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Asset Management — an overview

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1. Internal External Mutual and Portfilio type Mutual and Portfilio type Further internal and external funds can be of the Portfolio and Mutual fund type The fund type that you specify for a class will be defaulted to the product to which it associated Cash Flow Period Enter the period of Cash flow Purge Allowed Check the box if purge is allowed Purge You can maintain the following parameters here Frequency The purge frequency can be one of the following Daily e Monthly e Quarterly Half yearly Yearly Start Day In the case of monthly quarterly half yearly or yearly purges you should specify the date on which the accruals have to be done during the month Start Month If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date on which the accruals should be done Charge Accrual Certain charges that you incur in maintaining a fund need to be accrued While setting up a fund preference class you can specify accrual frequency preferences The charge components of funds associated with the product will be accrued based on these preferences ORACLE Frequency As a product preference you can specify the frequency with which the charges applicable to a fund should be accrued While specifying the details of the charge you can indicate the period over which the charge should be accrued
2. Component The list of components displays when you click Default From Class Select the component details from the list Description This displays the description when you enter the component details Stop Association Check or uncheck stop association Propagation Required Check or uncheck propagation required Charge Type Select the charge type from the drop down list Third Party Type Enter the third party type Debit Credit Select debit or credit Add Subtract Select add or subtract Net consideration Check or uncheck net consideration Advice Charge Check or uncheck advice charge Swift Qualifier Enter the swift qualifier Event Details Specify the following details ORACLE Event for Association The corresponding event for association displays when you select the component from default class Description The description for corresponding event for association displays when you select the component from default class Event for Liquidation The corresponding event for liquidation displays when you select the component from default class Description The description for corresponding event for liquidation displays when you select the component from default class Event for Application The corresponding event for application displays when you select the component from default class Description The description for corresponding event for application displays when you select t
3. When you click on the Fields button the User Defined Fields screen will be displayed User Defined Fields Contract Reference Field Properties E Field Name Field Value L o Specify the values in the fields and click button 5 2 9 Specifying Events When you click on the Events button the Event Details screen will be displayed Event Details Events W Event Number Event Date Event Code Description Message Accounting Entries Specify the following details 5 21 ORACLE Reference Number In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system while creating the fund online The reference number for the contract is displayed in this field Events Specify the following details Event Number This number is generated by the system based on the number of events fired relating to the fund Event Date Date on which the event is triggered is displayed here Event Code The system defaults the code as per the fund product which is mapped to the fund id when the particular event is triggered based on the corporate manual actions Description This displays the description for the corresponding event code 5 2 10 Maintaining Messages When you click on the Message button the View Messages screen will be displayed Contract Reference Event Sequence Number Event Messag
4. Dr ADVRTCHGPIA ADVRTCHG_LIQD Cr FUNDBANKAC ADVRTCHG LIQD ACCR Dr ADVRTCHGEXP ADVRTCHG BACR Cr ADVRTCHGPAY ADVRTCHG_BACR Dr ADVRTCHGEXP ADVRTCHG_DACR Cr ADVRTCHGPIA ADVRTCHG_DACR CLIQ Dr ADVRTCHGPAY ADVRTCHG_LIQD Cr FUNDBANKAC ADVRTCHG LIQD NAVC Dr MGTFEEEXP MGTFEEAMT Cr FUNDBANKAC MGTFEEAMT 8 1 4 Maintenance done before Running EOD The Asset Management EOD requires the following batch to be maintained before running batch 8 3 ORACLE AMAUTDLY GLMISUPD AMBNAVHF 8 1 4 1 Branch Related Maintenance before running EOD The following branch related maintenance is done before running EOD LD Branch Parameters Maintenance e C Branch Parameters Maintenance ORACLE 9 1 9 2 9 Asset Management Reports Introduction During the day or at the end of the day you may want to retrieve information on any of the several operations that were performed during the day in your bank You can generate this information in the form of reports in Oracle FLEXCUBE For every module you can generate reports which give you data about the various events in the life of a specific contract or across contracts at a specific point in time You can have analysis reports daily reports exception reports reports on events that ought to have taken place on the contract but have not due to various reasons and history reports and so on From the Application Browser select the Reports option A list of all
5. System NAV Charge Date before start Current Processing Number Of Date of Processing Till Date Days 2003 22 July 19 July 2003 22 July 2003 3 2003 23 July 22 July 2003 23 July 2003 1 2003 p 23 July 2003 274 August 2003 10 August 2003 Example Post NAV Fund NAV computed during EOD Branch Parameters Preference Process Till Next Working Day 1 System NAV Charge Date before Current Processing Number Of Date start of Processing Till Date Days 19 July 18 July 2003 21 July 2003 3 2003 22 July 21 July 2003 22 July 2003 1 2003 23 July 22 July 2003 31 July 2003 9 2003 p 31 July 2003 274 August 2003 2 August 2003 Branch Parameters Preference Process Till System Date System NAV Charge Date before start Current Number Of Date of Processing Processing Till Days Date 19 July 18 July 2003 19 July 2003 1 2003 22 July 19 July 2003 227 July 2003 3 2003 23 July 22 July 2003 315 July 2003 9 2003 B 31 July 2003 2 August 2003 2 August 2003 Charge computation is done as follows ORACLE NAV Amount of USD 105 000 Units in issue 10 000 Annualized NAV Amount 105 000 365 USD 287 67 Rounded according to the Fund Base Currency Rounding Rules Charge Amount 2 of NAV Annualized Amount USD 5 75 This charge amount will be multiplied with the Number Of Days as in Illustration 1 and 2 before the rounding rules are applied 5 2
6. The accrual frequency can be one of the following e Daily e Monthly e Quarterly Half yearly e Yearly Start Day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month Example If you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency If you want to fix the accrual date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the accruals will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the accrual date as 31 the accruals will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly accrual frequency Start Month If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date on which the accruals should be done Example You have selected the half yearly option and specified the start month as June and the start date as 31 In this case Oracle FLEXCUBE will pass the first accrual on 30 June for the period from January 1 to June 30 and the second one on 31 Dece
7. Charge Accrual Frequency Start Day Start Month Default From Class Purge Allowed AM Product Product code is defaulted from the main screen Product Description Product description is defaulted here Class Code Select a valid class code from the adjoining option list Class description Class description of the selected class code is defaulted here Fund Type Specify the following details Fund type The funds that you enter in Oracle FLEXCUBE can be internal or external An internal fund is one that originates from Oracle FLEXCUBE An external fund is one that has originated from a system external to Oracle FLEXCUBE As a product preference you should indicate the type of funds that the product can cater to 4 5 ORACLE Internal Mutual and Portfilio type Cash Flow Period External Mutual and Portfilio type Specify the period for which you need cash flow Purge Allowed Check this box to allow purging Module Specify the module to which the product code belongs Purge You can specify the following parameters here Frequency Select a valid frequency from the adjoining drop down list This list displays the following values Daily e Monthly e Quarterly Half yearly e Yearly Start Day If you have selected monthly quarterly half yearly or yearly as the frequency for purge then specify the day you wish to start the purge the product Start Month If yo
8. For each product you can also define attributes or in other words the terms and conditions When a user at the bank actually processes a loan it can be associated with a product The loan acquires the terms defined for the product that it involves However the bank can allow a user to change the inherited attributes of a fund This offers you flexibility and at the same time streamlines your operations based on the categories of business segments you operate in ORACLE Creation of Funds You can create and maintain both Mutual and Portfolio Funds You can link a fund to a Corpus account All the investments of the fund would be routed through this account Besides you can also define a pricing strategy for a fund The Asset Management module is designed to handle all the events in the life cycle of a fund You can process the following corporate actions for a fund e Subscription e Redemption e Dividend Payment Net Asset Value Computation The NAV of all funds that are created or maintained in Oracle FLEXCUBE be calculated at frequency that you specify The NAV can be arrived at after the revaluation process has been run in the Securities Loans Deposits and Money Market modules of Oracle FLEXCUBE The assets and liabilities of a fund are computed by aggregating the GL MIS balances for the fund Funding Loans Securities and Money Market Deals A fund can invest in various activities like Loans Securit
9. Fund On Line screen to apply specific charge rules with specific rates for NAV charges The Rate Details screen is opened Rate Details Product Fund Reference Rate Details Charge Rule Waiver In this screen you can specify the following The charge rule that is to be used for computing special charges on NAV that is specifically applicable for the fund The adjoining option list displays a list of those rules mapped to the product and for which the application event is NAVC You can associate all those NAV charges for which you wish to specify a special rate that is different from the rate maintained in the charge rule You can also choose to waive it completely If you do not maintain a specific rate the rate maintained for the selected charge rule in the Charge Rule Definition is used in NAV charge computation If you wish to enter a specific rate for the rule you can specify it in the Rate field If you have opted for the waiver of charges you must specify a specific rate If you have indicated a specific rate for NAV charge computation you can waive it if required If you have opted for the waiver of charges you must specify a specific rate For all the charge rules that are maintained in the Special Rates screen the Minimum and Maximum values for the NAV Charge maintained in the ICCF Rule Maintenance are not considered during charge calculation 5 20 ORACLE 5 2 8 Specifying Fields
10. 9 4 2 Body Of the Report eiae td e RE a e EM 9 6 10 SCREEN GLOSSARY 10 1 10 1 FUNCTION ID LIST p n 10 1 ORACLE 1 1 1 2 1 3 1 About this Manual Introduction This manual is designed to help you to quickly get acquainted with the Asset Management module of Oracle FLEXCUBE It provides an overview to the module and takes you through the various steps involved setting up and maintaining a mutual and portfolio fund You can further obtain information specific to a particular field by placing the cursor on the relevant field and striking lt F1 gt the keyboard Audience This manual is intended for the following User User Roles Role Function Back office data entry clerk Input functions for funds Back office managers officers Authorization functions Product Managers Product definition and authorization End of day operators Processing during end of day beginning of day Organization This manual is organized into the following chapters Chapter 1 About this Manual gives information on the intended audience It also lists the various chapters covered in this User Manual Chapter 2 Asset Management An Overview explains the snapshot of the features that the module provides Chapter
11. Funds screen and return to the Application Browser 6 1 4 An Example in Processing Corporate Actions You have set up a fund Lucrative Money Pool The following are the features of the fund Net Asset Value per unit USD 200 Face Value of a Unit USD 100 The buy load 2 The sell Load 2 Base currency USD Non Base currency DEM Rate USD DEM 1 2 Using this example we will discuss each type of corporate action in terms of the manner in which the action is denominated and the currency in which it is settled 6 1 4 1 Subscription Specify the following details Units based in the fund base currency We will first examine the case of a units based subscription made in the fund base currency In this case you should specify the number of units that are subscribed Units subscribed 100 Based on the subscription units and the load percentage Oracle FLEXCUBE will compute the following details Component Calculation method Result Load Amount Load x Transaction units 400 2 of NAV x 100 6 8 ORACLE 20 400 100 Component Calculation method Result Transaction Nominal Transaction units x NAV Load USD 20 400 100 x 200 4 Transaction price Nominal LCY Transaction units USD 204 Premium Transaction price FV Load per unit x USD 10000 Transaction units 204 100 4 100 You have the option to change the transaction price and
