Final Base Module Guide PDF

MULTIFONDS TRAINING
GUIDE
FOR
BASE MODULE
INDEX
A. MULTIFONDS OVERVIEW ........................................................................................ 5
B. NAVIGATION ........................................................................................................ 7
C. APPLICATION PARAMETERS ........................................................................... 10
C.1. Impact of parameter change .............................................................................................. 10
C.2. Hierarchy of parameters ..................................................................................................... 10
C.3. Utility of Fields in Application Parameters ............................................................................ 11
D. ACCOUNTING PARAMETERS ................................................................................... 18
D.1. Setting up a chart of accounts ............................................................................................ 23
D.2. Setting up accounts ........................................................................................................... 24
D.3. Setting up Security Types (“GTIs”) and equivalence ............................................................. 25
D.4. Setting up a balance sheet chart ......................................................................................... 26
D.5. Setting up a NAV chart ....................................................................................................... 26
D.6. Setting up a statement of operation chart............................................................................ 27
D.7. Account linking .................................................................................................................. 27
D.8. Setting up accounting schemes ........................................................................................... 28
D.8.1 Operation codes (for transaction booking) .................................................................... 28
D.8.2 Fee codes (for results arising from transaction)............................................................. 29
D.8.3 NAV codes (for NAV calculation) .................................................................................. 29
D.8.4 P&L closing schemes ................................................................................................... 30
D.8.5 Cambio accounts closing schemes ................................................................................ 31
D.9. Initialize Chart characteristics screen ................................................................................... 32
E. CENTRAL REGISTER ............................................................................................. 33
E.1. Central register (FDCOR02) ................................................................................................ 33
E.2. Details of fields in FDCOR02 ............................................................................................... 35
E.3. Details of buttons in FDCOR02 ............................................................................................ 37
E.3.1. Accounts .............................................................................................................................. 37
E.3.2. Corresp. ID .......................................................................................................................... 38
E.3.3.Address ................................................................................................................................ 39
E.3.4. Guarantors ........................................................................................................................... 40
E.3.5.Custodian ............................................................................................................................. 40
E.3.6.Mgt Co 41
F. MESSAGE TABLES ................................................................................................ 42
F.1. Scope ................................................................................................................................ 42
F.2. Access management .......................................................................................................... 43
F.3. Print CMESS table .............................................................................................................. 44
F.4. Audit trail: ......................................................................................................................... 45
F.5. Examples of CMess table .................................................................................................... 46
G. FUND MASTER .................................................................................................... 47
H. STANDING DATA .................................................................................................. 56
H.1. Security Master .................................................................................................................. 56
H.2. Option master .................................................................................................................... 68
H.3. Future master .................................................................................................................... 72
I. MARKET DATA MANAGEMENT ................................................................................. 76
I.1. Price management ............................................................................................................. 76
I.1.1 Security price .............................................................................................................. 76
I.1.2 Option price ................................................................................................................ 76
I.1.3 Future price ................................................................................................................ 77
I.1.4 FET price .................................................................................................................... 78
I.1.5 Swap price ................................................................................................................. 78
I.2. Exchange rates management .............................................................................................. 80
I.2.1 Currency Rank default set up ....................................................................................... 80
I.2.2 Exchange rates calculation against the application currency ........................................... 81
I.2.3 Cross Exchange rates calculation with two currencies different than the
application currency ................................................................................................................ 81
I.2.4 Spot exchange rates (central) ...................................................................................... 82
I.2.5 Spot exchange rates (by group) ................................................................................... 83
This document is the property of IGEFI Group Sàrl, it cannot be communicated to third parties and/or reproduced 2
without the prior written authorization of IGEFI Group Sàrl and it’s contents cannot be divulged.
I.2.6 Forward exchange rates .............................................................................................. 84
I.3. Interest rate management .................................................................................................. 85
I.3.1 Forward interest rates ................................................................................................. 85
I.3.2 Floating interest rates ................................................................................................. 86
J. TAX TABLES ....................................................................................................... 87
J.1. Parameterization ................................................................................................................ 87
K. NAV PROCESS .................................................................................................... 96
K.1. NAV Simulation .................................................................................................................. 96
K.2. Error message if forward forex rates have not been validated ............................................... 98
K.3. Review of NAV reporting .................................................................................................... 99
K.3.1 Main NAV reports (SDNARxx, SDNAVxx) ....................................................................... 99
K.3.2 Detailed NAV reports (SDNAUxx) ............................................................................... 104
K.4. NAV Accounting ............................................................................................................... 110
K.5. NAV confirmation ............................................................................................................. 113
K.6. NAV validation ................................................................................................................. 113
K.7. Rolling forward Fund accounting date ............................................................................... 115
L. DEALING PROCESS ............................................................................................. 117
L.1. “AC” : Capital stock (Subscription & redemptions) processing ............................................. 117
L.2. “BO” : Stock Exchange and MBS security processing ......................................................... 121
L.3. “FU” : Futures / Contract For Differences (CFD’s) processing .............................................. 132
L.4. “OP” : Options processing................................................................................................. 137
L.5. “IR” : Interest Rate Swaps- IRS Processing........................................................................ 145
L.6. EQS: Equity Swaps Processing .......................................................................................... 149
L.7. “DP” : Term deposits processing ...................................................................................... 152
L.8. “TD”: Call Deposits Processing: ......................................................................................... 157
L.9. “EM”: Loans Processing: ................................................................................................... 162
L.10. “FX” : Forward forex transaction processing ..................................................................... 166
L.11. “FS” : Spot forex transaction processing ........................................................................... 169
L.12. Corporate Action Processing: ............................................................................................ 172
L.13. “CP” : Dividend (Equity) and Coupon (Bond) processing .................................................... 179
M. REPORTING ...................................................................................................... 183
M.1. Trial Balance .................................................................................................................... 183
M.2. General Ledger ................................................................................................................ 185
M.3. Accounting journal ........................................................................................................... 188
M.4. Online queries and reviews ............................................................................................... 189
M.4.1 Account positions ...................................................................................................... 189
M.4.2 Security positions ...................................................................................................... 191
M.4.3 Option positions ........................................................................................................ 192
M.4.4 Future positions ........................................................................................................ 194
M.5. Valuation reports ............................................................................................................. 197
M.5.1 Portfolio valuation reports.......................................................................................... 197
M.5.2 Bond interest accruals report ..................................................................................... 199
M.5.3 Asset and liability report ............................................................................................ 200
N. NAV CHARGE PARAMETERS ................................................................................. 203
N.1. NAV charges periodical payment ....................................................................................... 205
N.2. Example: ......................................................................................................................... 207
O. MULTICLASS PARAMETERS .................................................................................. 220
O.1. Fund Parameters- ............................................................................................................ 220
O.2. Multilink’s ........................................................................................................................ 221
O.3. NAV charges set up for multiclass Fund ............................................................................. 221
O.4. Reports for Multiclass fund ............................................................................................... 223
O.5. Example .......................................................................................................................... 224
P. CAMBIO ........................................................................................................... 235
P.1. Introduction..................................................................................................................... 235
P.2. Characteristics ................................................................................................................. 235
P.3. Available cambio methods ................................................................................................ 235
P.4. Parameterization .............................................................................................................. 235
P.4.1 Creation of cambio account ....................................................................................... 235
P.5. Creating cambio links ....................................................................................................... 238
P.6. General example: ............................................................................................................. 239
P.7. Cambio Closing: ............................................................................................................... 242
P.8. Reversal Cambio closing: .................................................................................................. 246
P.9. When settlement Ccy is other than fund Ccy and exchange rate is overwritten: ................... 248
P.10. Cambio Methods: ............................................................................................................. 249
P.10.1 Cambio method “Y”:.................................................................................................. 249
P.10.2 Cambio method “A” ................................................................................................... 249
P.10.3 Cambio method “B” ................................................................................................... 252
P.10.4 Cambio method “C” ................................................................................................... 252
P.10.5 Cambio method “D” .................................................................................................. 252
P.10.6 Cambio method “N” .................................................................................................. 252
Q. VALUATION MODEL............................................................................................ 253
R. VALUATION METHODS .................................................................................. 256
R.1. IY (Issue Yield) Method ................................................................................................... 256
R.2. FM (Futures) Method ........................................................................................................ 260
R.3. V1 Method (For Futures) .................................................................................................. 263
R.4. NS01 Method ................................................................................................................... 267
R.5. NC01 Method ................................................................................................................... 271
R.6. Linear Amortization Method .............................................................................................. 276
R.7. NY02 – Double Valuation Market to Market + Amortized Cost Method ................................. 278
R.8. NY02 – Effective Yield Method .......................................................................................... 283
R.9. NY01 – Double Valuation Market to Market + Yield Method ............................................... 288
R.10. CP01 – Yield and Market to Market (Calculated) Method ..................................................... 289
S. MULTI MANAGER .............................................................................................. 294
S.1. Parameter : ..................................................................................................................... 294
S.2. Example : ........................................................................................................................ 296
S.3. Reports: .......................................................................................................................... 299
T. ASSET POOLING ................................................................................................ 301
T.1. Structure: ........................................................................................................................ 301
T.2. Parameter ....................................................................................................................... 301
T.3. Example .......................................................................................................................... 309
T.4. Reports ........................................................................................................................... 314
T.5. Pooling enhancements- Underlying Requirement ................................................................ 318
T.6. Parameterization in MF ..................................................................................................... 318
T.6.1 Pool type .................................................................................................................. 318
T.6.2 Subscription / redemption type .................................................................................. 318
T.6.3 Definition of managers .............................................................................................. 320
T.6.4 Share value definition ................................................................................................ 321
T.6.5 Pooling definition ...................................................................................................... 322
T.7. Processing ....................................................................................................................... 324
T.8. Reporting ........................................................................................................................ 325
T.9. Loading interface ............................................................................................................. 326
T.10. Flexible pooling structures ................................................................................................ 326
U. SEGMENT MASTER ......................................................................................... 328
U.1. Parameter : ..................................................................................................................... 328
U.2. Example: ......................................................................................................................... 333
V. NAV TYPES ...................................................................................................... 338
V.1. NAV type ‘B’ .................................................................................................................... 338
V.2. NAV type ‘RB’ .................................................................................................................. 345
W. INTERFACE ....................................................................................................... 357
Note: This document for reference purpose only and is not conclusive. User is advised to refer to Multifonds user guide for
understanding the detailed functionality.
A. MULTIFONDS OVERVIEW
Product overview
MultiFonds – Architecture
Flexible parameterization GUI
On the fly creation of new security types (e.g., Inflation adjusted

bonds, CDS, CMO, multi-currency swaps, Step bonds, Bench
mark securities)
Input Output
Flat file , XML , Swift Format Over 900 pre-defined reports

Securities, options, futures master (PDF, HTML, RTF, CSV, post
file script etc.)
Depositary, correspondent, issuers Various formats for data
All transaction types transmission to custodian,
transfer agent, (e.g., NASDAQ)
Corporate action
Views for OMS (e.g., BTS,
Prices (e.g., Bloomberg, IDC)
Charles River, Longview)
securities, options, futures, Swaps,
fair value pricing, etc. MultiFonds Fund Accounting Data export for external system
(e.g., Statpro, Mig21)
Spot and forward interest rates and
exchange rates File for NAV validation
Sensibility, delta Real Time Position Valuation
Reconciliation Cash flow
Chart of account, Fund static data, Core Database InfoCenter
etc..
Ratings
Web based GUI

Oracle 10g RDBMS (always latest or near latest version)
MultiFonds Functional Architecture
Message table: user definable codes
Parameter driven: security types, accounting schemes
B. NAVIGATION
Log-in:
GUI: Drop down Menus:
F-key functions:
Shortcuts :
F7 To start a query in a field
In case of no results returned by the

F7 F7 To recall the previously entered query query, the query is still open.
You must take the door to close it
F8 To run the query after you input the criteria
To show the list of value available for the

F9 selected field
F6 To insert a record in a table
To copy the previous line and allows you to The F4/F3 functions are not always
F4 update it before saving it available
To copy the field from the previous record and

F3 allows you to update it before saving it
As long as you did not save it (F10), a

F6 To delete the selected record
deletion can still be rolled back
F10 To save the changes
Interactive navigation:
MF screen naming convention:
All MF screens have a unique id. Code and description on their top part:
Tip: To find back a screen description, from its id. Code:
User time and time zone:
 Note also date formatting convention : US or European, depending on the

user settings
C. APPLICATION PARAMETERS
Application parameters, as the name suggests are parameters defined at an

application level, which have an impact on the entire working of the application.
Important processing rules to be followed across the application are driven
through the parameterization in the application parameters.
Path: Static Data  Param
C.1. Impact of parameter change
Access to MultiFonds application parameters should be restricted to system

administrators only. The alteration or deletion of some of these parameters could
have significant impacts on the way MultiFonds processes data.
C.2. Hierarchy of parameters
Multifond recognizes parameters in the following hierarchy:
Security/GTI Level
Fund Level
Application Level
C.3. Utility of Fields in Application Parameters
1. Application Currency- It’s the base currency against which other

exchange rates need to be expressed. This aides in computation of Cross
rates as well. Therefore, logically there can be only one application
currency. Application currency cannot be changed once the application is
in production.
The decision to choose an Application currency depends upon 2 major
factors. Viz; 1.The base currency in which most funds are operating and
2. The base currency against which the exchange rate provider provides
rates
2. Accounting date Control-

0: System will not allow for the transaction if Trade date is greater than
fund accounting date.
1: Control on application date > fund accounting date > trade date
2: Control on fund accounting date > trade date only
3: Validation on accounting date with exception
5: Check the Trade date <= Fund Accounting date
3. Stockex/Forex- If set, this flag indicates that a bifurcation of results due

to price movements and exchange rate movements will be made. If not
set, this flag indicates that no bifurcation of results from price movements
and exchange rate movements will be made. This flag acts as a default
value only and may be changed on fund master level
E.g.: If a security (USD) in the portfolio (INR) has moved from 10$ to 12$
and the exchange rate has moved from USD/INR=45 to USD/INR=46
then the result will be as follows:
If Checked: Price gain=46(12-10) = 92 INR & Exchange gain= 10(46-
45) = 10 INR
If unchecked: Total gain= 102 INR
4. Sec. Price Net- If set, transaction fees and brokerage on security

transactions will be included in the average cost of a position. If not set,
transaction fees and brokerage will not be included in the average cost
price of a security position. This flag acts as a default value only and may
be changed on fund master level.
Eg: If Cost a security is 100 USD and brokerage is 1 USD and a sale is
made for 103 USD then the gain will be:
If checked: 103 USD – 101 USD= 2 USD
If unchecked: 103 USD – 100 USD= 3 USD
5. MultiCharts: This flag allows the user to use multiple charts of accounts.
If this option is not ticked then only one chart of accounts may be used.
6. Automatic Sec Id: If this option is ticked there will be automatic

generation of securities number at the time of creation of new securities,
options and futures.
7. Automatic Corresp. Id: If this parameter is ticked, then there will be

automatic generation of a sequential Id for correspondents.
8. Price Date Mandatory- If this box is checked, the user has to insert in
the date relating to the subscription / redemption
9. NAV Type- If set, the type of NAV in the NAV Simulation screen will be
always proposed at blank. If not set, MultiFonds will propose the type of
NAV as 'O' for 'Official'.
10. Auto Floating Rate- If set, the system will calculate automatically
floating interest rate at the security master level when the application date
is changed (For Benchmark securities)
11. Duplicate corp. actions- If set, means that the system will reject
duplicate announcement of corporate action having the same
characteristics for a same security. These characteristics can be defined
by the user in the screen ‘Duplicate Record Check’ (Manager
Transactions Duplicate Record Check). If a corporation action event
input has the same characteristics as an existing event for the fields which
will be listed under this screen, this event will be rejected.
12. Dividend Reprocess- Allows reprocessing a dividend when a back trade

is inserted. MF will reverse the dividend and rebook with a new amount
13. Auto Pop Entitle Date- Enables options to have entitlement date field
auto populated on dividend and corporate action announcements with and
without the ability to be overwritten. The entitlement date will equal the
trade date minus one calendar day (Trade Date-1).
14. Accounting Date: This date is the current application date. The date
should always be set to the current calendar date. If the accounting date
is not managed on fund level, this date will act as default accounting date.
15. DWH Warning- If set; the DWH(Data Warehouse) warning message will
be not be displayed. If not set, a warning message will appear for each
fund when the Infocenter export is run.
16. Counter Required: If set, this flag determines that each fund has to use
the sequential transaction counter. The initialization of the counter (to
zero) at fund level becomes compulsory. If not set, the use of the
sequential transaction counter is left at the user’s discretion. It is
advisable to always use this counter.
17. Futures Price: If set, the pricing of a futures contract will be effected on
contract level. According to market requirements this flag should therefore
always be set. If not set, futures contracts will be valued with the price of
the underlying instrument.
18. Settle at Fund Level Only: If set, settlements will be executed when
the accounting date is increased on fund level. If not set, settlements will
be executed when the application date is being changed.
19. 4 eyes Principle: 4 Eyes principle facilitates Maker-Checker utility. One

person will Account the transaction and the other person will approve the
transaction.
0- No 4 Eyes principle; 1- 4 Eyes principle for global application
2- Specific 4 Eyes principle (To be set inManager/Transactions/Definitions)
20. NAV Confirmation: If set, means that users have to confirm a NAV
before that any data can be exported from Multifonds. Further, once a
NAV is confirmed, it will not be possible for a user to make another NAV
for the same day.
21. Latest NAV Price- For the security pricing, we are looking the price on
the fund specific level if there is no price on the fund specific for the day,
the latest global historical NAV injected for the security will be taken.
22. Print Server Max Tries- This refers to the maximum number of tries
system should make for generation of print server reports.
23. Withhold Tax Tables- Determines how taxes will be used in MultiFonds.
These tables determine whether taxes have to be paid on income
collection and to which extent. Tax rules are derived on the basis of fund
domicile, income currency, quotation currency and security type.
Definition of the way withholding taxes are managed
0 0-Use tax as defined in the security master record (management at
security level)
1 Use tax as defined in the Tax Table (management at global level)
2 Securities by tax regime exception
24. Use Application Currency Rank: If using direct quotation this flag
needs to be set.
Global Direct Exchange Rates: Reference currency being equivalent to a
certain amount of foreign currencies. 1EUR=1.25 USD
Global indirect Exchange rates: Foreign currency being equivalent to a
certain amount of reference currencies. 1GBP=0.67 EUR
25. Block Security- If this box is checked, the system will suggest by default
to block security put in lending. This flag acts as a default value only and
may be changed on fund master level.
26. Cash and Custody Account- If set, it means that general account
description as defined under ‘Account Definition’ screen can be replaced
by specific fund account description under screen ‘Account Positions’.
27. Auto Yield Calc.- If set, MultiFonds will perform yield calculations as and
when a debt instrument is being edited in the security master record.
Since the calculation of yields is complex and memory intensive it is
recommended not to set this flag. If yields need to be viewed
nevertheless, activate the yield calculation function as and when required
in the security master record. If not set, no yield calculations will be
performed when editing a security master record of a debt instrument.
28. Income Smoothing- If set, the system will accept to smooth accrued
interest calculation on Actual days/Actual for all bonds defined with
Cusance(int.day basis) 30/360. This will be activated at the fund level
thanks to set up done under field Accrual Method.
29. Last Floating Rate- If set, the system will use the last floating rate in
the new period
30. Value date Sale Process- If set, this field enables a control on the value
date of a sale. If a sale of a security is processed with a sale value date <
purchase value date:
0-No error message displayed
1-Error message will be displayed and the sale will not be processed
2-Warning message will be displayed and can be overridden
31. Recalc. Yield after Impairment- If set, yield after impairment will be
recalculated.
32. Account Balance Split- If ticked an additional table in Infocentre

containing account balance splitted by country, currency, broker and bank
will be feeded. If not ticked, this table will not be feeded.
33. Exchange Rates: 1. Exchange rate of accounting date- MultiFonds will

use exchange rates as per accounting date for valuation purposes.
Depending on the number of days set in the fund master record, the
exchange rates to be applied will be defined as “the exchange rates on
accounting date + or – the number of days defined”. 2. Uses the latest
ex-rates stored at currency level.
34. Forex Valuation Type:

