Corporate Actions
Overview
FA’s Corporate Actions provides you with tools to automate corporate action management. FA’s Corporate Actions allows you to control which portfolios to use, which transactions to create, which taxes to apply, and when to exercise the corporate action.
Functionality
Define corporate action details through pre-defined corporate action types
Select the corporate action type - choose corporate action type among common cases such as Capital calls and returns, Coupons, Dividends, Dividends as shares, Issues and Splits. Different forms can be applied for different corporate actions - see a full list of supported corporate action types below.
Define corporate action details - define details for the created corporate action transactions by specifying for example Security, Currency, Transaction type, Internal info/Memo, and format-specific details depending on the corporate action type.
Calculate taxes related to your corporate actions with pre-defined tax rates - you can enter a tax percentage and tax type for your corporate action, when the system automatically calculates taxes related to the corporate action. In addition, you can define default tax rates related to a particular corporate action type to be used as a default. For example, you can pre-define a tax rate to be used for "Dividends" from "Swedish stocks" for "Private persons" in "Sweden".
Define the applicable FX rates - if the corporate action is handled in a foreign currency, select applicable exchange rate for the created transactions or use the latest rate available as a default.
Import corporate actions
Import dividends and splits - import dividends and splits for equity securities from Bloomberg and run them automatically on the ex-dividend or split date.
Import corporate actions - import corporate actions in the CSV file (see Data Aggregation).
Run corporate actions and mass-generate transactions
Mass-create transactions based on corporate action details - run a corporate action to an individual portfolio, an individual contact or a group of portfolios in one go. Corporate action transactions are created to all affected portfolios in one go - the system automatically determines which portfolios are affected by the corporate action on the corporate action date.
Track who has entered corporate actions over time - keep track of corporate action runs: who entered a corporate action, when, and which transactions were created as a result. In case of an error, you can also delete a corporate action run including all of its associated transactions.
Schedule and automate certain corporate actions
Schedule a corporate action to take effect on a future date - when entering corporate action details, you can choose to schedule the corporate action to be run automatically by the system on a later date. When scheduled, the corporate action transactions are created in the background on the scheduled time.
Create coupons, expirations and calls automatically based on bond information - you can generate appropriate corporate actions for upcoming coupon payments, expirations and calls for bonds, based on the bond information you have entered in the system. You can populate appropriate corporate actions for coupon payments, expirations and calls manually, or you can schedule these to be created automatically at pre-defined times.
Supported types
Standard types
Type | Description |
|---|---|
Account interest | Account interest is calculated based on the defined interest percentage. |
Capital call | Capital call is calculated based on a defined call percentage and total commitment of the position. |
Capital return | Capital return is calculated based on a defined return per share and each portfolio's share of the security. |
Coupon payment | Coupon payment is calculated based on a defined coupon percentage. Both fixed and floating coupon rates are supported. |
Dividend | Dividend is calculated based on a dividend per share and each portfolio's share of the security. |
Dividend as shares | Dividend as shares is calculated so that the dividend paid per security is converted into dividend securities based on the purchase price of the dividend security. Incomplete share fractions also supported: if the amount of the dividend security received is not a whole number after the conversion, the rest of the dividend (the remainder) is paid as a regular dividend. |
Exchange | Exchange is calculated based on a defined ratio, and exchanges the position in one security into one or more other securities. In addition to directly exchanging one security to another, the exchange corporate action supports dividing the purchase values of the original security to the new securities received in the exchange, as well as exchanging securities with different currencies. Exchange corporate action can be used also for example for mergers, fusions, spin-offs, redemption shares and convertible bonds. |
Issue | Issue is calculated based on a ratio and open purchase lots of a position when new securities are issued based on the ownership of another security. Issue corporate action can be used also for example for subscription rights issues and bonus issues / bonus share. |
Split | Split is calculated based on a split ratio. Both splits and reverse splits are supported. |
Subscription | Subscription is calculated based on a ratio and open position when new securities are subscribed based on the ownership of another security. |
Other supported types
Type | Description |
|---|---|
Bonus issue | Supported through "Issue" - define the ratio with which you receive the bonus shares. |
Convertible bond | Supported through "Exchange" - define the ratio with which you receive the shares your bond is converted into. |
Delisting / Remove | Supported through "Dividend" form and "Remove" or "Sell" transaction. Delisting is calculated based on a unit price per share (or 0 price if you remove securities of no value) and each portfolio's share of the security. |
Expiration / Maturity | Supported through "Dividend" form and "Expire" transaction. Expiration is calculated based on expiration / maturity price per share and each portfolio's share of the security. |
Merger / Fusion | Supported through "Exchange" - define the ratio with which you receive the shares of the other company your security is merged into. |
Redemption shares | Supported through "Exchange" - define the ratio with which you receive the redemption shares and percentage of the purchase value redeemed. |
Spin-off | Supported through "Exchange" - define the ratio with which you receive the shares in the new company and percentage of the purchase value that remains in the old company and is transferred to the new company. |
Subscription rights issue | Supported through "Issue" and "Subscription" - define the ratio with which you receive the subscription rights, and use the rights to subscribe the original security. Subscription rights issue can be managed according to different taxation schemes in Finland and Sweden. |