1.1.8 Yield date derivation – Fund level SI

This topic provides information about yield date derivation – fund level SI.

The system computes the yield and compares the latest record on (T-Y) days using the NAV as of (T-N) with holdings as of NAV date.

where,

T- SI date

Y – Yield lag, will be in system calendar days. Yield lag should not be greater than SICUTOFFDAYS. Param Code for Yield Lag is YIELDLAG

If SICUTOFFDAYS is lesser than YIELDLAG, then post yield computation, then you can amend the amount, hence the validation. The SI Effective date should be less than or equal to Yield Computation Date, otherwise the system will not pick SI for yield computation and hence the upcoming SI generation will fail.

N – NAV lag – Actual calendar. The system will calculate the lag from RSP date. Param Code for NAV Lag is NAVLAG. The NAV date derived from NAV lag maintained must be always greater or equal to Yield computation date derived from Yield lag. You need to operationally control this validation..

NAV Lag and Yield Lag maintained are applicable to all DRSP irrespective of the SI Frequency selected.

In case of SI with daily frequency, Yield Lag must be 1 and for weekly frequency, you need to select the yield lag by considering the system holidays to avoid overlaps.

The system uses DRSP Yield Computation batch to compute yield and set the contribution based on the maintenance.

In case of fund restriction maintained as force situation where fund is frozen for new inflow/ new SI transaction’s suspension, the system will compute yield for DRSP and generate the transaction with the base amount setup. You can amend SI amount to reduce the amount when fund restriction is maintained for inflow transactions.

If the RSP/ DRSP holdings in the account is fully redeemed, the system will deem the next DRSP as the first DRSP, generated as base contribution amount.

Example on System Holiday in Feb

Table 1-23 System Holiday in Feb

Sun	Mon	Tue	Wed	Thu	Fri	Sat
-	-	-	1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	1	2	3	4
5	6	7	8	9	10	11

Example on Fund Holiday in Feb

Table 1-24 Fund Holiday in Feb

Sun	Mon	Tue	Wed	Thu	Fri	Sat
-	-	-	1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	1	2	3	4

Assume SI date is 28th of every month (28-Feb-2017)

Yield Lag - Y is set as 4

NAV Lag - N is set as 7

Table 1-25 Yield Computation Date (SI Date - Y) System Calendar

Yield Computation Date (SI Date - Y) System Calendar	22-Feb-17
NAV Date (SI Date – N) Actual Calendar	17-Feb-17
Holdings Date	17-Feb-17

As per the NAV lag maintenance, the system will derive the NAV date on 21-Feb-17 (28 Feb - 7 days) but NAV of 17-Feb-2017 will be used as 20th and 21st are fund holidays

Yield date derivation – SI – Plan level

Assume SI date is 28th of every month (28-Feb-2017)

Plan level SI with 2 offshore funds

Table 1-26 Fund Details

Fund ID	Fund Type	Holidays
BONFND	Bond Fund	23,24
EQYFND	Equity fund	20,21,24

Yield Lag - Y is set as 4

NAV Lag - N is set as 7

Fund Holiday in Feb - BONFND

Table 1-27 Fund Holiday in Feb - BONFND

Sun	Mon	Tue	Wed	Thu	Fri	Sat
-	-	-	1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	1	2	3	4

Fund Holiday in Feb - EQYFND

Table 1-28 Fund Holiday in Feb - EQYFND

Sun	Mon	Tue	Wed	Thu	Fri	Sat
-	-	-	1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	1	2	3	4

As per the NAV lag maintenance, for EQYFND, the system will derive the NAV date on 21-Feb-17 (28 Feb - 7 days) but NAV of 17-Feb-2017 will be used as 20th and 21st are fund holidays.

Table 1-29 NAV Lag Maintenance

NAV Lag Maintenance Details	BONFND	EQYFND
Yield Computation Date (SI Date - Y) System Calendar	22-Feb-17	22-Feb-17
NAV Date (SI Date – N) Actual Calendar	21-Feb-17	17-Feb-17
Holdings Date	21-Feb-17	17-Feb-17

Example for RSP on 8th and 28th

Table 1-30 Lag Details

Lag Name	Value	For RSP Date 8th	For RSP Date 28th	Remarks
SICUTFFDATE	8	31-Jan-17	20-Feb-17	Follows actual calendar
YIELDLAG	3	2-Feb-17	22-Feb-17	Follows system calendar
NAVLAG	7	1-Jan-17	21-Feb-17	Follows actual calendar and derive the NAV date. If the derived date is a holiday system will use fund calendar and derive the available price prior to derived date

Calendar details below: Holiday calendar for Jan

Table 1-31 Holiday Calendar for Jan

Sun	Mon	Tue	Wed	Thu	Fri	Sat
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31	-	-	-	-

Holiday Calendar for Feb

Table 1-32 Holiday Calendar for Feb

Sun	Mon	Tue	Wed	Thu	Fri	Sat
-	-	-	1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	1	2	3	4

Reference in Holiday Calender Table for Fund and System Holiday Type

Table 1-33 Fund Holiday and System Holiday

Reference in Holiday Calender Table	Holiday Type
Bold	Fund Holiday
italics	System Holiday

With the above setup, the system will generate the RSP transaction on 1st of March as 28th Feb is a fund holiday. The assumption here is, you have selected the holiday rule as After.