12. charges that have already been liquidated are available Click the tab titled Payment Details from the Fund Charge Definition screen Fund Charge Definition Detailed Charge Definition Number User Reference Charge Details Payment Details Component Details Setlement Fields The following details of each liquidated component are displayed e The charge component e The due amount e The due date e The charge currency The amount liquidated 7 4 ORACLE 8 Annexure A Events and Accounting Entries 8 1 Fund Events Event Description SUBR Subscription REDM Redemption DIVD Dividend Payout RSUB Reversal of Subscription RRED Reversal of Redemption RDVD Reversal of Dividend NAVC NAV Charges CDEF Ad hoc Charge definition ACCR Accrual of Ad hoc charges LIQD Liquidation of ad hoc Charges ACDF Amendment of Ad hoc Charges BOOK Booking of Fund RCDF Reversal of Charge Definition REVP Reversal of Charge Liquidation AMND Amendment of the Fund 8 1 1 Amount Tags Tag Description CORPUSAMT Corpus Amount SUBLOADAMT Subscription Load amount REDLOADAMT Redemption Load amount SUBPREMIUM Subscription Premium amount REDPREMIUM Redemption Premium amount SUBDISCOUNT Subscription Discou
13. in the external system Maintaining Net Asset Values In Oracle FLEXCUBE the NAV of a fund is computed using the following formula Total assets Total Liabilities NAV per unit No Outstanding Units The total assets and liabilities are computed based on the GL MIS balances for the fund For the purpose of NAV calculation you can indicate the GLs that should be considered for NAV calculation You can indicate these GLs by maintaining either a list of GLs that should be included or excluded for NAV calculations You can define several NAV calculation methods for a Fund Each NAV for the fund can be defined with a set of GLs to be included or excluded and NAV calculation frequency preferences Click Net Asset Value button from the Fund On Line screen to invoke the GLs for NAV Calculation screen Net Asset Value Fund Identity Fund Description Net Asset Value Id Net Asset Value Frequency Frequency Main Start Day Start Month Net Asset Value Last Net Asset Value Date Net Asset Value Next Net Asset Value Date Net Asset Value Per Unit Net Asset Value Per Unit Selected General Ledger To be excluded for Net Asset Value Calculation Q To be included for Net culati z sset Value Calculation GL Description 5 8 ORACLE 5 2 2 1 Identifying a GL Combination for NAV Calculation The NAV of a fund is calculated using the balan
14. paid for each unit Transaction Price USD 15 Based on the Nominal LCY and the load percentage Oracle FLEXCUBE will compute the following details Component Calculation method Result Transaction Nominal Transaction price x Transaction Units USD 15000 15 x 100 You have the option to change the transaction units that is defaulted However you will not have an option to change the Transaction nominal that is calculated Nominal based in FCY Take the case of dividend being paid in a currency DEM other than the fund base currency USD In this case you should specify the amount of dividend to be paid Transaction price 15 USD per unit Oracle FLEXCUBE will compute the components of the action in the following manner Component Calculation method Result Transaction Nominal Transaction price x No of Units USD 1500 100 x 15 USD Nominal FCY Transaction Nominal x Exchange rate DEM 3000 1500 x 2 The number of units that have been issued for the fund is taken to be the default number of units for which dividend is paid You have the option to change it However you will not have an option to change the Transaction nominal and the Transaction FCY that is calculated 6 15 ORACLE 7 1 7 Defining Charges for Fund Introduction To recall while defining a product you have associated one or several interest classes to it in the Product ICCF screen You hav
15. the date from the adjoining calendar button based on which the report should be generated Contents of the report The options that you specified while generating the report are printed at the beginning of the report The contents of the Fund Security Holding Report are discussed under the following heads Header The Header carries the title of the Report information on the branch code branch date the date and time of report generation the user ID of the user generating the report module page and the event date ORACLE 9 2 1 Body of the Report Fund Ref No The reference number of the fund Security Id The unique id of the security Portfolio The reference number to identify the portfolio Holding From The date from which the customer is holding the security Closing Sec Balance The closing balance of the security Position Ref No The position reference number of the security 93 Fund GL Balances Report The Fund GL Balances report gives the GL balances of the fund You can invoke this screen by typing AMRFUNBL in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Report Period C Current Period Select Period Financial Cycle GL Types C Asset C income Liability Expense Fund Reference az Fundid Report Period You can indicate the following preferences for generating the re
16. the English alphabet You can follow your own convention for devising this code Product Description The description is defaulted for all the sub screens after you enter the same in the Asset Management Product Definition main screen The short description enables you to identify the fund product quickly The description is for information purposes only and will not be printed on any customer correspondence Class Details Specify the following details Class Code The system displays the class code linked to the product Class Description The system displays a brief description of the class code linked to the product 4 12 ORACLE Restriction Type You can select the following categories here Categories List Specify the type of restriction being placed on the account by selecting from the following option list e Disallowed e Allowed Category Specify the following details Code Enter the code from the list Description This displays the description for the corresponding code when you select the code from the list Customers Specify the following details Customer ID Select the customer ID from the option list Customer Name This displays the customer name Restriction This displays whether allowed or disallowed Click Default From Class to associate the product you are maintaining with a class of mapped customers and customer categories A list of the classes that you have defined sp
17. the fields and click Ok button Product Code Component Details Component Description Charge Type Third Party Type Event Details Event For Association Description Event For Liquidation Description Net Consideration Advice Charge Product Description Debit Credit Add Subtract SWIFT Qualifier Event For Application Description Basis Amount Tag Description Stop Association Propagation Required Default From Class Rule Details Default Waiver Settlement Currency Rule Capitalize Description Collect LC Advising Charges in Bills Other Details Allow Rule Amendment Amend After Association Ren Mena and Amend After Application Consider as Discount Specify the following details Product Code The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen One of the characters of the code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code Product Description The description is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen The short description enables you to identify the fund product quickly The description is for information purposes only and will not be printed on any customer correspondence ORACLE Component Details Specify the following details
18. the specified product code Product Group Select a valid product group from the adjoining option list Product Group Product group description is defaulted here Start Date Select a date when you need to start the product from the adjoining Calendar icon End Date Select a date when you need to end the product from the adjoining Calendar icon Remarks Specify remarks for the selected product code Exchange Rate Variance For a special customer or in special cases you may want to use an exchange rate a special rate that is greater than the exchange rate maintained for a currency pair The variance is referred to as the Exchange Rate Variance When creating a product you can express an Exchange Rate Variance Limit in terms of a percentage This variance limit would apply to all funds associated with the product The Override Limit If the variance between the default rate and the rate input varies by a percentage that is between the Override Limit and the Rate Stop Limit you can save the transaction involving the fund by providing an override The Rate Stop Limit If the variance between the default rate and the rate input varies by a percentage greater than or equal to the Rate Stop Limit you cannot save the transaction involving the fund Specifying Preferences Preferences are the options that are available to you for defining the attributes of a product The preferences that you define for a product will be inherited b
19. this percentage Oracle FLEXCUBE will compute the following details Component Calculation method Result Transaction Nominal 30 x 100 Transaction price x Transaction units USD 3000 The number of units that have been issued for the fund is taken to be the default number of units for which dividend is paid You have the option to change it If you change the number of units for which dividend is to be paid the transaction nominal is automatically updated Units based in FCY Take the case of units based dividend that needs to be paid in a currency other than the fund base currency USD In this case you should specify the percentage of dividend to be paid Transaction price 30 per unit Oracle FLEXCUBE will compute the components of the action in the following manner 3000 x 2 Component Calculation method Result Transaction Nominal Transaction price x No of Units USD 3000 100 x 30 Nominal FCY Transaction Nominal x Exchange rate DEM 6000 6 14 ORACLE The number of units that have been issued for the fund is taken to be the default number of units for which dividend is paid You have the option to change it However you will not have an option to change the Transaction nominal and the Transaction FCY that is calculated Nominal based in the base currency In the case of nominal based dividend paid in the fund base currency you should specify the dividend amount
20. titled Bank Accounts from the Fund On Line screen to indicate the asset settlement accounts that should be used in the accounting entries that are passed for the fund 5 6 ORACLE Fund input or M Product Product Description Fund Identity 2 Fund Reference Fund Details Bank Accounts Bank Accounts Bank Account uri Bank Account Description Settlement Instruction Related Accoun Specify the following details Indicating settlement accounts for a fund A fund that you create can have bank accounts in different currencies However it is mandatory for you to indicate an asset account in the base currency of the fund These accounts will be used when investments are made into the fund in a currency other than the fund base currency Example You have a fund with units of face value USD 10 The subscription price of a unit of the fund is USD 50 An investment of USD 1000 is made to the fund You liability USD 1000 You would pass the following accounting entries Dr Asset account USD 1000 Cr Corpus account USD 500 Cr Profit account USD 500 You can maintain only one bank account for a specific currency The Bank settlement account is unique for a particular fund 5 7 ORACLE 5 2 2 For external funds For external funds you can specify the related account number This is the number by which the fund is identified
21. to identify the fund product quickly The description is for information purposes only and will not be printed on any customer correspondence Component Details Specify the following details 4 14 ORACLE Component Enter the component details Component Description Description of the selected component is defaulted here Stop Association Check or uncheck the stop association Interest Details The following are the interest details Check any one of the following e Primary Interest e Accrual Required e Coupon Leg Type Select the Leg Type from the following e in e Out Event Details Specify the following details Event for Association Enter the event for association Event Description Description of the selected event is defaulted here Basis Amount Tag Enter the basis amount tag Description Description of the amount tag selected as basis is defaulted here Amount Category Enter the amount category 4 15 ORACLE Rate Type Select the rate type from the following e Floating e Fixed e Special Floating Rate Type Select the Floating rate type from the following e Automatic e Periodic Flat Amount Per Unit Check or uncheck the flat amount per unit Rate Details Specify the following details Default Rate Code Select the default rate code from the list Rate Code Description Description of the selected rate code is defaulted here Default Rate Source Select the de
22. 2 3 NAV Calculation Updates The following NAV details are available and displayed for each fund internal and external e The NAV of the fund as of the last time it was calculated NAV of a unit as of the last time it was calculated last date on which the NAV was calculated next date on which the NAV will be calculated Moving between the NAV combinations defined for a fund To move between the NAV combinations defined for a fund use the buttons provided for the same at the bottom of the screen e Click the back arrow button to view the previous version e Click the forward arrow button to view the next version Confirming your specifications After you have defined the GLs for NAV calculation click Ok button to confirm your specifications Click Exit button to delete your specifications In either case you will be returned to the Funds On Line screen 5 2 3 Maintaining Charge details To maintain a fund your bank may incur several expenses You can levy the expenses that you incur as charges on a customer The charges that you collect can be applicable for the following events e Subscription e Redemption e Dividend Payment From the Fund On Line screen click Charges button The Charge Detail screen will be displayed 5 12 ORACLE Charge Detail Contract Reference Association Application Liquidation Application creation ESN Component Tag Currency T
