Create initial investments
After you set up share classes, you can add initial investments. You can choose how you enter them in the system:
Add investments as trade orders. Collect initial subscriptions as trade orders before your fund or your new share class starts operating.
If you are adding a share class in a fund that already operates and has share classes, the process of creating initial investments is similar: you need to create subscriptions (as trade orders or as transactions) but you don't need to start the fund. Skip this step – the new share class subscriptions will be included in the NAV calculation on the initial date specified in the share class settings.
Add investments as trade orders
To handle initial investments as trade orders:
Create trade orders in FA Back. Go to New → New trade order → Collective investment vehicles in FA Back and fill in the fields:
Portfolio – Portfolio of the client who subscribes to the fund.
Security – Fund share class.
Account – The account from which the payment is made.
Transaction date, Settlement date – Transaction date and settlement date. These dates must be later than the date of the initial price you set for the share class.
Transaction type – Transaction type: Subscription (SUB).
Unit price – Share class until price. Enter "1" – when the trade order is executed, the unit price is updated automatically based on the share class settings.
Trade amount – Subscription trade amount.
On the fund or share class inception date, before you start the fund or calculate NAV, make sure that:
The trade orders are in the Executable status.
The relevant transaction fee is set for subscriptions in the Share class settings. For example, you can execute first fund subscriptions without a transaction fee and add it later in the share class settings if needed.
Start the fund on the fund inception date. Choose the fund in the NAV status view and click Start fund in the Fund details pane on the right. As a result, FA Fund Management:
Executes subscription trade orders up to the fund inception date with the initial price defined in the Share class wizard.
Adds the fund units in the shareholders' portfolios.
Creates a consolidated deposit transaction (FMDEP) to the fund portfolio.
Note
Skip this step if you added a share class in an existing fund. FA Fund Management completes the above actions automatically when you accept NAV on the share class initial price date.
You created initial investments in the new share class. Next, add positions in the fund portfolio in FA Back and calculate NAV on the NAV date: Calculate and accept NAV.
Note
You can't calculate NAV before adding positions to the fund portfolio.
Add investments as transactions
To handle initial investments as transactions:
Create transactions. Go to New → New transaction → Collective investment vehicles in FA Back and fill in the fields:
Portfolio – Portfolio of the client who subscribes to the fund.
Security – Fund share class.
Account – The account from which the payment is made.
Transaction date, Settlement date – Transaction date and settlement date. These dates must be later than the date of the initial price you set for the share class.
Transaction type – Transaction type: Subscription (SUB).
Amount – The number of fund units.
Unit price – Share class until price. Enter "?" to fetch the price that you set in the Share class wizard. You can leave the field empty (the price is filled in automatically based on the share class settings).
Status – Accepted.
When you save the transaction, the system adds the fund units in the shareholders' portfolios.
Start the fund on the fund inception date. Choose the fund in the NAV status view and click Start fund in the Fund details pane on the right.
Note
Skip this step if you added a share class in an existing fund.
Create a consolidated deposit transaction (FMDEP) to the fund portfolio. The transaction amount will be included in the first NAV calculation. Right-click the fund portfolio in the portfolio hierarchy in FA Back and choose New transaction → Collective investment vehicles. Fill in the fields:
Portfolio – Fund portfolio.
Security – Fund share class.
Transaction type – Transaction type: Depost - Fund (FMDEP).
Transaction date and Settlement date – Transaction date and settlement date must be the same as in the subscription transactions.
Amount – Total sum received from subscriptions you created.
Unit price – "1".
Status – Transaction status: "Accepted".
You created initial investments in the new share class. Next, add positions in the fund portfolio in FA Back and calculate NAV on the NAV date: Calculate and accept NAV.
Note
You can't calculate NAV before adding positions to the fund portfolio.