This document is a step by step guide on how to create Money Market Fund (MMF) security, maintain MMF daily mil rates, buy/ redeem MMF and interest and reinvest MMF.
WHY IS THIS IMPORTANT?
This allows to capture MMF investment trades in the system.
A. Creating MMF security
1. Click Set Up > Static > Securities.
2. Click on Action and select New.
3. Select the Security Type as Money Market Fund. See below example. For more information on the explanation for each fields, see user guide for security set up.
4. When completed, click Save.
5. Approve the newly created security.
B. Maintaining MMF Daily Mil Rates
1. MMF daily mil rate is maintained in Security Prices.
2. Go to Prices > Security Prices.
3. Click Add to maintain.
4. Input the Ticker short name, Date, Valuation price set to 1 and the Daily Mil Rate.
5. Click Save when completed.
6. Alternatively, you can use the import function to load the Daily Mil Rate.
7. Click on Import.
8. Click Template to download the import template.
9. Fill out the template then saved.
10. At the Import Security Prices screen, tick on Read File.
11. Then, browse for the import template saved.
12. Click Read File.
13. If there is no error, click Load to load into the system.
14. To inquire the security prices, input the Ticker short name and set the From Date and To Date.
15. Click Refresh.
C. Booking MMF (Buy or Redeem)
1. Booking of MMF under Investment module is the same as booking of bond or equity investment except that price is 1. Go to Transaction > Fund Management > Investment.
2. Click New.
3. When portfolio, ticker short name and TDate are filled, TDate Holding will display. If this is the first trade, the field will show as blank.
4. In this example, we invest 10 mil on 9 Sep 2011.
5. Click Book when completed.
6. To redeem MMF, book a sell trade.
7. To redeem MMF fully and the interest, tick on the Redeem All checkbox.
8. When Redeem All is checked, the interest amount will be populated.
9. Quantity will also be populated based on TDate holding and the field is disabled.
10. Once booking is done, you can see the MMF investment trade in the Investment screen.
11. Filter Acct Cntr, Portfolio and Ticker short name. Click Refresh.
12. To view MMF Interest redeemed, go to Transaction > Fund Management > MMF Interest.
13. Filter for Acct Cntr, Portfolio and Ticker short name. Click Refresh.
14. Leave blank for Ticker short name will show all the tickers.
D. Book redemption of MMF interest
15. To receive MMF interest, click on Maintain.
16. The following screen display.
17. Select the Acct Cntr.
18. Input the End Date that you wish to redeem the interest. This is the end date to determine the interest calculation.
19. Click Refresh.
20. System will shows all the Money Market Fund position and interest accrued for all the portfolios of the selected acct cntr.
21. To view the detail analysis on how the interest accrual amount is computed, click on the Interest hyperlink.
22. The detail view on how the interest is accumulated will be shown as below.
23. To redeem MMF interest on this screen, tick on the checkbox of the MMF and click Receive.
24. You will be asked to confirm whether to book the transaction. If the End Date selected is a good business day, system will book the transaction with VDate same as End Date. If the End Date selected is a non-good business day, system will book the transaction with VDate set to next good business day.
25. You will see the newly booked interest redemption trade in the MMF Interest Received screen.
E. Book reinvestment of MMF interest
26. To re-invest MMF interest, click Maintain.
27. Select the Acct Cntr and VDate. Click Refresh.
28. Tick on the checkbox of the MMF to reinvest interest and click Reinvest.
29. System will book a MMF interest received trade and an investment trade for reinvestment of MMF interest.
30. The investment trade booked from reinvestment of MMF from the MMF Interest screen cannot be amended or deleted in the Investment screen.
31. If you need to amend or delete, please delete the related MMF interest trade in MMF Interest screen.
32. To delete the MMF interest trade in MMF Interest screen, tick on the check box and click Delete.
FREQUENTLY ASKED QUESTIONS