3.13.5.2 Aging Logic

This topic provides information on aging logic details.

Aging sequence is common for all investor account type including Nominee account type.

Aging Sequence in Fund Preference Maintenance is mandatory only for the Funds for which Aging Logic is maintained as USERMNTFIFO.

If you try to maintain aging sequence for funds with Aging Logic different than USERMNTFIFO, the system will display an error message.

In USERMNTFIFO Aging Policy, link transactions are aged out based on the following values:

• Inflow Units Type (FEL/ CDSC)
• Transaction Currency
• Transaction Type
• Reftype
• Transaction Date
• Transaction Number

The aging order will have 5 bits namely,

• Input unit type
• Transaction Currency
• Transaction Date
• Short Trade bit
• Aging Order

For On-shore fund the system will use the following logic to derive the 5 bit Aging order:

• Input Unit Type: It will be set to 1 or 2 based on the out flow transactions unit type. For FEL based out flow, all Transactions with FEL unit type will be marked as 1 and 2 for CDSC.
  • For CDSC based out flow transaction, the system marks all transaction with CDSC unit type as 1 and 2 FEL.
  • In case of outflow transaction, the system does not specify the unit type than FEL and CDSC will be given assigned same value 1.
• Transaction Date: All transaction will be marked as 1.
• Transaction Currency: All transaction will be marked as 1.
• Short Trade bit will be set to 1 if the transaction date is more than short trade period. It will be set to 2 if the transaction date is within short trade period.
• Aging Order: The system populates the aging order as per the Aging maintenance done for on-shore fund.

Example

Table 3-23 Example

Txn Type	Ref Type	5 Bit value
2	2	1
2	PS	1
2	RE	1
2	41	3
2	F1	2
2	F2	2

For Off-shore fund, the system will use the following logic to derive the 5 bit aging order:

• Input Unit Type: The system will set all transaction to 1
• Transaction Currency: The system will set this based on the Outflow Transaction currency. Outflow transaction currency is same as inflow transaction currency, it be set to 1 else set to 2.

  For Block Transaction this bit will be set to 1 for all transactions irrespective of Transaction currency.

• Transaction Date: The system will mark the transaction date less than or equal to 31- DEC-2009 as 1. The system will set transaction date greater than 31-DEC-2009 to 2.

Table 3-24 Param Details_TXNCUTTOFFDATE

Param Code	Param Description	Max Length (Param Value)	Maintainable	Param Value
TXNCUTTOFFDATE	Off Shore Transaction cutoff date	12	Yes	31-Dec - 09

The system will set short trade bit to 1, if the transaction date is more than short trade period. It will be set to 2 if the transaction date is within short trade period.

Example:

Table 3-25 Example

Txn Type	Ref Type	5 Bit value
ALL	ALL	1
2	41	2

This aging new bit Aging Order will be used in the order clause alone with Transaction Date and Transaction Number.

For On-shore fund

• The system will capture all the out flow transaction with FEL or CDSC units type.
• If the units type is not been specified system will default it to NULL. All transactions FEL and CDSC will be redeemed as per the logic maintained in Aging Sequence Maintenance (UTDAGSEQ). In case of block transaction no unit’s type will be specified.
• Based on the unit type, the system will process the specified Aging of units.
• For an outflow transaction if the unit type is FEL then all the linked transaction with Unit Type FEL will be aged out first as per the Aging logic maintained in Aging Sequence Maintenance (UTDAGSEQ) and vice versa in case of CDSC.
• If unit type is not specified then inflow transaction unit type will not be considered for Aging. It follows the Aging sequence maintained.

For Off-shore Fund

• The system will capture all the out flow transaction with transaction currency.
• Aging will happen based on the transaction currency of the outflow transaction.
• If the outflow transaction currency is Installed Entity Base Currency - TWD then all the inflow transaction with TWD as transaction currency will be aged out first as per the Aging logic maintained in Aging Sequence Maintenance (UTDAGSEQ).
• If the outflow transaction currency is USD or any other currency other than Installed Entity Base Currency TWD then all the inflow transaction with currency other than TWD, Installed Entity Base Currency, as transaction currency will be aged out first as per the Aging logic maintained in Aging Sequence Maintenance (UTDAGSEQ).

In case of block transaction, the transaction Aging will not consider Transaction currency. It will link transaction as per the Aging sequence maintained.