23. 3 Creating a Fund Product Preference Class details the procedure for setting up a fund preference class Chapter 4 Defining attributes Specific to a Fund Product deals with the procedure to create a fund product Chapter 5 Setting up a Fund details the procedure for setting up a fund Chapter 6 Manually Processing a Corporate Action explains the corporate actions that can be performed on a fund It also contains a detailed example for each corporate action and its impact on a fund ORACLE Chapter 7 Defining Charges for a Fund describes the procedure involved in defining accruable charge components for a fund Chapter 8 Annexure A Events and Accounting Entries gives the list and description of the events amount tags and accounting roles applicable to funds Chapter 9 Asset Management Reports gives the list of reports that can be generated for this module 1 4 Related Documents 1 5 You may need to refer to any or all of the User Manuals while working on the AM module e Procedures e Securities e Products Glossary of Icons This User Manual may refer to all or some of the following icons ORACLE 2 1 2 2 2 Asset Management An Overview Introduction The Asset Management module as the name suggests is a comprehensive asset management product based on the concept of a fund With this module you can create a fund and manage all the activities during its lifecycle T
24. 5 12 5 2 4 Maintaining Tax Details cccccccccsccesssecesecesceesseceeacecuseceeaeecaeceeaeecaecseaeecaceeeaeecseeseaeecseeeeaaeceeeeeneees 5 15 2 225 Specifying Settlement Details 5 17 5 2 6 Maintaining MIS Details etre eei xoti Recto SEE Poet eub evene dett 5 18 5 2 7 Specifying Rat Detalls a e ONT ERSTES Ee Peer Rees e deat 5 20 5 2 8 Specif yine Field Sisene a tH e pee aee eee 5 21 5 2 9 SDECH YING TEVONIS MEME vnm 5 21 2240 Maintaining Messages iip 5 22 6 MANUALLY PROCESSING CORPORATE ACTION cscssscsssssssssssessssssssssssssssssesssessssnessessesseeees 6 1 6 1 PROCESSING CORPORATE ACTIONS IN THE LIFECYCLE OF A FUND 6 1 6 1 1 Maintaining Corporate Action for 6 1 6 1 2 Reversing a Corporate Action etii oe irent qu tue e Bleed Fo eee ede Rae petere LU EET UR 6 7 6 1 5 Saving the Details of a Corporate Action Record essen 6 7 ORACLE 6 1 4 An Example in Processing Corporate Actions esses eee 6 8 7 DEFINING CHARGES FOR A 0 4 4 44 44 seta sensn sens 7 1 7 1 INTRODUCTION ede PUE xe oe ctr 7 1 7 1 1 Maintaining Charge Definiti
25. Action Summary screen by typing AMSCAONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Corporate Manual Action Summary Reference Number Deal Reference Advanced Search ecords per page 15 z rn Reference Number ction Type Transaction Units Transaction Price Transaction Nominal Transaction Load 6 1 ORACLE In cases where there are no Investor services you would need to enter details of the corporate actions manually You can invoke the Corporate Action For Funds screen by typing AMDCAONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Corporate Action For Funds 14 or D M Reference Number Deal Reference Fund Id Fund Description Settlement Currency v In Fund Currency Settlement Currency Action Type Transaction Details Redemption Subscription Dividend Payouts Basis Type Units Based Nominal Based Fund Details Transaction Date Face Value Per Unit Recalculste Transaction Units Units Issued Total Fund Net Asset Value Net Asset Value Per Unit Transaction Price Transaction Load Transaction Foreign Currency Nominal Transaction Nominal Transaction DiscountPremium Remarks Settlement Ev Oracle FLEXCUBE assigns a unique reference number to each corporate action that y
26. All the settlement components applicable to the fund are expressed in the fund base currency To recall you have already indicated a settlement account in the fund base currency in the Bank Accounts screen This account will be used as the settlement account for the displayed components Depending on the component Oracle FLEXCUBE indicates whether the account involved in an entry has to be debited or credited e P indicates you credit Pay to the account involved R indicates you debit Receive from the account involved 5 2 6 Maintaining MIS Details The MIS details you would define for a fund and a product are similar The entities defined for the customer will be picked up by default and they can be changed Click MIS button from the Fund On Line screen to invoke the MIS screen 5 18 ORACLE Contract Reference MIS Group Link To Group Input Floating Rate Related Reference Related Reference laz Rate Code Related Account az as RelatedAccount l Spread Spread MIS Head Cost Code z Rate At Rate Type Interest Method Q Pool Code Pool Code Q Contract Level Reference Rate Reference Rate Transaction MIS Code Composite MIS Code Funds MIS Code MIS Group Rate Amendment Rate Change Log Balance Transfer Log For a fund the transaction type of MIS class t
27. Asset Management Oracle FLEXCUBE Universal Banking Release 12 0 May 2012 Oracle Part Number E51527 01 ORACLE FINANCIAL SERVICES ORACLE Asset Management Table of Contents 1 ABOUT THIS MANUAL p 1 1 1 1 NER ODUCTION ER 1 1 L2 AUDIENCE Ea 1 1 1 3 ORGANIZATION ECEE EEES 1 1 1 4 RELATED DOCUMENTS 55 05 EDO Meets te Rete 1 2 125 GLOSSARY OE CONS 5 fete ccs prO UR UR ES TEE URN 1 2 2 ASSET MANAGEMENT AN OVERVIEW ee eese essen ee etn thats tuse ts suse ta sens tn senatus esso seta sna 2 1 2 1 INTRODUCTION PEE MT 2 1 2 2 FEATURES OP THE MODULE eie ci ssec esee b boh ev va 2 1 3 CREATING A FUND PRODUCT PREFERENCE CLASS 3 1 3 1 WHATIS A FUND PREFERENCE CLASS 3 1 3 1 1 The Advantage of Defining a Fund Preference Class eese 3 1 3 2 MAINTAINING FUND PRODUCT PREFERENCES CLASS 5 3 1 3 2 1 Specifying Fund Preference Class tie e Hie e aedis E se le 3 2 4 DEFINING ATTRIBUTES SPECIFIC TO FUND PRODUCT e eeeeeeeeee ees
28. Line Summary screen by typing AMSFNONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Fund Summary Authorized Status zl Contract Status z Fund Reference 2 Fund Id Fund Product Base Currency Net Asset Value z Type zl Advanced Search Reset Records per page 15 21 1 0f 1 Authorized Status Contract Status Reference 14 Fund Product Fund Description Version Base Currency Net Asset Value Authorized Status Authorized U Unauthorized Contract Status A Active C Close Net Asset Value R Pre Priced O PostPriced Type Y Internal Fund N External Fund 5 1 ORACLE The Fund On Line Summary screen can also be invoked by typing AMDFNONL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button If you are setting up a new fund Click the New button on the Application tool bar Fund Input or bM Product Product Description Fund Identity Fund Reference Fund Details Bank Accounts Fund Description Fund Start Date Fund End Date Fund Role To Head Class Fund Base Currency Face Value Decimal Units Units Round Round Standard Fund Buy Load of Net v Pre Net Asset Value Fund V FLEXCUBE Fund Fund Sell Lo
29. Number Event Date m n 28 Accounting Entries You can specify the following details e Reference Number The system displays the following details of the events associated with the specified reference number e Event No e Event Date e Event Code e Description 6 1 1 3 Specifying Accounting Entries Highlight the event for which you want to view accounting entries All the accounting entries that were passed and the overrides that were encountered for the event will be displayed The following information is provided for each event e Branch e Account Dr Cr indicator The amount tag date on which the entry was booked e Value Date e The deal currency 6 6 ORACLE e Amount in deal CCY e foreign currency equivalent if applicable e The exchange rate that was used for the conversion e Amount in local currency e All the overrides that were encountered for the event will also be displayed Click the Exit or Cancel button to return to the Corporate Action For Funds screen Reversing a Corporate Action After you have saved and authorized a corporate action you can reverse it You can reverse an action from the detailed view of the Corporate Actions for Funds screen To reverse an action e Select Reverse from the Processing sub menu of the Actions Menu in the Application tool bar e Click the reverse icon on the Toolbar For a subscription If yo
30. SD 20400 Based on the Nominal LCY and the load percentage Oracle FLEXCUBE will compute the following details Component Calculation method Result Units Nominal LCY NAV 100 Units 20000 200 Load Amount Load x Transaction units 400 2 of NAV x 100 Transaction Price Nominal LCY Transaction units USD 200 20 000 100 Premium Transaction price FV Load per unit x USD 10000 Transaction units 200 100 x 100 You have the option to change the transaction price and the load amount that is defaulted However you will not have an option to change the number of units and the premium that is calculated Nominal based in an FCY Now we will examine a subscription to a nominal based fund in FCY In this case you should specify the FCY Nominal that is invested into the fund FCY Nominal DEM 83500 Based on the FCY Nominal and the exchange rate Oracle FLEXCUBE computes the following details Component Calculation method Result Transaction Nominal Exchange rate USD 41750 83500 2 6 10 ORACLE Units Transaction Nominal NAV 208 75 Units 41750 200 Load Amount Load x Transaction units USD 835 2 of NAV x 208 75 Transaction Price Nominal LCY Transaction units USD 200 USD 41750 208 75 Units Premium NAV FV x Transaction units USD 20875 200 100 x 208 75 You have the option to change the transaction price and the loa
31. ad of Net Asset Value Units In Issue Events Net As The Fund Online screen as it appears contains header footer containing fields that specific to the fund you are creating and two tabs Fund details and Bank accounts Besides these you will also notice a horizontal array of six icons along the lines of which you can enter details of a fund Fund details are grouped into screens according to the similarities they share 5 2 1 Associating Product to Fund You should necessarily use a product that has already been created to enter the details of a fund Product Depending on the type of fund you are creating you can select an appropriate product code from the option list available Product Description Description of the product is defaulted here 5 2 ORACLE A fund will inherit all the attributes defined for the product associated with it You can further add details that are specific to the fund like the face value of the units of the fund the fund base currency the life span of the fund and so forth and change some of the defaulted attributes This feature renders the creation of a fund quick and easy Fund Identity Besides the reference number generated by the system you should enter a unique six to nine character reference number to identify the fund By default Oracle FLEXCUBE defaults the product code and the last five characters of the Fund reference number as the F
32. ag Amount Charge Currency The characteristic feature of a charge is that it is always booked in advance and is not accrued as a charge is collected only when it is due Each time you create a fund you need not specify when and how the charges should be collected To recall you have defined the attributes of a charge by defining a Rule A rule identifies the basic nature of the charge You have further defined a Charge class where you have enriched the attributes of a rule We shall refer to these classes as components Each charge component in turn is linked to a fund product All the charge components linked to a product are defaulted to the funds associated with it Thus each time you create a fund you need not specify when and how charges should be collected However while creating a fund you can choose to associate a charge component with it Further you can modify some of the attributes defined for the applicable component Contract Reference Number Specify the contract reference number for which you need to maintain charges 5 2 3 1 Association Tab All the charge components applicable to the fund will be displayed together with the rule that is linked to the component In this section of the screen you can e Change the charge rule linked to the component Disassociate a charge component from the fund 5 13 ORACLE Changing the charge rule linked to component The rule that is linked to a charge co
33. al currency of your bank NAV Movements Report The NAV movements report gives details about the Net Asset Value movement of the fund You can invoke this screen by typing in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button NAV Movements Report Net Asset Value Movements Report Fund Date Option Current Date Q One Q Between Dates Fund Fund From Date E Date Net Asset Value Movements Report You can indicate the following preferences for generating the report Fund Select the fund for which you need to generate the report from the options The following options are provided for selection e All Select this option if all funds should be considered for report generation e One Select this option if only a single fund is considered for report generation Date Option Select the date from when you need to generate the report from the options The following options are provided for selection 9 5 ORACLE 9 4 1 e Current Date Select if the report has to be generated for NAV movements on the current date Between Dates Select if the report has to be generated for NAV movements for a period between two dates Fund You can specify the following details here Fund Select the fund for which the NAV movement report has to be generated From Date If you have selected Between Dates options then specify
34. b When a charge component that is applied to a fund is liquidated the relevant accounting entries are passed The Contract Charge screen will be displayed The charge components that have already been liquidated The amount that was liquidated The currency in which it was liquidated 5 14 ORACLE 5 2 4 Maintaining Tax Details The tax details specified for the product to which the fund is associated is automatically applied However while processing a fund you can waive the application of tax on the fund You can invoke the Tax Details screen by clicking Tax button from the Fund On Line screen Tax Details Reference Number Transaction Level Tax Issuer Tax Association creation ESN Component Rate Code Waiver Reference Number The reference number of the fund for which you are defining transaction tax details is displayed The screen will contain a list of all the tax components applicable to the fund 5 2 4 1 Transaction Level Tax Tab You can maintain the following parameters here Association All the tax components applicable to the fund you are processing will be displayed together with the rule linked to the component In this section of the screen you can e Change the tax rule linked to a component Disassociate a tax rule from a component Component The rule that is linked to a tax component is displayed next to the component To link a new rule to the component c
