4.41.2 BOD Batch

This topic provides the information about BOD Batch details.

For investment via automated switching mandate with specified yield, the system will process auto switch generation using a BOD batch process. This batch will compute the yield percentage and trigger auto switch back transaction if yield is met.

Yield Computation

Program Name: SPComputeYield

EOD batch process will pick all active switch back standing instruction which are eligible for yield computation.

The system uses the following formula to calculate yield:

[(No of Units * Current NAV Price) - (Cost of each switch transaction)]

_________________________________________________________ x 100%

(Cost of each switch transaction)

For determining if yield % is achieved, the system will execute the job at the beginning of each business (T) day by comparing the cost against the latest price available as on T. If price of T-1 is available, then system will execute the comparison and generation of transactions for funds with NAV prices available for the same business day (T).

For instance, for on-shore (local assets) funds, NAV prices will be available on T-1, say on 27 Jun EOD (8 pm). The system will compare the cost against 27 Jun NAV price or the latest available NAV price on 28 Jun BOD. The system will trigger the transaction for the transaction date 28th Jun.

The cost in Target fund should be the net amount (i.e. switch-in amount less switch-in fee) and captured at each switch order (F1) and is checked against daily market value to monitor the yield movements against the pre-defined yield.

If the expected yield percentage is reached system to generate the switch back transactions on the same business day.

If Target fund has reached the target yield and system day is a fund holiday day for Target fund, system will not generate switch back from Target fund to Source fund. The system will continue to compute the yield from the next business day.

Yield % computation will be computed on fund working day for each F1 transaction and continue to happen till yield % is reached or F2 is terminated.

Even if switch (F1) is terminated, the system will continue to compute yield % till the auto switch back is generated for every F1 transaction or F2 is terminated

Auto Switch Back

Program Name: SPAutoSwitch

The switch back transaction will be always unit based. Auto termination is not applicable for switch back transaction generation (F2).

You can terminate Auto switch back (F2) by updating Enable Auto Switch field as No in SI Maintenance screen to stop generating the switch back transactions. This will only disable switch back of transactions generated after SI amendment date.

In order to disable any generated transaction from switching back, you meed to disable F1 transaction from ‘Disable Auto Switch’ (UTDAUSWB) screen.

Reinvested units in Target fund are classified as lump sum subscription (user-triggered non\u0002short trade units). These reinvested units will not be included in the yield comparison and will not be switched back to Source fund.

The system will consider only redeemable units in target fund for switch back to source fund. Those units in target fund which has been blocked by user for whatever reason should not be switched back to source funds even if the yield is met.

If Source fund does not accept subscriptions and switch-in, switch-out from Source fund to Target fund (F1) should still be allowed.But switch-back from Target fund to Source fund (F2) should not be allowed.

If Target fund does not accept subscriptions and switch-in, switch-out from Source fund to Target fund (F1) should not be allowed. But switch-back from Target fund to Source fund (F2) should be allowed.

You can reverse switch from source to target, provided the units are available in target fund and switch-in is not linked to any outflow. The reversal will be carried out separately for in leg and out leg.

The switch in date of the target yield switch (F2) can be different from switch out date. Same for F1 switch.

The switch back transaction (F2) once generated will be executed even though the yield is below the target yield on date of execution

You can generate switch in transaction on allocation of switch out leg or settlement of switch out leg or a defined dealing cycle (taking into account lag maintenance) depending on the parameterization. Switch-in transaction date will be derived based on the pseudo switch lag maintenance in UTDSWLAG.

Short trade does not apply to the switch-in units in both Source fund and Target fund. No short trade penalty will be levied if the units are redeemed within the short trade period.

Any failure of F1 or F2 transaction generation will be logged in a database table with reason for failure.

Note:

In BOD new package pkgfmggenps_wrapper will be invoked for Pseudo Switch In leg generation. A new parameter PSCHUNKSIZE is been added with default value 1 business can modify to any valid values.