Configure Unit Linked Funds

Configuring unit linked funds is similar to setting-up variable funds except there are some extra business rules that need to be configured to determine offset days, market calendars and currency information for conversion. The steps to configure unit link funds that are used in the valuation process are described below.

High Level Steps to Configure Unit Linked Funds

  1. Set-up unit linked funds. Please see the Funds section for details on how to set-up funds. There are various codes that will need to be set-up prior to creating unit link funds, such as fund type, currency codes and fund statuses. Refer to the Codes section for information on adding codes using the Code Names feature in the Admin Explorer tab.

New Fund Wizard

New Fund Wizard

  1. Set-up any Calendar Codes needed for the various calendars that will be used by the funds. Please see the Set-up Market Calendars section for additional information.

  2. Set-up the system dates for market calendars to populate. Please see the System Date section for additional information.

  3. Verify that the AsNetAssetValue table is being updated by the database.

  4. Configure a NUVOffSet attached rule at the transaction level. This is required for unit linked funds. The system will error if this rule is not configured. This rule will be used to calculate PriceDate (guaranteed price date) and GainLossPriceDate (trade date). This rule controls the offset dates that will be used when going to the market calendar to figure out which date to use for either the unit value or the offer unit value. When processing a positive buy the system will retrieve the OfferUnitValue from AsNetValue table. When performing either a sell or transfer the system will retrieve the UnitValue. Refer to the XML Configuration Guide section Business Rules | Attached Rules | NUVOffSet.

    • XML Example

<NuvOffSet>>

<GuaranteedDateOffSet>NuvOffSet</GuaranteedDateOffSet>

<TradeDateOffSet>TradeOffSet</TradeDateOffSet>

</NuvOffSet>

  • <GuaranteedDateOffSet>: The offset that will be used against the activity's effective date to determine PriceDate. The value of this element is a MathVariable and the datatype is an integer.

  • <TradeDateOffSet>: The offset that will be used against the system date to determine the GainLossPriceDate. The value is a MathVariable and the datatype is an integer.

Note: The MathVariables used in the elements value are defined in the transaction configuration this rule is attached to. These MathVariables must have logged their value by using the LOG=Yes attribute, so that it may be retrieved when the activity is in other statuses such as NUVPending or Reverersal.

  1. Add the NuvOffSet rule to the TransactionBusinessRulePacket rule. Refer to the XML Configuration Guide section Business Rules>Attached Rules>TransactionBusinessRulePacket.

  2. Configure Market Maker for currency conversion associated with a plan. Please see Market Maker for additional information.

  3. Verify that the AsExchangeRate table is fed the exchange rates for currency pairs quoted by market makers. This may be done via a Web Service like AsFile, direct insert into the database or another method of your choosing. The following rules apply when loading exchange rates:

  1. The Bid Price is always the amount that the Market Maker is willing to pay for the currency that needs to be exchanged.

  2. The Offer Price is always the amount that the Market Maker will sell the currency for.

  3. The Offer Price must always be greater than the Bid Price for direct exchanges.

  4. The Offer Price must always be less than the Bid Price for indirect exchanges.

  1. Configure the transaction to use Unit Linked funds, Valuation, Math and Assignments. It is in the Assignment section that the assignment type is used. The system begins with the effective date from AsActivity, then uses the NUVOffSet rule configuration to figure out the net unit asset date by referencing the associated calendar and the AsSystemDate. It then populates the PriceDate and the Gain/LossPriceDate in AsValuation. Gain/Loss uses the offsets against the effective date as when configuring the net unit asset date.

  2. Configure currency to define currency names and rounding methods. Please see the Currency section for additional information.