7.2.9 Process Load and Commission

This topic provides the systematic instructions to process Load Maintenance record.

1. In case of transactions done in currency of expression, the load amount during the transaction allocation will be calculated in currency of expression as well as in FBC. If a trade is in FBC; commission will be calculated in FBC.
   The system internally computes the gross amount and net amount in Fund base currency; these fields are mandatory fields that are to be computed as part of core allocation process.
2. In case of slab based load, the slab amounts will be held in FBC. The transaction amount in currency of expression will be exchanged to FBC by taking the COE conversion factor and the value will be matched against the slab to get the proper applicable load.
   The system will calculate the Normal Average Cost and Weighted Average Cost in Fund Base Currency. The gain will be calculated in Fund Base Currency. The Withholding Tax (EUSD) will be calculated in Fund Base Currency.
3. The maintained fund formula for that fund will be applicable to all the prices in all allowed currency of expression for the Fund along with FBC.
   For instance, the formula maintained for OFFER component as OFFER = NAV+3%of NAV (or the formula maintained can be NAV+2). The formula will be considered to derive the OFFER price component in FBC and other maintained Fund Price currencies for that fund using the NAV entered for respective currencies. This will be similar for other price components maintained in Fund Formula.
4. The price calculation method must be identical for each transaction currency within each share class. Trailer commission will be calculated in FBC.
5. In case of load held as amount, the system will apply the COE conversion factor and also the floor, ceiling and return value held in FBC will also use COE currency factor. All the amount values maintained in Load maintenance will be in FBC and the system will use CEO conversion factor for amount based load.