1.21 G1-G2 Conversion Details

This topic provides instructions to maintain G1-G2 conversion details.

A fund typically consists of units which have received some benefit (income or dividend benefits) and units which have not received any so far. The former are termed G1 units and the latter G2 units.

The G1 units could consist of units for which dividend has been declared at least once.

The G2 units could be as a result of switch-in, reinvestment or subscription transactions.

Maintain G1-G2 Conversion Details

Since the dividend distribution rates for G1 and G2 are different, the system will determine the number of units for each group in the fund as on the Freeze Holding Date/ Effective Date and pay out the dividend accordingly. The units are converted or adjusted against a transaction for the Unit Holder and Fund combination. The adjusted units are then considered for freeze holding.

Additionally, where dividend equalization is applicable, the system will pay out an equalization amount only for the G2 units. The following transactions are made available as part of conversion:

Table 1-15 Transaction details for G1-G2 Conversion

Transaction Type	G1 or G2 Units available for transaction
Subscription (Initial and Subsequent)	G2 Units until and including the next Freeze Holding Date
IPO Subscription (subscription during Fund Launch)	G1 Units
Pseudo Switch-Subscription	G2 Units until and including the next Freeze Holding Date
COB transfer-in	G2 Units until and including the next Freeze Holding Date
Normal transfer-in (Non COB)	G1 or G2 or combination of G1 and G2 Units
Merger/Conversions	G1 or G2 units in proportion
Switch In	G2