Fund Disinvestment Processing

Realisation

Processing of the disinvestment of funds investments is performed in the same way as for benefit realisation.

Once all of the required data has been captured on the JU2EE Fund Disinvestment Detail screen and SAVE is selected, the following processing will take place. 

Unitised

Where the Earning Allocation Code on the Investment Medium for the selected Portfolio is UNITISED, the Amount or Number Of Units on the Portfolio Advice Detail will be updated for the selected Portfolio and with a Buy Sell Indicator equal to S, Originating Process equal to FUND DISINVEST and Status equal to C.

-       If the Transaction Date is equal to the current date, the batch parameter DISINV THRESH will be read and if the current time is less than this value, then the Amount or Number Of Units on the Portfolio Advice Detail with a Notification Date equal to current date will be update by adding the amount to the existing value. 

-       If the current time is greater than the DISINV THRESH value, the Amount or Number of Units on the Portfolio Advice Detail will be updated with a Notification Date equal to the next working day.

-       If the Transaction Date is greater than the current date, the Amount or Number Of Units on the Portfolio Advice Detail will be updated with a Notification Date equal to the Transaction Date.

-       A Fund Realisation Detail record will be created with a Status of INV ADVICE.

-       If an authorised unit price for the Notification Date is available, the number of units based on the Amount captured or the amount based on the Number Of Units captured will be calculated depending on the value captured.

-       The following accounting activity will be created with a Transaction Date, Effective Date and Due Date equal to the Notification Date and with the Amount.  The Fund Realisation Detail record Status will be updated to COMPLETED.

-       The following accounting activity will be created with a Transaction Date, Effective Date and Due Date equal to the Notification Date and with the Amount and Number of Units 

-       If an authorised unit price is not available the system will process again and when the price is available, will calculate the Number Of Units / Amount and create the accounting activities above with a Transaction Date, Effective Date and Due Date equal to the Notification Date.  The Fund Realisation Detail record Status will be updated to COMPLETED.

Bonus

Where the Earning Allocation Code on the selected Portfolio is BONUS, the Amount on the Portfolio Advice Detail for the selected Portfolio will be updated with a Buy Sell Indicator equal to S, Originating Process equal to FUND DISINVEST and Status equal to C.

-       If the Transaction Date is equal to the current date, the batch parameter DISINV THRESH will be read and if the current time is less than this value the Amount on the Portfolio Advice Detail will be updated with a Notification Date equal to current date by adding the amount to the existing value. 

-       If the current time is greater than the DISINV THRESH value the Amount on the Portfolio Advice Detail will be updated with a Notification Date equal to the next working day and the business transactions will be created with a Transaction Date equal to the next working day.

-       If the Transaction Date is greater than the current date, the Amount on the Portfolio Advice Detail will be updated with a Notification Date equal to the Transaction Date.

-       The following accounting activities will be created with Transaction Date, Effective Date and Due Date equal to the Notification Date and Create a Fund Realisation Detail record with a Status of COMPLETED.

Unitisation

When the Unitisation of Investments batch job BJU3AB_UNIT runs, the system will retrieve the accounting transactions in the INVESTMENT account in the ledger with a purpose class of INVESTMENT, in addition to the INVESTMEMB account, for which the Unitised Indicator is N using the following retrieval accounting activity:

The number of units will be calculated using the unit price with an Effective Date equal to the Transaction Date.  The following accounting activities will be created, and the Unitised Indicator on the retrieved accounting activity will be update to Y:

If the accounting activity retrieved is a debit:

If the accounting activity retrieved is a credit:

Re-unitisation for unit price corrections

When the Re-unitisation batch job BJU3AK_REUNIT runs, the system will retrieve the accounting transactions in the FNDUNITINV account, in addition to the INVSTMEMUNIT account, using the following retrieval accounting activity:

The number of units will be calculated in the same way as for the INVSTMEMUNIT accounting activities currently and the accounting activities will be created as follows:

If the accounting activity retrieved is a debit:

If the accounting activity retrieved is a credit:

Re-unitisation for date corrections

The Product level transactions will not be include in the Investment Date Correction BJU3EF_DTECOR batch job.

It is possible that there may be transactions at both the member and product level with the same date but only the member unitization transactions will be corrected. 

Note:

Given that there will be a limited number of transactions per investment portfolio at a Product level it will be safer for these transactions to be checked manually and if necessary, for manual journals to be processed to adjust the number of units.

Bonus allocation

When the interest calculation on investments (bonus) BJU3AE_BONUS and Interest calculation for Annual Investments BJU3AM_ANNBON batch jobs are run, the system will retrieve the balances and the accounting transactions in the INVESTMENT account in the Ledger with a Purpose Class of INVESTMENT, in addition to the INVESTMEMB account, in the same way as they are currently retrieved with regard to Transaction Date and Timestamp but using the following retrieval accounting activity:

Interest will be calculated in the same way as for the Member investment accounts but the bonus/interest transactions will be created with the Accounting Activities in the list below in place of the equivalent Member transaction:

If a bonus rate has been amended, the bonus will be recalculated in the same way as for the Member accounts except that the Accounting Activities in the list below will be created in place of the equivalent Member transaction.