1. Valuation with interest rates- Tells MultiFonds that forward rates will be
derived using interest rates. The unrealized results will be translated at the
prevailing spot rate.
2. Valuation with interest rates (+netting) - Tells MultiFonds that forward
rates will be derived using interest rates. The unrealized results will be
translated at the forward rate.
3. Valuation based on forward exchange rates defined under Account
manager/yield curve/forward exchange rates.
4. Same Valuation method as 1 but allows partial or complete close out of
FET before maturity.
5. Report/Deport French valuation method.
This flag acts as a default value only and can be changed at the fund
master level.
35. Security Price update Type: For new security of which no end of day
price is available, we can either take security price purchase as end of day
price or assume it to be 0.
36. IRS Convention day- Usance code for the IRS calculation with the yield
curve.
37. Value Date Control: Control for the value date and trade date.
0- No control on value date
1- Control on value date (value date >= trade date)
38. Account. Date trans.check- To inform the user, when changing the
fund accounting date, if any transaction has been booked after the latest
NAV accounted.
39. NAV by group- If set, activates the field NAV Group in several forms of
Multifonds.
40. User group Report set- If set, the report set functionality is activated
and the Auto-print button for both Simulation and archived NAV reports
will refer to the report set linked to the user who is activating the button.
41. Check PL Account Currency- If set; users will not have the possibility
to enter Debit/Credit transactions with a Profit or Loss account defined in
another currency than the fund currency.
42. Accounting on Prepayment- If set, MultiFonds will process directly the

accounting of the transaction while pressing the prepayment button in the
following screens: FDCOU03, FDDIV03, FDBOU08 and FDMPD01
43. Hard trade to settle- Hard trade will be settled at value date, not the
soft trade.
44. Check Corp Action- If set, it will activate control on existing corporate
action, displaying a blocking error message" Corporate action found with
outstanding mode. Cannot continue" in the screen Stock exchange
transaction when users try to account a deal with existing announcement
of corporate action in status 10 for the same security and same fund. If
not set, there will be no duplication of external contract number from the
segment to the master fund.
D. ACCOUNTING PARAMETERS
In this section, it is important to understand that all accounting related

parameterization is ultimately linked to a chart of accounts
MultiFonds supports multiple jurisdiction, because multiple chart of accounts can

coexist
MultiFonds functional overview :
Account grouping  reporting
Balance Sheet Chart
NAV Chart
Statement of Operation Chart
Grouping Logic :
For ex. :
1 : Asset accounts
2 : Liability accounts
3 : Capital accounts
4 : Expense, realized and unrealized loss
5 : Income, realized and unrealized gain
9 : Off balance sheet accounts
Chart of Accounts : links
NAV Chart versus Statement of Operation Chart :
Step by step:
D.1. Setting up a chart of accounts
Path: Static Data  Messages  Messages
Create a Chart ID in PLAN table under CMESS
Parameter Description
Table- Enter or select table name (Here, PLAN)
Element- Enter or select element code (Here, Chart ID which is a 2 numerical

character field)
Language Enter or select language code. If reports are to be printed in multiple

languages, codes need to be defined in those respective languages.
Short- Enter a short description, if applicable.
Description- Enter a long description (to be printed on reports or to be viewed in

the forms).
User- Name of user who has last maintained the respective record (Automatic
system updation)
Update Date- Date of last update (Automatic system updation)
D.2. Setting up accounts
Path: Account Manager  Accounts  Account Definition
 Interest “Y” : only for those accounts where interest accruals needs to be
calculated based upon account balance
 Shadow “Y” : only for those accounts (assets & liabilities) where postings will
only be made by NAV entries
 Value date “Y” : only for those accounts which are transitory (ie
payable/receivable) prior settlement against cash happens
 Off.balance sheet “Y” : only for those accounts which are defined as off
balance sheet items (ie commitments, technical accounts, …)
 Security “Y” : only for those account recording security or options trades, and
where the cost will be maintained
Description button used to maintain multilingual translations:
Path: Account Manager  Accounts  Account Definition (Description Button)

OR
Path: Account Manager  Accounts  Account Description
D.3. Setting up Security Types (“GTIs”) and equivalence
Path: NAV  IML  Equivalences Sec. Type
It is technically mandatory to define an “IML security type” equivalence in the

above screen for each individual MF Security type
D.4. Setting up a balance sheet chart
Path: Bal. Chart  Chart  Accounts Chart
 Each “category” is user definable as well as its description

 “Bal.Sheet” button to generate report depicting the Balance sheet chart
 “Inventory” button to generate report depicting all accounts and their
respective links to the Balance sheet chart
D.5. Setting up a NAV chart
Path: NAV  Chart  Chart
 Each “Heading group” is user definable as well as its description

 “Inventory” button to generate report depicting all accounts and their
respective links to the NAV chart
D.6. Setting up a statement of operation chart
Path: NAV  Statement of operations  Chart
 Each “Heading group” is user definable as well as its description
D.7. Account linking
Path: Account Manager  Accounts  Links on Chart
Or
Path: Account Manager  Accounts  Account Definition (Acc. Chart Link
Button)
Attach all accounts to Balance sheet Chart
Attach only Asset / Liability accounts to “Net Asset Chart” (except capital account)
Attach P&L accounts + capital account + cambio account 999998 to “Statement of
operation Chart”
D.8. Setting up accounting schemes
D.8.1 Operation codes (for transaction booking)
Path: Bal. Sheet  Chart  Operation codes by Chart
 Flag “Ccy” : to open the account in the deal currency (Yes) or in the fund
ref.currency (No)
 Flag “Date” : to open the account together with a maturity date (Yes) or
without maturity date (No)
 Flag “Suff” : to open the account together with a new sub account (Yes) or
without a new sub account (No)
 Payable / Receivable accounts to be filled in the “Acc. value date” section of
the screen
 Note that accounting scheme can be different by Security Type for the same
operation code
 Operation codes are predefined by IGEFI
D.8.2 Fee codes (for results arising from transaction)
Path: Bal. Sheet  Chart  Fee codes by Chart
 Generally fee codes drive only ONE entry (debit or credit)

ref.currency (No)
fee code
 Fee codes are predefined by IGEFI. Some of them (transactional / brokerage
fees) can be freely maintained
 With “Period” field, it is possible to use different accounts depending on the
detention time of the assets (ex. Long and short term gains on sale of
security)
D.8.3 NAV codes (for NAV calculation)
Path: Bal. Sheet  Chart  Net Asset Value codes by Chart
ref.currency (No)
 Flag “Date” : to open the account together with a maturity date (Yes) or
without maturity date (No)
 Flag “Suff” : to open the account together with a new sub account (Yes) or
without a new sub account (No)
 Flag “Net” : to book separately positive and negative amount (Yes) or not
separately (No)
NAV code
 NAV codes are predefined by IGEFI. Some of them (NAV charges) can be
freely maintained
 NAV code needs always a complete line of accounting scheme (both debit and
credit column filled)
D.8.4 P&L closing schemes
Path: NAV  closing balance  Account Link
D.8.5 Cambio accounts closing schemes
Path: Account Manager  Accounts  Cambio/Result
 2 cambio (technical accounts) are needed : one reflects spot forex position,
the other one reflects forward forex positions.
 All forex revaluation results are reflected in the cambio accounts  the
cambio closing links are required for – a) which accounts should the system
use to book realised gains/losses in case of spot currency transaction and b)
which accounts should the system use to book realised gains/losses in case of
forward currency transactions
D.9. Initialize Chart characteristics screen
As a general rule, results accounts in MultiFonds will be kept in fund reference

currency. Suffix numbers are commonly not used on results accounts. However,
we have developed in MultiFonds the possibility to separate realized or unrealized
results thanks to suffix numbers. The separation criteria can be retrieved under
CMESS table TYP_SVF.
This function is not commonly used. It is recommended to discuss the exact

workings thereof with IGEFI before using this function in production.
Chart- Enter a chart ID which can be retrieved under CMESS table 'PLAN'.
Local Type- Enter the appropriate local Type which can be COT_BDB (Germany),
COT_CBF (Belgium), COT_IML (Luxembourg), COT_ITL (Italy).
Use Sub-numbers for
P&L Acc.- Set this flag if suffix number by currency should be used for all profit
and loss accounts.
Realized - Set this flag if suffix numbers by currency should be used for realized
results accounts only.
Unrealized - Set this flag if suffix numbers by currency should be used for
unrealized results accounts only.
Separation Criteria- Select the criteria code you would like to use for attributing
suffix number. The criteria codes can be retrieved under CMESS table 'TYP_SVF'.
E. CENTRAL REGISTER
E.1. Central register (FDCOR02)
Here user can create any counterpart that is required to handle day to day
administration of mutual fund. The Central Register will store all static data related
to all third parties needed to run fund accounting business in MF.
Path: Static data-->Central Registers
Summary screen:
This is the Central Register Detail FDCOR02 screen
Minimum required fields:
Type and language code

Name
Trust
Nationality
Branch (Economical sector)
Residence
Hierarchy of entity types
o Depository
o Bank
o Manager
o Broker
 A depository can play any role

 An issuer can not play the role of depository
An entity should only be defined once in the Central Register, with its highest
possible role
Ex.:
GENERAL MOTORS will only act as an issuer  will be defined with type “IS”
BANK of NEW YORK will act as issuer, broker, depository  will be defined with
type “DE”
E.2. Details of fields in FDCOR02
Many of the fields available in this form are for documentation purposes only and
may be used to extract data via the data browser.
Number Enter a six digit correspondent id. The id can either be a user-defined
id or a sequential identification number generated by MultiFonds. To generate a
sequential number the related flag has to be set on application level (Static data\
Param).
Type Select the correspondent type. Correspondent types may be created

by the user, except for the following:
DE = Depository
IS = Issuer
GA = Guarantor
These codes have a particular significance within MultiFonds and may not be
changed.
Language Select a language code. In general, language code 2 – English is

selected.
Trust The trust company of an issuer must be indicated to be able to

measure the trust limits of an investment. The field should indicate the code of
the company (used in Germany for MIG21).
Int. Name Enter the internal correspondent name. The internal name will be
used on all standard MultiFonds reports. This field is also used in the AWV German
reporting.
X ref. Enter an external reference number. This field is also used in the AWV
German reporting.
Important The external reference number if being used by the interface and
migration programs to match external reference number to the correspondent
number used in MultiFonds.
Title Enter title e.g. „Managing Director“. This field is also used in the AWV
German reporting.
Salut Free usage. This field is also used in the AWV German reporting.
Address –1 to 5 Enter address lines 1 to 5. Those fields are also used in the
AWV German reporting.
Telephone –1 to 2 Enter up to 2 telephone numbers. Those fields are also used in

the AWV German reporting.
Cross Trade If this is checked, this third party will be considered a cross broker. By
default this box would be unchecked (Used for the US cross trades reporting).
Begin Date Enter a date which will be used as fund inception date for reporting
for the US report Section 817 Diversification Test for Variable Annuity Products.
Dep. code Used for the Global fund interface. Allows to define which codification
will be used (internal or external)
Market Used for the Global fund interface. Allows defining which market code.
Codification will be used for this depositary bank.
Corr. Used for the Global fund interface. Allows defining which
correspondent code codification will be used for this depositary bank.
Swift Id Enter a free definable Swift Id if required.
Deriv. code Used for the Global fund interface. Allows defining which
derivative code codification will be used for this depositary bank.
Mail Corresp. Enter mail correspondent (only if using specific mailing

function).
Swift Address Enter a free definable Swift address if required.
Payment Type Enter payment type.
Share fees Select the appropriate value Y for Yes, N for No.
Category Select the appropriate value which can be defined under the table
'Category' under CMESS. Used for the Italian Reporting.
Payment Description Enter payment description to be associated with the

payment type.
Nationality Enter country of domiciliation.
Succession box Used for Italian reporting.
Branch Enter an economic branch code for the correspondent which can be
defined under Sec.\Economic Sector.
Residence Enter country of residence which can be defined under the table
'PAYS' under CMESS.
Tax Residence Enter tax residence country which can be defined under the
table 'PAYS' under CMESS.
Issuer's Equity Total of the issuer’s equity, means the total equity on the
liability side of the balance. The field is requested to measure the counterpart
limits. Numerical, length 16, 2 (used in Germany for MIG21).
Deposit insurance This number indicates a percentage of the issuer’s equity that
insures the issued securities to the investors. Numerical, length 3, 0. (Used in
Germany for MIG21).
Via 1 ID only used for Italian reporting.
Via 1 Acc. No. only used for Italian reporting.
Via 2 only used for Italian reporting.
Via 2 Acc. No. only used for Italian reporting.
Introd. Select the appropriate code that can be defined under the table 'OFFI'
under CMESS.
Officer. Select the appropriate code that can be defined under the table 'OFFI'
under CMESS.
Sector Economic sector for French and Italian Market
Analysis Uses for Italian reporting and or Investment restriction control.
Mail Do not use. Codes are only used for a specific mailing function.
E.3. Details of buttons in FDCOR02
E.3.1. Accounts
Allows the user to link bank account and initial margin accounts to a
correspondent.
This link will enable MF to default to the respective cash account, whenever the
third party is selected as a correspondent bank in any deal screen
Note that the same cash account can be used for different banks: the
differentiator from a ledger point of view will be the sub account:
Ex.:
Account # Sub-account # Bank Name

144120 00 CITIBANK
144120 01 BNP PARIBAS
144120 02 BANK of NEW YORK
Etc…
E.3.2. Corresp. ID
Note BIC code (swift) which will enable recognizing which counterparty to use
when interfacing transactions via swift messages
Other external codes are used by various process / reporting within MF
E.3.3.Address
A register address form (FDCOR04). The form allows selecting
Records based on a selection of major data fields contained within a master

record.
E.3.4. Guarantors
This screen allows a user to link a guarantor per Multifonds transaction types.
E.3.5.Custodian
This form allows a user to link account numbers for funds with a
custodian central Register.
Typically, the IBAN bank account number can be defined here by fund for the
selected bank. This will enable recognizing which fund to use when interfacing
transactions via swift messages.
E.3.6.Mgt Co
This form allows user to link under a same Management company, correspondents
with different Company types.
F. MESSAGE TABLES
F.1. Scope
CMESS stands for the French “Codes Messages” meaning text or message tables.
CMESS tables contain many MultiFonds codes with their associated multi-lingual
labels. Some of these tables contain “sensitive” information, which should not be
altered by the user. An alteration or deletion of such codes may interfere with the
normal processing routine in MultiFonds.
CMESS elements need to be directly maintained in the respective tables. Whether

the user has access to the tables and whether he is allowed to add, modify or
even delete codes depends on the access rights granted at table level under
Manager/Users/Rights on tables.
Table- Enter or select table name.
Element- Enter or select element code. (Max 4 digits)
Language- Enter or select language code. If reports are to be printed in multiple

languages, codes need to be defined in those respective languages.
Short- Enter a short description, if applicable.
Description- Enter a long description (to be printed on reports or to be viewed in

the forms)
User- Name of user who has last maintained the respective record.(Automatically
updated)
Update Date- Date of last update. (Automatically updated)
F.2. Access management
Path: Manager  Users  Rights on tables
The access to each of these tables can be defined by the user. The standard
settings delivered by IGEFI already disable alteration or deletion rights on
sensitive tables. Before you change these settings make sure that the
consequences of such a change are well understood.
Table Code Select a table code.
Select- Allows to view the table if set to “Y”. Enter “N” if no “read” rights are to be
given.
Update- Allows to modify the table contents if set to “Y”. Enter “N” if no
“modification” rights are to be granted.
Insert- Allows the user to insert new elements into the table if set to “Y”. Enter”N”
to disable insertions
Delete- Allows to delete elements in a table if set to “Y”. Enter “N” if deletion
rights are not to be granted.
Note: Access rights to CMESS tables are applicable to all users without exception.
Merely the system manager, who has access to the CMESS table access rights
screen, may change access rights.
F.3. Print CMESS table
The contents of CMESS tables may be printed in a language of your choice,

provided the elements have been defined in the respective languages.
Path: Static Data  Messages  Print Messages
Logic Table Name- Enter the CMESS table name.

Language code- Enter the Language code
Print- Prints the contents of a selected table.
F.4. Audit trail:
Changes made in CMESS tables can be tracked in the below highlighted

table of audit trail:
Path: Manager  Audit Trail  ‘CODMSG’Records (Button)
‘CODEMSG’
F.5. Examples of CMess table
Some of the Important CMESS tables are:
GTI Security codes like 100, 200, 701,501 etc.

DOMAINE Service codes like AC, BO, FU, OP etc.
PLAN Accounting chart creation
COPE Define operation codes like 101,201,310,301,300 etc
CFRAIS Define fee codes like 01, 02, 03, 04, 30 etc
TRANSIT Define NAV codes like 919,900,920 etc
AMORTIR Valuation method like, N, L002, NL05, NY02
4_EYES Options of 4 eyes
NAV_GRP Creation of NAV group
TPARTS Create share classes like A, B…
CPT_METHOD Define accounting methods like A, AF etc
NESTI Valuation model like 000
MONNAIES Create Currency
GRP_CHANGE Create Exchange group
ISIN country identifier codes used in security master
CODISIN file for example US, DE, ..
Description of quotation type as for example: Quoted
on official stock market, not yet quoted, etc, will be
used in security master file for the legal limit controls
COT_IML and for the Luxembourg IML report.
Description of different exchange rate groups.
Needed if one or more funds are using specific
exchange rates compare to the application default
GRP_CHANGE exchange rates
Identifier codes for the different valuation models to
NESTI be used in the application.
Country codes used in the security master file,
domicile and nationality of a fund and in central
register (can be a number or ISIN code) for example
PAYS 442 for Luxembourg or LU.
Reporting codes, will be used for producing reports,
allows user to sort several reports in different ways,
the totals will be done by grouping the reporting
RAPPORT codes or by grouping the GTI codes.
G. FUND MASTER
Summary screen:
Fund Master main screen: FDPTF02
Important fields:
 Stock Ex/Forex: To Split between gain/loss on sale/unrealized booking of stock

and gain/loss on exchange rate movement.
 Split Income/Cap: Split Income and Capital routes the Income and capital
transactions through separate bank accounts designated in Central register.
 Stock Price: User can choose to have securities prices as Global Prices or Fund
specific prices. Global Prices are fed in Sec/Sec. price update (FFDCVL01)
Fund Specific Prices are fed in FDSEC10 Sec/ List of market Values by Fund
If the user has checked the stock price, the und will pick up the prices from
FDSEC10 (fund specific Pricing) else will use global prices stored in FDCVL01.
 Valuation method: Fund main valuation methods. Note that exception

valuation methods can be defined by Security type (“GTI”) :
Commonly used valuation methods:
N: Mark to Market
NY02: Effective yield (IFRS)
L: Linear (straight line) amortization
Y: Constant yield amortization
When the no of days to maturity of Security reaches days to switch it changes the
valuation method specified in exception.
 Settlement method: Fund main settlement methods. Note that exception

settlement methods can be defined by Security type (“GTI”), transaction type,
currency (only if settlement method 8 is elected)
Settlement process will take care of liquidation of payable / receivable amounts

arising from any deal type against relevant cash account (i.e. cash account
indicated in the original deal)
Commonly used settlement methods:
8: contractual settlement: all deal will be settled automatically whenever fund
accounting date reaches deal value date, and all predictable events like dividends,
coupon, maturities will be booked automatically whenever fund accounting date
reaches event date
7: actual settlement: settlements will be triggered manually via below screen or

send via interface
In Half automatic settlement screen ‘FDPRM05’, user can query for his fund and all
unsettled transaction will appear. User can select and settle transaction by
processing them. User will see the settlement entry generated.
 Accounting method : Fund main accounting method
Note that accounting methods can be defined by chart, fund, transaction and
security type, under FDACA02 screen:
Accounting method defined in above screen will over ride the accounting method
set up at fund level.
Commonly used accounting methodologies:
A: Average cost
AF : Auto FIFO
AGS: Abgeltungsteuer (Germany) method
 Fund units (share unit price and share quantity):
 Allow Short pos.: Allow short has three major parameters ‘N’, ‘Y’ and ‘C’.
Allow Short ‘N’ does not allow fund to have a short position on equities. This
parameter has nothing to do with Futures and options.
Allow short ‘Y’ allows user to short security using the Operation code 201.
however If user if Long 1000 shares and he shorts 2000 shares, his net
position will be 1000 short as Long position will be offset against short first
then balance position will be reflected.
Allow Short ‘C’ allows user to maintain both long and short positions
separately, however Short position is opened using 219 codes and covered
with 109 codes. Long position is dealt as usual.
 Price net: Price net allows capitalization of ancillary expenses.
Fees and expenses are defined in below two screens:
- Global Fees and Taxes are defined in FDCOM01 in below path.
When Price net is N, above rates are picked and expensed. When price net is ‘Y’
above rates are picked and capitalized and form part of cost of security.
- Fund Specific fees and Taxes are defined in FDCBO01 screen
When Price net is ‘M’, user can select which charges they want to capitalize. User
should specify the Fees and taxes in above screen for their fund and the codes
which have cap. Checked are capitalized and others are expensed.
 Fund accounting date :
Fund accounting date is the date defaulted as trade date when user is entering
the trade. However, user can override this date later on.
 Group Exchange Rate M.F. :

Multifonds allow a fund to follow a specific set of exchange rates known as
group exchange rates rather than global exchange rates defined at application
level.
Exchange rate group is defined in CMESS Table ‘GRP_CHANGE’. For further
information on the same please refer to ‘Exchange rate management’ under
‘Market Data management’.
 Forward Forex valuation method :
 Fund general accounting counter: must be initialized to zero: so the first

accounting movement will get entry number 1, 2nd will get entry number 2,
etc…
 Last accounting shows the last service code and entry no. generated in fund.
 NAV Rounding
The Preference followed by Multifonds to put decimals after NAV will be in

following order:
1. ‘Rounding NAV price’ in Share Values form of Fund Master.
2. If above has not been parameterized then ‘Rounding NAV Price’ on second
screen of Fund Master (FDPTF02).
3. If none of the above are parameterized then ‘Share unit price’ on first
screen of Fund master (FDPTF02).
All of the above are subject to parameterization of internal share unit.