35. ces of a combination of GLs that you define You can define several sets of GL combinations for the purpose of NAV calculation Each such GL combination should be assigned a unique identification ID Net Asset Value Identification If you have defined several GL combinations for calculating the NAV of a fund you can assign one of the combinations as the Main NAV For external funds the GL combination marked as the Main NAV is handed off to Oracle FLEXCUBE Investor Servicing 5 2 2 2 Specifying GLs for NAV Calculation You can specify the GLs to be included for calculating the NAV of a fund either in the form of an included or excluded list You can indicate your preference by choosing the appropriate option under the field Selected GLs The entire list of GLs maintained at your bank is displayed under the head GLs available If you have maintained an included list the GLs displayed in the selected column only will be considered for NAV calculation If you selected the excluded option all GLs other than the ones in the excluded list will be considered for NAV calculation The list of GLs for NAV calculations can be maintained under GL code Their inclusion exclusion depends on the selection of To be included for Net asset value calculation and To be excluded for net asset value calculation options Net Asset Value NAV Frequency You can maintain the following parameters here Frequency You can indicate th
36. d amount that is defaulted However you will not have an option to change the number of units the LCY Nominal and the premium that is calculated 6 1 4 2 Redemption Specify the following details Units based in the fund base currency We will first examine the case of units based redemption made in the fund base currency In this case you should specify the number of units that are redeemed Units redeemed 100 Based on the number of units that are redeemed and the redemption load percentage Oracle FLEXCUBE will compute the following details Component Calculation method Result Load Amount Load x No of units subscribed 400 2 of NAV x 100 Transaction Nominal No of Units x NAV Load USD 19600 100 x 200 4 Transaction price Nominal LCY No of Units USD 196 19600 100 Premium NAV FV X Transaction units USD 10000 200 100 x 100 ORACLE You have the option to change the transaction price and load that is defaulted However you will not have an option to change the Nominal LCY and the premium that is calculated Units based in FCY Take the case of units based redemption in a currency DEM other than the fund base currency USD In this case you should specify the number of units that are redeemed Units redeemed 100 Oracle FLEXCUBE will compute the components of the action in the same manner as discussed earlier for the units based redemption in fund base currency exc
37. e also associated these components with the event CDEF Charge definition A fund will inherit all the charge components defined for the product associated with it These charge components can be accrued over a period that you can specify For example you may want to amortize the advertising costs or fund management fees that you incur over a period You can define details of these charge components in the Charge Definition screen Maintaining Charge Definition Details If you are calling a fund charge definition record that has already been defined choose the Summary option From the Summary screen double click a class of your choice to open it You can also invoke the Charge Definition Summary screen by typing AMSCDEFN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Charge Definition Summary Charge Reference Advanced Search Records per page 15 zi LJ Charge Reference Fund Id Fund Description Payment Method Accrual Frequency Start Month Start Date Payment Method B Bearing D Discounted Status A Active V Reversed 7 1 ORACLE You can invoke the Fund Charge Definition Detailed screen by typing AMDCDEFN in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Fund Charge Definition Detailed m or 0 M Fund Id Charge Definition Number User Reference Charge De
38. e code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code Product Description Description of the Product is defaulted here from the main screen Scheme Details Tax Scheme Select tax scheme you need from the adjoining option list Scheme Description Description of the selected scheme is defaulted here Click Default From Class button to default details maintained for the linked scheme 4 2 7 1 Transaction Level Tax Tab Specify the following details 4 22 ORACLE Component Enter the component Stop Association Check or uncheck stop association Tax Type Select tax type from the drop down list Borne By Select Borne by from the drop down list Net Consideration Check or uncheck net consideration Cash Outflow Check or uncheck cash outflow Add Subtract Select add or subtract from the drop down list Enter the following details e Swift Qualifier e Event for Association Event for Application Event for Liquidation e Basis Amount Tag 4 23 ORACLE 4 2 7 2 Issuer Tax Tab Tax Details Product Code Product Description Scheme Details Tax Scheme Default Frorn Class Scheme Description Transaction Level Tax Event For Association ae Stop Association Event Description Basis Amount Tag Description Default Rate Code Description Default Waiver Allow Rate Code Amendment Amend After Association Sp
39. e enses ense tn tuse tasnnsun 4 1 4 1 INTRODUCTION pe 4 1 4 2 MAINTAINING ASSET MANAGEMENT PRODUCT 5 4 1 4 2 1 Specifying Preferences uei pret e ede e ie errore e ELE nh 4 3 4 2 2 Specifying MIS Details 5 trt rete re rre PI ie rer 4 7 4 2 3 Specifying Branch Currency Restrictions 4 9 4 2 4 Specifying Customer Restrictions eee eene nennen eene 4 11 4 2 5 Specifying Interest Details tee tem Rete Er erret rep ati ains 4 13 4 2 6 Specifying Charge Details dee ree rere te I tri ere eb etes repe 4 18 4 2 7 Maintaining Tax Details 4 21 4 2 8 Specifying Accounting Roles eee Irene te E rri 4 25 4 2 9 gna NE 4 27 4 2 10 Specifying User Defined Fields essen nennen nennen rem nennen 4 30 5 SETTING UP A FUND RR 5 1 5 1 INTRODUCTION e 5 1 592 MAINTAINING FUND ON LINE DETAILS c sccsevsecsassecovscscosecsesonsonvecevsecsnsstessvosensecsesuesaeseceveessessvessuseuneavecnes 5 1 2 24 Associate Product to eissien oie 5 2 5 2 2 Maintaining Net Asset Values oenina Ka Ee a 5 8 5 2 3 Maintaining Charge
40. e frequency with which the Net Asset Value of a fund should be calculated The frequency that you specify can be e Daily e Monthly e Quarterly Annually Oracle FLEXCUBE will automatically calculate the of a fund as part of the end of cycle processing based on the preferences that you specified here 5 9 ORACLE Start Day In the case of monthly quarterly half yearly or yearly frequencies you should specify the date on which the NAV should be calculated during the month For example if you specify the date as 30 NAV will be calculated on that day of the month depending on the frequency If you want to fix the NAV calculation date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the NAV of the fund will be calculated at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and fix the calculation date as 31 the NAV will be calculated on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly calculation frequency Start Month If you set the calculation frequency as quarterly half yearly or yearly you have to specify the month in which the NAV calculation for the fund should be done besides the date on which the ca
41. ecifically for the module will be displayed Choose the appropriate one 4 2 5 Specifying Interest Details The following Interest Details screen will be displayed when you click Interest Specify values in the fields and click Ok button 4 13 ORACLE interest Details Product Code Component Details Component Component Description Interest Details Leg Type Primary Interest Event Details Event For Association Event Description Basic Amount Tag Description Amount Category Rate Details Default Rate Code Default Rate Source Default Tenor Other Details Default Waiver Amend After Association Specify the following details Product Code Product Description Rate Type Floating Rate Type Rate Code Description Rate Source Description Tenor Description Default From Class Stop Association Accrual Required Coupon Fixed Flat Amount Per Unit Allow Rate Type Amendment Allow Rate Amend The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product Definition main screen One of the characters of the code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code Product Description The description is defaulted for all the sub screens after you enter the same in the Asset Management Product Definition main screen The short description enables you
42. ecify the following details Component Enter the component Stop Association Check or uncheck stop association Event for Association Enter the event for association Event Description Description of the selected event for association is defaulted here Basis Amount Tag Enter the basis amount tag Description Description of the selected amount tag is defaulted here 4 24 ORACLE Default Rate Code Select the default rate code from the list Description Description of the selected rate code is defaulted here Default Waiver Check or uncheck default waiver Amend after Association Check or uncheck amend after association Allow Rate Code Amendment Check or uncheck allow rate code amendment 4 2 8 Specifying Accounting Roles When you click Accounting Roles the following Accounting Roles screen will be displayed Specify the values in the fields and click Ok button Accounting Roles Product Code Product Description Class Details Default From Class Class Code Class Description Roles Accounting Role Role Description AccountHead Description Specify the following details 4 25 ORACLE Product Code The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen One of the characters of the code should necessarily be a letter of the English alphabet You can follo
43. ence class in the Fund Product Preference Class Definition screen You can invoke the Fund Product Preference Class Definition screen by typing AMDPRPCL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Fund Product Preference Class Definition Module AM Asset Managemen Class Code Description Fund Internal Cash Flow Period External C Purge Allowed Charge Accrual Frequency Frequency Y Start Day Start Day Start Month Start Month v 3 2 4 Specifying Fund Preference Class To maintain a new fund preference class Click New button on the Application tool bar Class Code In Oracle FLEXCUBE each fund preference class that you maintain is identified by a unique code called a Class Code You can follow your own convention for devising this code Description You can specify a short description that will enable you to identify the fund preference class quickly The short description that you specify is for information purposes only and will not be printed on any customer correspondence Fund Type The funds that you enter in Oracle FLEXCUBE can be internal or external An internal fund is one that originates from Oracle FLEXCUBE An external fund is one that has originated from a system outside Oracle FLEXCUBE e g Oracle FLEXCUBE Investor Servicing s ORACLE
44. ences are the options that are available to you for defining the attributes of a fund A set of such preferences can be grouped together into what we call in Oracle FLEXCUBE a Preference Class You can maintain several fund preference classes 3 1 1 The Advantage of Defining a Fund Preference Class While creating a fund product instead of specifying preferences for each product you need to just associate the appropriate fund preference class to the product All the attributes defined for the class will be made applicable to the fund product Once defined fund preference class can be made applicable to any number of products 3 2 Maintaining Fund Product Preferences Class Details If you are calling a fund restriction class record that has already been defined choose the Summary option From the Summary screen double click a class of your choice to open it You can invoke the Fund Product Preferences Class Summary screen by typing AMSPRPCL in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button Fund Product Preferences Class Summary Authorization Status Record Status z Module ez Class Code Advanced Search Reset Records papol 15 71 101 Authorization Status Record Status Module Class Code Description Authorization Status A Authorized U Unauthorized Record Status C Closed O Open a ORACLE You can also maintain a fund prefer
45. ept that the FCY equivalent of the Transaction nominal will also be calculated Component Calculation method Result Load Amount Load x Transaction units 400 2 of NAV x 100 Nominal LCY Transaction units x NAV Load USD 19 600 100 x 200 4 Transaction price Nominal LCY Transaction units USD 196 19600 100 Nominal FCY Nominal LCY x Exchange rate DEM 39200 19600 x 2 Premium NAV FV x Transaction units USD 10000 200 100 x 100 You have the option to change the transaction price and the load amount that is defaulted However you will not have an option to change the Nominal LCY FCY and the premium that is calculated Nominal based in the base currency In the case of nominal based redemption in the fund base currency you should specify the Transaction Nominal Nominal LCY USD 20000 Based on the Nominal LCY and the load percentage Oracle FLEXCUBE will compute the following details Component Calculation method Result 6 12 ORACLE 200 100 100 Component Calculation method Result Units Nominal LCY NAV 100 Units 20000 200 Load Amount Load x No of units subscribed 400 2 of NAV x 100 Transaction Price Nominal LCY No of Units USD 204 20 400 100 Premium NAV FV x No of units USD 10000 You have the option to change the transaction price and the load amount that is defaulted However yo
