Calculate Daily Accruals Process

The Calculate Daily Accruals process instructs the system to calculate four types of KEM accruals:

• Automated cash management: The accrual mechanism for “money market” type accounts; calculated daily based on the holdings on each date; adds the amount of interest earned today to the total interest due to the account holder.

• Dividend : The total dividend amount to be paid to the holder of a security; based on the ex-dividend record date (that is, the required date of ownership), units held, and dividend amount and payment date; accrued dividends are calculated periodically, based on the ex-dividend date.

• Treasury notes and bonds: Calculated based on the number of days in the six months prior to the semi-annual payment date.

• Time deposits: Simple interest calculation (not compounded); payment frequencies vary depending on the instrument. For example, income may be paid monthly, quarterly, semi-annually, annually or at maturity.

This process must be run after both the initial Post E-Docs process and the Create Accrual Transaction process have been run to completion. It must be run in the early stages of the nightly process to ensure that all accruals are calculated on the securities held on that date and on those securities only. The sub-processes for the four different accrual methods may be run separately (in parallel) or as a group (single job).