Rounding Off set under any of the above parameters cannot supersede
decimal set by internal Share Unit.
H. STANDING DATA
H.1. Security Master
Summary screen:
 Note audit trail information : Creation date & user, Update date & user (scroll
right)
 Note sorting drop down list at the bottom of the screen
 A security can only be deleted if it has never been traded by any fund
FDSEC01 - Security Master screen:
 Freely definable codes (Message table) for :
- Quotation place (PLACE)

- Branch (SECTEUR)
- Local type (COT_IML)
- Currency (MONNAIES)
- Country (PAYS)
- Reporting code (RAPPORT)
Example (Country codes):
Important fields:
 Security type- GTI : will determine valuation methodology and accounting
schemes
GTI codes are to be first linked to tax security categories under (NAV- IML-
EQUIVALENCE SEC TYPE)
To avoid erroneous or ambiguous tax calculations, GTI codes should only be

linked to one tax security category at a time. Before creating the links, the tax
security categories must have been defined.
 Origin: provider code. Will determine pricing quality code
 Eval.type: not mandatory – but for specific security (like French TCN which
requires additional formula for valuation) will be required. MBS will use code 4
(Pass-through)
 Income type: mandatory. Use following convention :
0: Zero coupons
1: Equity
2: Fixed bonds
3: Floating Rate Bonds
4: US, AU fixed bonds and similar (the yearly coupon amount will be
divided by the number of time the coupon is paid in a year, and then the
prorata temporis will be applied)
 Calc. type: Mandatory - Price type (%, unit price, factor based, etc...).
Use following convention :
00: unit price
01: percentage price
41: factor applied to percentage price
 Frequency code: coupon payment frequency. Note that “end of…” frequency
must fall on the last calendar day of the respective period
 Coup. : Coupon date. This is the first possible coupon date in a civil year. All
coupon calendar will be derived from this date combined with the frequency
code and possible irregular period
 Interest. calc. : Day counting convention for interest calculation (also called
Usance code)
 Holiday comp: The daily compounding of interest accruals will be calculated
inclusive of holidays if it is defined with ‘00’. Daily compounding will be
calculated excluding holidays and weekends if ‘01’ is defined. (Note: Default
value is 00)
 Comp freq: The compounding interest is calculated on the security based on

the frequency code defined in this box.
 Accrual Convention: Used to manage the weekends and holidays in interest &
accruals determination. Use the following conventions
Code 1 - Accrue till the coupon date (non business date), payment will be made
on the next business date.
Code 2 – if the Coupon date falls on a non- business day, the Coupon accrues till
and is paid on the next business date.
The Accrual conventions work in conjunction with the ‘Delay Days’ set up on the
Security Master.
Note:
Under the ‘Text’ button, the field Coupon Generation should be set to 1- coupon
generation on next working day.
Buttons on the right panel:
:
This is used for specific bonds to define the Floating interest rates (like FRN, with
income type equal to 3, 4 & 9).
Bonds linked to a benchmark are defined using this form.
Different fields like ‘Interest rate Type- LIBOR, EURIBOR, etc’, Currency &
maturity code of the Interest rate group, the Cap/ Floor, Spread rate, etc can be
specified
:
This button allows to define the Ex-coupon dates provided the ‘Security ex-coupon
date’ box is checked in the security creation screen (FDSEC01)
When the User clicks on Ex-coupon button the warning message ‘Repopulate the
Ex-coupon data’ pops up. If the User has previously defined the Ex-coupon dates
he has to click NO. If a new table is being created, MultiFonds will generate ex-
coupon dates based on the coupon frequency and the coupon due dates defined
in the Security creation screen.
Ex- coupon screen
Interest will accrue negatively during the ex- coupon period parameterised on this
form.
This table is also used to define irregular interest payment periods for variable
rate notes (valuation type 7, income type 3). In that case do only define the dates
“from” and “to” & do not enter an ex-coupon date. The interest period i.e. the
coupon changes are recorded in the “Periods” table
The details for a redeemable bond are defined in this screen.
Redemption Type- Call/ Put

These can be either Mandatory or Optional. If a Mandatory call, the ‘Redem Flag’
is to be flagged. In this case, it’ll be applicable to all funds. If Optional in the
hands of the investor (fund), the name of the particular fund will be entered with
the quantity it actually has opted for. If the call is optional, user needs to exercise
the same by booking a manual sale entry on call date.
‘Amort to call’ button: Only the calls with ‘Amort to call’ flag checked will be
considered for the amortization decision making process
:
Security internal and external id.: for interfacing matters (pricing, transactions,
etc...)
:
Allows maintaining factors for MBS and TIPS (Treasury Inflation Protected
Securities) bonds
:
Industry codes are used to run specific file or portfolio reports.
This screen allows linking the branch codes with the Industry codes. Industry
codes should be first defined in the FDIND02 screen, where the link between
economic sectors and different industry codes is stored; prior to be maintained at
security level.
:
Allows creating multi-lingual short and long descriptions. It can also be accessed
from Sec- Multi lingual description
:
Allows maintaining Consumer Price Indices for inflation protected bonds.
:
The default period for the bond is defined in this screen The purpose is to control
the calculation of interest and amortization on defaulted bonds at the Fund level
on a security by security basis.
H.2. Option master
Summary screen :
right)
 An option can only be deleted if it has never been traded by any fund
FDOPT02 - Option Master screen:
- Market place (PLACE)

Important fields:
 Option internal and external id.: for interfacing matters (pricing, transactions,
etc..)
 Option type : will determine valuation methodology and accounting schemes
Note:
Option types (“GTI”) needs first to be defined in the FDGTI01 screen – The
underlying of the option is set up here and recognized by Multifonds upon exercise
of the option.
 Underlying : the underlying must technically be defined in the security master
no matter which kind of underlying it is
 Contract size : will impact transactional amount as well as valuation
H.3. Future master
Summary screen:
right)
 A future can only be deleted if it has never been traded by any fund
FDFUT02 - Future Master screen:
- Market place (PLACE)
Important fields :
 Future internal and external id.: for interfacing matters (pricing, transactions,
etc..)
 Future type : will determine valuation methodology and accounting schemes
Note:
Future types (“GTI”) needs first to be defined in the FDGT01 screen – The
underlying of the future is set up here
The Type for EQS & CFDs is also set up from the same screen as Futures by
selecting the appropriate Radio button as shown below.
 Underlying : the underlying must technically be defined in the security master

no matter which kind of underlying it is
 Contract size : will impact transactional amount as well as valuation
 Init. margin : Initial margin : will impact future opening and closing bookings
 Coupon Rate% and Contract Term : Only used for Australian and New
Zealand futures
I. MARKET DATA MANAGEMENT
I.1. Price management
I.1.1 Security price
 Note filtering fields on external provider id. codes

 Note “Historical” button to review online price history
I.1.2 Option price
 Note “+ and – Matured” buttons to display / not displayed matured options
I.1.3 Future price

 Note “+ and – Matured” buttons to display / not displayed matured futures
I.1.4 FET price
 If forward interest rates and spot exchange rate have been feeded, forward
rate (column “D”) will be automatically interpolated by MF
 Manual input is also possible
 Unrealized amount per contract can also be maintained
 Forward validation (and saving with F10) is a mandatory step in the NAV
process
I.1.5 Swap price
 Swap can be valued with an amount (unrealized result per contract) or a
percentage rate (to be applied to the swap nominal to get the overall
commitment valuation)
 Note use of radio button “ List particular fund” / “List all fund”
 Note “Historical” button to review online swap price history
I.2. Exchange rates management
I.2.1 Currency Rank default set up
Under Static data\Param, the field Use app. Ccy rank needs to be defined as 1-
Global direct exchange rate,2- Global indirect exchange rate or 3-Exchange rates
rank by currency.
Application Currency
Whether exchange rates are to be used as a direct* or indirect** quote or

mixed i.e on currency ranks depends on the Field choose by the user in Use app.
Ccy rank.
Global Direct Exchange rates* : Currency rate quoted directly are expressed
as the reference currency being equivalent to a certain amount of foreign
currency. Thus the quotation of 1 EUR (Application currency) being equal to 1.28
USD is a direct quote of exchange rate.
Global Indirect Exchange rates**: Currency rate quoted indirectly are

expressed as the foreign currency being equivalent to a certain amount of
reference currency. Thus the quotation of 1 USD (Foreign currency) being equal to
0.78125 EUR is an indirect quote of exchange rate.
Note: The user may not change the currency rank once it has been defined
and records exist. The assistance of Igefi is required.
The following rules apply to currency ranks:
Rank A < Rank B
If the rank of currency A is smaller than the rank of currency B than the exchange
rate will be expressed as 1 unit of currency A will be equal to X amount of
currency B.
Example:
Currency Rank
A) EUR 00
B) USD 50
-> 1 EUR = X USD

Rank A > Rank B
If the rank of currency B is smaller than the rank of currency A than the exchange
rate will be expressed as 1 unit of currency B will be equal to X amount of
currency A.
Example:
Currency Rank
A) EUR 50
B) USD 00
-> 1 USD = X EUR
Usually MultiFonds is delivered with a set of rank codes that is pre-defined. The
user may opt to use those ranks or create his own ranks in the CMESS table
‘CRANG’.
I.2.2 Exchange rates calculation against the application currency
Whether MultiFonds multiplies or divides by the application exchange rate,

depends on the currency rank that has been defined for each currency.
If the rank of currency A is smaller than the rank of currency B, amount A is

multiplied by the exchange rate.
If the rank of currency A is greater than the rank of currency B, amount A is

divided by the exchange rate.
Example
Currency –A- Currency –B- Rank A Rank B
Purchase EUR 1,000,000 Sale CHF Rate 1.4700 00 50
Rank A < Rank B In such a case, the system will make a multiplication.
Purchase CHF 1,000,000 Sale EUR Rate 1.4700 50 00
Rank A> Rank B In such a case, the system will make a Division.
Consequently
Purchase EUR 1,000,000 Sale CHF 1,470,000.00 Rate

1.4700
Purchase CHF 1,000,000 Sale EUR 680,272.11 Rate

1.4700
I.2.3 Cross Exchange rates calculation with two currencies different than the
application currency
If the exchange rate of currency A (purchased currency) is strongest than

exchange rate B (strongest means that it requires less currency A to get one
Application currency than currency B), a multiplication with the cross rate will be
done.
If the exchange rate of currency A (purchase currency) is smallest than exchange
rate B (smallest means that it requires more currency A to get one Application
currency than currency B), a division with the cross rate will be done.
Example
Suppose the following exchange rates against the application currency EUR (rank
00).
EUR / CHF 1.4700
EUR / JPY 116.0000
Both the CHF and JPY have equal ranks (e.g. 50).
The cross rate between JPY and CHF is 78.911565.
Cross rate is always calculated by taking the smallest currency compare

to the application currency divided by the greatest. (116/1.47)
Currency –A- Currency –B-
Purchase CHF 1,000,000 Sale JPY 78,911,565 (CHF 1,000,000 * 78.911565)
Purchase JPY 1,000,000 Sale CHF 12,672.41 (JPY 1,000,000 / 78.911565).
I.2.4 Spot exchange rates (central)
 Note that ex-rates need only to be maintained against application currency

(USD)  no cross rates maintenance
 Note “Historical” button to review online ex-rate history for the selected
currency
 Note “copy” button functionality
 Currency fixed parameter such as Rank, Decimals, Rounding, Unit should not
be modified
I.2.5 Spot exchange rates (by group)
 Currency group user definable (message table GRP_CHANGE)

 Note that ex-rates need only to be maintained against application currency
(USD)  no cross rates maintenance
currency
I.2.6 Forward exchange rates
 Note that forward forex-rates need only to be maintained against application

currency (USD)  no cross rates maintenance
 Maturity codes and related number of days user definable (message table
TXECH)
 Interest rate type user definable (message table TYP_TAUX)
currency and maturity
 MF is able to interpolate forward forex rate for remaining period in between
maturity codes (forex valuation method 3)
I.3. Interest rate management
I.3.1 Forward interest rates
 Maturity codes and related number of days user definable (message table
TXECH)
 Note “Historical” button to review online forward interest rate history for the
selected currency and maturity
 MF is able to interpolate forward interest rate for remaining period in between
maturity codes (forex valuation methods 1 and 4)
 MF is able to update floating rate of all securities linked to this interest rate
type (“Floating Rate” button)
 An asset and liability rate need to be maintained : the average is automatically
calculated by MF
I.3.2 Floating interest rates
 Use F6 to insert a floating rate by currency for a new date

 Note “Historical data” button to review online floating interest rate history for
the selected currency and rate type
 An asset and liability rate need to be maintained
 These floating rates can then be attached to the respective cash account
under Menu :
NB. : Use F7 & F8 to fetch relevant fund id in the first field “Account”
J. TAX TABLES
The Tax table is an option set up at central level. This function allows the
definition of specific taxation rules for instruments dealt in specific conditions.
The different parameters taken into consideration are:
- Income currency of the Instrument

- Tax domicile of the Issuer
- Tax Security type (Internal parameter distinguishing Bonds and Equities)
- Tax Regime (Internal parameter identifying the Taxation model related to the
fund)
- Ex-Date (Date of Application of a Specific Tax)
- The Basis of Calculation (Application on Gross or Net Amount)
J.1. Parameterization
Application parameters
The tax management is handled both at security level and by the use of tax table.
When code 0 is defined, then Multifond will use tax defined in security master
record
When code 1 is defined, then Multifond will use tax defined in tax tables
When code 2 is used, then Multfifond will use tax defined at security level if not
available use tax defined in tax tables.
Fund Parameters
The applicability of specific tax table at fund level is indicated in the Field “Tax
Regime”.
Security Level Tax definition
If Withh. Tax table field is defined as “0” or “2”, then user will be able to define
tax at security level.
One clicking “Tax” button, a new window open for inputting tax details.
Tax table creation
Path: Static data/Tax tables/Edit (FDTAX03)
Income Ccy - Currency in which income will be received (generally the quotation
currency of a security). This field should not be blank.
Tax Domicile - Country where the income will be collected or where the security
was issued. This code will be matched with the country code in the security
master record.
Ex-Date - Date as of which this tax tables will become effective. MultiFonds will
always use the most recent table with a date less than or equal to the valuation or
accounting date.
Tax Security Type - Tax security type for which the tax will be collected. According
to the security types, tax rates will differ. Tax security types should be created by
the user. The major tax security types are: Equities, Government Bonds,
Corporate Bonds etc
Tax Regime - According to the legal structure or domicile of a fund, tax rates
differ. This 2 character user-definable code enables the creation of customized
codes. These codes must have been defined in CMESS table “TAX_REG”
Note: The tax regime code must be indicated at fund master level. Otherwise,
MultiFonds will not be able to calculate any tax for the respective fund(s).
Tax Code - Select specific tax codes used for the Italian tax regulation. These tax
codes can be retrieved under CMESS table 'CTAX'.
Tax Types - For each set of tax characteristics determined above, the user may
define 5 tax items that are grouped as follows:
Unrecoverable Tax 1
Unrecoverable Tax 2
Recoverable Tax 1
Recoverable Tax 2
Payable Tax 1
Payable Tax 2
Capital Gains Short term
Capital Gains Long term
Special Oper. Code (Only used for German funds)
Tax Basis - Depending on local tax rules, dividends may be announced as being
net of tax (e.g. in the UK) rather than gross, where the tax still needs to be
withheld by the paying agent. The tax basis indicates whether the income
perceived is quoted as a net or gross amount.
1: Gross: MultiFonds will calculate the net dividend
Gross dividend announced: 10
Unrecoverable tax: 15%
Recoverable tax 5%
Net Dividend: 10 * (100-15-5)/100 = 8
2: Net: MultiFonds will calculate the gross dividend
Net dividend announced: 8
Unrecoverable tax: 15%
Recoverable tax 5%
Gross Dividend: 8 / (100-15-5)*100 = 10
3: Unit amount
- The following parameters can be defined for each recoverable or unrecoverable

tax item.
Percentage - Enter an appropriate percentage tax rate.

Fee Code - Enter the appropriate fee code or leave blank. Income will be
accounted for as gross income with a separate tax component. If no fee code is
indicated, the tax will be calculated but not accounted for. The net income
amount, however, will be accounted for. Select the appropriate fee code you can
retrieve under CMESS table 'CFRAIS'.
NAV Code - Enter the appropriate NAV code or leave blank. Income will be
accounted for as gross income with a separate tax component. If no NAV code is
indicated, the tax will be calculated but not accounted for. Net Income amount
(income after tax), however, will be accounted for. Use the following NAV codes:
911 - Unrecoverable Tax and 910 - Recoverable Tax, 9AA - Provision for STCG
and 9YY - Provision for LTCG.
Calculate In NAV 0: No tax will be accrued for at NAV
calculation time
1: Tax will be accrued for at NAV
calculation time
Ccy - A currency code can only be indicated for recoverable taxes and capital
gains taxes. The currency code is only applied at income collection time.
- Calculation Type - To select the calculation type for the capital gain/loss on
exchange rate, press F9 and choose the available option:
1: No gain loss on exchange rate
2: Gain/loss on exchange rate
This is used in the capital gain tax definition.
For calculation type “1”, Calculation of Tax will be based on Tax % x {[Market
value (in sec ccy) – Book cost (in sec ccy)] x Exchange rate of the day}
For calculation type “2”, Calculation of Tax will be based on Tax % x {[Market
value (in sec ccy) x Exchange rate of the day] – [Book cost in fund currency]}
- Number Days - Enter the corresponding number of days for the tax rate
calculation
Setting Up the Parameters
Parameter Setups
Step 1: To define the use of the Tax tables

Path: Static Data / Param / Withh. Tax tables / Option 1
Step 2: To check the existence of the following parameters:

Existence of the Income Currency in the Table “MONNAIES”
Existence of the Country of the Issuer in the Table “PAYS”
Existence of the following Tax Security Types in the Table “TAX_SEC”
01 Bonds
02 Equities
Path: Static Date / Messages / Messages / Table …….
Step 3: To define the different Fund or Company Taxation Models

Creation of tax regime code in the Table “TAX_REG”
Step 4: To check the existence of the following Fee codes and the existence of the
short ‘CP’ for each Fee in the Table “CFRAIS”:
08 Unrecoverable Taxes
09 Recoverable Taxes
T8 Unrecoverable Taxes 2
T9 Recoverable Taxes 2
78 Short term Capital Gain Taxes
7F Long term Capital Gain Taxes
Path: Static Date / Messages / Messages / Table CFRAIS
Step 5: To check the existence of the following NAV codes:

910- Provision for Potential Recoverable Taxes
911- Provision for Potential Unrecoverable Taxes
9AA Provision for Short term Capital Gain Taxes
9YY Provision for Long term Capital Gain Taxes
Path: Static Date / Messages / Messages / Table TRANSIT
Step 6: To check a relevant Tax Security Code for each GTI code
100 SHARES 02 Equities
200 BONDS (WITH COUPON) 01 Bonds
Path: NAV / IML / Equivalences Sec. Type
Fee Codes Setups
Step 1: To define the accounting schemes for the following Fee codes
08 Unrecoverable Taxes
09 Recoverable Taxes
T8 Unrecoverable Taxes 2
T9 Recoverable Taxes 2
78 Short term Capital Gain Taxes
7F Long term Capital Gain Taxes
Path: Bal. sheet / Chart / Fees code by chart
Step 1: To define the accounting schemes for the following NAV codes
910 Provisions for Potential Recoverable Taxes
911 Provisions for Potential Unrecoverable Taxes
9AA Provision for Short term Capital Gain Taxes
9YY Provision for Long term Capital Gain Taxes
Path: Bal. sheet / Chart / Net asst value codes by chart
Capital Gain Tax

- The capital gain tax calculation in MultiFonds will work for fund having lot
accounting method only ie., accounting method AF.
- All capital gain values will be tracked at transaction level
- For the capital gain tax (unrealized) calculated with NAV codes 9AA and 9YY
are calculated between the trade date of the purchase of the contract and the
NAV date;
- For the capital gain tax (realized) calculated with fee code 78 and the new Fee
code 7F they are calculated between the trade date of the purchase of the
contract and the trade date of the sell of the same contract.
- The tax will be calculated by selection of Calc. Typ ‘1’ as follows:

Tax % x {[Market value (in sec ccy) – Book cost (in sec ccy)] x Exchange rate of
the day}
The tax will be calculated by selection of Calc. Typ ‘2’ as follows:
Tax % x {[Market value (in sec ccy) x Exchange rate of the day] – [Book cost in
fund currency]}
Capital Gain Tax Settlement

- Multifonds has the ability to settle the Capital gain tax through tax reclaim half
settlement screen at the appropriate time
- This works for both short and long positions and applicable only for lot
accounting.
- Reclaim Tax field in fund master FDPTF02 screen need to be checked for this
functionality.
- The realised tax gets booked with a payable account as a reclaim with fee
code 78 and 7F. Tax gets posted debiting a P&L account and crediting a
Liability account.
- The CGT settlement gets booked with service code TX. The accounting entry
is passed by debiting the CGT Liability account (account used for credit side of
fee codes 78 and 7F) and by crediting cash account.
- While processing tax reclaim settlement in FDTRE03 screen, it is possible to
change the payable amount or the settlement currency or settlement
exchange rates.
Example
Upon tax reclaim posting, the amount has to be retrieved in FDTRE01 screen.
Tax reclaim code “3” Capital Gain Half Settlement has to be selected while
processing.
Tax details button will show the FDTRE03 screen showing the tax settlement
transaction details.
Upon processing, the tax reclaim amount will be settled with service code TX and
SE.
Reporting
SDNAR02 Report
The SDNAR02 Report will show the provision for recoverable, non-recoverable
taxes along with accrued interest and unrealised result values for the day.
SDNAU00 Report
The SDNAU00 report will show the gross interest, recoverable tax, unrecoverable
tax and net interest values.
SDNAU25 Report
The SDNAU25 Report will show the short term unrealised capital gain tax for the
day
SDNAU19 Report
The SDNAU19 Report will show the short term/long term unrealised capital gain
tax for the day
K. NAV PROCESS
K.1. NAV Simulation
NAV simulation screen: simulations can be run as many time as desired
 Note filtering button on type of funds