46. es W Advice Name Receiver Customer Name Message Status Test Status 5 22 ORACLE Specify the following details Contract Reference In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system while creating the fund online The reference number for the contract is displayed in this field Event Sequence Number Specify the event sequence number Event Specify the event Message Tab Enter the following details e Message Type e Receiver e Currency e Amount e Status BOILERPLATETXT e Name e Media e Address e Exception e Products e interest e User Defined Fields e Settlements For further information on the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals 5 23 ORACLE 6 1 6 Manually Processing a Corporate Action Processing Corporate Actions in the Lifecycle of a Fund The corporate actions that are discussed in this chapter concern only internal funds funds created and managed entirely in Oracle FLEXCUBE The corporate actions that you can process for a fund are e Subscription e Redemption e Dividend Payment Maintaining Corporate Action for Funds If you are calling a corporate action for funds record that has already been defined choose the Summary option From the Summary screen double click a class of your choice to open it You can invoke the Corporate Manual
47. fault rate source from the list Rate Source Description Description of the selected rate source is defaulted here Default Tenor Select the default tenor from the list Tenor Description Description of the selected tenor is defaulted here Other Details Check the required options from the following 4 16 ORACLE e Default Waiver e Amend After Association e Allow Rate Type Amendment e Allow Rate Amendment e Allow Rate Code Amendment 4 2 5 1 Specifying Interest Currency Limits When you click Rates the following Interest Currency Limits screen will be displayed Specify the values in the fields and click Ok button interest Currency Limits Interest Currency Limits 10f1 C Currency Minimum Rate Maximum Rate DefaultRate Minimum Spread Maximum Spread Specify the following details Currency Select the currency of the fund in which the amount is being invested Enter the following details e Minimum Rate e Maximum Rate e Default Rate e Minimum Spread e Maximum Spread Click Default From Class to associate the product you are maintaining with a class of mapped interest details A list of the classes that you have defined specifically for the module will be displayed Choose the appropriate one 4 17 ORACLE 4 2 6 Specifying Charge Details The following Charge Details screen will be displayed when you click Charges Specify the values in
48. fix the accrual date as 31 the accruals will be done on the last day of the month at the end of every quarter It works in a similar fashion for half yearly and yearly accrual frequency Start month If you set the accrual frequency as quarterly half yearly or yearly you have to specify the month in which the first accrual has to begin besides the date on which the accruals should be done Example You have selected the half yearly option and specified the start month as June and the start date as 31 In this case Oracle FLEXCUBE will pass the first accrual on 30 June for the period from January 1 to June 30 and the second one on 31 December for the period from 1 July to 31 December If the accrual date is a holiday Oracle FLEXCUBE carries out automatic accruals at the frequency that you specify as part of the end of cycle processing However if the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen Specifying MIS Details When you click MIS the following MIS Details screen will be displayed Specify the values in the fields and click button 4 7 ORACLE MIS Details Product Code MIS Group Cost Code Pool Code Cost Code 1 Cost Code 2 Default Frorn MIS Group Cost Code 3 Cost Code 4 Cost Code 5 MIS Codes Fund MIS Codes 10f 10f1 MIS Class MIS Code 0 MIS Class MIS Code Specify the followi
49. h Code Enter the branch code from the list Branch Name This displays the description for the corresponding branch code when you select the branch code from the list Currency Select whether Currency Restriction is Disallowed or Allowed Currency Code Enter the currency code from the list Currency Name This displays the description for the corresponding currency code when you select the currency code from the list Click Default From Class to associate the product you are maintaining with a class of mapped branches and currencies A list of the classes that you have defined specifically for the module will be displayed Choose the appropriate one Specifying Customer Restrictions When you click Customer button the following Customer Restrictions screen will be displayed Specify the values in the fields and click Ok button ORACLE Customer Restrictions Product Code Product Description Class Details Default From Class Class Code Class Description Branch restriction Categories List Disallowed Allowed Category Customers 10f1 10f1 Fe C Code Description C Customerid Customer Name Restriction Type Specify the following details Product Code The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen One of the characters of the code should necessarily be a letter of
50. he component from default class Basis Amount Tag The corresponding basis amount tag displays when you select the component from default class Description The description for corresponding basis amount tag displays when you select the component from default class Rule Details Specify the following details Settlement Currency Indicate the currency in which the corporate action should be settled Depending on the type of corporate action you are processing it could be the currency in which Asubscription is made to the fund e Units of the fund are redeemed e Dividend is paid 4 20 ORACLE The settlement of a corporate action can be in the base currency of the fund or in another currency If the corporate action is in the base currency of the fund choose the option In Fund Currency If the corporate action is not in the base currency of the fund indicate the currency in which the corporate action is to be settled Click the adjoining option list icon and select a currency code from the list The equivalent of the Nominal FCY amount denominated in the base currency of the fund is displayed The standard exchange rate is used in the currency conversion Rule Select rule from the list or when you select the component from default class the corresponding rule displays Description This displays the description for the selected rule Default Waiver If you have indicated a specific rate for NAV charge computation
51. he cost code and pool code will be picked up from the product under which the fund is processed The composite MIS code is defaulted from the definition made for the customer involved in a transaction involving the fund The Fund MIS code is defaulted from the product involved in the fund The first fund MIS code is reserved for the Fund ID and cannot be changed This facilitates the breaking up of balances for NAV computation The interest calculation method for the refinancing rates of the pool will also be picked up by default from Pool Codes maintenance and can be changed For an account the transaction type of MIS class will be picked up from the account class along with the cost codes and pool codes The composite type of MIS class will be defaulted from those defined for the customer These can be changed The interest calculation method for the refinancing rates of the pool will also be picked up by default from Pool Codes maintenance and can be changed 5 19 ORACLE 5 2 7 Specifying Rate Details For a specific fund you can override charges that have been specified for the fund through the charge rule associated with the fund You can specify special rates for a charge rule alternatively you can waive the charges altogether You can define specific rates for charges applicable on NAV for a specific fund You can also make a specific charge rule applicable on NAV for a specific fund Click on the Rate button in the
52. he product definition function the mainstay of Oracle FLEXCUBE s design enables you to create products for specific funds that you set up The module gives you the flexibility to define upfront components such as charge and tax restrictions Such as branch and currency preferences events and accounting entries into Classes When defining a product you merely need to associate it with the different classes that you have built Features of the Module Definition of Classes In Oracle FLEXCUBE a Class embodies a generic set of attributes A class could represent e Asset of restrictions branch currency e A set of preferences security preferences portfolio preferences or deal preferences Asetof events and the corresponding accounting roles and heads account types and the GLs involved Acomponent tax interest or charge As part of your one time set up you can define several sets of classes of a particular type In Oracle FLEXCUBE therefore you do not have to specify restrictions preferences and components every time you create a product You only need to associate the different set of classes that you have already maintained This feature eliminates redundancy and saves processing time Refer Securities User Manual of Oracle FLEXCUBE for the procedure to create a class Creating Products When setting up the module you can define the various fund schemes that your bank offers as products
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54. ields Click Fields button to invoke the User Defined Fields screen Product User Defined Fields ProductCode CSD1 Product Description dfsdsfjsa Fields 101 3o Field Number Field Name Specify the values in the fields and click Ok button Click Exit or Cancel button to return to the Application Browser 4 30 ORACLE 5 1 5 2 5 Setting up Fund Introduction A fund that you process in Oracle FLEXCUBE can be internal or external An internal fund is one that is created and managed entirely in Oracle FLEXCUBE and an external fund one that has originated from a system external to Oracle FLEXCUBE Internal and external funds are further classified into e Portfolio e Mutual funds To recall you have already created fund products to group together or categorize Funds that share broad similarities Under each Product that you have defined you can enter specific funds based on your requirement By default a fund inherits all the attributes of the product associated with it This means that you will not have to define the general attributes of a fund each time you input a fund involving a product Maintaining Fund On line Details If you are calling a fund online record that has already been defined choose the Summary option From the Summary screen double click a class of your choice to open it You can invoke the Fund On
55. ies and Money Market placements While processing a Loan Securities or Money Market deal you can indicate the fund investing in the transaction This would create an asset for the fund but not for the bank Hence these entries will be reflected in the books of the fund and not of the bank Interface with FP IS The Asset Management module of Oracle FLEXCUBE can interface with Oracle FLEXCUBE IS Funds are broadly categorized into Internal and External Internal funds are those that are created and managed solely in Oracle FLEXCUBE External funds are those that are created in another system and managed in Oracle FLEXCUBE The interface involves the following information flow e Automatic upload of the details of an external fund including details like subscription redemption and dividend payment e The export of the NAV details of a fund from Oracle FLEXCUBE Specialized Services Branch Oracle FLEXCUBE supports the specialized services branch concept If you have Asset Management expertise only at one branch says the Head Office HO and funds of any branch are created and processed only through HO Oracle FLEXCUBE offers absolute ease of operations You can indicate whether a branch can create and process funds in the Branch Parameters screen A branch can create or process funds only if it has been marked as a Fund Branch DE ORACLE 3 Creating a Fund Product Preference Class 3 1 Whatis a Fund Preference Class Prefer
56. is chapter we shall discuss the manner in which you can define attributes specific to a Fund product Maintaining Asset Management Product Details If you are calling a Product Definition record that has already been defined choose the Summary option You can invoke this screen by typing AMSFNPRD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button From the Summary screen double click a product of your choice to open it Asset Management Product Summary Authorization Status v Record Status v Product Code zi End Date Product Group Start Date Product Type Advanced Search Reset Records per page 15 1 4 Authorization Status Record Status Stop Limit Report Module Override Limit Product Code Product Descriptio You can also create a Fund product in the Asset Management Product Definition screen invoked from the Application Browser You can invoke the Asset Management Product Definition screen by typing AMDFNPRD in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button In this screen you can enter basic information relating to a Fund product such as the Product Code the Description and so forth 4 1 ORACLE After you enter the details related to product in Asset Management Product definition screen the product code and description a
57. is the currency in which the Fund should be denominated You can select a currency code from the option list that is displayed The NAV and dividend declarations for the Fund will be expressed and calculated in this currency Subscriptions can be made to the fund in a currency that is different from the base currency but entitlement and benefits will be calculated in the fund base currency The standard exchange rate defined for the currency pair is used for the conversion Example You have set up a fund with the base currency as USD The subscription price of a unit of the fund is USD 10 ORACLE You have received an investment of DEM 10 000 to the fund The existing exchange rate for the currency pair is 1 2 The allotment of units for the investment is made based on the USD equivalent of the Investment amount In this case 500 units of the fund will be allotted for the invested amount Face Value For the mutual funds that you set up you should indicate the face value of each unit of the fund Decimal Units You can indicate the number of decimal units up to which fractional units of the fund can be allotted This preference together with the rounding preference that you specify is used to determine the allocation of fractional units of the fund Example You have received an investment of USD 10 000 to a fund The subscription price of a unit of the fund is USD 55 In this case the number of units that you would allot from the fu
