How to use Position Manager to apply fund rebates to accounts through Transaction Manager

An example of when Position Managers comes into use is when a mutual fund sends a rebate of cash back to the holders of the fund and we are going to apply this in the correct ratio to the customer accounts.

To do this we first have to get the average holding per account for that time period and for this example we will assume that Fund 2 just sent us 1,000 SEK in rebates that should be applied back to the unit holders that held the fund from the 1st of March 2017 to the 10th of March 2017. 

We will first navigate to the Average position values view in the Position Manager.

We will then select the correct time period, for this example we want to use the trade dimension for this rebate and not positions that were settled.

With this filter we get 8 results.

Since we only care about the trade dimension we can now filter the column Avg. Pos. Size (S), where (S) means settle, to remove the rows for the settled positions.

We will now export this into an Excel file.

We will now add a column for the received rebate and a column where we calculate how much each position holder should receive based on the position sizes in units.

The Excel file is attached below for reference.

Now we need to modify the file so it can be imported into the Transaction Manager according to the following template.

We must also remember to create two transactions for each account, one for the trade dimension and one for the settle dimension and we also need to include any transactions for our custody accounts or house BFS accounts where we have parked the fee rebate until now. Lets assume that we are not going to conduct a transfer of funds between custody accounts but we have parked the 1,000 SEK rebate when we received it in a house BFS account with number 10001980 so we need to transfer these funds out of that account.

After rounding the rebate per unit we will also get a difference of 0.32 SEK that we can place in our own house fee account with number 10003382. If we want to differentiate these transactions in a more distinct way than only Transaction Reference Texts we can create a new Transaction Type or use certain Transaction Types that already exists. If we want to be able to separate these transactions in the tax reporting it is a good idea to create new transaction types, for example with the name Payment_FundRebate_Trade_Cash and Payment_FundRebate_Settle_Cash. However, for this example we will use the standard Default_Transfer_Trade_Cash and Default_Transfer_Settle_Cash. Another thing to remember when deciding what transaction types to use is that the return calculation setting of a transaction type like this has to be set to payment if the amount should be included in the result, in this case positive, of the account as opposed to a transfer which does not affect the return of an account.

The resulting transactions will look like the following image.

The resulting excel file is included below.