 Note type of NAVs: Official, Unofficial, Intraday, etc…- this is AT FUND LEVEL
PARAMETER
 Note “last execution” field showing last simulation date and execution date,
time and user-SYSTEM APPLICATION DATE
 Note “Archive” field showing last accounted NAV date-Fund accounting date
 Note “list” button to review / erase available simulations :
Principle of simulation: “simulated” NAV entries will not hit general ledger as long
as the simulation has not been accounted
Simulation entries are impacting NAV reports (Statement of Net assets, Statement
of changes):
K.2. Error message if forward forex rates have not been validated
904 Exchange error 1 1 Acces_Ptf
This messages means that the forward forex rates used for the Forward Exchange
transactions valuation have not been validated
These rates need to be validated (i.e. saved – F10) in the FDFEX04 screen:
K.3. Review of NAV reporting
K.3.1 Main NAV reports (SDNARxx, SDNAVxx)
All main NAV reports selectable individually through the “Details” button:
NB: Last digit of the report id. Identifies the language code (i.e. 2 is for English, 1
for French, 3 for German, etc…).
For example: SDNAR022  2 means English version of the SDNAR02 report
NAV: Statement of Net Assets
SDNAR02:
SDNAR09:
NAV: Statement of Changes

SDNAV05:
SDNAV44:
SDNAV64:
SDNAV80:
K.3.2 Detailed NAV reports (SDNAUxx)
All detailed NAV reports selectable individually through the “Calculation unit
Result” check boxes:
TIP: Report naming convention:

NAV code 900  Interest on bonds  Report id. SDNAU00
NAV code 901  Accrued interest on time deposits  Report id. SDNAU01
NAV code 904  unrealized g/l on forward forex  Report id. SDNAU04
Etc…
SDNAU00: Accrued interest on bonds:
SDNAU01 : Accrued interests on time deposits :
SDNAU04 : Unrealized G&L on Forward Forex :
SDNAU62 : Unrealized G&L on Forward Forex :
SDNAU99: Forward Forex Summary:
SDNAU09: Valuation of futures:
SDNAU13: Detail of cash accounts
SDNAU18: Accrued interests on swaps:
SDIRS01: detail of asset swaps (accessible from the “details” button):
SDIRS02: detail of swaps by counterparty (accessible from the “details” button):
SDNAU19: Portfolio valuation:
SDNAU22: valuation of options:
SDNAU60: Accrued expenses:
K.4. NAV Accounting
The effect of the NAV accounting will be to book in the General Ledger all NAV
simulated entries:
NB: All reports available under simulation can also be generated at NAV
accounting, from the NAV archived menu:
 “Details” button gives access to NAV main reports
 “NAV details” button gives access to NAV detailed reports
The archived reports will mention “Historical” instead of “Simulation” to

differentiate will simulated reports
K.5. NAV confirmation
 Note that confirmation is possible by individual fund or by fund group
 Note the “Comment” field to add extra explanation on the NAV analysis
 Once Confirmed, it will not be possible to re-run a simulation
It is possible to unconfirm an NAV.
K.6. NAV validation
NAV validation can trigger multiple processes, notably generation of publication
files (press, TA system, and feeding of Infocentre (Data warehouse)
 Note the various process available on the top left section of the screen
 The default checking is parameterizable in the message table :
K.7. Rolling forward Fund accounting date
The process of rolling forward the Fund accounting date to the next date will
trigger automatic bookings (in case contractual settlement is parameterized at
fund level) in the ledger related to:
- pending settlements (payable / receivable amounts moved to

cash)
- predictable (corporate) events (dividends, coupon, maturities, …)
 Note “Show Log” button to review possible failures related to settlements or

predictable events which could not be booked
 The rolling forward of fund accounting can be done by individual fund or by
fund group
NB: The automatic processing of predictable events can be avoided by
parameterizing the FDMAU01 screen accordingly:
L. DEALING PROCESS
L.1. “AC” : Capital stock (Subscription & redemptions) processing
Summary screen:
 Note use of “Open position” button : filtering on outstanding and validated
deals only
 Note use of “All position” button : remove filtering condition
 Note use of “Create Copy” button : to create a copy of a reversed deal. The
copy deal will first be created as an “outstanding” deal
 Note audit trail information : Creation date & user, Update date & user
Explanation on different accounting status available in MF:
Operation codes for subscription/ redemption:
Creation of a subscription:
Online review of Accounting entries, using “Acc.Entries” button :
Accounting entries always displaying 4 dates:

- Accounting date
- Trade date
- Value date
- Maturity date (if applicable, like for ex. Term deposits)
Also displayed:
- Account and sub account number
- accounting status code
- reversal will be shown with negative signs (MF convention)
- trade description (made of concatenation of deal elements)
- operation code involved in the booking
Tip: the account description is disclosed in the left bottom corner of the screen, if
cursor is set on account number :
Settlement of the subscription:
arising from any deal type against relevant cash account (ie cash account
 Note the from and to date filtering criteria

 Note “settled” button to access already settled deal (and possibly reverse
them)
L.2. “BO” : Stock Exchange and MBS security processing
Summary screen:
deals only
 Note use of “Create Copy” button: to create a copy of a reversed deal. The
Explanation on different accounting status available in MF:
Operation codes for Security (Equity, Bonds) Purchase/ sale:
101- Purchase on Stock market (long)

201- Sale on stock market (long)
219- Short sale
109- Cover Short
Relevant Fee codes
01 - Accrued Interest Sold

04 - Accrued Interest Purchased
05 - Loss on Sale of Securities
06 - Profit on Securities
74 - FX Gain on Sale of Securities
75 - FX Loss on Sale of Securities
Relevant NAV codes
919 – Unrealized Results on Investments
920 - Unrealized FX Results
9C0 - Unrealized on price for short sale
9C1 - Unrealized on fx for short sale
Creation of an equity purchase:
 Note use of F9 when cursor is in the “Security” field  will take you to the
security master summary screen, from which selection on any criteria can
be done. Button “Pick up” will select the relevant security and bring you
back to the FDBOU03 dealing screen.
Online review of accounting entries, using “Acc. Entries” button:
Settlement of security purchase:

 Note the from and to date filtering criteria
 Note use of radio button “ List particular fund” / “List all fund”
 Note “settled” button to access already settled deal (and possibly reverse
them)
For factor based securities (i.e. : Mortgage Backed Securities, Inflation Protected
Bonds, Asset back securities, etc…), there is another entry point and dealing
screen:
MBS Security Master:
Factor as on 1/1/2010:
Relevant Operation codes:
101- MBS purchase on Stock market

115- MBS Pay down
Relevant Fee codes:
04 – Accrued Interest purchased

P1 – Interest Adjusted on Pay down
G9 – Profit on Securities
Relevant NAV codes:
900 – Accrued Interest on Bonds
Sample MBS dealing screen:
 Note additional field related to factor, compared to FDBOU03 dealing screen
Accounting entry:
NAV simulated and accounted for the day and FAD moved to 31/1/2010 and NAV
is simulated and accounted.
Accrued interest on MBS as on 31/1/2010:
MBS interest as on 31/01/2010:
Path: Nav  Archived reports
FAD moved to 1/2/2010 and NAV simulated and accounted for the day.
Auto CP entry generated:
Path: Deals  Stock transaction  Income  Manual Payment
FAD moved to 11/2/2010 and NAV simulated and accounted for the day:
FAD moved to 12/2/2010 and new factor updated for the day:
Manual pay down processed:
Path: Deals  MBS  Pay down processor  Auto pay down
MBS Pay down entry:

Path: Deal  Account movement
MBS Pay down details:

Path: Deals  MBS  Manual Pay down Processor
Accounting entry:
Interest on MBS as on 12/2/2010:
L.3. “FU” : Futures / Contract For Differences (CFD’s) processing
Futures and CFD’s are processed from the below screen
Summary screen:
deals only
Operation codes for Futures deal opening/ continuing/ closing:
310 - Fees on Long Future

311 - Fees on Short Future
312 - Initial Margin on Futures
313 - Closing Future Margin
314 - Underlying of Hedging Future
315 - Underlying of Future
316 - Sale Future
317- Margin call (payable to broker)
318- Margin call (receivable from broker)
327 - Profit on Future Closing
328 - Loss on Future Closing
Relevant Fee codes
22- Profit on Futures closing

23- Loss on Futures closing
Note: The range of codes to be used for booking the Fees on the deal are F1 to
F9.These fees codes must have been previously defined in CMESS table ‘CFRAIS’.
Relevant NAV codes
909- Unrealized Results on Futures

945- Margin Variation on Futures
Creation of a Future/ CFD purchase:

The following futures transactions may be processed using this screen:
 Opening purchase
 Opening sale
 Closing purchase
 Closing sale
For closing transactions existing open contracts are being edited. The data to be
input is thus limited to the number of contracts being closed, their respective price
and related fees, if any.
According to the deal type selected when opening the Future deal entry screen,
MultiFonds will display one of the deal types:
1 Opening
2 Continuing
3 Closing
Note use of F9 when cursor is in the “Future” field  will take you to the security
master summary screen, from which selection on any criteria can be done. Button
“Pick up” will select the relevant security and bring you back to the FDFUT04
dealing screen.
Entering into a Long futures contract-
Online review of accounting entries, using “Acc. Entries” button:
Example of a partial closing of 110 contracts out of the 250 contracts held:
Accounting entries:
The realised results on Closing the position is booked with the Fee Code 22.
L.4. “OP” : Options processing
Options are processed from the below screen in MultiFonds.
Summary screen:
deals only
Operation codes for Options deal opening/ continuing/ closing:
300 - Long Option- Option premium paid

301 - Short Option- Option premium received
306 - Closing Long Option
307 - Closing Short Option
321 - Long Call Position
322 - Short Hedged Call
323 - Short Call Position
324 - Long Hedged Put
325 - Long Put Position
326 - Short Put Position
329 - Option Maturity
331 - Exercise Long Option
332 - Exercise Short Option
Relevant Fee codes
10 - Gain on Long Option

11 - Loss on Long Option
19 - Profit on Short Options
20 - Loss on Short Options
Note: The range of codes to be used for booking the Fees on the deal are O1 to
O9.These fees codes must have been previously defined in CMESS table ‘CFRAIS’.
Relevant NAV codes
922 - Unrealized Results on Long Options

923 - Unrealized FX Results on Long Options
933 - Unrealized Results on Short Options
934 - Unrealized FX Result on Short Options
Creation of an Options deal:

Path: Deals/Options/Deal/Edit/Closing (FDOPT04)
The following option transactions may be processed using this screen:
 Opening purchase
 Opening sale
 Closing purchase
 Closing sale
 Exercise/Assignment
According to the deal type selected when opening the Options deal entry screen,
MultiFonds will display one of the deal types:
1 Opening
2 Continuing
3 Closing
 Opening Options contract- Purchase
Options Deal screen on entering into a long position for 500 contracts
 Continuing on the same contract
A Continuing of 60 contracts is booked on the same contract No. 1
 Partial closing of the contract
For closing transactions existing open contracts are being edited. The data to be
input is thus limited to the number of contracts being closed, their respective price
and related fees, if any.
Example of a partial closing of 120 contracts out of the total contracts held:
 Exercising partial quantity, at a higher premium, resultant loss booked
Exercising of 50 contracts out of the total open position, which leads to automatic
booking of purchase of the underlying (as the fund has entered into a long Call)
 Maturity of the deal when the position is held unto maturity, without
exercising/ closing out the position.
L.5. “IR” : Interest Rate Swaps- IRS Processing
Interest rate Swaps & Cross currency swaps are processed from the below screen
in MultiFonds.
Summary screen:
deals only
Operation codes for Interest rate swaps:
350 - Off balance Sheet for Interest rate swap

351 - Interest payment by counterparty- Fund receives
352 - Interest payment by fund- C/p receives
353 - IRS Repayment
Below given are the specific Operation codes for Cross Currency Swaps
354 - Principal Payment (Fund)

355 - Principal Payment (Correspondent)
356 - ICS Principal Repayment (correspondent)
357 - ICS Principal Repayment (Fund)
358 – Cross currency interest rate
Relevant NAV codes
918 - Unrealized Results on IRS

935 - Accrued IRS Interest Payable
936 - Accrued IRS Interest Receivable
Creation of an IRS contract
Path: Deals/ IRS / Deal/ Create (FDSWI02)
Interest Payments by fund/ Counterparty
The Fixed/ floating Interest cash flows are managed from the screen FDSWI03.
This is a summary screen and can be accessed from the ‘‘Payments’ button
The full details of the interest payment/ receipt can be viewed by going to the
‘Edit’
L.6. EQS: Equity Swaps Processing
Equity Swaps are processed from 2 screens. One is for the initial Equity swap deal
creation and the second for the equity swap Engagement Adjustment.
Summary screen:
deals only
Operation codes for Equity Swaps
The codes used are mostly those used for Futures & CFDs. In addition there are a
few codes newly developed for Equity swaps.
The Op code 070 for dividend is also parameterised with unique accounts to
differentiate the dividend income postings for EQS.
252 / 253 - Interest Calculation

310 - Fees on Long Future
311 - Fees on Short Future
314 - Underlying of Hedging Future
315 - Underlying of Future
316 - Sale Future
333 - Closing of trading future (EQS) (Long) ~
334 - Closing of trading future (EQS) (Short) ~
335 - Closing of hedging future (EQS) (Long) ~
336 - Closing of hedging future (EQS) (Short) ~
Relevant Fee codes
22- Profit on Futures closing

23- Loss on Futures closing
Note: The range of codes to be used for booking the Fees on the deal are F1 to
F9.These fees codes must have been previously defined in CMESS table ‘CFRAIS’.
Relevant NAV codes
909- Unrealized Results on Futures/ CFDs

90A- Accrued Interest on CFD
Creation of an Equity Swap contract:
Path: Deals/ IRS / Equity Swap/ Deal/ Create (FDFUT18)
The NAV results of the accrued interest/ unrealized on the Equity swaps is shown
under the Archived report SDNAU41. It is generated after the Futures Report
SDNAU09.
L.7. “DP” : Term deposits processing
Summary screen:
deals only
040- Term Deposit

220- Deposit repayment
042 – Interest Payment
Relevant Nav codes:
926 – Accrued Interest on Time Deposit
Creation of a term deposit:
To show Deposit repayment and rollover processes the Fund is set with
Settlement method 7.
Path: Deals  Deposits  Deal  Create
Contract number 2 booked with same amount of deposit.
Accounting entry:
 Note section “At Maturity” : total interest amount and fees as calculated by MF
are displayed, and can be overridden
 Note function “Applied modifications” : in case of modification during lifetime
of an already booked term deposit of total interests or fees :
 Note “Collateral ” button: to add a collateral to a repurchase agreement

deposit
Settlement of a term deposit: Settlement process will take care of liquidation of

payable / receivable amounts arising from any deal type against relevant cash
account (ie cash account indicated in the original deal)
FAD moved to 10/1/2010:
Path: NAV  NAV Archived reports
FAD moved to maturity date:
Path: Deals  Deposit  Repayment
Contract Number 1 is repaid:
Contract Number 2 is rolled over:
Deposit (Contract No 2) is matured with status 40 – Matured and a new deposit
(Contract No3) is created.
Deposit maturity accounting entry:
L.8. “TD”: Call Deposits Processing:
Summary screen:
deals only
 Note use of ‘rebooking’ if available allows rebooking.
041- Call Deposit

222- Deposit repayment
067 – Call Deposit Interest
Relevant Nav codes:
931 – Accrued Interest on Call Deposit
Creation of a Call deposit:
Path: Deals  Call Deposits  Deal  Create
 Note the ‘Processing’ button processes the call deposit transactions.

 ‘Acc Entries’ button displays the accounting entries after the call deposit
transaction has been processed.
 ‘Change Spread’ button allows to change the interest rate
 ‘Change amount’ button allows to increase or decrease deposit amount.
Accounting entry:
Settlement of a call deposit:

run for the day.
Accrued interest on Call deposit as on 2/1/2010:
NAV Archived report:
Call deposit Repayment:
Path: Deals  Call Deposits  Repayment
Maturity accounting entry:
L.9. “EM”: Loans Processing:
Summary screen:
deals only
 Note use of ‘rebooking’ if available allows rebooking.
065- Loans
221- Loans repayment
066 –Loans Interest
Relevant Nav codes:
907- Interest on BK loans

Creation of a Loan:
Path: Deals  Loans Deal  Create
 Note the ‘Processing’ button processes the loan transactions.

 ‘Acc Entries’ button displays the accounting entries after the loan
transaction has been processed.
 ‘Collateral’ displays the security position flagged as collateral. This button
is only available for Repos Loan – 045
Accounting entry:
Settlement of a Loan: Settlement process will take care of liquidation of payable /

receivable amounts arising from any deal type against relevant cash account (ie
cash account indicated in the original deal)
run for the day.
Accrued interest on Loan as on 2/1/2010:
NAV Archived report:
FAD moved to maturity date 31/12/2010:
As Fund is set with Settlement method 8 the loan got auto repaid when FAD is
moved to maturity date.
Accounting entry:
L.10. “FX” : Forward forex transaction processing
Summary screen:
deals only
Operation codes for creation of a Forward forex transaction
050 - Forward Contract

210 - FX Repayment
055 - Forward Exchange SWAP Contract
214 - Forward Exchange SWAP Repayment
Relevant Fee codes
82 - Realized Discounted Profits on Forward Exchange Transactions

83 – Realized Discounted Losses on Forward Exchange Transactions
Relevant NAV codes
904 - Unrealized Results on Forwards

946 - Discounted Unrealized Result on FET
Evaluation
Forward contracts can be evaluated using different methods, viz. Forward Fx
rates, Cross rates and so on.
The Valuation method to be followed is parameterised under the Fund Parameters

form in the field Fx Evaluation.
Settlement
Note that settlement of a forward forex transaction can only happen upon
transaction maturity.
Creation of a forward forex:
 Set first the deal in outstanding
 Then book the deal
Online review of Accounting entries, using “Acc.Entries” button :
L.11. “FS” : Spot forex transaction processing
Summary screen:
deals only
Operation code for creation of a Spot foreign Exchange transaction
052- FX Spot deal
Relevant Fee codes
The Fee codes 92 & 93 should be defined with NO period.
92 - Gain on spot exchange

93 - Loss on spot exchange
Creation of a spot forex:
Online review of accounting entries, using “Acc.Entries” button:
Accounting of the realized result on the Spot deal
- For funds with any Settlement method other than 8

The profit/ loss is booked at Trade date of the deal by comparing the exchange
used in the Forex spot and the one which is defined in the system at trade date.
- For a fund applying Settlement Method 8

The realized result on FX on account of the Spot deal will be accounted at Valued
ate only.
L.12. Corporate Action Processing:
The corporate actions are performed in 3 steps
Step 1: Corporate action announcement
Path: Sec \ Corporate Actions \ New Corporate Actions \ Corporate Action

Announcement
This form is used to key in the announcement for a security subject to a corporate
action.
Parameters Description
Operation : Select the appropriate Operation type. Note that those operation
types are merely used as transaction qualifier which help to sort corporate actions
according to their nature. These operation types are not to be confused with
operation codes. They can be retrieved under CMESS table “TYPOST”, if required.
Note that for this new corporate action process, codes to be used must be
between 411 and 429.
Provider : Enter Provider Code (not compulsory). Those provider codes can be
retrieved under CMESS table TYP_IDVAL.
Old Security : Enter the internal MultiFonds security number subject to the
corporate action.
Ext. Ref.: Enter an external reference if any. Note that this field is alphanumeric.
Ext. Ref. description: Enter a free text format if required.
Seq. No: Multifonds attributes automatically a sequence number to the corporate

action.
Sub seq. No: Multifonds attributes automatically a sub-sequence number to the

corporate action.
Corresp Nb: Enter Correspondent number.
Account Number: Enter a bank account number. By default, the correspondent’s
account will be proposed.
Account Suffix: The account suffix defaults to the correspondent’s account suffix
number. Use F9 to select another suffix.
Give For / Old Security: Enter a ratio as follows: 1 old securities will be equal to
X amount of new security (e.g. a split); or
X amount of old security (e.g. a bonus), or
X amount of cash (e.g. closing a rights position against cash)
Close Old Position: Check this box if the security position undergoing the
corporate action is to be closed and the acquisition cost of such security position
needs to be transferred to the new position resulting from the corporate action.
Provider: Enter Provider Code (not compulsory). Those provider codes can be
New Security: If New Security has been selected, such security’s id needs to be
input.
Exchange rate: Enter a predefined exchange rate if any.
Unit amt: Select between receive, pay or no cash flow with respects to the
corporate action. Key in unit amount in respective currency. Currency can be
modified.
Book value adj: Select “No Book Value Adjustment”, “Book Value Adjustment”,
“Realised Value Adjustment”, “Realised Profit or Loss”, “Income”, “Stock Dividend”
Correct book value by: Select “Book Unit Amount”, “Ratio”, “Percentage”
Correction unit amount: Enter the correction amount
Correction ratio: Enter the correction ratio
Correction perc.: Enter the correction percentage
Processing: Processes those security positions that have been selected.
Note: Only the flagged positions will be selected, even though other positions
may have been retrieved. After a corporate action has been processed, the same
transaction can be used to process any other positions which were not flagged
with the preceding process. Further, note that even if no fund position has been
processed, the corporate announcement will be processed.
Rebooking : Allows to add some fees to the initial corporate action event already
processed.
Add new fund: Allows to create a corporate action event for a fund which was
not retrieved automatically by the system.
Retrieve: Not used.
Recalc.: Enables to refresh the right quantity for funds for which the status is still
outstanding. It means that the button Processing was not used with those funds
flagged. This button is especially useful to recalculate positions for funds often
having backdated transactions.
Detail: Allows users to see details of a corporate action for a particular fund. This
button can also be used to add taxes or commissions to a corporate action event.
Fund Movements: Use this button to see the accounting entries generated by the
corporate action.
Note: On the account movement inquiry the Deal button may not be used, as the
corporate action is not considered to be a deal by Multifonds (due to bulk
processing of corporate actions).
Select all: Allows to select all funds displayed in the screen FDOST05.
All pos./Open Pos. Allows users to control all corporate event including reversals
or not.
Step 2: Corporate action release
Path : Sec \ Corporate Actions \ New Corporate Actions \ Corporate Action