58. ition screen the following screen is displayed 4 28 ORACLE j Event Code ACCR Description Accrual of Ad hoc charges Advices Details 10f1 50 Advice Name Description Generation Time Suppress Priority Charges The following advice details have to be maintained in the screen Event Code Code of the specified event is defaulted from the Event level Description Description of the specified event is defaulted from the Event level Advices Details The following advice details can be maintained here Advice Name Specify a valid advice you want to trigger from the adjoining option list This option list displays advices applicable for the module Description Description of the specified advice is defaulted here Generation Time Authorization is defaulted as the generation time for all advices which need to be generated for a specified Event 4 29 ORACLE Suppress Select Y or N from the adjoining drop down list to either suppress or allow the generation of some advices Priority Select the importance of the advice generation from the adjoining drop down list This list displays the following values e High e Medium e Low Charges Check this box if you want to collect charges for advice generation For a detailed list of Events Advices Accounting Roles and Amount Tags refer Annexure of this User Manual 4 2 10 Specifying User Defined F
59. lculation should be done Example You have selected the half yearly option and specified the start month as June and the start date as 31 In this case Oracle FLEXCUBE will calculate the NAV of the fund first on 30 June for the period from January 1 to June 30 and second on 31 December for the period from 1 July to 31 December If the calculation date falls on a holiday If the NAV calculation date falls on a holiday the calculation is done as per your holiday handling specifications in the Branch Parameters screen The System provides two Basis Amount tags for NAV Charge calculation NAVAMT For this amount tag no holiday treatment is available It is used for daily monthly quarterly half yearly as well as annual funds NAV ANNULZD AMT This tag is available only for daily funds For Daily NAV funds in respect of which the NAV charges NAVC are charged using the Basis Amount tag NAV ANNULZ AMT NAV charges are computed for all days in a year including both business days as well as intervening holidays The charges in respect of a Daily NAV fund using the NAV ANNULZD AMT Basis Amount tag are computed as follows Example Pre NAV Fund NAV computed during BOD System NAV Charge Date before start Current Processing Number Of Date of Processing Till Date Days 19 July 18 July 2003 19 July 2003 1 5 10 ORACLE
60. le to the fund Fractional units will be handled based on the rounding and decimal unit preferences that you specified for the fund If the basis type is nominal you should indicate the transaction amount The number of units allocated is calculated based on the transaction nominal the transaction load and the NAV of a unit of the fund If the basis type is nominal you should indicate the transaction nominal amount and then click the RECALC button The number of units allocated is calculated based on the transaction nominal the transaction load and the NAV of a unit of the fund If the basis type is unit then need to mention the number of units Transaction Details You can specify the following details here ORACLE Transaction Units If the quotation basis for the corporate action is expressed in Units you should also specify the number of units that are involved in the corporate action Based on the number of units that you specify the transaction nominal amount is calculated If the quotation basis is Nominal Oracle FLEXCUBE calculates the number of units based on the transaction nominal and load that you specify Transaction Price The transaction price of an action is the price at which a single unit of the fund is transacted Oracle FLEXCUBE calculates the transaction price as follows For a subscription NAV Subscription Load For a redemption NAV Redemption Load This amount is expressed in the base currenc
61. levant accounting entries are passed The contract tax screen displays e The tax components that have already been liquidated e The amount that was liquidated The currency in which it was liquidated 5 2 4 2 Issuer Tax Tab You can maintain the following parameters here 5 16 ORACLE Tax Details Reference Number Transaction Level Tax Issuer Tax Association E creation ESN Component Rate Code 5 2 5 Specifying Settlement Details Through the settlement screens you can view the fund accounts to which entries for the applicable charges and taxes are posted These details are available in the Settlement Message screen Click Settlement button from the Fund On Line screen to invoke the Settlement Details screen Settlement Details Reference Number Component Account Details Message Details Parties Parties Cover Parties OtherDetails Clearing Details Local Clearing IBAN Account Number zs Settlement Details lt Settlement Direction D Debit Component Description C Credit Besides the settlement components the other details available include e The currency in which the component is expressed 5 17 ORACLE e The payment account and currency The branch of your bank to which the account belongs
62. lick the adjoining option list from the field titled Select the appropriate rule from the option list that is displayed The new rule will be made applicable to the component 5 15 ORACLE Disassociating a tax component from a fund You can disassociate a tax component from the fund In the Association section of the Contract Tax screen click against the waive option positioned next to the component In this case the tax component is attached to the fund but is not calculated Application In the application section of the screen you can indicate the tax components that should be applied to the fund The list of components that is displayed depends on the tax components that you have associated with the fund The following details of the component are also displayed e The basis component on which the tax is levied currency of the basis amount The basis amount The tax amount The currency in which the tax amount is defined You can change the tax amount that is calculated using the rule applicable to the component Waiving tax on a fund You also have the option to waive a tax component for a fund To waive a tax component for a fund check against the waiver option in the application section of the screen The tax will be calculated but not applied You can waive tax only if it is yet to be liquidated Liquidation When a tax component that is applied to a fund is liquidated the re
63. mber for the period from 1 July to 31 December 3 2 1 1 Processing Charge Accrual on a Holiday Oracle FLEXCUBE carries out automatic accruals at the frequency that you specify as part of the end of cycle processing However if the accrual date falls on a holiday the accruals are done as per your holiday handling specifications in the Branch Parameters screen a ORACLE e f you have specified that automatic events are to be processed for holiday s on the working day before the holiday the accruals falling due on a holiday s will be processed during end of day processing on the last working day before the holiday e f you have specified that the automatic events are to be processed for holiday s on the working day following the holiday the automatic events falling due on a holiday s will be processed on the next working day during the beginning of day processing Click Exit or Cancel button to return to the Application Browser 3 2 1 2 Specifying Fields When you click on Fields the User Defined Fields screen will be displayed User Defined Fields Details HEE Field Name Value o Specify the values in the fields and click Ok button xis ORACLE 4 1 4 2 4 Defining Attributes Specific to Fund Product Introduction A Fund Product is a category or type of fund For instance you can define a mutual fund as a product in Oracle FLEXCUBE In th
64. mponent is displayed next to the component The adjoining option list displays a list of all the charge rules maintained Select the appropriate rule from the option list The new rule will be made applicable to the charge component Disassociating a charge component from a fund You can disassociate a charge component from the fund In the Association section of the Contract Charge screen click against the waive option positioned next to the component In this case the charge component is attached to the fund but is not calculated 5 2 3 2 Application Tab In the application section of the screen you can indicate the charge components that should be applied to the fund The list of components that is displayed depends on the charge components that you have associated to the fund The following details of the component are also displayed The basis component on which the charge is levied The currency of the basis amount The basis amount The charge amount The currency in which the charge amount is defined You can change the charge amount that is calculated using the class applicable to the component Waiving a charge for a fund You also have the option to waive a component for a fund To waive a charge for a fund check against the waiver option in the application section of the screen The charge will be calculated but not applied You can waive a charge only if 4 is yet to be liquidated 5 2 3 3 Liquidation Ta
65. ncy Restrictions screen will be displayed Specify the values in the fields and click Ok button ORACLE BranchiCurrency Restriction Product Code Product Description Class Code Default From Class Class Description Branch Restrictions Disallowed Currency Restrictions gt Disallowed Allowed Allowed Branch Code Currency 10f1 10f1 Branch Code Branch Name C Currency Code Currency Name Specify the following details Product Code The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen One of the characters of the code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code Product Description The description is defaulted for all the sub screens after you enter the same in the Asset Management Product Definition main screen The short description enables you to identify the fund product quickly The description is for information purposes only and will not be printed on any customer correspondence Class Code The system displays the class code linked to the product Class Description The system displays a brief description of the class code linked to the product Branch Restrictions Select whether Branch Restriction is Disallowed or Allowed 4 10 ORACLE 4 2 4 Branch Code You can maintain the following parameters here Branc
66. nd is a fraction and amounts to 181 818181 units Decimal units 2 Rounding preference Round up In this case the number of units that should be allocated is 181 82 Units Units Round When allocating units of a fund you may encounter fractional units Therefore you need to specify preferences as to how the fractional units should be rounded The options available are Round Standard The fraction will be rounded up to the next full unit if fraction is greater than 0 5 else it will be rounded down to the previous full unit Round Up The fraction will be rounded up to the next full unit Round Down The fraction will be rounded down to the previous full unit Fund Buy Load The fund buy load indicates the percentage of the NAV that should be added to the NAV of a unit of the fund to calculate the price at which the unit can be subscribed The buy load is used to calculate the price at which a unit of the fund should be sold It is expressed as a percentage of the NAV Subscription price NAV Buy Load Fund Sell Load The fund sell load indicates the percentage of the NAV that should be subtracted from the NAV of a unit of the fund to calculate the price at which the unit can be subscribed 5 5 ORACLE The sell load is used to calculate the price at which a unit of the fund should redeemed It is expressed as a percentage of the NAV Redemption price NAV Sell Load 5 2 1 2 Indicating the F
67. ng details Product Code The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen One of the characters of the code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code MIS Group When you click Default from MIS Group the following MIS Group will be displayed Select an MIS Group from the adjoining option list Pool Code Select the pool code from the list Cost Code Select the cost code from the list For a Funds product in addition to these generic attributes you can specifically define other attributes These attributes are discussed in detail in this chapter You can define the attributes specific to a Fund product in the Fund Product Definition Main screen and the Fund Product Preferences screen In these screens you can specify the product type and set the product preferences respectively 4 8 ORACLE For further information the generic attributes that you can define for a product please refer the following Oracle FLEXCUBE User Manuals e Products e Interest e User Defined Fields e Settlements MIS Codes Specify the following details MIS Class This displays the MIS class MIS Code Select the MIS code from the list 42 3 Specifying Branch Currency Restrictions When you click Branch Currency button the following Branch Curre
68. nt 8 1 ORACLE Description NAVAMT NAV of the Fund FUNDCAPITAL Fu nd Capital amount DIVDAMT Dividend Amount 8 1 2 Accounting Roles Accounting Role Description FUNDBANKAC Fund Bank Account FUNDCORPUSAC Unit Capital Account SUBLOADINC Subscription Load Income REDLOADINC Redemption Load Income SUBDISCEXP Subscription Load Expense SUBPREMINC Subscription Premium Income REDPREMEXP Redemption Premium Expense REDDISCINC Redemption Discount Income DIVIDENDEXP Dividend Expense 8 1 3 Event Entries Event Dr Cr Role Amt Tag SUBR Dr FUNDBANKAC CORPUSAMT Cr FUNDCORPUSAC CORPUSAMT Dr FUNDBANKAC SUBLOADAMT Cr SUBLOADINC SUBLOADAMT Dr FUNDBANKAC SUBPREMIUM Cr SUBPREMINC SUBPREMIUM Dr SUBDISCEXP SUBDISCOUNT Cr FUNDBANKAC SUBDISCOUNT Dr FUNDBANKAC SUBCHGAMT Cr SUBCHGINC SUBCHGAMT 8 2 ORACLE Event Dr Cr Role Amt Tag REDM Dr FUNDCORPUSAC CORPUSAMT Cr FUNDBANKAC CORPUSAMT Dr FUNDBANKAC REDLOADAMT Cr REDLOADINC REDLOADAMT Dr REDPREMEXP REDPREMIUM Cr FUNDBANKAC REDPREMIUM Dr FUNDBANKAC REDDISCOUNT Cr REDDISCINC REDDISCOUNT Dr FUNDBANKAC SUBCHGAMT Cr SUBCHGINC SUBCHGAMT DIVD Dr DIVIDENDEXP DIVDAMT Cr FUNDBANKAC DIVDAMT Dr FUNDBANKAC DIVTAXAMT Cr DIVTAXPAY DIVTAXAMT CDEF
