Create and Amend Investment

PURPOSE

This document describes how to create and amend investment trades.

WHY IS THIS IMPORTANT?

This allows the capture of investments in securities such as equity stocks or bonds in CS Lucas system.

PROCEDURE

1. From the main menu, select Transaction > Fund Management > Investment. The New Investment screen is displayed.

2. Fill in the mandatory fields characterized by an asterisk (*).

3. Accounting Centre should default to the user’s accounting centre. If not, it will be left blank. Choose the proper Accounting Centre. In this example, TFI-SG will be chosen.

4. Select the Portfolio of the investment from the dropdown. Note that this is a field that requires set up. Please see How to Set Up Portfolio.

5. Choose the Ticker. If unsure of the ticker name, type the first letter and click tab. All the securities starting with “a” will be displayed. In this example, Anglo Amer 4.125% 9/22 will be chosen. Click on Anglo Amer 4.125% 9/22. The system will fill in the Ticker. If you know the ticker, enter it “anglo amer 4.125% 9/22” case insensitive. The system will format the case based on the security set up. If you do not find the desired security, please see How to Set Up Security.

6. Enter the Transaction date.

7. Choose Buy or Sell. In this example, Buy will be selected.

8. Type in the Quantity.

9. Price is displayed with the last available price available on Security Prices on the selected TDate by default. Edit the price as necessary if required.

Note: For bond securities, the price is expressed in percent. Hence, if the price keyed is 104, it is 104% of the quantity bought or sold.

10. Type in the Yield in percentage form. This is an optional field. Leave blank if not required.

11. Select the Broker.

12. Under Charges/Expenses, enter any charges/fees for Brokerage, CStamp, CFees, Others, and GST if any. These fields are optional.

13. Next, Click the recompute button next to Gross Proceeds. Gross and net proceeds will be recomputed and displayed on the screen. VDate or Value Date will be populated based on the number of settlement days from TDate, which is defined in the security setup. Amend the VDate as necessary if required.

If you are buying or selling bond securities, the system also computes the Purchase Interest. See Computation of Purchase Interest for Bonds for more details. If you want to change the amount of the purchase interest, select the Fix Amount checkbox to lock the amount.

Investment – Buy Bond

Investment – Buy Equity

14. At this point, the transaction can be booked. However, other fields can also be filled as needed.

15. To maintain comparative quotes information for the investment trade, select the Counterparty from the drop down box, key in the Rate%/Price in free text form and select Available Size from the drop down box.

Note: Available Size is user definable and can be set up under Set Up > Global > User Definable > Available Size. For more details on how to set up user definable field, click here. You can also edit this field by entering the value on the field and save it to the trade. Note that this does not change the original list available in the drop down box.

Click Add. You will see the values added to the table on the right.

16. When completed, click Book. A popup appears, click Yes to confirm booking.

17. To see the transaction, filter the Acct Cntr and the Portfolio on the main screen, then click Refresh. You can also zoom in the search by filtering the Ticker, TDate Fr, and TDate To fields.

Investment – Buy Bond

Investment – Buy Equity

18. To amend the transaction, click on the TradeID. In this example, we will amend the bond trade. The Amend Investment screen will be displayed.

19. Make the necessary changes. In this example, we will change the quantity from 1,000,000 to 2,000,000. Click Recompute button next to Gross Proceeds to recompute the gross and net proceeds, then click Update.

20. A popup appears, click Yes to confirm updating.

21. Trade is amended and Trade ID is now from .00 to .01.

22. The custodian and settlement information can also be maintained from the launch screen of Investment. First, choose the transaction by clicking on the checkbox next to the TradeID.

23. Then, click Custody/Settlement. The screen below will be displayed.

24. Select the custodian from the dropdown field. If you do not find the desired custodian, please see How to Set Up Entity – Counterparty. If you need to add more custodians, click Add Button, and another row appears. Quantity may be split between custodians. In this example, only one custodian will be added.

25. Settlement can also be changed on this screen; for example, if the settlement is done in SGD instead of GBP. To edit settlement, click on the Edit check box. The grey area will now be editable.

26. Change the currency by selecting from the Ccy dropdown field. Then, change the amount as appropriate.

27. Once done, click Update.

28. The settlement cash flow in the Back Office > Cash Settlement will reflect the change for settlement in the currency and amount set.

FREQUENTLY ASKED QUESTIONS

FAQ01. How do I key in the price for bond securities?

The price for bond securities is expressed in percent. For example, if the price is 99.8%, key in as 99.8.

FAQ02. How does the system compute purchase interest?

For more detail on the calculation of the purchase interest, click here.

RELATED INFORMATION

Computation of Purchase Interest for Bonds

Fund Management – Dividend

Fund Management – Coupon Redeem