Announ. process
In this screen the validation of a corporate action which has been announced
previously, can be processed.
From: Users must enter a date as of which they would like to retrieve corporate
action announcements
To: Users must enter an end date till which they would like to retrieve corporate
action announcements
All fields available under this form are explained on the new corporate action
announcement input screen.
Process: Allows users to validate the corporate action announcement entered

under the form FDOST05.
Retrieve: Allows users to retrieve all corporate action announcements available

for a predefined period (defined with fields From/To on the top of the form).
Un/Select all: Allows users to select or unselect all corporate action

announcement retrieved by the system for a predefined period.
Clear all: Allows users to erase all corporate action announcement retrieved by
the system for a predefined period.
Step 3: Corporate action Booking
Path : Sec \ Corporate Actions \ New Corporate Actions \ Corporate Action Process
Operation: Select the appropriate Operation type. Note that those operation
types are merely used as transaction qualifier which help to sort corporate actions
according to their nature. These operation types are not to be confused with
operation codes. They can be retrieved under CMESS table “TYPOST”, if required.
Note that for this new corporate action process, codes to be used must be
between 411 and 429.
Old Security: Enter the internal MultiFonds security number subject to the
corporate action.
Ext. Ref.: Enter an external reference if any. Note that this field is alphanumeric.
Ext. Ref. description: Enter a free text format if required.
Seq. No: Multifonds attributes automatically a sequence number to the corporate

action.
Sub seq. No: Multifonds attributes automatically a sub-sequence number to the

corporate action.
Corresp Nb: Enter Correspondent number.
Account Number: Enter a bank account number. By default, the correspondent’s

account will be proposed.
Account Suffix: The account suffix defaults to the correspondent’s account suffix
number. Use F9 to select another suffix.
Give For / Old Security: Enter a ratio as follows: 1 old securities will be equal to
X amount of new security (e.g. a split); or
X amount of old security (e.g. a bonus), or
X amount of cash (e.g. closing a rights position against cash)
Close Old Position: Check this box if the security position undergoing the
corporate action is to be closed and the acquisition cost of such security position
needs to be transferred to the new position resulting from the corporate action.
New Security: If New Security has been selected, such security’s id needs to be
input.
Exchange rate: Enter a predefined exchange rate if any.
Unit amt: Select between receive, pay or no cash flow with respects to the
corporate action. Key in unit amount in respective currency. Currency can be
modified.
Book value adj: Select “No Book Value Adjustment”, “Book Value Adjustment”,
“Realised Value Adjustment”, “Realised Profit or Loss”, “Income”, “Stock Dividend”
Correct book value by: Select “Book Unit Amount”, “Ratio”, “Percentage”
Correction unit amount: Enter the correction amount
Correction ratio: Enter the correction ratio
Correction perc.: Enter the correction percentage
Processing: Processes those security positions that have been selected.
Note: Only the flagged positions will be selected, even though other positions
may have been retrieved. After a corporate action has been processed, the same
transaction can be used to process any other positions which were not flagged
with the preceding process. Further, note that even if no fund position has been
processed, the corporate announcement will be processed.
Rebooking: Allows to add some fees to the initial corporate action event already
processed.
Add new fund: Allows to create a corporate action event for a fund which was
not retrieved automatically by the system.
Retrieve: Not used.
Recalc.: Enables to refresh the right quantity for funds for which the status is still
outstanding. It means that the button Processing was not used with those funds
flagged. This button is especially useful to recalculate positions for funds often
having backdated transactions.
Detail: Allows users to see details of a corporate action for a particular fund. This
button can also be used to add taxes or commissions to a corporate action event.
Fund Movements: Use this button to see the accounting entries generated by
the corporate action.
Note: On the account movement inquiry the Deal button may not be used, as the
corporate action is not considered to be a deal by MultiFonds (due to bulk
processing of corporate actions).
Select all: Allows to select all funds displayed in the screen FDOST05.
All pos./Open Pos.: Allows users to control all corporate event including
reversals or not.
Corporate action treatment – Accounting schemes
Links between the TYPOST and the operation codes and fee
codes
Operation
Type
code or fee Account
OST
codes
400 CR Stock account old security
429 401 DB Stock account new security
402 CR Payable (if need: fees)
402 CR Payable (if need)
412
401 DB Stock account new security
414
05 DB Loss
06 CR Gain
415
401 DB Stock account old security
415
416 401 DB Stock account old security
403 CR Receivable
400 CR Stock account security
417 403 DB Receivable
404 CR Income
403 DB Receivable
418
05 DB Loss
06 CR Gain
419
401 DB Stock account security
420
421
422
406 CR Income
403 DB Receivable
423
05 DB Loss
06 CR Gain
424
425
426
403 CR Receivable
402 CR Payable
L.13. “CP” : Dividend (Equity) and Coupon (Bond) processing
Summary screen :
deals only
Relevant Operation code:
Relevant Fee code:
Creation of dividend or a coupon :
 Note use of F9 when cursor is in the “Security” field  will take you to the
security master summary screen, from which selection on any criteria can be
done. Button “Pick up” will select the relevant security and bring you back to
the FDCOU01 dealing screen.
Online review of Accounting entries, using “Acc.Entries” button:
Dividend announcement can also be process a few days ahead of the dividend ex-
date:
 For funds with contractual settlement method (“8”), MF will auto trigger the
dividend booking upon rolling forward fund accounting date to a date equal or
higher than the dividend trade date.
Settlement of dividend :
For dividend settlement, there is an additional screen (FDCOU09), where dividend

proceeds can be modified (for ex. Partial settlement) as well as settlement
currency :
M. REPORTING
This section is focussing on other (Non NAV related) reports that are important
from a business and audit perspective
M.1. Trial Balance
SDJNA09: Trial Balance :
 Note the filtering criteria available :
 Note the check boxes giving option to print account with zero balance, to print
retroactively (past date) the trial balance
 Note that account balances will be expressed in :
- account currency (1st column)
- fund currency, at cost (2nd column)
- fund currency, revalued with latest forex rates (3 rd column) : this
is the same balance as appearing in the NAV main reports
SHJNA01 : Trial Balance :
 Note the check boxes giving option to print for an umbrella structure
(including all sub funds account balance), to print account with zero balance,
to print retroactively (past date) the trial balance
M.2. General Ledger
SDCPT03: General Ledger
 Note sorting criteria for account movements (by value date or by accounting
date)
 Note display criteria for sub total by page and display of account with zero
balance
 Note optional parameter to restrict account number appearing on report
 Note optional parameter to restrict account movement appearing on report
SHJNA03: General Ledger / account statement :
 Note check boxes giving option to print account with zero balance, to sort
account movements by value date
Note that the SHJNA03 report gives extra information related to account
movement in account currency, not available on the SDCPT03
M.3. Accounting journal
SDJNA05: accounting journal :
 Note filtering criteria on date or entry number

 Additional dialog box popping up to exclude specific entries :
M.4. Online queries and reviews
M.4.1 Account positions
The FDCPT01 screen displays an online trial balance :
 Note check box “Zero account” to have account with zero balance being
displayed
 Note “description” button to modify account description for the selected fund
(for ex, for cash account ) :
 Note “Movements” button to drill down to an online general ledger for the
selected account :
 Note “Deal” button to drill down to individual trade backing up the accounting
entry :
M.4.2 Security positions
The FDPOT01 screen displays an online security position statement (scroll to the
right to see the holding quantity) :
 Note “+Empty positions” to disclose position with zero quantity. Pressing twice
the button will disclose only security in position
 Note “Consolidate” check box to show one consolidated line by security
(useful when dealing with lot accounting for example)
The “Movements” button enables to drill down to trade movements backing up the
current security position :
The “Deal” button enables to drill down to individual trade backing up the selected
trade movement :
M.4.3 Option positions
The FDOPT05 screen displays an online option position statement (scroll to the
right to see the holding quantity):
 Note “+Closing” to disclose position with zero quantity. Pressing twice the
button will disclose only option in position
 Note “Consolidate” check box to show one consolidated line by option (all
contracts on the same option will be consolidated)
 Note ordering drop down list at the bottom of the screen, useful for funds
with large option portfolio
current option position :
 Note ordering drop down list at the bottom of the screen
trade movement :
M.4.4 Future positions
The FDFUT05 screen displays an online future position statement (scroll to the
right to see the holding quantity) :
 Note “+Closing” to disclose position with zero quantity. Pressing twice the
button will disclose only futures in position
 Note “Consolidate” check box to show one consolidated line by option (all
contracts on the same future will be consolidated)
 Note ordering drop down list at the bottom of the screen, useful for funds
with large future portfolio / activity
current future position :
 Note ordering drop down list at the bottom of the screen
trade movement :
M.5. Valuation reports
The presented reports are relying on the existence of a proper valuation model
M.5.1 Portfolio valuation reports
SDJNA02: Portfolio valuation :
 Note dialog window popping up after “Print” button is hit :
For example, ISIN code (sec. ID 11) might be selected, instead of internal
id.codes
SDEST52: Portfolio valuation :
 Note split option by currency, economic sector, country or Listed/not Listed

 Note dialog window popping up after “Print” button is hit:
M.5.2 Bond interest accruals report
SDJNA03 : Interest accrual list
M.5.3 Asset and liability report
SDPOR07 : Valuation list :
 Note “% basis” criteria
 Note “Total quantity” check box : to disclose total quantity of security held at
end of section (SDPOR06 report only)
 Note dialog window popping up after “Print” button is hit :
Layout SDPOR06 report:
N. NAV CHARGE PARAMETERS
Important fields:
 Calc. code: this parameter drives the basis of calculation of the fee
provision as well as whether the provision is completely recalculated for
the current fee period (calc. code 02) or only recalculated since the last
accounted NAV (calc. code 01 and 03). The best reports to check the way
the calculation code impacts the fee calculation are SDNAR02 or
SDNAR09.
* Fee provisions with calculation code 01 will be disclosed as part of the
liabilities in a line before the "Sub total NAV" line of SDNAR02/SDNAR09
report. Their calculation basis will use the previous accounted NAV
* Fee provision with calculation code 02 will be disclosed as part of the

liabilities in a line before the "Net Asset Value" line of SDNAR02/SDNAR09
report. Their calculation basis will use the current NAV (before any fees)
* Fee provision with calculation code 03 will be disclosed as part of the

liabilities in a line before the "Sub total NAV" line of SDNAR02/SDNAR09 report
(for the part coming from previous accounted NAV) AND as part of the
liabilities in a line before the "Net Asset Value" line of SDNAR02/SDNAR09
report (for the part coming from current NAV calculation). Their calculation
basis will use the current NAV (before any fees)
 Fee type: to decide if the fee is a percent, an amount, a scale, etc…
 Method code : day counting rule convention for the fee provision : there
are constraint to be observed when combining this parameter with
calculation code :
Calculation code 01 works with following method codes:

1 Number of fixed days
2 Number of exact days
3 XXX NAVs per period
4 Number of exact days at the beginning of the period
8 Number of exact days + interest calculation code
10 Number of exact days + last period fees

5 Number of fixed days
6 Number of exact days
7 XXX NAVs per period
9 Number of days at the beginning of the period + interest
calculation code
11 Number of exact days from the beginning + last period unpaid fees

13 Number of days on average basis
14 Calculation of fee only at the last date of a period
15 If end of month holiday calculated next month
 Amount type: this is basis of calculation of the fee itself (NAV, portfolio,
group of accounts, etc...).
 NAV code: this will be the NAV code used for booking the fee accrual. The
NAV code description can be maintained / altered from the message
table (TRANSIT). Here are the available NAV codes :
For 'Calc Code' 01, range of NAV code is: 000-099 and 200-399 and 960-979
For 'Calc Code' 02, range of NAV code is: 100-199 and 400-599 and 980-999
For 'Calc Code' 03 all above NAV codes can be used
Button “Fund”:
o Note that funds will be individually attached to the fee here.

o Amount / per cent can be maintained at fund level –> not
necessary to set up a new fee
o Note the “historical” button to store the history of rates / amount
: the new rate will not be used as long as the fund’s accounting
date has not reached the “effective date”
N.1. NAV charges periodical payment
On line with its frequency set up, the fees need to be paid / reset from the
FDFPR06 screen:
 Note that trade date should be in the new fee period

 Note that Provision fee date should be the last calendar date of the previous
period
 Note that technically, a NAV must have been accounted on the last calendar
date of the previous period
 0 as fee number to initiate the counterparty line : the payment is not
necessary against a cash account
 The effect of the fee payment is to reset the number of days and the accrual
amount of the fees (best visible on the SDNAU60 report)
N.2. Example:
FUND ID- NAVCH2
FAD-01/01/2010
The above charges are attached to fund NAVCH2.
In the above charges:

Charge ID 12341 is set for calc code 01
Charge ID 12342 is set for calc code 02
and charge ID 12343 is set for calc code 03.
Subscription of 1000 Qty @ 10 on 01/01/2010
Purchase Sec id 11100011 of 100 Qty @ 10 on 01/01/2010:
Updated security price as 10 and simulated and accounted NAV:
NA entry as on 01/01/2010:
System is showing ‘0’ accrual for both NAV charge 12342 and 12343 and charge
12341 will not accrue any charge as there is no previous NAV for the date
01/01/2010.
Report SDNAR02
As per the existing functionality, the NAV accrual will not take place on the First
day of the fund. It will start from second day onwards.
Move FAD to 02/01/2010
Update Market Price of Sec 11100011 @ 12.Simulated and accounted NAV.
NAV code 982 which is attached for charge ID 12343 parameterised with calc code
03 is showed with two pair of entries. One amount shows the accrual of charge till
previous date and another line shows the current day’s accrual.
Report SDNAR02 as on 02/01/2010:
Report 960 as on 02/01/2010:
Calc code 01:

For Charge 12341 with Cal code 01, Charge is calculated for 2 days on = 5.48
previous days total NAV = 10000 * 10% * 2 days/365
Total = 8.27
Calc code 02:

current days sub total NAV= 10194.52 * 10% * 2days/365
Total = 5.59
Calc code 03:

For Charge 12343 with Cal code 03, Charge is calculated for 1 day on = 2.79
current day sub total NAV =10194.52 * 10% * 1day/365
Total = 2.79
NA entry as on 03/01/2010
Report 960 as on 03/01/2010
Calc code 01:

For Charge 12341 with Cal code 01, Charge calculated till previous NAV = 5.48
previous days total NAV = 10186.14 * 10% * 1 days/365
Total = 8.27
Calc code 02:

Total = 8.62
Calc code 03:

For Charge 12343 with Cal code 03, Charge accrued till previous NAV = 2.79
For Charge 12343 with Cal code 03, Charge accrued for current day= = 2.87
10488.94 * 10% * 1days/365
Total = 5.66
Entered one more subscription transaction:
SDNAU60 report as on 04/01/2010:
Calc code 01:

previous days total NAV = 10477.45 * 10% * 1 day/365
Total = 11.14
Calc code 02:
Total = 16.97
Calc code 03:

For Charge 12343 with Cal code 03, Charge accrued till previous NAV = 5.66
For Charge 12343 with Cal code 03, Charge accrued for current day = = 4.24
15483.20 * 10% * 1day/365
Total = 9.90
Moved FAD to 31/01/2010 last day of the month.
SDNAR02 report as on 31/01/2010:
Calc code 01:

For Charge 12341 with Cal code 01 Charge is calculated for 27 days on = 114.37
previous days total NAV = 15461.99 * 10% *27 days/365
Total = 125.52
Calc code 02:

Total = 130.49
Calc code 03:
For Charge 12343 with Cal code 03 ,Charge accrued till previous date = 9.90
For Charge 12343 with Cal code 03, Charge accrued from previous NAV = 113.66
to current day = 15364.58 * 10% * 27days/365
Total = 123.56
Moved FAD to 01/02/2010:
Fee payment:
DealsFees payment:
Fee payment is made as on 01/02/2010 for all three charges by settling it to cash
account.
Accounting entry:
System is crediting the payable account in accounting entry parameterised for Op

code 020.
SE entry:
NA entry:
SDNAR02 report as on 01/02/2010:
Calc code 01:

previous days total NAV = 15120.43 * 10% * 1 day/365
Total = 4.14
Calc code 02:

current days sub total NAV= 15116.29 * 10% * 1 day/365
Total = 4.14
Calc code 03:

current day sub total NAV =15116.29 * 10% * 1 day/365
Total = 4.14
O. MULTICLASS PARAMETERS
From Multiclass set up user have option to generate a new type of accounts
balance report in which the Income and the Expense account will be split by share
classes for a multiclass fund.
There are some parameter should be set up at Fund level and user has to defined
the fund specific multilink for Profit and loss accounts
O.1. Fund Parameters-
Share Values
Distributable Income determines Allocation basis ( Allocation % or Allocation %2)
Multiclass Set up
Multiclass- Enter class Number.
Account type-With Fee/without fee.
Share type- A, B or C defined in share values.
Copy -Allows copying Multiclass group from one fund to another.
Copy All- Allows copying a Multiclass group from one fund to all the other funds.
Copy all fund-Allows to copy all Multiclass groups from a selected fund to
another fund to be specified by the user
O.2. Multilink’s
Path Account manger Accounts Multilink
All Profit and loss Account ( Including Cambio Accounts) of Multiclass should be
linked in Multilink screen
Multiclass- Multiclass code to be given as defined in Fund Level.
O.3. NAV charges set up for multiclass Fund
Balance sheet chart Net Asset Value code by chart
This accounts will be picked depends NAV code
Balance sheet  chartNet asset value code by chart
This class is for calculation of basic Amount. -

Depends on the class code basis amount fee will
be calculated.
Account manger Accounts Multilink
All accounts which are linked to NAV charges should be linked to multilink’s screen
The NAV charge Account code liked to multiclass group on

the basis the expense will be divided to share classes.
CopyCopies the account selected to another fund to be specified by the user.
Copy AllCopies the account selected to all funds.
Modify FundCopies the account modified to another fund to be specified by

the user.
Copy All FundCopies all accounts from the fund shown on the form to another
fund to be specified by.
O.4. Reports for Multiclass fund
SDNAV11 Report –NAV before specific for fund and also by share classes.
SDNAV25 Report –Detailed Income and Expense activities by share class.
SDNAR09 Report-NET ASSET VALUE FOR MC FUND (COMPARING ASSSET AND

LIABLILITIES D AND D-1)
SDJNA23 Report Accounts balances with Account code (According to share

class A, B, C etc)
Path Control report General Balance List
SDNAV73 Report (Balance for Profit and loss) By Share type- This report will be
available at. The NAV simulation stage.
O.5. Example
Fund id- MULCA
Fund Parameters-
Define Share classes in Share Value Button
Distribute. Income as A11 in this example
Multiclass Set up
Set up Multiclass Code for allocating P and L accounts to share classes
Set Multiclass Parameter
Attach NAV Charges to Multiclass Fund
NAV Charges
Link All P and L accounts to Multiclass Code
Multilinks
FAD 01/01/2009
Subscription
Class Qty Price Amount
A 1000 10 10000
B 2000 10 20000
C 3000 10 30000
TOTAL 60000
Allocation calculation
Share class
Day 1 Total
A B C
Quantity 1000 2000 3000
@ 10 10 10
Total NAV 60000 10000 20000 30000
Allocation
1% 16.67 33.33 50.00
SDNAV11 Report
SDNAR09 Report
Move FAD 02/01/2009
Debit/ Credit Transaction
NAV simulation and Accounting to be done
SDNAV11 Report
Report 960
SDNAV25 Report
Calculation sheet for SDNAV11 Report
SDNAR09 Report
Move FAD 05/01/2009
Additional Subscription of share class B
NAV accounting to be done
Report SDNAV11
SDNAV25 Report
Report 960
SDNAR09 Report
P. CAMBIO
P.1. Introduction
The main aim of cambio accounts is to evaluate cash accounts kept in a currency
other than fund base currency. These accounts can also be called as foreign
currency position accounts.
Cambio accounts are introduced in multifonds to optimize valuation computation

time. Rather than valuing multiple foreign currency accounts only one cambio
account per currency will be evaluated.
Cambio accounts are used in determining the unrealized result due to exchange
rate movement. There will be as many cambio accounts as there are foreign
currencies held in a fund
P.2. Characteristics
 Transaction dealt in currency other than fund currency will always generate
entries to cambio accounts.
 Cambio will calculate one global unrealized FX result- except cambio method A,
where FX result may be split according to their origin (asset and liability accounts).
 Accounting entries to cambio accounts are generated by multifonds and thus
requires no intervention from the user.
 Accounting entries on deal level are identical for all cambio methods only cambio
closing entries will differ.
 The unrealized FX result allocation at valuation time differs (the aggregate total
result is always identical, only the detailed allocation differs).
 The realized FX result at closing time differs (the aggregate total result is always
identical, only the detailed allocation differs).
 The cambio closing is run at the user’s discretion.
 Cambio methods should not be changed in the life of the fund. Even if the user
has to do so he can do so only after cambio closing so that no FX results are
pending.
P.3. Available cambio methods
A – Detailed FX adjustment by account type accounted with NAV

B – Global FX adjustment (Including FET)
C – US FX adjustment method.
D – Enhancement to cambio A and C
N – Without FX adjustment
Y – With FX adjustment
Z – FX adjustment with NAV calculation
P.4. Parameterization
P.4.1 Creation of cambio account
Two cambio accounts are created:
One account for spot position

One account for forward position
Spot cambio account:
Account ManagAccountsAccounts definition:
Consider using a number at the end of account numbering range to avoid that
cambio accounts interface with the normal account number ranges.
Account ManagAccountsAccounts definitionAcc chart link
Balance sheet chart
Statement of Operations Chart
Forward cambio account:
Account ManagAccountsAccounts definition:
Account ManagAccountsAccounts definitionAcc chart link
Balance sheet chart
P.5. Creating cambio links
The creation of cambio accounts has two main purposes:
Instruct system which accounts to use for spot and forward positions.
Defining where the realized FX result on foreign spot and forward currency
position are posted to.
Accounts manag.AccountsCambio/Result
Note that realized results on Forward Foreign exchanges are driven by fee codes.
The fee codes concerned are 82, 83. The usage of fee codes was developed in
order to be able to manage the notion of Speculative results for the German
taxation.
P.6. General example:
When settlement Ccy is other than fund Ccy:
Fund CCY: USD

Settle CCY: EUR
Exchange rate 1USD = .75 EUR
Accounting entry:
Since cambio accounts mirror foreign currency accounts, the accounting entries to
cambio accounts are done with the opposite accounting sign from the foreign
currency account
SDJNA09:
SHJNA01:
Control reportHolding companyHolding company report General ledger and

trial balance
Accounting date moved to 05/01/2010:
Exchange rate as on 05/01/2010 is 1USD = .8 EUR
SE entry:
Fund agreed to receive 750 EUR as on 05/01/2010 on issue of capital. But as on

05/01/2010 EUR depreciated against USD.
Thus in return of 750 EUR fund will receive 937.50 USD (750/.8 = 937.50). Thus
for subscription of 1000 USD, fund is receiving only 937.5 USD and bearing loss of
62.5 USD.
Control reportHolding companyHolding company report General ledger and

trial balance
SDNAV05:
Unrealized on FX is shown in P& L account.
SDJNA09:
Bal sheetList Balance
P.7. Cambio Closing:
A cambio closing may be run any time during the life of a fund. The processing
frequency is thus left at the user’s discretion. The form used to perform the
cambio closing is the same form that is used for period end closing processes.
Why processing a cambio closing?
There are two main reasons for processing a cambio closing:
Realizing unrealized FX results

The discrepancy between foreign currency amounts and their related cost value in
fund currency has risen to an unacceptable level.
Due to the fact that MultiFonds moves asset and liability accounts at the prevailing
exchange rate (not at average cost rate), the realized FX are retained as
“unrealized” results in the cost of the respective accounts. Situations may arise
where the amount in currency is zero; however, a cost value is still shown. The
cambio closing will realize those FX results.
Note: A cambio closing cannot be run for an individual account. All foreign
currency (as opposed to fund currency) accounts will be treated by the closing
procedure.
Cambio closing transactions generates accounting movements with 'Cservice code'

RS.
For the above case cambio closing is processed to realize the unrealized FX result.
Continuing the above example moved FAD to 06/01/2010.