69. on 8 1 100000000000000000005005000500000 ene nenne tenete ne 7 1 7 1 2 OUT NU ANBIETER 7 2 7 1 3 Setting the Accrual Frequency ieiuno hecho X SERE EN EV eR CHE RYE ge decus 7 3 7 1 4 Payment Details LONE Ee ERN RF Ou 7 4 8 ANNEXURE A EVENTS AND ACCOUNTING ENTRIES 8 1 8 1 RUND EE 8 1 8 1 1 Amount TERT 8 1 8 1 2 AGCOUNLNS ROLES 8 2 8 1 3 EVONE 8 2 8 1 4 Maintenance done before Running EOD 6 3 9 ASSET MANAGEMENT ossos sissi 9 1 9 1 INTRODUCTION P 9 1 9 2 MAINTAINING FUND SECURITY HOLDING 9 9 1 9 2 1 Body of the Report c o t e et att a UE DET 9 5 9 3 FUNDGLBALANCES REPORT 04 04 sccssesacsscs i sceestvbtesiesevave este these eek 9 3 9 3 1 Contents the Report suc n PRIOR 9 4 94 NAV MOVEMENTS REPORT 9 5 9 4 1 Contents Of lie Report sais n t REP Ee RUSTICUS GN EXE capes 9 6
70. ou process This reference number bears a sequence in which the action was performed You can assign your own identification to the action Settlement Currency The settlement of a corporate action can be in the base currency of the fund or in another currency Depending on the type of corporate action you are processing it could be the currency in which e Asubscription is made to the fund ORACLE e Units of the fund are redeemed e Dividend is paid If the corporate action is in the base currency of the fund choose the option In Fund Currency If the corporate action is not in the base currency indicate the currency in which the corporate action is settled The equivalent of the transaction amount denominated in the base currency of the fund is displayed The standard rate is used in the currency conversion Action Type The Corporate actions that can be processed during the lifecycle of a fund are e Redemption e Subscription e Dividend payment Choose the appropriate option based on the type of corporate action you are processing on the fund Basis Type Subscription and redemption can be enlisted in two ways e Units 500 units of a fund As Nominal units worth USD 5000 For a corporate action that is denominated in units it is mandatory for you to indicate the number of units involved in the action The transaction nominal amount is calculated based on the number of units that you specify and the load applicab
71. ould be collected It could be in advance or in arrears The accrual frequency preferences defined for the product in the Fund Product Preferences screen is defaulted Indicating the charge amount and currency From the list of components that are displayed you can specify the applicable amount only for components that are applicable to the fund After you indicate the charge amount you can specify the currency in which it is denominated Indicating the tenor of the charge component Now that you have specified the charge amount and the currency in which it should be collected you should also indicate the tenor of the charge This is achieved by specifying a start and an end date for the charge component This period serves as the tenor over which the charge component is accrued The start and end date that you specify also determines when the charge amount is collected If the payment method is advance the charge will be collected on the start date If it is collected in arrears it will be collected at the end date of this period 7 1 3 Setting the Accrual Frequency Charges on a fund can be accrued over the period that you specified as the start and end date for the component To recall you have already defined accrual frequency preferences while defining a product These preferences are used and will be applicable to all the interest type components of the fund 7 3 ORACLE 7 1 4 Payment Details Tab The details of the
72. port ORACLE Current Period Check this box if the report has to be generated for the current period Select Period Select the period to be considered for report generation Financial Cycle Specify the financial cycle for which the report has to be generated GL Types Check the box against the type of GL that has to be considered for report generation The types of GL available are e Asset e Income e Liability e Expense Fund Reference Number Select the fund reference number based on which the report has to be generated from the adjoining option list Fund Identification Specify the id of the fund to be considered for report generation 9 3 1 Contents of the Report The options that you specified while generating the report are printed at the beginning of the report The contents of the Fund GL Balance Report are discussed under the following heads Header The Header carries the title of the Report information on the branch code branch date the date and time of report generation the user ID of the user generating the report module event date and the page number Body of the report Fund ID The code used to identify the fund GL Code The code used to identify the GL GL Description The description of the GL 9 4 ORACLE 9 4 Fund ID The code used to identify the fund GL Balance in FCY The GL balance in foreign currency GL Balance in LCY The GL balance in loc
73. re defaulted in all sub screens and you cannot edit for screens like branches customer and so forth Asset Management Product Definition New Enter Query Product Code Exchange Rate Variance Product Description Override Limit Product Type Stop Limit Description Rate Code Slogan Product Group Product Group Description Start Date End Date Remarks Rate Type Maker Date Time Checker Date Time Mod No Record Status Authorization Status For any product you create in Oracle FLEXCUBE you can define generic attributes such as branch currency and customer restrictions interest details tax details and so forth by clicking on the appropriate buttons in the horizontal array of icons in this screen Product Code Specify the product code you need to create Product Description Specify the description for the product specified Product Type An important detail in defining a product is to specify the type of product you are creating The product type identifies the basic nature of a product A fund product that you create can be broadly classified into e Mutual funds e Portfolio funds The accounting entries that are passed the messages that are generated and the processing of funds involving this product are determined by the type of product that you create 4 2 ORACLE 4 2 1 Description The description of the selected product type is defaulted here Slogan Specify a slogan for
74. rice FV per unit Load per unit x No of Units It is computed as the difference between the Face value and the NAV of the Fund Fund Details The following details of the fund for which you are processing corporate actions are displayed Face value per unit e The number of units of the fund that have been issued e The NAV of the fund NAV of a single unit of the fund 6 1 1 1 Maintaining Settlement Details To recall a corporate action can be settled in the fund base currency or in another currency While processing a corporate action on a fund you can indicate the currency in which it is to be settled If you specify a settlement currency that is different from the base currency Oracle FLEXCUBE calculates the LCY equivalent of the transaction nominal in the fund base currency The standard rate as of the transaction date of the action is used in the currency conversion Subscriptions and redemption can be made to a fund in a currency that is different from the base currency but entitlement and benefits will be calculated in the fund base currency 6 1 1 2 Specifying Events Click the Events button from the Fund On Line screen to view the accounting entries that are passed for each event The details of events that have already taken place for the deal leg will be displayed along with the date on which the event took place 6 5 ORACLE Event Details Reference Number Events W Event
75. ss Definition AMRFNDHD Fund Security Holding Report AMRFUNBL Fund Balance Report AMRNAVMV NAV Movements Report AMSCAONL Corporate Manual Action Summary AMSCDEFN Charge Definition Summary AMSFNONL Fund Summary AMSFNPRD Asset Management Product Summary AMSPRPCL Fund Product Preferences Class Summary ORACLE Asset Management May 2012 Version 12 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_services Copyright 2012 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any means electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Serv
76. tails Payment Details Payment Method Amears Component Details component Currency Amount Start Date End Date Remarks Ie Input By Authorized Date Time Date Time You should first indicate the fund for which you want to specify charge details Oracle FLEXCUBE automatically assigns a unique identification number to each charge definition record You can further specify your own identification for the record Fund Identification Select the fund identification number from the adjoining option list 7 1 2 Charge Details Tab The following details are maintained here Payment Method Select payment method for collecting the charge from the adjoining drop down list This list displays the following values e Advance Select to collect the charge in advance When a charge component is collected in advance it will be collected on the start date that you specify for the charge component Arrears Select to collect the charge in arrears A charge component collected in arrears is collected on the end date that you specify for the component 7 2 ORACLE Component Details All the interest type components defined for the product that is associated with the fund is displayed Component You can specify the following details for the components that are applicable to the fund e Amount e Currency e Start Date e End Date Further you can indicate when the charge components sh
77. the life span start and end date of the fund The period that you specify as the life span of a fund should fall within the life span of the product associated with the fund Fund End Date The end date for a close ended fund refers to the fund termination date after which subscription and redemption is disallowed If you do not specify an End Date for the fund the fund is taken to be an open ended fund It is important to note that you cannot associate an open ended fund with a closed end fund product Fund Role To Head Class To recall while defining a product you have already indicated the accounting roles and heads that are applicable to the product These become applicable to all funds to which the product is associated While processing a fund you have the option to change the Role to Head mapping class defaulted from the product The accounting entries that are passed for the fund will be posted to accounts based on the Accounting Role to Head class that you associate with it Indicating the fund category While creating a fund you should indicate to which category the fund belongs Funds in Oracle FLEXCUBE are categorized into e Internal Funds e External Funds An internal fund is one that is created and managed entirely in Oracle FLEXCUBE and an external fund one that has originated from a system external to Oracle FLEXCUBE for example Oracle FLEXCUBE Investor Servicing Fund Base Currency The base currency
78. the load amount that is defaulted However you will not have an option to change the Transaction nominal and the premium that is calculated Units based in FCY Take the case of a units based subscription that needs to be settled in a currency DEM other than the fund base currency USD In this case you should specify the number of units that are subscribed Units subscribed 100 Oracle FLEXCUBE will compute the components of the action in the same manner as discussed earlier except that the FCY equivalent of the Nominal LCY will also be computed unit x Transaction units 204 100 4 x 100 Component Calculation method Result Load Amount Load x Transaction units 400 2 of NAV x 100 Transaction Nominal Transaction units NAV Load USD 20 400 100 x 200 4 Transaction price Nominal LCY Transaction units USD 204 20 400 100 Nominal FCY Nominal LCY x Exchange rate DEM 40800 20 400 x 2 Premium Transaction price FV Load per USD 10000 6 9 ORACLE You have the option to change the transaction price and the load amount that is defaulted However you will not have an option to change the Transaction nominal the Transaction FCY and the premium that is calculated Nominal based in the base currency In the case of nominal based subscription made in the fund base currency you should specify the Transaction Nominal in the fund base currency Transaction Nominal U
79. the modules to which you have access rights are displayed in the screen When you click on a module all the reports for which you have access rights under the selected module are displayed Click on the report you want to generate You will be given a selection Criteria based on which the report would be generated You can generate the following Asset Management reports in Oracle FLEXCUBE e Fund Security Holding Report e Fund GL Balances Report e NAV Movements Report Maintaining Fund Security Holding Reports You can invoke the Fund Security Holding Report screen by typing AMRFNDHD in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button 9 1 ORACLE Fund Security Holding Report Select Report Output All Funds Specific Fund Selected Fund Holding As On Select Report OutPut Select the report output you need to generate for from the options The following options are provided for selection e Funds Select this option if all funds should be considered for report generation Specific Fund Select this option if only selected or specific fund should be considered for report generation Selected Fund If you have selected the option Specific Fund then select the fund to be considered for report generation from the adjoining option list Holdings As On If you want to generate report based on the fund holdings as per a specific date then select
