to:

  • Set up an investment pool.

  • Define pool investment limits.

Use the Pool Information page (TRP_POOL_DEFN) to define the fee, interest, and accounting ChartField information of the investment pool.

Navigation:

Cash Management > Investment Pools > Pool Information

This example illustrates the fields and controls on the Pool Information page. You can find definitions for the fields and controls later on this page.

 Pool Information page

Field or Control

Description

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

Field or Control

Description

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.

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

Use the Concentration Limits page (TRP_POOL_LMT_SEC) to 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.

Navigation:

Cash Management > Investment Pools > Pool Information

Click the Concentration Limits link on the Pool Information page.

This example illustrates the fields and controls on the Concentration Limits page. You can find definitions for the fields and controls later on this page.

 Concentration Limits 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.

Field or Control

Description

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.