Exchange rate as on 06/01/2010 = 1USD=.85 EUR
SDJNA09 Before cambio closing:
SHJNA01 before cambio closing:
NavClosing balanceClosing balance
System is generating RS entry automatically after cambio closing.
Cambio closing entry:
Due to the change in USD EUR exchange rate from .75 to .8 fund is incurring loss
of 62.5, because as on settlement date 750 EUR = 937.5 USD. Instead of 1000
USD fund is receiving 937.5 USDs from subscription.
Now as on 06/01/2010 fund has 750 EUR in cash account. As on 06/01/2010

1USD=.85 EUR. Thus the actual cash balance in USD is thus 750/.85 = 882.35
Therefore total loss = 1000 USD – 882.35 USD = 117.65 USD
On cambio closing system will realize the unrealized result on exchange.
SDJNA09 after cambio closing:
SHJNA01 after cambio closing:
System posting the realised loss to the account parameterised for operation code
260.
After cambio closing cambio EUR and cambio USD account balances are same.
The quantities in foreign currency have not been moved. Only a cost adjustment
has been posted.
Since the cambio accounts mirror foreign currency accounts, the cost adjustment
of the foreign currency account must also be reflected in the cambio accounts.
P.8. Reversal Cambio closing:
If a cambio closing has been processed by error, the closing entries may be
reversed. Closing entries, in general, are generated with service code “RS”.
To reverse a cambio closing entry proceed as follows:
· Locate the transaction in the debit / credit deal entry form FDDCR012
· Perform a query on “RS” type operations to quickly locate closing transactions
· Edit the transaction
· Ensure the transaction selected is the one to be deleted
· Reverse the transaction
· Verify that the status code for the reversed transaction has now been
switched to “30 – Reversal”
The user may opt to print an account ledger to verify that the cambio positions
have returned to their initial state i.e. the situation before the closing should have
been restored.
Deals-Debits/CreditsDebit/ Credits
Accounting entry:
SHJNA01:
As shown above again cambio accounts are set as it was before cambio closing.
P.9. When settlement Ccy is other than fund Ccy and exchange rate is
overwritten:
AC transaction:
Fund Ccy = USD
Settlement Ccy = EUR
Actual exchange rate as on 01/01/2010 = 1USD = .75 EUR
As highlighted transaction exchange rate is overwritten as 0.90.
Accounting entry:
Fund currency: USD
Settlement currency: EUR
Current ex. rate: 0.75
Transaction ex. rate: 0.90
Consideration: 10,000 * USD 10 / 0.90 = EUR 90000
USD equivalent: EUR 90000 / 0.75 = USD 120,000
Realised Gain: USD 120000 – USD 100,000 = USD 20000
SHJNA01:
Moved FAD to settlement date 05/01/2010:
SE entry:
As on 05/01/2010 exchange rate = 1USD= 1.25 EUR

Thus 90000EUR = 90000/1.25 = 72000 USD.
P.10. Cambio Methods:

P.10.1 Cambio method “Y”:
 Daily global Unrealized FX Booking at the NAV Accounting for Cash and Value Date
Accounts
 Generates global Realized FX results on Cambio Closing
 FX Adjustments on Cash Accounts only due to Cambio Closing
 No FX Adjustments on Off Balance Sheet Accounts due to Cambio Closing
 Off balance forward exchange accounts are not revaluated but cash accounts are
revaluated.
P.10.2 Cambio method “A”

 With cambio method ‘A’ unrealized results from FX may be segregated into various
categories according to the Assets and liabilities that have generated such an FX
result. This is the unique feature of cambio method “A”.
 Assets and liabilities accounts are adjusted for unrealized FX results at cambio
closing time upon request of the user.
 Cambio method –A- generates a detailed unrealized FX result at valuation time
and a detailed realized FX result upon closing. The level of detail depends on the
parameters set by the user.
 This method is used for fund making daily dividend distribution. Thus FX results
can be differentiated according to the following categories:
1. Dividend receivable
2. Receivable from broker
3. Payable to broker
4. Bank accounts
 This method does not include FX adjustment on off balance sheet forward
exchange accounts.
 If ‘NAV fx closing code’ is defined system will generate ND entry showing the
realized gain or loss on transaction as on value date.
 Considering that the cambio results are accounted with NAV calculation there is no
need to make cambio closing for fund applying cambio A.
If the user wants to use the segregated accounts for FX results, appropriate P&L
account need to be opened.
The unrealized FX results will be posted by the NAV accounting program. To post
the FX results to the correct account NAV codes has to be created for each FX
type required.
Static dataMessageMessage
The codes to be defined must be within the range R00 to R99 in CMESS table”
TRANSIT”.
Accounts need to be parameterized for NAV codes as shown below:
Bal SheetChartNet asset value codes by chart
User has to link each asset and liability account to a NAV code in column “NAV Fx
adj. Code” column to enter appropriate NAV code (R00 – R99).
Account managerAccountsLinks on chart
P.10.3 Cambio method “B”
 The available cambio methods do not differ as to the aggregate total FX results
generated. Merely the allocation to the profit and loss accounts may differ.
 Assets and liabilities accounts are adjusted for unrealized FX results at cambio
closing time upon request of the user.
 This method includes FX adjustments on off-balance sheet forward exchange
accounts
 Cambio method –B- generates a global unrealized FX result at valuation time and
a global realized FX result upon closing.
P.10.4 Cambio method “C”
 Daily Unrealized Fx Booking at the NAV Accounting for Cash and Value Date
Accounts
 Realized Fx results on each Settlement Accounting
 Realized Fx results on Cambio Closing
 Fx Adjustments on Cash and Off Balance Sheet Accounts due to Cambio Closing
P.10.5 Cambio method “D”
 Daily Unrealized Fx Booking at the NAV Accounting for Cash and Value Date
Accounts
 Realized Fx results on each Settlement Accounting
 Realized Fx results on Cambio Closing
 Fx Adjustments on Cash and Off Balance Sheet Accounts due to Cambio Closing
P.10.6 Cambio method “N”
This method does not adjust asset / liability or cambio accounts for unrealized FX
results. Consequently this method should not be used within the context of fund
administration (the method may be useful in the context of processing holding
companies).
Q. VALUATION MODEL
Valuation model is basically used for reporting purpose. The concept of valuation
model is very much similar to the accounting chart.
In MultiFonds user needs to maintain a Reference valuation model, which stores

adequately all Balance sheet and Profit and loss accounts information for all types
of external reporting purposes.
While creating a valuation model we should follow the following steps;
1. Create a valuation model in the CMESS TABLE under the “NESTI” TABLE in the
following screen;
2. After creating a valuation model we have to attach the valuation model with
accounting chart defined at fund parameterization level in the following screen;
Path: - Valuation / Parameters / Reference valuation Model
3. Now we have to create the groups in CMESS table under the GR Table
4. After creating the different group we have to Total groups in Multi Fond under
the following screen:
Path: - Valuation / Parameters /Master group/Descriptions
5. Now we have to link all the groups to the valuation model in the following
screen:
Path: - Valuation / Parameters /Master group/Link
6. Link all security type (GTI TYPE) with the valuation model in the following
screen;
Path: - Valuation / Parameters / Group / link / Security Type
All security types having GTI TYPE under the Multi Fond shall be linked in the
above mentioned screen.
7. Link all ACCOUNTS with the valuation model in the following screen;
Path: - Valuation / Parameters / Group / link / Accounts
Valuation model has to be linked with the reports in the following screen,
Path: - Managers / Transactions / Reports
We have to attach the fund in the following screen
We have to link the valuation

model here for the report
mentioned in the above screen
R. VALUATION METHODS
R.1. IY (Issue Yield) Method
IY – Issue Yield method in Mulfifonds has been developed
- To value zero-coupon bonds on marked-to-market basis but interest

calculation should be based on issue yield and issue price using a specific rule
defined as per German law
In this method, Mulfifonds will calculate the unrealized result UR based on the
marked-to-market price. This is exactly the difference between the marked-to-
market price and the initial purchase price.
From that amount UR, the system will subtract the calculated part of interest At.
Hence, the expected booking would be:

- 919 (UR – At) as the unrealized gain or loss on zero-bonds
- 921 (At) as the amount of accrued interests on zero-bonds
Multifonds will manage this method at transaction level ie., It will use different
contract number for each new transaction and show each contract separately in
the NAV report ( and not a single position)
Calculation formula of accrued interest At:
Issue Price IP
Issue Yield (Rounded at 1st digit after coma) IY

Issue Yield and Issue Price is stored in the security master and used to calculate
interest
Factor for year n after issue date (n being an integer) (1+IY/100)^(n-1)
THP (rounded up) Theoritical price plus accrued interest as at purchase

date
At Accrued Interests
pd number of accrued days till purchase date within year

n, using the reviewed issue date
Reviewed issue date is the first day of the month of that issue date (same year).
For eg. an issue date of 05.11.2010 will be reviewed issue date as of 01.11.2010.
uc number of days in a year according to denominator

usance code
as per security master
THP = IP * ((1 + IY/100) ^ (n-1)) * (1 + ((IY/100) * (pd/uc)))
At = IP * ((1 + IY/100) ^ (n-1)) * (1 + ((IY/100) * (d/uc))) - THP
d – number of accrued days till valuation dae within year n, using the reviewed
issue date
Parameterization
In fund master, the valuation method ‘IY’ (Issue Yield) must be parameterized as
exception valuation method for the relevant security types.
The “stock price” check box must be selected as the fund will use calculated price
(THP) to be stored in fund historical security price table
When processing deals to be valued with “IY”, the contract field is mandatory.
When processing a sale, the user will manually select the relevant contract
number to be used for calculating the realized profit/loss as well as the interest.
At security master, do not use the “eval type” field for Zero Bonds.
EXAMPLE
Zero coupon bond created
Purchase Deal on TD 12/10/1999 VD 14/10/1999
NAV Date moved to 22/12/1999
UnRounded
Contract Purchase Price THP with THP
Value date Quantity
No / Sale (%) interest (%)
(%)
1 14.10.1999 P 50,000 96.3936 97.276703 97.3

1 22.12.1999 Valuation 50,000 97.07 97.856238
The following posting will be made in Multifonds
Accrued Interest = 278.12 EUR = 50,000 * (97.85628 - 97.3)%
Unrealised Gain on Investment = 60.08 EUR = (50,000*(97.07-96.3936)%) -

278.12
Partial sale of 25,000@97.385
The following posting will be made in Multifonds during sale
Accrued Interest = 194.46 EUR = 25,000 * (97.077825 - 97.3)%
Unrealised Gain on Investment = 53.39 EUR = (25,000*(97.385 - 96.3936))% -

194.46
Accounting Entries
The interest amount 194.46 EUR is calculated and posted using fee code Y0 (if
negative) or Y1 (if positive).
Reporting
919 (SDNAU19) Report
Purchase yield in case of a fund using “IY” valuation method must be understood
as issue yield as per Security master in case of zero bonds.
Issue price is also as per security master.
R.2. FM (Futures) Method
The FM (Futures) Method takes into consideration the following:
- The unrealized result on future doesn’t exist (NAV code 909)

- The realized result is the difference between the actual future valuation price
against the previous future valuation price.
The realized result will happen using op codes 327 (for Receivables) and 328 (for
payables) and using fee codes 22 (for gain) and 23 (for loss).
The variation margin on gain/loss will be calculated based on percentage defined
in security master.
Both will be settled on value date.
During sale of future, apart from realized result, actual gain on bond will be
triggered through 2A & 2B fee codes.
Parameterization
In fund master, the valuation method ‘FM’ (Variation Margin) must be

parameterized as exception valuation method for the relevant security types.
EXAMPLE
Create a future security with variation margin
Accounting Entries
Sale entry show Op code 2A & 2B for actual gain on sale apart from realised result
(due to market price changes)
R.3. V1 Method (For Futures)
This valuation method allows to book variation margin. The MTM (Variable Margin)
will be computed on the basis of weighted average cost of future holding, on
continuing purchase of the same security.
(Market Price – Absolute weighted average price (AWP)) x Contract size x Closing
Quantity
Note: Absolute weighted average price will be considered in case of future
contract is booked as a continuing method.
AWP = [(Existing Qty x Previous day Closing Market Price) + (Purchased Qty x
Cost Price)] / Total Qty]
Nav code used to book the variation margin 945 (ND):
. Please note MF books the unrealised gain/loss and also the variation margin.
This new future valuation method ‘V1’ supports only for Average accounting
method of futures.
The Cash Account (#144120) as well as Margin Account (#144606) are to be
defined in the account exception screen FDPTF02. The user has to define
valuation method as ‘V’ in the screen FDPTF02.
The user has to specify the required future security GTI code in the screen
FDPTF02 – Security exception level for valuation method V1.
Example :
Purchase of future contract : 778151
Price updated : 152

Accounting entry through Op.Code 909 (NA):
(Market Price – Weighted Average Cost Price) x Contract size x Closing Quantity
(152 -150) x 10 x 250 = 5000
Accounting entry through Op.Code 945 (ND):

Quantity
( 152 – 150 ) * 10 * 250 = 5000
(0* 0 *0 ) + (250 * 150 * 10) / 2500 = 150
Continuing of future:
Price updated: 155

Accounting entry through Op.Code 909 (NA):
Weighted Average Cost Price = (250*10*150) + (60*10*154) / (250*10) +
(60*10*) = 150.77419
(Market Price – Weighted Average Cost Price) x Contract size x Closing Quantity
(152 -150.774) x 10 x 310 = 13100
Accounting entry through Op.Code 945 (ND):
Quantity
( 155 – 152.387 ) * 10 * 310 = 8100
(250* 10 *152 ) + (60 * 10 * 154) / 3100 = 152.387
Partial closure:
Reversal of Proportionate Cost as well as MTM: (Profit booked op code 22)
Weighted Average Cost Price = 150.77419
Reversal of Cost (To the extend proportionate future position closed)
(150.77419 x 50 x 10) = 75387.095
Realised Gain/Loss = Sale Value – Cost
78000 – 75387.095 = 2612.90
Reversal of ND entry:
Cumulative ND Balance till previous transaction was 13100 (CR).
Proportionate reversal will be 2112.90 (DB). (13100* (50 *10) / (310*10)
Settlement entry for ND Reversal
Settlement entry for Realised gain/loss – Cash settlement
R.4. NS01 Method
NS01 – Italian zero coupon valuation, simple formula has been developed for Zero
bond with a maturity < 1 year.
This valuation method helps:
- To calculate from their respective issue price the issue yield of instruments
held in a portfolio
- To amortize on a day-to-day basis the mentioned issue yield of the
instruments
- The amortization is calculated on a average theoretical price
- To Mark to market on a day-to-day basis the instruments
Calculation formula
At purchase date(value date) of the bond, an issue yield is calculated as follows:
Where
RP – Redemption Price at maturity
IP - Issue Price
N – Days to maturity (from the security issue date to the security maturity date)
J – Number of day in the year depending on the security usance code
This yield will then be used for calculating a Theoretical Price (TP), as follows:
Where
SI – Simple Interest
Average theoretical price
The accrued interest and the interest sold are calculated on the average
theoretical purchase price basis. The theoretical average purchase price is
calculated as a classical average
Theoritical Average
Trade date Quantity Purchase Cost Theoretical
Price Price
3/12/2003 1,000,000 94.043297 940,432.97
4/12/2003 500,000 94.030211 470,151.06
4/12/2003 1,500,000 1,410,584.03 94.038935
Average Theoretical Price = Cost/Quanity * 100
Parameterization
In fund master, the valuation method ‘NS01’ (Italian zero coupon valuation, simple
formula) must be parameterized as exception valuation method for the relevant
security types (202 – Zero Coupon Bond).
The field Issue date, Maturity date, Issue price, Price is mandatory in security
master.
EXAMPLE
Purchase Deal on TD & VD 01/01/2010
NAV Date moved to 08/01/2010.
Enter EOD price to 98.30 and run NAV simulation and accounting
Accrued Interest = 3,814.10 EUR = 5,000,000 * (98.08 – 98.00)%
Unrealised Gain on Investment = 4,935.90 EUR = (5,000,000*(98.30 – 98.13)%)

- 3,814.10

– 7,634.10
Sale transaction entered for full position @ 98.70
Realised Gain on Investment = 18,383.65 EUR = (5,000,000*(98.70 – 98.13)%) –

10,366.35
The interest amortized amount 10,366.35 EUR is calculated and posted using fee
code Y0 (if negative) or Y1 (if positive).
Reporting
919 (SDNAU19) Report as on 08/01/2010
Purchase yield in case of a fund using “NS01” valuation method must be

understood as issue yield calculated as per Simple Interest formula.
Issue price is as per security master.
Yield amortization and GL are also calculated using Theoretical price as per
formula.
Calculation
R.5. NC01 Method
NC01 – Italian zero coupon valuation, compund formula has been developed for
Zero bond with a maturity > 1 year.
This valuation method helps:
- To calculate from their respective issue price the issue yield of instruments
held in a portfolio
- To amortize on a day-to-day basis the mentioned issue yield of the
instruments
- The amortization is calculated on a average theoretical price
- To Mark to market on a day-to-day basis the instruments
Calculation formula
At purchase date(value date) of the bond, an issue yield is calculated as follows:
Where
RP – Redemption Price at maturity
IP - Issue Price
N – Days to maturity (from the security issue date to the security maturity date)
J – Number of day in the year depending on the security usance code
This yield will then be used for calculating a Theoretical Price (TP), as follows:
Where
CI – Compound Interest
Average theoretical price
The accrued interest and the interest sold are calculated on the average
theoretical purchase price basis. The theoretical average purchase price is
calculated as a classical average
Theoritical Average
Trade date Quantity Purchase Cost Theoretical
Price Price
3/12/2003 1,000,000 94.043297 940,432.97
4/12/2003 500,000 94.030211 470,151.06
4/12/2003 1,500,000 1,410,584.03 94.038935
Average Theoretical Price = Cost/Quanity * 100
Parameterization
In fund master, the valuation method ‘NC01’ (Italian zero coupon valution,
compund formula) must be parameterized as exception valuation method for the
relevant security types (202 – Zero Coupon Bond).
The field Issue date, Maturity date, Issue price, Price is mandatory in security
master.
EXAMPLE
Purchase Deal on TD & VD 01/01/2010
Issue yield get updated in Security position screen as below
NAV Date moved to 08/01/2010.