80. the start date of the time period for which the NAV movement report has to be generated To Date If you have selected Between Dates options then specify the end date of the time period for which the NAV movement report has to be generated Contents of the Report The contents of the report are discussed under the following heads Header The Header carries the title of the Report information on the branch code branch date the date and time of report generation the user ID of the user generating the report module event date and the page number 9 4 2 Body of the Report Fund ID The code used to identify the fund Fund Reference No The reference number used to identify the fund NAV id The unique code to identify the NAV NAV The net asset value of the fund NAV Date The date on which the net asset value is quoted Base CCy The currency in which the NAV is calculated 9 6 ORACLE Units in Issue The total units of fund issued NAV Per Unit The net asset value per unit of the fund 9 7 ORACLE 10 Screen Glossary 10 1 Function ID List The following table lists the function id and the function description of the screens covered as part of this User Manual Function ID Function Description AMDCAONL Corporate Action For Funds AMDCDEFN Fund Charge Definition Detailed AMDFNONL Fund Input AMDPRPCL Fund Product Preference Cla
81. u have selected quarterly half yearly or yearly as the frequency for purge then specify the month you wish to start the purge the product Charge Accrual Certain charges that you incur in maintaining a fund need to be accrued You can specify the frequency with which charges should be accrued The charge components of funds associated with the product will be accrued based on these preferences 4 6 ORACLE 4 2 2 Frequency As a product preference you can specify the frequency with which charges should be accrued While defining the details of the charge you can indicate the period over which the charge should be accrued The accrual frequency can be one of the following Daily e Monthly e Quarterly Half yearly Yearly Start day In the case of monthly quarterly half yearly or yearly accruals you should specify the date on which the accruals have to be done during the month For example if you specify the date as 30 accruals will be carried out on that day of the month depending on the frequency If you want to fix the accrual date for the last working day of the month you should specify the date as 31 and indicate the frequency If you indicate the frequency as monthly the accruals will be done at the end of every month that is on 31st for months with 31 days on 30th for months with 30 days and on 28th or 29th as the case may be for February If you specify the frequency as quarterly and
82. u reverse a Subscription that you have made to the fund e The units in issue will be reduced to reflect the subscription reversal e The accounting entries passed for the action will be reversed with the event code RSUB For a redemption The units in issue will go up to the extent of the reversal e accounting entries passed for the action will be reversed with the event code For a dividend payment In the case of a reversal of dividend payment the accounting entries passed for the action will be reversed You can reverse dividend payments only for internal funds Saving the Details of a Corporate Action Record After you have entered the applicable details of the corporate action save the fund by either clicking on the save icon on the tool bar or by selecting Save from the Actions menu in the Application tool bar On saving the record your User Id will be displayed in the Input By field at the bottom of the screen The date and time at which you saved the fund will be displayed in the Date Time field 6 7 ORACLE A user bearing a different login ID should authorize a corporate action record that you have entered before the EOD is run Once the record is authorized the ID of the user who authorized it will be displayed in the Auth By field together with the date and time at which it was authorized The status of the fund is also displayed Click Exit or Cancel button to exit the Corporate Actions For
83. u will not have an option to change the number of units and the premium that is calculated Nominal based in FCY Now we will examine redemption made from a nominal based fund in FCY In this case you should specify the number of units that are subscribed FCY Nominal 83500 DEM Based on the FCY Nominal and the exchange rate Oracle FLEXCUBE computes the following details Component Calculation method Result Nominal LCY Exchange rate USD 41750 83500 2 Units Nominal LCY NAV 208 75 Units 41750 200 Load Amount Load x No of units subscribed USD 835 295 of NAV x 208 75 Transaction Price Nominal LCY No of Units USD 200 USD 41750 208 75 Units Premium NAV FV x No of units USD 20875 6 13 ORACLE Component Calculation method Result 200 100 x 208 75 You have the option to change the transaction price and the load amount that is defaulted However you will not have an option to change the number of units the Transaction nominal and the premium that is calculated 6 1 4 3 Dividend Payment Specify the following details Units based in the fund base currency We will first examine the case of a dividend payment made in the fund base currency In this case you should specify the percentage of dividend to be paid Transaction price 30 per unit The percentage that you specify is always based on the face value of a unit of the fund Based on
84. ub screens after you enter the same in the Asset Management Product definition main screen One of the characters of the code should necessarily be a letter of the English alphabet You can follow your own convention for devising this code Product Description The description is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen The short description enables you to identify the fund product quickly The description is for information purposes only and will not be printed on any customer correspondence 4 27 ORACLE 4 2 9 1 Class Details Specify the following details Class Code The system displays the class code linked to the product Class Description The system displays a brief description of the class code linked to the product Events Details Specify the following details Event Code Select the event from the list Description The corresponding description is defaulted when you select event from the list Specifying Advices for an Event You can select the advices that should be triggered for various events The selected advices are generated once the product is authorized These advices can be simple Debit Credit advices when any payment or disbursement is made Deal Slip advices Rate Revision advices Loan advices etc To specify the advices for an event click Advices in the Events sub screen of the Asset Management Product defin
85. und ID You can change the default This number in addition to the Fund Reference Number will be used to identify the fund Fund Reference Number In Oracle FLEXCUBE reference numbers are generated automatically and sequentially by the system This number tag is used to identify the fund you are defining Hence the system generates a unique number for each fund The fund reference number is a combination of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number The Julian date has the following format YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that has have elapsed in the year Example January 31 1999 translates into the Julian date 99031 Similarly February 5 1999 becomes 99036 in the Julian format Here 036 is arrived at by adding the number of days elapsed in January with those elapsed in February 31 5 36 Every transaction in a fund is tracked against the Fund reference This reference is also used for MIS tracking 5 2 1 1 Fund Details Tab You can maintain the following details here Fund Description You should specify a short description that will enable you to identify the fund quickly The short description that you specify is for information purposes only and will not be printed on any customer correspondence ORACLE Fund Start Date When you create a fund you must also specify
86. und Pricing Strategy The pricing strategy for a fund indicates when and at what price units of the fund should be allocated The options available are Pre Post The pricing strategy helps to determine The price at which subscription or redemption should be made e When the allocation of units can be done If you choose the pre NAV option the NAV of the fund calculated at Beginning of Day BOD will be the basis on which the price of a unit of the fund is determined For funds with pre NAV pricing subscription and redemption can be done immediately If you select the post NAV funding strategy the NAV calculated at End of Day EOD would be used to determine the price of a unit of the fund As the price of a unit of the fund is determined using the NAV calculated during EOD any allocation or redemption of units from the fund can be done only after the EOD is run Example The Fund Lucrative Money consists of units of face value USD 10 During the day you have received an investment of USD 5000 into the fund Pre NAV fund The NAV of a unit calculated at BOD is USD 50 The customer will be immediately allotted 100 Units of the fund Post NAV fund No allotment can be made from the fund until the NAV is calculated at EOD The NAV of a unit of the fund calculated at EOD USD 55 In this case an allotment of USD 90 90 units of the fund is made after EOD 5 2 1 3 Bank Accounts Tab Click the tab
87. w your own convention for devising this code Product Description The description is defaulted for all the sub screens after you enter the same in the Asset Management Product definition main screen The short description enables you to identify the fund product quickly The description is for information purposes only and will not be printed on any customer correspondence Class Details Specify the following details Class Code The system displays the class code linked to the product Class Description The system displays a brief description of the class code linked to the product Roles Specify the following details Accounting Role Select accounting role from the list Role Description The corresponding description displays when you select accounting role from the list Account Head Select the account head from the list GL Description The corresponding description displays when you select accounting head from the list 4 26 ORACLE 4 2 9 Maintaining Events When you click the Events button the Events screen will be displayed Specify the values in the fields and click Ok button Events Product Code Product Description Class Details Default Frorn Class Class Code Class Description Event Details 108 2 C Event Code Description lt Accounting Entries Specify the following details Product Code The product code is defaulted for all the s
88. y all funds that are associated with the product 4 3 ORACLE When you click Preferences the following screen will be displayed Specify the values in the fields and click Ok button Through this screen you can define preferences for the product you are creating Preferences Product Product Description Class Code Class Description Default From Class Fund Type Cash Flow Period Fund Type Internal Purge Allowed External Module Charge Accrual Frequency Frequency Start Day Start Day Start Month Start Month When defining a product you can choose to specify preferences for the product either by e Associating the product with a Fund Preference Class e Defining these preferences specifically for the product 4 2 1 1 Associating a Preference Class To associate a fund preference class with a product you need to click Default From Class from the Fund Product Preferences screen A list of the fund preference classes that you have defined under the fund preference class of asset management will be displayed Choose the fund preference class to be associated with the product from the option list 4 2 1 2 Specifying Preferences for the Product The following screen defines the preferences class 4 4 ORACLE Preferences Product Class Code Fund Type Fund Type Frequency Start Day Start Month Product Description Class Description Cash Flow Period Internal External Module
89. y of the fund You can change the price that is defaulted If you change the defaulted transaction price the other related components like the transaction load will be automatically adjusted Transaction Load The load applicable to a corporate action is defaulted from the fund to which the corporate action is associated Depending on the type of corporate action you are processing the buy sell load will apply For instance if you process subscription the buy load will apply Aredemption the sell load will apply You have the option to use or change the defaulted buy or sell load If you change the defaulted transaction load amount the other related components like the transaction price will be automatically adjusted You can process a subscription redemption a fund with or without the transaction load Transaction Nominal If the quotation basis for the corporate action is Nominal you should specify the transaction amount expressed in the currency in which the action is settled Based on the amount that you specify the number of units is calculated If the quotation basis is Units Oracle FLEXCUBE calculates the transaction nominal based on the number of units involved in the action and transaction load 6 4 ORACLE Transaction Discount or Premium The transaction discount or premium indicates the profit or loss applicable for the corporate action you are processing Discount or Premium Transaction P
90. you can waive it if required by checking this box If you have opted for the waiver of charges you must specify a specific rate Capitalize Check or uncheck capitalize Collect LC Advising Charges in Bills Check this box if you need to collect advising charges for LC bills Other Details Check the required options from the following e Allow Rule Amendment e Amend after Association e Allow Amount Amendment Accrual Required e Amend after Application e Consider as Discount e Discount Basis 4 2 7 Maintaining Tax Details The following Tax Details screen will be displayed when you click Tax Specify the values in the fields and click Ok button 4 21 ORACLE Tax Details Product Code Product Description Scheme Details Tax Scheme Default Fromm Class Scheme Description Stop Association Net Consideration Borne By h Outflow Add Subtract Event For Association a SWIFT Qualifier Description Default Rul efault Rule Event For Application Rule Description Description Event For Liquidation Mii ws Allow Rule Amendment Description ns Basis Amount Tag Amend After Association Description Allow Amount Amendment Amend After Application Specify the following details Product Code The product code is defaulted for all the sub screens after you enter the same in the Asset Management Product Definition main screen One of the characters of th

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