1 Allocation Process

This topic provides information on allocation process.

After an investor transaction is authorized in the system, the units due to the investor in respect of the transaction must be accrued into the investor’s account balance. All applicable charges must be applied in the process of this accrual.

Also, the data stores maintained for the fund must be updated with the units accrual.

The process of accruing the units in this manner is known as allocation. The units in respect of an investor transaction request are allocated in this process.

The allocation process is an integral part of the End of Day processes at the Fund Manager component. When the operator user at the Fund Manager executes the End of Day processes, any transaction requests that are eligible for allocation on the given business day are picked up for allocation, and the allocation process allocates the units in respect of each of them automatically.

For funds in which on-line allocation is available as defined in the Transaction Processing Rules, the allocation processes for any transactions into such funds are run upon authorization of the transaction.

Depending upon the necessity, the operator user at the Fund Manager component could also execute the allocation process for any type of transaction manually, for a fund or all funds, by choosing the appropriate menu item from the End of Day menu category.

This topic is divided into the following parts:
  • The first pzrt contains information on how transactions are picked up for allocation, with specific reference to the different types of transactions.
  • The second part contains a workflow, which outlines the sequence followed by the allocation process in the system.

This topic must be used in conjunction with the topics Set up Funds and Set up Loads.