Fund entities

BFS Version: 2.X

A Fund Entity is a Legal Entity that represents a fund like an investment fund. A Fund Entity is then tied to a Fund company that manages the fund.

The legal structure looks like the chart below.

To create a fund entity navigate to users and all users.

Click Create to launch the dialogue for a new Legal Entity.

The type should be entered as "Customer" and the Gender/Company as "Company".

For a Swedish entity the organisational number will validate according to an accepted structure for Swedish Entities that should be entered according to 16XXXXXX-XXXX.

Split the fund name between First Name and Last Name (This will soon change so that other property labels are shown for companies with "Company Name" instead).

A Fund Entity (if you are using BFS for fund administration and you are a fund company, if not you can leave this account creation out of the process) has to have an account for managing payments for subscriptions and redemptions. Navigate to the fund entity by selecting "All Users" from the "Users" menu and find the fund entity in the list:

Select the tab "Account Overview" to create an account:

Select "HoldingAccount" as account type, enter a convenient account label, e.g. the same as the name of the fund. The currency selected will not have any practical impact in this case, but it would be appropriate to choose the currency of the legal country of the fund. Keep the default values for Status, Partner, Allocation Profile and Acquisition Value Method. Enter External Reference and Comment if desired. Leave Credit Limit "0" and uncheck the Must Cover check box since they are not applicable for this kind of account. 

Now go to the "Details" tab to edit the properties of the "Fund Entity" group box.

Check the "Is a fund entity" checkbox. Select the account you created in the previous step as Customer Cash Account and select Fund Company.

If subscription and/or redemption fees are to be applied and handled within BFS, you will have to create a holding account for that for the fund company and then select that as "Fee Account" for the fund entity.

Now when the fund entity is set up properly, you are ready to create the tradable fund instruments.