The system allows for the capture, at an infrastructure level, of investment mediums that can be used by all products and for which the parameters may apply to all the products, or for which overriding product rules can be captured.
Log in to the system from the Logon page.
Click investment.
The Welcome screen will be displayed.
This process includes the capture, update and enquiry for the following:
Investment Mediums
This activity enables a user to maintain records of the investment mediums available to products for which the administrator provides services. A super user will capture the investment mediums that will subsequently be linked to the administrator’s products via portfolio.
This activity makes provision for:
Capture, update and enquiry of investment mediums that can be used by one or more products with rules that pertain to all products using that investment medium, e.g. interest or bonus rates, unit prices and switching rules. Capture and enquiry of interest rates (monthly or annual / interim or final) applicable to all products using an investment medium.
Unit Prices
Unit prices are captured on a daily or monthly basis in order to determine member investments. They can be captured for individual products or investment mediums, or for bulk products or investment mediums.
This activity makes provision for:
Capturing of unit prices and the validation of the effective date and price. Updating of the investment medium or portfolio unit prices captured. Enquiry of investment unit prices.
Unitisation
Units can be allocated in a number of different ways and can vary per investment fund.
The way in which unitisation occurs is determined by the way in which the investment fund records are set up. The different methods are determined by either the pricing frequency (daily or monthly) or whether the allocation is notional or actual.
The various methods of unitisation are described below.
Notional
- The Net Investment Indicator field is set on the JU1BV Scheme Portfolio Details investment fund record. When this is set then only the member investment transactions are processed and no investment / disinvestment advices or fund transactions are created.
- Units are allocated using the unit price applicable for the date the transaction occurred.
- The fund investment transactions can be processed using manual accounting activity journals for which investment or disinvestment advices can be selected to be generated.
Actual
- If the Net Investment Indicator on the JU1BV Scheme Portfolio Details investment fund record is not set then member transactions are created as well as fund transactions. The fund transactions are only created for the monetary value and units are not recorded.
- In the case of contributions and switching transactions, fund transactions are created for the total of the members’ transactions for the same day per investment fund.
- In the case of disinvestments for exits, transactions are created for each member per investment fund.
- Fund transactions are also created in control accounts which indicate the amount of money to be invested and the amount expected from disinvestments. These accounts are then cleared when the money is paid to the asset manager or the deposit of the money from the asset manager is recorded.
- Investment advices and disinvestment advices are created for the sum of the day’s transactions per transaction type (contributions, switching, exits), and per investment fund. Investment advices are created for the monetary value and disinvestment advices for the number of units or amount, depending on the type of investment fund.
- A report of all of the individual member transactions making up the total of the investment or disinvestment advices is provided.
Daily Pricing
- In the case of investment funds for which a daily unit price is provided, units are allocated for contribution and switch buy transactions as soon as the unit price is available for the date the money was actually invested or notionally invested.
- For disinvestments for exits and switch sell transactions, the disinvestment advice is created for the asset managers when the transaction is initiated for the number of units to be disinvested. As soon as the unit price as at the date of disinvestment is available, the transactions are created for the number of units and the value disinvested.
Monthly Pricing
- In the case of investment funds for which a monthly unit price is provided, units are allocated for contributions and switch buy transactions based on the unit price for the current month.
- Disinvestments are delayed until the unit price is available for the following month i.e. transactions are not processed until a few days after the month-end so that investment returns are included.
Investment Advices
Viewing and printing of advices to asset managers of investments, and instructions to disinvest automatically created during the income processing, benefit realisation and switching processes.
Investment/disinvestment advices can be extracted for all schemes, by date.
Distribution
This facility allows for the setting up of investment mediums at the main product level of an umbrella arrangement. This allows for the distribution of reserves to all members of the sub- products in an umbrella product, who are invested in the same investment medium.
The redistribution of reserves is made to the members who contributed to the reserve and therefore such distributions take place at a sub-product level.
The apportionment of expenses, e.g. investment management fees, also applies to all members of an umbrella product invested in the same investment medium.
Note:
All investment portfolios to be used at a sub-product level must be set up for the sub-product.
Outstanding Re-unitisation
Re-unitisation is initiated when the correction of the unit price is approved.
This facility reports cases where the re-unitisation did not take place.