Example of deriving AgingOrder:

Table 3-26 Example of deriving Aging Order

Txn Number	Fund Ccy	Transaction Date	Units Type	Units
RED02	USD	21-Aug-16	FEL	20

On-Shore

Table 3-27 Aging Order

Txn Number	Fund Ccy	Transaction Date	Units Type	TXN TYPE	REF TYPE	Units	AgingOrder (RED02)
SUB01	USD	12-Aug-08	FEL	2	2	10	11111 1st Bit: 1- out flow for FEL so it is set to 1 2nd and 3rd Bit: 1 since this are not applicable for on shore fund 4th Bit: Short Trade Bit 5th Bit: 1 for this transaction aging order derived is 1
SUB02	USD	12-Aug-08	FEL	2	41	10	11113 1st Bit: 1- out flow for FEL so it is set to 1 2nd and 3rd Bit: 1 since this are not applicable for on shore fund 4th Bit: Short Trade Bit 5th Bit: for this transaction aging order derived is 3

On - shore: Unity type not specified

Table 3-28 On - shore: Unity type not specified

Transaction Number	Fund Currency	Transaction Date	Units Type	Units
RED03	USD	21-Aug-16	NULL	50

Table 3-29 AgingOrder (RED03)

Txn Number	Fund Ccy	Transaction Date	Units Type	TXN TYPE	REF TYPE	Units	AgingOrder (RED03)
SUB01	USD	12-Aug-08	FEL	2	2	10	11111 1st Bit: 1- since Out flow is set to NULL 2nd and 3rd Bit: 1 since this are not applicable for on-shore fund 4th Bit: 1 – trade is not within short trade 5th Bit: transaction aging order derived is 1
SUB21	USD	12-Nov-08	CDSC	2	2	10	11111 1st Bit: 1- since Out flow is set to NULL 2nd and 3rd Bit: 1 since this are not applicable for on-shore fund 4th Bit: 1 – trade is not within short trade 5th Bit: transaction aging order derived is 1
SUB14	USD	20-Aug-16	CDSC	2	2	10	11121 1st Bit: 1- since Out flow is set to NULL 2nd and 3rd Bit: 1 since this are not applicable for on-shore fund 4th Bit: 1 – trade is not within short trade 5th Bit: transaction aging order derived is 1
SUB15	USD	20-Aug-16	FEL	2	2	10	11121 1st Bit: 1- since Out flow is set to NULL 2nd and 3rd Bit: 1 since this are not applicable for on-shore fund 4th Bit: 1 – trade is not within short trade 5th Bit: transaction aging order derived is 1
SUB96	USD	15-May-16	CDSC	2	F1	10	11112 1st Bit: 1- since Out flow is set to NULL 2nd and 3rd Bit: 1 since this are not applicable for on-shore fund 4th Bit: 1 – trade is not within short trade 5th Bit: transaction aging order derived is 1

Off-Shore Fund Base Currency: USD

Table 3-30 Off-Shore Fund Base Currency: USD

Transaction Number	Fund Currency	Transaction Date	Units Type	Units
RED01	USD	21-Aug-16	CDSC	50

Table 3-31 AgingOrder (RED02)

Txn Number	Txn Ccy	Transaction Date	Units Type	TXN TYPE	REF TYPE	Units	AgingOrder (RED03)
SUB01	TWD	12-Aug-08	CDSC	2	2	10	11111 1st Bit: will be always set 1 2nd Bit: 2 transaction currency TWD and out flow transaction currency TWD 3rd Bit: 1 transaction date is before 31-Dec-2009 4th Bit: Short Trade Bit 1 5th Bit: 1 for this transaction aging order derived is 1
SUB23	TWD	12-Nov-08	CDSC	2	41	10	11112 1st Bit: will be always set 1 2nd Bit: 2 transaction currency TWD and out flow transaction currency TWD 3rd Bit: 1 transaction date is before 31-Dec-2009 5th Bit: 2 for this transaction aging order derived is 2
SUB62	USD	1-Jan-10	CDSC	2	2	10	12211 1st Bit: will be always set 1 2nd Bit: 2 transaction currency TWD and out flow transaction currency TWD 3rd Bit: 1 transaction date is before 31-Dec-2009 4th Bit: Short Trade Bit 1 5th Bit: 2 for this transaction aging order derived is 2
SUB63	TWD	1-Jan-10	CDSC	2	2	10	11211 1st Bit: will be always set 1 2nd Bit: 2 transaction currency TWD and out flow transaction currency TWD 3rd Bit: 1 transaction date is before 31-Dec-2009 4th Bit: Short Trade Bit 5th Bit: 2 for this transaction aging order derived is 2
SUB82	USD	11-Apr-16	CDSC	2	41	10	12212 1st Bit: will be always set 1 2nd Bit: 2 transaction currency USD and out flow transaction currency are TWD 3rd Bit 2 transaction date is after 31-Dec-2009 4th Bit: Short Trade Bit 5th Bit: 2 for this transaction aging order derived is 2

On-shore ageing logic for short trade period is as follows:

• Step 1: First the system will age out all the transactions, which are not marked as Short trade and transactions for which short trade penalty are not applicable, as per the Aging sequence maintained.
• Step 2: If there are remaining units to be redeemed after step 1, the system will link all the transactions which are marked as Short Trade as per the Aging sequence maintained.
• Marking and resetting the Short trade transaction are internal to process.

On-shore ageing logic for short trade Units is as follows:

• The system will age out all the transactions as per the Aging sequence maintained. In this case system will not consider transactions based on Short trade period.

Off-shore ageing logic for short trade is as follows:

• Holdings before specific period as maintained in business:
  • Subscription
  • RSP
• Holdings after specific period as maintained in business:
  • Subscription
  • RSP