- 1,885.40

– 3,772.25
Sale transaction entered for full position @ 98.60
Realised Gain on Investment = 18,629.10 EUR = (5,000,000*(98.60 – 98.13)%) –

5,120.90
The interest amortized amount 5,120.90 EUR is calculated and posted using fee
code Y0 (if negative) or Y1 (if positive).
Reporting
Purchase yield in case of a fund using “NC01” valuation method must be

understood as issue yield calculated as per Compound Interest formula.
Issue price is as per security master.
Yield amortization and GL are also calculated using Theoretical price as per
formula.
Calculation
R.6. Linear Amortization Method
L –Linear Amortization method is used for bond having maturity within 365.
On daily basis, constant unrealised amount is added to NAV calculation until

maturity.
There is no need to input market price at the end of the day. The market price is
calculated automatically by Multifonds by adding accrued interest to the purchase
cost divided by the total quantity.
This method is managed at transaction level i.e, A different contract number will
be used for each new transaction and Each contract will be shown separately in
the NAV report.
Calculation formula
The accrued interest will be calculated using the formula
Where
AI – Accrued Interest
RA – Redemption Amount
PC – Purchase Cost
Vd – Valuation days (=number of days between purchase date and accrual date)
Rd – Maturity days (=number of days between purchase date and maturity date)
For info, the numbers of days are always calculated by using the code usance
1:365/6/365
Multifonds will account the AI calculated on day to day basis.
Parameterization
The valuation method ‘L’ – Linear Amortization must be parameterized at fund

level or at security level as exception valuation method.
EXAMPLE
Create a zero coupon bond as
Purchase 1,000,000@95 on 01/01/2010
Move the date to 02/01/2010

Run NAV simulation and Accounting
Accrued Interest = 561.80 EUR = ((1,000,000 – 950,000)* 1) / 89

Run NAV simulation and Accounting
Accrued Interest = 5,056.18 EUR = ((1,000,000 – 950,000)* 9) / 89
Full sale transaction on 20/01/2010
The realized amount will be posted with fee code 06 (if positive) or 05 (if
negative) on sale.
Reporting
The Issue price is as per security master.

The Market price is calculated after adding accrued interest to purchase cost
dividing by total quantity.
GL in fund currency is the unrealized gain on that particular day.
Calculation
R.7. NY02 – Double Valuation Market to Market + Amortized Cost Method
NY02 – Double Valuation Market to Market + Amortized Cost has been developed
in Multifonds
- To calculate from their respective price the yield to maturity of the
investments held in a portfolio
- To amortize on day-to-day basis the mentioned yield to maturity of the
instruments
- To Mark to Market on a day-to-day basis the instruments
Formula Used
YIELD calculation:
If there is one coupon period or less until redemption, YIELD is calculated as
follows:
Where:
A = Number of days from the beginning of the coupon period to the settlement
date (accrued days), using appropriate usance method for the bond
DSR = Number of days from the settlement date to the redemption date, using
the appropriate day count method for the bond
E = Number of days in the coupon period, using the appropriate day count
method for the bond
Redemption = Redemption Price
Rate = Interest rate for the bond / 100
Par = Purchase Price
Frequency = Frequency of the coupon payment per year
If there is more than one coupon period until redemption, YIELD is calculated
through a hundred iterations The resolution uses the Newton method, based on
the formula used for the Excel function ‘PRICE’. The yield is changed until the
estimated price given the yield is close to price.
The formula to be used for getting price from the Yield:
Clean Price = Dirty Price – (100 * Rate / Frequency * A/E
Where
Redemption = Redemption Price
Frequency = Coupon payment frequency in a year
DSC = Number of days from settlement to next coupon date, using the
appropriate day count method for the bond
E = Number of days in coupon period in which the settlement date falls, using the
appropriate day count method for the bond
N = Number of coupons payable between settlement date and redemption date
Rate = Interest rate of the bond / 100
‘k – Number of coupons to be paid till the maturity of the bonds
A = Number of days from the beginning of the coupon period to the settlement
date (accrued days), using the appropriate usance method for the bond
AVERAGE YIELD calculation

The NY02 valuation method computes the average yield using the below formula
at the time of additional purchase: -
Σ (Purchase nominal x Purchase Yield) / Σ Purchase nominal
The new weighted average yield would be used from VD + 1 for

amortization calculation.
Parameterization
The valuation method ‘NY02’ – Double Valuation Market to Market + Amortized

Cost must be parameterized at fund level or at security level as exception
valuation method.
The unrealised G/L on yield amortization will be driven by the NAV code 941
The unrealised G/L on investments will be driven by the NAV code 919
The unrealised G/L on exchange rate will be driven by the NAV code 920
The interest accrual on bond will be driven by the NAV code 900
The fee codes Y2 and Y3 will drive the realized yield amortization when a sale is
booked. When sale is booked, the up-to-date yield amortization which is an
unrealized G/L on yield becomes a realized G/L on yield.
Example
Create a floating rate bond with quarterly coupon frequency
Set up interest rate 4.25% for the period 01/01/2009 to 31/03/2009
Purchased 100,000@98 on 10/02/2009
Now the yield computed using NY02 method will be 6.582425%
Further, Additional purchase 50,000@98.70 on 14/02/2009
Calculation of Average yield on 14/02/2009 due additional purchase date:

100,000 units at the yield of 6.582425 = 6,582.425
50,000 units at the yield of 5.777310 = 2,888.655
Total = 9,471.09
Average Yield = 9,471.09 / 150,000 = 6.314053

This new average yield will be used for calculating amortization from next date.
Reporting
919 (SDNAU19) Report on 10/02/2009
919 (SDNAU19) Report on 15/02/2009
On 15/02/2009 onwards, the MultiFonds uses calculated average yield 6.314054

for amortization.
SDPOR07 Portfolio Report on 15/02/2009
R.8. NY02 – Effective Yield Method
NY02 – Effective Yield Method in Multifonds enable to recompute the Effective

Yield during
- Interest Rate Change
- Additional Purchases
The effective yield will be recomputed based on the occurrence of the above two
events to have a smooth yield curve without any huge fluctuations in the
amortization computations.
This method is applicable to

- Floating Rate Instruments (Income type ‘3’)
- Mortgage backed securities (Income type ‘3’)
- Fixed Rate Bonds (Income type ‘2’)
The yield and amortization computation will be the same as NY02 unless there is a
rate change or a new purchase transaction.
In this method, for calculation of effective yield the following will be considered at
the time of Rate change:
(i) The “PRICE” in the yield formula would be Amortised Book Cost in deal
currency as on the effective date of rate change -1.
(ii) The “Interest rate” in the effective yield computation would be the new
interest rate.
The amortization calculation would use the new effective yield calculated based on
the above two points and the new coupon rate.
The effective yield will be calculated at the time of Additional Purchases as

follows:
a. In case of funds without any accrual method defined in fund master
The weighted average price for effective yield computation will be computed as
follows:
(Amortized cost as on trade date -1 of subsequent purchase + Book cost of

subsequent purchase) / Quantity of shares in portfolio
The above weighted average price will be used to compute the effective yield as
of trade date of subsequent purchase.
b. In case of funds with accrual method ‘2’ / accrual method ‘4’ (income
smoothing)
The weighted average price for effective yield computation will be computed as
follows:
(Amortized cost as on trade date -2 of subsequent purchase + Book cost of

subsequent purchase) / Quantity of shares in portfolio
The above weighted average price will be used to compute the effective yield as
of trade date of subsequent purchase.
The effective yield enhancement will be applicable the funds using average
accounting (A) only.
This new effective yield functionality will work with Cambio “Y”, “A” and “C”
This new effective yield calculation will work during book cost impairment.
When the new field at the fund level “Effective Yield” is set to 1, the system
automatically will trigger an adjustment transaction (operation code 108 – book
cost adjustment) with 0 quantity & 0 amount by rolling the fund accounting date if
there is an interest rate change for the security having position in the fund. Due to
this transaction, the new yield will be calculated based on previous amortized cost
of the position (as on interest rate change day – 1day) and the new floating rate
for yield computation. The trade date and value date of this transaction will be
effective date of the interest rate change.
Parameterization
A new field “Effective Yield” has been created at fund level to enable effective
yield recompuation.
If effective yield is set to “0”, then the existing NY02 formula will apply for the
yield.
If the effective yield is set to “1”, then the new effective yield formula will apply.
Note: The Effective yield enhancement will work only “NY02” parameterization at
fund level as per existing parameterization.
The unrealised amortization amount is booked through NAV code ‘941’. This
amortization is calculated & booked on value date + 1.
The unrealised gain or loss on investment is booked through NAV code ‘919’
The interest accrual amount is booked through NAV code ‘900’
EXAMPLE
Create a floating rate bond with quarterly payment frequency
Interest for the different period is defined as below
Purchased 100,000@98 on 10/02/2009
New Additional purchase 50,000@98.70 on 14/02/2009
Calculation of Weighted average amortized price on 14/02/2009 (on additional
purchase date):
Weighted average amortized price =

(Accumulated amortized book cost / Accumulated holdings) * 100
Accumulated amortized book cost =

Amortized book cost as on TD – 1 + Book cost of additional purchase.
Accumulated amortized book cost = 98,018.17 + 49,350.00

= 147,368.17
Weighted average amortized Price = (147,368.17 / 150,000) * 100

= 98.2454467
The new effective yield (6.318081) calculated on 14/02/2009 will be based on the
price 98.2454467.
Note: On additional purchase trade date, the amortization is calculated for the old
position based on the old yield and not based on recomputed effective yield.
The amortization computation will be considered the new computed effective yield
from value date + 1 of new purchase.
On 18/02/2009, new interest rate for the period has been added to the security
FAD rolled to 19/02/2009.
When the FAD is rolled to 19/02/2009, the system automatically trigger a coupon
payment entry as well as a book cost adjustment entry transaction with ‘0’
quantity & ‘0’ amount. (The effective yield will be recomputed due to the rate
change)
Note: Book cost adjustment entry will be booked only if there is rate change.
Due to the above entry, there will not be any impact in GL. As the interest rate
updation is a global event, hence it is triggering a transaction at the fund level for
the recomputation of effective yield by fund/position.
On 19/02/2009, Yield of 6.8298.1 is recomputed based on new interest rate of

4.75%, Amortized price on rate change effective date – 1day (98.267043)
Calculation of Weighted average amortized price (On 19/02/2009 Rate change

date):
Weighted average amortized price =

(Accumulated amortized book cost in deal currency as on the effective date
of Rate change - 1/ Quantity of security in Portfolio) * 100
Accumulated amortized book cost

(On rate change -1) = 147,400.56
Weighted average amortized Price = (147,400.56 / 150,000) * 100

= 98.267043
Reporting
919 (SDNAU19) Report on 10/02/2009
919 (SDNAU19) Report on 14/02/2009
919 (SDNAU19) Report on 19/02/2009
SDPOR07 Portfolio Report on 20/02/2009
R.9. NY01 – Double Valuation Market to Market + Yield Method
NY01 – Double Valuation Market to Market + Yield has been developed in

Multifonds
- To calculate from their respective price the yield to maturity of the
investments held in a portfolio
- To amortize on day-to-day basis the mentioned yield to maturity of the
instruments
- To Mark to Market on a day-to-day basis the instruments
But all the above calculation are maintained at contract level. Since, yields are
maintained at contract level, this method is also termed as constant yield
amortization method.
Parameterization
The valuation method ‘NY01’ – Double Valution Market to Market + Yield must be
parameterized at fund level or at security level as exception valuation method.
The unrealised amortization amount is booked through NAV code ‘921’. This
The interest accrual amount is booked through NAV code ‘900’
The fee codes Y0 (if negative) and Y1 (if positive) will drive the realized yield
amortization when a sale is booked.
Yield at Contract level
Reporting
919 (SDNAU19) Report on 15/02/2009
The reports show the yield reflected for each contract separately.
R.10. CP01 – Yield and Market to Market (Calculated) Method
CP01 – Yield and Market to Market (Calculated) has been developed in Multifonds
- To evaluate commercial papers, zero coupon bonds based on a yield
calculated by interpolation (Inter polated rates)
- To amortize the difference value between the maturity value and the
purchase cost of commercial paper/zero coupon bonds till the maturity
This method is applied to commercial papers and zero coupon bonds which are
issued at a discount to their face value. This method uses the interpolated rates
and the spread to arrive at the market price of the security. This market price is
evaluated against the purchase price plus the amortization accrued till the NAV
date. The amortization calculated is based on a purchase yield that is calculated at
the time of purchase.
Multifonds calculates the amortization and the market price only till the maturity
date. The system stops amortizing the security after the maturity date.
Calculation formula
Purchase Yield
Purchase Yield = ( Purchased Nominal / Purchased Amount ) – 1

----------------------------------------------------------------- X 100
( No of Days between VD and MD / Basis )
Where
VD = Value date and MD = Maturity date
Basis = Calculation Basis
Yield Amortization
Yield Amortization = (Purchased Amount X Purchase Yield) X No of Days betw VD

& NAV Date
--------------------------------------------------------------------------
------------------------
Basis
Market Value
Market Value = Purchased Nominal

--------------------------------------------------------------------------
------------------------
1 + (Interpolated Rates + Spread)
---------------------------------------- X No of Days between
MD & NAV Date
Basis X 100
Where
Spread is the spread defined for depository used in FDCOR05 screen.
Total Unrealised P/L = Market Value – Purchased Amount – Yield Amortization
Parameterization
The valuation method ‘CP01’ – Yield and Market to Market (Calculated) must be
parameterized at fund level or at security level as exception valuation method.
The yield amortization amount is booked through NAV code ‘921’. This
Example
Create a commercial paper security as below
Create a group ‘ADE ‘ under GROUP_CHANGE and TYP_TAUX message table and
attach ADE in Group exch. Rate M.F. field of fund Parameter FDPTF02 screen.
Define forward interest rate for the interest type ADE for the day 04/03/2009 for
the 9MD & 1YD maturity code.
Purchase 1,000,000 qty at discount price of 96.00 on 03/03/2009
Check the Yield calculated and stored under 'Yield 2' in FDPOT01 screen
Purchase Yield = ( Purchased Nominal / Purchased Amount ) – 1

----------------------------------------------------------------- X 100
( No of Days between VD and MD / Basis )
= ( 1,000,000 – 960,000 ) – 1
------------------------------------ X 100 % = 5.002741%
( 304 / 365 )
Simulate and run NAV accounting for the day 03/03/2009

The amortization will begin from value date + 1. Roll the FAD to 04/03/2009
Simulate and run NAV accounting for the day 04/03/2009
Yield Amortization = (Purchased Amount X Purchase Yield) X No of Days betw VD
& NAV Date
--------------------------------------------------------------------------
------------------------
Basis
= ( 960,000 X 5.002741 ) X 1
----------------------------------- = 131.58 (921 NAV code
entry)
365
Market Value = Purchased Nominal

--------------------------------------------------------------------------
------------------------
1 + (Interpolated Rates + Spread)
---------------------------------------- X No of Days between
MD & NAV Date
Basis X 100
= 1,000,000
----------------------------------------------- = 948,156.37
1 + (6.336667 + 0.25)
------------------------- X 303
365 X 100
Total Unrealised P/L = Market Value – Purchased Amount – Yield Amortization
= 948,156.37 – 960,000 - 131.58

= - 11,975.21 (919 NAV code entry)
Reporting
919 (SDNAU19) Report on 04/03/2009
Yield amortization (131.58) amount and unrealized P/ L (-11,975.21) amount are

reflected in revaluation report for the day 04/03/2009.
S. MULTI MANAGER
Multifonds facilitate the functionality of Multi manager. Multifonds is able to book

any transactions by manager and to produce any specific reports sorted by
manager.
S.1. Parameter :
Central register set up:

Path: Static data  Central register.
Fund set up:

Path: Static data  Fund  Create / Edit.
Manager set up:
Path: Static data  Fund  Manager Button.
S.2. Example :
On FAD of 1-Jan-2010:
Cap stock transaction:
Accounting entry:
Stock transaction:
Accounting entry:
Accounting entry:
Price updating:
NAV simulated and accounted.
NA entry:
NA entry will be booked by manager as shown above.
S.3. Reports:
Balance sheet /List
Portfolio report by manager:
T. ASSET POOLING
An investment strategy that aims to balance risk and reward by apportioning a

portfolio’s assets according to goals, risk and investment horizon. Multifonds
facilitate the asset pooling functionality.
2 method of Asset pooling;

 Automatic pooling.
 Manual pooling.
Method used is defined in pool master and same will be applicable for all the funds
in such pooling structure.
T.1. Structure:
VMG104
Sub fund
VMG102 VMG103
Pool 1 Pool 2
T.2. Parameter
Definition of the Pool units (CMESS table – TPARTS):
Definition of Security Type (CMESS table – GTI):
Definition of Security representing the pool units:
‘Calc type’ should be PO’.
Definition of third party representing the Pool subscriber:
Definition of Group of Pools entity (Master fund):
This is the link b/w the sub funds or the funds and the Pool. No transactions done
in this fund.
Type of fund;
8 – Manual Pooling.
7 – Automatic Pooling.
Definition of the Pools:
Link the Master

fund with the
Pool Fund
Share value:
Multiclass:
Definition of Sub funds or Funds participating in Pool:
Share Value:
Multiclass:
Allocation percentage defined in the Pooling button of Fund participating in Pool:
Setting of Initial value for Pool units (Unit Multiclass definition):
Definition of Counterparty Account:
This is done to deconsolidate (Drill down) the Profit & loss entries generated in
Pools.
Definition of the equivalence b/w the P& l accounts of Pool and the P& l accounts
of the sub funds Chart by chart:
Pool chart is defined on the left side and Sub fund on the right side.
Definition of Multiclass Account links:

Pool Fund – VMG102
Pool Fund – VMG103
Sub Fund – VMG104
Accounts linked in the pool funds must linked with the Sub fund to get the ND
entry generated.
Definition of Accounting method:
Service code for fund @@@ need to be defined with accounting method ‘A’ for
particular chart. This is done to ensure that the sub/red is properly accounted into
the pool fund.
T.3. Example
On FAD of 1-Jan-2010:
Subscription done in Sub fund – VMG104;
Effects of Subscription in Sub fund:
Daily movement:
AC transaction created for subscription done.

PO transaction created for the Increase in the Pooling transaction.
Increase/Decrease transaction booked in the Sub fund with the service code (PO):
Allocation/Investment of Sub fund – VMG102 in Pool 1 – VMG102;
Accounting entry:
Allocation/Investment of Sub fund – VMG102 in Pool 2 – VMG103;
Accounting entry:
Effects of Subscription in Pool fund:
Pool 1 – VMG102:
Pool 2 – VMG103:
Transactions in Pool funds:
Equity – 32261 mkt. price updated at 14 & Coupon Bond – 32262 mkt. price
updated at 99%.
NAV process:
NAV simulation and accounting for pool funds:
Evaluation of the Pools:

NAV  NAV  Pool price historical:
F10 for validating.
NAV simulation and accounting of Sub fund – VMG104.
NAV accounting in a fund participating in Pool will have the following
consequences:
 NA entry: Generation of standard NA entry for all the unrealized

investments are held in the recorded fund at NAV level. This entry will be
automatically reversed when next NAV is processed.
 Special ND entry: Recording of NAV accrual entry of all the unrealized

results related to the pool positions. This entry is not automatically
reversed with next NAV processing.
The reversal of such transaction is possible only in FDHMT01 Form:

Path: Deals  Account movement  Entry list:
Path: Deals  Account movement
ND entry in Sub fund 1 – VMG104:

Accounting details;
NA entry in Sub fund 1 – VMG104:

Accounting details;
T.4. Reports
SDPOR07 report generation:
Path: Valuation  List of Fund valuation:
If this ‘Include underlying pools’ is ticked - Deconsolidated report is generated and

if unticked – Consolidated report is generated.
Following is the deconsolidated report:
Following is the consolidated report:
T.5. Pooling enhancements- Underlying Requirement
The aim of the enhancements made in version 3.60 regarding pooling are:
- To simplify the set up needed by reducing the number of share class to open
- to cope with depositary workflow that allows subscriptions / redemption in
foreign currencies
So in summary, make the pooling functionality within MF more flexible.
T.6. Parameterization in MF
T.6.1 Pool type
There is new code “E” has been included in the field “Pool type”. The new code
“E” is to be included in the message table TYPE_POOL.
The Pool type ‘E’ to be parameterized at fund level for Master Fund as well as Pool
Funds.
This field remains the same for the entire pooling structure (ie Pools + Master
Pool)
T.6.2 Subscription / redemption type
There are new codes “2” and “3” that have been included in the field “Pool
Sub./Red”.
Note that code 3 will enable subscription / redemption settling in any currencies at
fund level
The Pool Sub/Red ‘2’ or ‘3’ is to be parameterized at fund level for all the funds
involved in the pooling structure (Pool funds as well as Sub funds) :
The above field will manage the settlement currency in following transactions:
 The subscription/redemption at sub-fund level.

