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Corporate action window

The corporate action window allows you to manage your corporate actions: you can create, modify, schedule and run your corporate actions. You can create a new corporate action through the Corporate action view (especially useful if you are creating a corporate action that affects multiple portfolios that you cannot necessarily open on the Overview) or through the menu in New - New corporate action (especially useful if you are creating a corporate action that affects a single customer or portfolio, since the customer or portfolio you have selected on the Overview is suggested as a default target this corporate action is run against).

The Corporate action window allows you to do three things: define the corporate action information, run the corporate action to selected portfolios, or schedule the corporate action to be run on a later date. The corporate action window allows you to save your corporate action after each of the steps, allowing you either to manage the entire corporate action at once or to return to it later on.

The first step of managing a corporate action is to define the basic information of the corporate action in the fields available at the top of the Corporate action window. The fields available vary depending on the corporate action type you selected either from the drop-down or from the menu when starting to create a new corporate action - only the fields necessary for each type are available for you.

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You can choose from the corporate action types of Capital call, Capital return, Coupon payment, Dividend, Dividend as shares, Exchange, Issue, Split and Subscription. Follow the links to see the documentation on the fields available for each corporate action type.

In addition to the fields specific to each corporate action type, there are some fields that are shared among all types of corporate actions:

Transaction type

Transaction type of the created transactions. Corporate actions result as transactions in the affected portfolios, so you need to define the transaction type used for these transactions. You can often find a transaction type with the same name as the corporate action - however, you can select any transaction type with the desired effects for your corporate action. This field remembers on system level which transaction type was last used for this type of corporate action, and suggests that as a default when you use the same corporate action type the next time - this saves you from the need to always re-select the transaction types you want to use.

Memo

A note related to your corporate action, that you can use for example to store additional information and in searching for corporate actions through the Corporate action view. Whatever you write in the memo is only available through the Corporate action view.

If you only want to save the corporate action information and not run or schedule it yet, click the Save & close button below the corporate action information. Your corporate action will appear in the Corporate action view, where you can run or schedule it later on to take effect to your portfolios.

Note

Defining the corporate action information does not yet affect any portfolios, and the corporate action has to be run to selected portfolio(s) in order to create transactions to and make the effect of the corporate action visible in the affected portfolios.

After a corporate action is created, it has to be run to selected portfolios in order to make the effect of the corporate action visible in the portfolios.

You can run the corporate action to affected portfolio directly when entering it into the system, or run an already defined corporate action by searching the corporate action you want to run and clicking the New run button on the Corporate action view.

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A corporate action run is defined in the fields visible in the window, below the corporate action information (a red star indicates a mandatory field).

Groups, contacts, portfolios*

The portfolio(s) you want to run the selected corporate action to: a corporate action can be run either to all portfolios (visible as #All), a group of portfolios (visible with Group name), a customer's portfolios (visible as Customer name (ID)) or a single portfolio (visible as Customer name - Portfolio name (ID)). Transactions are created to the portfolios within the selection that would be affected by the corporate action - for example, dividends are recorded only to the portfolios within the selection that contain the dividend security.

When portfolios are selected for the run (either one or more portfolios), define the taxation information and exchange rates used when creating corporate transactions for the selected portfolios:

Juridical form/Tax country (e.g. Private person/Finland)

The combinations of portfolio's juridical forms and tax countries that can be found within the selected portfolios. If the portfolios the run is targeted to include several combinations of portfolio's juridical form and tax country, all these different combinations are listed, allowing you can define the transaction type, tax rate and tax type to each of the combinations separately. You can also define default tax rates (or the combinations of transaction type, tax rate and tax type used by default in the corporate action run) in Preferences. If a default tax type is defined that matches the current run, the values of the default tax rate are pre-filled to the fields.

  • Transaction type - choose the transaction type of the transactions created based on the corporate action. By default, the system suggests you to use the same transaction type you selected in the corporate action information for all combinations of juridical form / tax country. However, you can change the transaction type here for certain combination, e.g. create transactions for "private persons in Finland" with different transaction type than for others.

  • Tax rate - set the tax rate to be used in transactions for this combinations of juridical form / tax country.

  • Tax type - choose the tax type to be used in transactions for this combinations of juridical form / tax country.

