Create Pooled Fund Control Transactions Process

The purpose of this process is to provide an end-of-the-processing-day total of all purchase and sale activity for pooled funds in KEM and a total for the pooled fund income distributed as cash to the KEMIDs during the processing day. This process causes the system to calculate and provide transaction totals for three types of e-docs affecting KEMID holdings of pooled funds:

• Asset Increase e-docs: Total of all transactions (carry value)

• Asset Decrease e-docs: Two totals—carry values and gains/losses

• Cash Increase e-docs (for income distributed): Total of all transactions

These calculations result in the system generation of Cash Increase (ECI) and Cash Decrease (ECDD) transactions, depending on whether the resulting totals are positive or negative. (This functionality allows for reversed transactions.)

• After totaling asset increases, if the total is positive, the system generates a Cash Increase e-doc; if the total is negative, the system generates a Cash Decrease e-doc. In both cases, the transaction affects the principal side of the pooled fund control KEMID.

• After totaling asset decreases, if the total is positive, the system generates a Cash Increase e-doc; if the total is negative, the system generates a Cash Decrease e-doc. In both cases, the transaction affects the principal side of the pooled fund control KEMID.

• After totaling gains and losses, if the total is positive (indicating a net gain), the system generates a Cash Decrease e-doc; if the total is negative (indicating a net loss), the system generates a Cash Increase e-doc. In both cases, the transaction also affects the principal side of the pooled fund control KEMID.

• After totaling cash increases, if the total is positive, the system generates a Cash Decrease e-doc; if the total is negative, the system generates a Cash Increase e-doc. In both cases, the transaction affects the income side of the pooled fund control KEMID.

This process does not post totals that affect the carry value of the underlying assets owned by a pooled fund. Instead, it automatically generates all transactions and posts them to the control accounts individually, provided these individual assets are maintained on the KEM system.

pencil-small Distributions of unrealized gains and losses to KEMIDs are not included in the totals because these values are already a part of the asset value adjustments made through individual asset transactions in the control account.

Each Cash Increase and Cash Decrease e-doc generated through this process:

• Has a document header that includes the standard description specified by your institution for pooled fund control purchases, pooled fund control sales, pooled fund control sale gains losses, and pooled fund control income distributions, as applicable.

• Contains only one transaction line.

• Has a transaction sub-type of Cash (C).

• Has a transaction source type of Automated Entry (A).

• References a single security record.

The Create Pooled Fund Control Transactions process is always run daily. In the batch transaction sequence, it must be run after the Automated Cash Investment and Cash Sweeps processes have been run because those processes affect pooled funds. Because this process generates transactional e-docs, the batch sequence must include a run of the Post E-Docs process after this process has run to completion.