 The manual/automatic increase/decrease at sub-fund level.
 The automatic subscription/redemption at pool level.
The settlement currency will be the same in those above transactions regardless
of the base currency of pool fund.
The settlement currency for the subscription/redemption booked at sub-fund level

will drive the settlement currency for the automatic increase/decrease transactions
at sub-fund level and the subscription/redemption at pool fund level
In case of reallocation managed through FDPOL02 screen, if an increase/decrease

is booked at sub-fund level, then the settlement currency of this trade will drive
the settlement currency of the automatic subscription/redemption booked at pool
level.
See below explanatory diagram :
T.6.3 Definition of managers
Managers will be defined at sub-fund and pool level to handle :

 The link from sub-fund to pool for the sub/red and inc/dec transactions.
 The link from pool to sub-fund for the replication of profit and loss
accounts.
The Manager code of the sub-fund should be same as the manager code of the
pool funds.
Pool fund manager
One manager will be defined per pool :
Managers parameterised at POOL level must correspond to managers linked to
sub-funds.
Sub-fund Managers :
 A percentage will be allocated for each manager. The percentage will

drive the allocation for the automatic increase/decrease transactions
and the automatic subscription/redemption transactions generated at
pool level.
 A “Pool fund manager” will be allocated for each manager.
Note that exclusive managers can be defined at sub fund level. The exclusive
managers are not linked to pool-fund managers.
T.6.4 Share value definition
At Pool-fund level :
Pool PO01 :
Pool PO02 :
At pool level, user will create one share class for each sub-fund. The sub-fund will
be defined in the button “share value”. Also it is noted that the column “sub share
type” will be blank. The set up is thus simplified compared to a standard
automatic pooling structure, thanks to the use of managers
At Sub-fund level :
It is noted that the column “sub fund and share type” will be blank
T.6.5 Pooling definition
Path: Fund definition  Edit  Pooling button (At Sub-fund level)
The above screen should be defined with the allocation percentages which should
be same as the manager allocation percentages.
Note that the total of the ‘subscription %’ and ‘redemption %’ can be inferior to
100%. In this case, the non-allocated portion cash will stay at sub-fund level.
Note: Other general parameters to be defined as per existing pooling functionality.
T.7. Processing
The same workflow that is used for standard pooling structures can be used for
this flexible pooling structure :
 Input of subs/ reds at sub fund level

 Automatic increase at pool level
 Transaction processing at pool / fund level
 Pricing at pool / fund
 NAV simulation / accounting at pool level
 Pool price validation at fund level
 NAV simulation accounting at fund level
 Confirmation / Validation at pool / fund level
One new feature is however the fact that the manager code is automatically called
in increase / decrease transaction upon input of the relevant pool :
NEW CONTROL :
(1) If no manager code is attached at pool level
or
(2) if the user attempts to override the proposed
manager in FDPOL02 screen
The following blocking error messages will pop up :
(1)
(2)
T.8. Reporting
The same reports used for standard pooling structures can be used for this flexible
pooling structure (ie SDNAV45, SDPOR07 for example). There are no new reports
involved
Same goes for Infocenter table (with AMS_HIST_PTF_VAL_POOL for example)
T.9. Loading interface
The increase / decrease transactions can already be sent via our transactional
interface.
However, the same blocking warning messages described in the previous section
will also be triggered upon increase / decrease transactions sent via interface, if
same conditions are not met
The manager links in FDPTF08 screen can also be uploaded using the
PTF_MNGR_CTL loader
T.10. Flexible pooling structures
1) Define the following pooling structure, with the option to be able to

settle subscription / redemptions in any currency :
With the following base currencies :

Pool 1 : USD
Pool 2 : EUR
Fund A : EUR
Fund B : GBP
Initialize all pool unit price at 10,-
2) FAD : 01-Jan-2010 : Enter initial subscription in Fund A: 50’000

shares at 100 EUR, settling in CHF
Enter initial subscription in Fund B : 25’000 shares at 100 GBP,
settling in CAD
Verify manager code in the accounting entries
Verify correct increase in the various pools.

Verify increase is settling in the same currency as the subscriptions,
with correct exchange rate
Verify correct manager code associated to the increase
3) At pool level : verify subscriptions coming from the funds. Verify also
that they are settling in the same currency, with same exchange rate
as the increase. Verify manager code linked to the subscription
4) Run daily workflow as described under A3 : Buy two equity (ACCOR

and APPLE) in the Equity pool 1 and two bond (AXA 3.25% and
TEXACO 4%) in the Bond pool 2
5) Attempt to book a decrease on fund B with Pool 1 and verify correct

automatic display of relevant manager
6) Attempt to modify the manager to a new one and verify warning

message received
7) Run NAV sim/ acc. for all structure.
8) Move FAD to 04-jan-2010. Enter a redemption on fund A (4’700

shares) settling in foreign currency (HKD)
Verify manager code in the accounting entries
Verify correct decrease in the various pools.
Verify decrease is settling in the same currency as the redemptions,
with correct exchange rate.
Verify correct manager code associated to the decrease
9) At pool level : verify redemptions coming from the fund. Verify also
that they are settling in the same currency, with same exchange rate
as the decrease. Verify manager code linked to the redemption
10) Unlink manager from pool 1 and attempt to book an increase from
fund B into Pool 1 and verify correct display of relevant warning
message
11) Add a new manager code (#23) to fund B (manually or via interface
using the PTF_MNGR_CTL loader) with effective date 04-jan-2010 and
modify the asset mix accordingly to 45 / 50 / 5. This manager will be
exclusive, ie it will not be linked to any pool
12) Modify the pooling screen (FDPTF09) accordingly for the two pools
(45 / 50)
13) Make a new subscription into fund B (7’000 shares) and verify correct
increase in the various pools and correct manager code associated to
the decrease. Verify also manager codes in the accounting entries
14) At pool level : verify subscription coming from the fund. Verify
manager code linked to the redemption
15) Run daily workflow as described under A3 : Sale part of APPLE in the
Equity pool 1
16) Run NAV sim/acc. for all structure.
17) Modify a security price and rerun the NAV simulation / accounting for
the same day : check that the ND entry is well automatically reversed.
U. SEGMENT MASTER
Multifonds facilitate the functionality of Segment master fund structure.
It allows the institutional investors to create its own fund  Legal entity. The sub
funds or the segments linked to master are transparent to the outside world.
It gives institutional investors the flexibility to follow different investment

strategies and to compare the performance amongst the segments.
All transactions of a Segment master fund structure are done in Segment funds
and automatically duplicated into the master fund.
U.1. Parameter :
Master fund set up:
Segment fund set up:
Parameterzing the Mater fund to segment funds:
Same way another segment fund – VMGSF2 is created.

All the segments linked to master can be viewed in the master fund under the
field ‘Funds Linked’;
Duplication parameter:
Duplication of deal parameters are set in the form FDPTF14.

Path: Manager  Transactions  Segment Fund Paramater:
Duplication flag;
Y: Duplication between the Segment and master fund only in Multifonds.
A: Duplication between the Segment and master funds + Front end.
I: Duplication only from Front end. The transactions inserted in Multifonds are not
duplicated.
NAV controls:
Control for check on Sum of all segment NAV’s is equal to the Total net asset
value of the Master fund – 0107 control type:
U.2. Example:
On FAD of 1-Jan-2010, Subscription done in Segment funds:
Segment fund 1 – VMGSF1:
Replication of the same in Master fund – VMGMF1:
Stock transactions done in Segment fund 1 – VMGSF1:
Stock transactions done in Segment fund 2 – VMGSF2:
Replication of the same in Master fund – VMGMF1:
Link between the Master and segment fund deal can be found in the form
FDNEC02:
Path: Interface  Migration  Master Sub fund transaction links:
 Def. master: This will allow user to see the deal that was duplicated from
the segment with the respective accounting entry.
 Def. sub fund: This will allow the user to see the original transaction input
at the segment level with the corresponding accounting entries.
This is necessary for handling the reversal cases, where the reversal at segment
level automatically triggers the reversal at master level.
Price updated in Master Fund – VMGMF1:
Price updated in Segment fund 1 – VMGSF1:
Price updated in Segment fund 2 – VMGSF2:
Here the market price updated for segment fund and master funds are indifferent
leading to mismatch in the portfolio value and inturn leading to mismatch in the
NAV value between sum of segment funds NAV and Total NAV of Mater fund.
NAV simulation & Accounted for Segment funds:
Blocking message for Master fund: NAV of VMGMF1 cannot be calculated as the
NAV of VMGSF1 is not yet accounted: 01/01/2010.
This is due to “Segment Master Fund acc.” Field flagged at Application level.
NAV simulation for Master fund:
SDNAV10 – NAV log report:
NAV accounting for Master Fund.
Note: NA entry will not be replicated from segment to master. It will be handled
independently.
NA entries:
Master fund – VMGMF1:
V. NAV TYPES
V.1. NAV type ‘B’
It’s possible that some trades are not accounted on proper dates and only get
accounted at a later date. In all such cases, the NAV for the current day has to be
calculated while taken into account the impact of all such back dated trades. The
idea behind back value NAV is to calculate a NAV as if all such back dated trades
were entered properly in the system on their respective dates. Back value NAV can
also reinstate an earlier NAV to take into account back dated trades which were
missed earlier but accounted subsequently.
Parameters
 Use 1 in Auto NAV field. Enables the system to generate automatically an

Official NAV simulation and accounting based on the calendar at fund
accounting date change.
 Define the fund calendar with required frequency so that the system will
automatically process an Official NAV at defined frequencies at the fund
accounting date change.
 Use settlement method 8 (Automatic maturity) so that transactions entries

are always accounted using payable or receivable accounts. Refer to Ad
hoc documentation on this new settlement method.
 Accounting method should be set to ‘A’ average
 Use type of NAV B for back value.
 At the very beginning of the fund life, the system needs 2 Official
accounted NAV ’ s (referred to later as technical NAV) so that the Back
value logic can work properly. When the fund set up is be saved, a
warning message is displayed to inform the user that the 2 official
accounted NAVs are required:
 It is recommended to set up the first fund accounting date 2 days prior to
the fund creation date (or migration date). These first 2 officials NAV’s
(technical NAV’s) can be simulated and accounted with no transaction at
all in the fund nor any pricing of security or of forward.
 These NAV’s are only necessary to initialize the NAV movement
EXAMPLE NAV TYPE ‘B’
BACDIV is a fund where we want to have daily back value NAV from 1.1.2008.
First we need to have two technical NAV, so we have our fund accounting date set
to 30.12.2007
We will cut the NAV for 30.12.2007 and 31.12.2007 without any transaction. Two
technical NAV will be generated as below:
Now we will parameterize our fund master for daily back value fund as below.
Auto NAV is set to 1
NAV Type is parameterized as ‘B’.
Fund Level Calendar is parameterized with frequency code 0010 for daily. Date
type is set to 1 for NAV to be cut for following day is it’s a Holiday. LU denotes
that we will be following Luxembourg calendar for determining a holiday. As soon
as we put the current date and press calculate we see next theoretical NAV date
as 01.01.2008. This means as and when we move FAD to 1.1.2008 , a technical
NAV will be generated.
FAD is moved to 1.1.2008
As soon as FAD is moved, we can see a technical NAV generated for 1.1.2008.
This is because of daily frequency set up in calendar as above.
BO for security id 111222002
100000 units purchased @ EUR 11 each with TD/VD as 1.1.2008
End of day stock Price updated for fund as EUR 11.75
We have setup dividend payment with entitlement date of 2.1.2008, Trade date
and execution date 3.1.2008 and Value date of 3.1.2008 for dividend of EUR .25
per unit.
NAV for 1.1.2008 reinstate using NAV Type B.

919 generated for the day.
FAD moved to 2.1.2008.
FAD moved to 3.1.2008
We can see the below dividend payment entry on 3.1.2008
SDCOU06 Dividend Report is as below
919 report for the day
FAD moved to 4.1.2008
A back value trade of Security id 111222002 purchased @ Eur 10.50 is entered

with TD/VD 1.1.2008
End of day stock price for fund updated as EUR 12.15
B NAV is cut for the day.

919 report for the day.
Reinstating the NAV for 1.1.2008:
Simulation with NAV Type B and date as 1.1.2008.
After accounting, 919 reports are generated as below:
So we can see that NAV Report for 1.1.2008 has been reinstated.
We also reinstate the NAV for 3.1.2008
Reinstated SDCOU06
We also see that MF has reversed the earlier dividend entry
New dividend entry while taking into account the back dated trade is passed.
So NAV Type B needs to have a technical NAV before reinstating. Essentially B

Type NAV overwrites an existing NAV, so we set a calendar to generate an
automatic NAV generate just after rolling the FAD. Later on , B type NAV can
reinstate this NAV with any back dated transaction belonging to this date.
V.2. NAV type ‘RB’
NAV Type ‘RB’ supports NAV Reinstatement functionality. To run NAV

Restatement, a new processes ‘RS’ has to be defined in CMESS table ‘Process’.
The process name should be RS% in below screen shot, Restatement process
has been defined as ‘RS2’
User can define the number of days the NAV in the filed Num. Period in FDNAV54
for which the NAV should be restated. NAV Restatement process would restate
previous NAV’s based upon:-
Oldest transaction posted with back trade date during current official NAV
OR
Num. of periods defined in field ‘Num. Periods’ for RS process, whichever is less.
We also need two technical NAV for NAV Type RB like we need it for NAV Type B.
While using Lot accounting, RB is also reassigns the Lot no. in case of a back
dated trade. If we have missed the second lot out of five lots and we are
accounting second lot as a back dated transaction, the lot which was missed not
accounted earlier will be assigned a lot no. greater than the Lots which have value
date after this trade.
Example of NAV TYPE RB
NAVRB is a back value fund with NAV Type RB. To setup the back value
parameters, we need to generate two technical NAV’s before starting the fund
operations.
We have kept the FAD as 30.12.2007 and cut the NAV on 30.12.2007 and
31.12.2007 without any transactions.
Once we have two technical NAV’s generated, we will parameterize the Fund
Master with AUTO NAV ‘1’ and calendar button as below.
NAV group NGP linked to the fund
NAV Group parameterized in Process parameters for NA1 process with Back value
NAV restatement and RS process for restating the previous NAV based on the
conditions discussed above.
Move the FAD to 01-01-2008 (Tuesday)
100000 units of Security Id 111222005 Purchased @ EUR 10Each with TD/VD 01-
01-2008.
We can see that Lot has been allotted contract no. 00001.
NAV cut for the day.
SDPOR07 for the checked.
FAD moved to 2-01-2008(Wednesday)
No trade entered for the day. SDPOR07 for the day is same as SDPOR07 for the
previous day 01-01-2008.
FAD moved to 3-01-2008 (Thursday)
125000 units of Security id 111222005 purchased @ EUR 11 with TD/VD 03-01-

2008.
We can see that Lot has been allotted contract no.00002
NAV cut for the day
SDPOR07 checked for the day.
FAD moved to 04-01-2008 (Friday)

NAV cut for the day.
Since we don’t have transaction for the day, SDPOR07 is same as SDPOR07 for
03-01-2008.
SDPOR as on 4-1-2008
FAD Moved to 07-1-2008 (Monday)

2008.
NAV Cut for the day.
SDPOR as on 7-1-2008
FAD moved to 08-01-2008 (Tuesday)

2008.
SDPOR for 8-1-2008
FAD Moved to 9-01-2009 (Wednesday)
2008.
We can see that this lot has the contract No. 00005
SDPOR07 of 9-1- 2008
FAD moved to 10-01-2008
Back dated trade for Security Id 111222005 booked for TD/VD 2-1-2008
Also, a back dated trade booked for TD/VD 4.1.2008
Reversal and rebooking after booking after the above back dated trades.
NAV cut for the day
Reinstatement process RS2 Simulated to reinstate the NAV for lower of below
5 previous NAV’s.(As parameterized in Process parameters for RS2 process) or,

Earliest Back dated trade (02-01-2008).
FDNAV16 checked for the reinstated NAV.
We can see that NAV has only been reinstated for 5 days from 04-01-2008 to 10-
01-2008.
SDPOR07 checked for the day.
We can see that lot numbers have been reassigned after back dated trades.
W. INTERFACE
Interface - Injecting the external data into the Multifonds by setting up of

required equivalence depending on the type of the data to be
interfaced.
Data file:
External data flows into the Multifonds in the form of data files.
There are two types of interface files.

Interface files can either be prepared as Position file or Comma delimited file.
Position File- interface file i.e., data file have a fixed format for postions of
fields.
For eg—File for BO TRANSACTION
Comma Delimited File For data file the sequence is fixed all the fields are
separated by;
For eg File for Security MASTER
Loader:
Loader to be used to load the data file is based on the nature of the
data to be injected into the Multifonds.
Interface Loader Loader
In this screen we have to select the loader depending on the type of

file. Make sure file is named without any special characters and spaces.
Once the file is selected, it can be edited by clicking on edit file button
and injected by Inject file button.
Control file:
Control file monitors the lay out or schema of the data files. There are different
control files based on the nature of the data to be injected into the Multifonds.
Path Interface loader parameters
For eg VAL Loader
Interface of static data:

Fund Master Creation:
Loader - Loader- Portfolio loader
Example of Portfolio loader file:
Updating Exchange rate:

Loader – Ex_rate
Example of Ex_rate file:
Group Exchange rate
Security Master Creation:
Loader – VAL
Example of VAL file:
In case of security master creation the equivalence need to be maintained in the

screens ‘On security codes” and “Decision Table”.
On security codes:
Interface Equivalence On securities code
The following fields in the security master table (VALEURS) are available for
equivalent code maintenance.
Field Field name CMESS table
GTI code CGTI GTI
Evaluation Type TEVALUATION EVAL
Fee Type FFEES CHRVNI
Income Type TREVENU REVENUS
Usance Code CUSANCE CUSANCE
Coupon Frequency CFREQCOUP FREQUENCE
Calculation Type CCALCUL TYPECALCUL
Sector SCO SCO
Report Code CODE_RAPPORT RAPPORT
Price Origin CORC ORIGCOURS
Currency CMONCOTA MONNAIES
Country CPAYSVAL PAYS
Guarantor CGARANTIE COD_GARANT
Instrument Code CINSTRUMENT COD_INSTR
Interest Type CTXFLT TYP_TAUX
Local Code COTLOCALE COT_IML
Stock Exchange CPLACE PLACES
Decision Table:
Interface Equivalence Decision Table
The Decision table has been designed to generate MultiFonds codes based on a
number of source codes from which the MultiFonds codes can be derived.
MultiFonds codes need to be derived from the following source information:

· Report Code
· Internal Category
· Interest Calculation Type
· Country Code
Interface of Transactions:
Loader – TRANSAC
Example of TRANSAC file:
For interfacing transactions user need to maintain the equivalence in below

mentioned two screens.
Accounting link:
Path: Interface  Parameters  Accounting link
The parameters set under the columns “Reprise” and “Interface” only act as
default values in case the migration or interface source files do not contain such
information. Also note, that generic rules can be set for all funds (with the fund
column being blank) and exceptions may be defined on a fund by fund basis for
specific transaction types only.
Data management:
Path: Interface  Parameters  Data management
This screen allows to define whether equivalent codes are to be used or not (all
column under the heading “Equivalence”). In addition, transaction related data
may be treated in different ways. Parameters will have to be set accordingly.
Each parameter may be defined for the migration (“rep”) and for standard
transaction interfacing (“Int”).
The parameters to be defined refer to the following service codes only: CO, BO,
DP, EM, TD, FX, FS, CH, CP, and AC. Also note that generic rules can be set for all
funds (with the fund column being blank) and exceptions may be defined on a
fund by fund basis for specific transaction types only.
Equivalence - Fund codes:

Path: Interface  Equivalences  Fund codes
This equivalence table is used to define a fund code matching table between an
external source system and MultiFonds. The table will be used for migration as
well as for interface purposes where interface specific parameters have been
added to this screen.
If the field ‘Auto acc.’ is set as ‘Y’ then as soon as interface file is loaded it will get
accounted automatically. If the field ‘Auto acc.’ is set as ‘N’ then the user has to
account the transaction in the ‘Transaction Processing state’ screen.
Transaction processing state:
Path: Interface Transactions  Processing state
Interface of Prices:
Loader – SEC_PRICE_MF
Example of SEC_PRICE_MF file:
Inserts field:

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MULTIFONDS TRAINING

On the fly creation of new security types (e.g., Inflation adjusted

Flat file , XML , Swift Format Over 900 pre-defined reports

Web based GUI

MultiFonds Functional Architecture

Parameter driven: security types, accounting schemes

GUI: Drop down Menus:

In case of no results returned by the

F8 To run the query after you input the criteria

To show the list of value available for the

F6 To insert a record in a table

To copy the field from the previous record and

As long as you did not save it (F10), a

F10 To save the changes

Tip: To find back a screen description, from its id. Code:

User time and time zone:

 Note also date formatting convention : US or European, depending on the

Application parameters, as the name suggests are parameters defined at an

Path: Static Data  Param

C.1. Impact of parameter change

Access to MultiFonds application parameters should be restricted to system

C.2. Hierarchy of parameters

Multifond recognizes parameters in the following hierarchy:

1. Application Currency- It’s the base currency against which other

2. Accounting date Control-

3. Stockex/Forex- If set, this flag indicates that a bifurcation of results due

4. Sec. Price Net- If set, transaction fees and brokerage on security

6. Automatic Sec Id: If this option is ticked there will be automatic

7. Automatic Corresp. Id: If this parameter is ticked, then there will be

12. Dividend Reprocess- Allows reprocessing a dividend when a back trade

19. 4 eyes Principle: 4 Eyes principle facilitates Maker-Checker utility. One

32. Account Balance Split- If ticked an additional table in Infocentre

33. Exchange Rates: 1. Exchange rate of accounting date- MultiFonds will

34. Forex Valuation Type:

42. Accounting on Prepayment- If set, MultiFonds will process directly the

In this section, it is important to understand that all accounting related

MultiFonds supports multiple jurisdiction, because multiple chart of accounts can

MultiFonds functional overview :

Balance Sheet Chart

Chart of Accounts : links

Path: Static Data  Messages  Messages

Create a Chart ID in PLAN table under CMESS

Table- Enter or select table name (Here, PLAN)

Element- Enter or select element code (Here, Chart ID which is a 2 numerical

Language Enter or select language code. If reports are to be printed in multiple

Short- Enter a short description, if applicable.

Description- Enter a long description (to be printed on reports or to be viewed in

Update Date- Date of last update (Automatic system updation)

Path: Account Manager  Accounts  Account Definition

Description button used to maintain multilingual translations:

Path: Account Manager  Accounts  Account Definition (Description Button)

Path: Static Data  Messages  Messages

Path: NAV  IML  Equivalences Sec. Type

It is technically mandatory to define an “IML security type” equivalence in the

Path: Bal. Chart  Chart  Accounts Chart

 Each “category” is user definable as well as its description

D.5. Setting up a NAV chart

Path: NAV  Chart  Chart

 Each “Heading group” is user definable as well as its description

Path: NAV  Statement of operations  Chart

 Each “Heading group” is user definable as well as its description

D.7. Account linking

Path: Account Manager  Accounts  Links on Chart