Exchange rates

The exchange rate, if the currency of the security of the corporate action and the currency of the portfolio are different. The exchange rate field is visible for all the combinations of the security's and portfolio's currencies related to the run: you can define each of these exchange rates separately.

  • EUR/USD - the exchange rate is shown and defined in the form Portfolio currency / Security currency: define the exchange rate of the portfolio's currency against the security currency. The exchange rate can also be fetched to the field with a question mark (?), when the system sets the exchange rate to be the corporate action's day's market price of the currency. If no market price is can be found for the date, the latest available market price is used.

If you want to run the corporate action directly to your selected portfolios, click the Run & close button below the information of the run. You can also choose the schedule the run to be performed by the system on a later date.

If you are running the corporate action directly to the selected portfolios, the system suggests transactions based on the information defined in the Corporate action window and the portfolios included in the run. The confirmation window lists all the transactions to be created base on the corporate action run: for each suggested transaction, you can uncheck them from the run to prevent single transaction(s) from being created. Change parameters button allows you to return to the previous window to allow you to change the parameters of the run, for example exchange rate, tax or portfolios. Accept and run button accepts the run and creates the transactions visible in the window.

Transaction created from the corporate action run

Running a corporate action creates transaction(s) to the portfolio(s) selected to be included in the run based on the position of the corporate action's security in the portfolio on the morning of the corporate action date (i.e. the position after previous day's transactions) together with the values and information defined in the Corporate action window. Transactions are only created to portfolios that "own" the corporate action's security on the morning of the corporate action date, and the created transactions result in the effect of the corporate action being visible in the affected portfolios.

The account of the created transactions is determined automatically when running the corporate action. If the transaction type defined in the Corporate action window has a cash effect, then an account is linked to the transaction with the following logic:

  • The account in the portfolio with the same currency as the corporate action security is set as the account of the transaction.

  • If an account with the same currency as the corporate action security cannot be found from the portfolio, then the portfolio's default account is set as the account of the transaction.

  • If no accounts can be found from the portfolio, then the shared accounts for the portfolio are used in the same order: by default setting the shared account with the same currency as the corporate action security, and if not found, then setting the shared default account (from FA 3.5 onward, corporate action run also considers accounts shared with "Shared to all linked contact's portfolios" option).

Deleting corporate action runs

After a corporate action has been run, you cannot delete the corporate action nor change the corporate action information. If you double-click a run related to a corporate action, you can view the information of the corporate action run. Delete button deletes the selected run of the corporate action (not the corporate action itself) and deletes the transactions created to the portfolios by the run. When all the runs of a single corporate action are deleted, can the corporate action be deleted as well. Show transactions shows the transactions created by the corporate action run.

If you chose not to run the corporate action directly, after you have defined the corporate action information and information of the run, you can schedule the corporate action for a later date, when the system would automatically perform the corporate action run based on the defined information.

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A corporate action is scheduled within the fields visible in the window, below the corporate action run information.

Date

The date you want your corporate action to be run on. In general, a corporate action shouldn't be run before the corporate action date or before all transactions in the portfolios are in the system to ensure that the corporate action is run against correct and accurate data.

Time

The time you want your corporate action to be run on in the format hh:mm. Running a corporate action will generate transactions and trigger report recalculation, which might take a little time when run for a large number of portfolios.

If you want to schedule your corporate action to be run on a later date by the system, click the Schedule & close button next to the scheduling information. At the defined date and time, the system will automatically perform the run with the information you defined for the corporate action and the run.

After a corporate action has been scheduled, you cannot delete the corporate action nor change the corporate action information. If you double-click a scheduled run related to a corporate action, you can view the information of scheduling. Delete button deletes the scheduled corporate action run (not the corporate action itself). On the defined date and time, the system performs the run, and the scheduled run is shown as a run corporate action.

Note

When scheduling a corporate action, you are required to fill in information related to the run. However, when scheduling a corporate action that will take place in the future, you don't yet know for example the FX rate for the corporate action date. Thus, when running the corporate action, the system will fetch and use the latest FX rate from the market price entries of the currency, to ensure that the corporate action is converted with an accurate exchange rate.

For example, you receive information of a dividend on September 20th, and the dividend will be paid on November 11th. When scheduling the dividend in September, you don't yet know what the FX rate will be in November. Thus, when running the corporate action, the system will fetch the latest FX rate from the market price entries of the currency, to ensure that the corporate action is converted with an accurate exchange rate.