5.550 multi-manager/mcs fund processing -...

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING

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5.550 Multi-Manager/MCS Fund Processing 1 Overview ............................................................................................................ 1 2 Glossary of Terms ................................................................................................ 2 3 Account Definition Characteristics .......................................................................... 3 4 Multi-Manager/MCS Allocation Percentages .............................................................. 7 5 Multi-Manager/MCS Fund - Domestic Tran Entry .................................................... 10 6 Multi-Manager/MCS Fund – Global Tran Entry ........................................................ 14 7 Multi-Manager Generated Transactions ................................................................. 18 8 Multi-Manager/MCS Fund – Summation ................................................................ 19 9 Manager (s) Account NAV .................................................................................... 25 10 Converting a Group (G) Account to a Multi-Manager/MCS Fund ........................... 28

10.1 CONVERSION PROCESS BY EXAMPLE ..................................................................... 28 11 Processing a Multi-Manager/MCS Fund ............................................................. 40 12 Processing a Multi-Currency Multi-Manager/MCS Fund ....................................... 42 13 Processing FOREIGN CURRENCY TRANSFER TRANSACTIONS BETWEEN MANAGER (“s”) aCCOUNTS ....................................................................................................... 46 14 Processing a Multi-Manager/MCS OEIC Fund ..................................................... 66 15 Multi-Manager/MCS Fund Transaction Activities ................................................ 70 16 Multi-Manager/MCS Fund Reporting ................................................................. 78

16.1 ONLINE REPORTS ........................................................................................... 78 16.2 BATCH REPORTS ............................................................................................ 79

17 REDEMPTION FEE PROCESSING ...................................................................... 82

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING OVERVIEW


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1 OVERVIEW A common investment strategy involves using multiple managers to invest for a single domestic or international portfolio that offers multiple classes of shares. All of the basic mutual fund or OEIC reporting is available at both the fund and class levels. No class level reporting is available at the manager level. All cash flows are either attributed to a specific manager or allocated across managers using a predetermined allocation. The Multi-Manager/MCS Fund optional application module allows a domestic or foreign mutual fund, hedge fund, or OEIC fund to have up to 98 classes of shares defined and up to 50 manager accounts attached to it. NOTE: The Multiple Classes of Shares optional application module is required in addition to this module for Multi-Manager/MCS Fund processing. The Multi-Manager/MCS Fund structure consists of one or more Manager (“S”) Accounts (each account defined as having ACCT INDICATOR “S” as seen on the Account Definition (AAAD) screen) and a Group (“M”) Account (defined as having ACCT INDICATOR “M” as seen on the Account Definition (AAAD) screen). The Multi-Manager/MCS Fund and the Group (“M”) Account share the same account number and account definition characteristics. The Group (“M”) Account is a logical subset of the Multi-Manager/MCS Fund. The Group (“M”) Account and the Multi-Manager/MCS Fund are Multiple Class of Shares entities, while the Manager (“S”) Accounts are single class entities. All funds in a given Multi-Manager/MCS Fund relationship must be either domestic or global and based in the same currency. The Group/Rpt Acct Sub-Account Specification (AAAS) screen may be used to view the Group (“M”) Account and all its attached Manager (“S”) Accounts. All capital share and class specific expense activity must be input into the Group (“M”) Account, while common expenses may be input to either the Group (“M”) or the Manager (“S”) accounts. Note that all expenses at the manager level are considered common expenses. Although the capital share activity is input at the Group (“M”) Account, no cash is maintained at this level. All cash is either transferred to or from the Manager (“S”) Accounts for each transaction entered (for example, PARC+, PARW+, EXP, etc.) based on user-provided allocation percentages. All trading activity (BUY, SELL, MATU, INT, etc.) must be input/generated directly into the appropriate Manager (“S”) Account. Data from the Manager (“S”) Accounts are summarized up to the Group (“M”) Account and allocated to the classes by means of the Multi-Manager/MCS Fund -Summation (MSUM) process (see Multi-Manager/MCS Fund - Summation for more information on this process). NAV is not reported at the Manager (“S”) Account level, but rather at the Group (“M”) Account Class of Share level. The following sections describe the use of the Multi-Manager/MCS Fund module. These sections assume a general understanding of the Investment Accounting (InvestOne) system, especially Multiple Classes of Shares (For further information see Section 5.500 Multiple Class of Shares Processing) and do not repeat detailed instructions on system usage found in previous sections of the manual.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING GLOSSARY OF TERMS


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2 GLOSSARY OF TERMS

TERM DEFINITION

Group (G) Account Under Manager Reporting this term is used specifically for an account that is the summation of multiple sub-accounts. It is not allowed information specific to itself (that is, no transactions can be entered against this account). It is not allowed to be Multiple Class of Shares.

Group (M) Account Represents an account within the MM/MCS structure that includes Capital Share Transactions and general Fund Expenses. This Fund must also be defined as Multiple Class of Shares (with at least one class).

Manager (S) Account Represents investment account(s) created on Investment Accounting (InvestOne) for each manager that is part of the Multi Manager/MCS Fund or Group (“M”) Account. These are created as “sub accounts” of the Group, the same as the existing Group Account structure.

Capital Share Transactions For Multi-Manager/MCS Funds this term represents those transactions that may be entered into a Group (“M”) Account. These same transactions are not allowed in a Manager (“S”) Account that is included in a Group (“M”) Account. This includes Contributions, Withdrawals, Income/Capital Gain Distributions and Multiple Class of Share Initialization (see Multiple Class of Shares Initialization Transaction Codes for more information) transactions. Since Expense transactions (for different expenses) are allowed in both the Group (“M”) Account and in the Manager (“S”) Accounts, they are not considered part of Capital Share Transactions for this module.

Multi-Manager/MCS Fund The total fund structure, which includes the Group (“M”) Account and the entire attached Manager (“S”) Accounts.

Performance NAV NAV computed for the Manager (“S”) Account. This NAV is used to access the fund manager's performance and has no relationship to the Group (“M”) Account class level NAV.

Performance Shares Shares used solely for the computation of the Manager (“S”) Account NAV.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING ACCOUNT DEFINITION CHARACTERISTICS


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3 ACCOUNT DEFINITION CHARACTERISTICS An account is defined as a Multi-Manager/MCS Fund in the Account Definition (AAAD) screen by entering a “M” in the ACCT INDICATOR field and entering its own account number in the GROUP ACCOUNT NO field. From this point forward this type of account is referred to as a “Group (M) Account.” A sub-account of a Multi-Manager/MCS Fund (referred to as a “Manager (S) Account”) is defined in the AAAD screen by entering an “S” in the ACCT INDICATOR field and entering the account number of the Group (“M”) Account it belongs to in the GROUP ACCOUNT NO field. The Group/Rpt Acct Sub-Account Specification (AAAS) screen may be used to view the Group (“M”) Account and all its attached Manager (“S”) Accounts. Multi-Manager/MCS Funds are required to be domestic or foreign mutual funds, hedge funds, or OEIC funds with at least one class of shares. Classes of shares are activated in the Account Class of Shares (AASL) screen. See Section 5.500 Multiple Classes of Shares for more information on MCS funds. When a fund is initially set up on Investment Accounting (InvestOne) as a Multi-Manager/MCS Fund, the GROUP (“M”) CONVERSION DATE (as seen on the Account Definition II – More Features (AAMF) screen) is systematically set to inception date. If an existing Investment Accounting (InvestOne) group (ACCT INDICATOR = G) account is converted to a Multi-Manager/MCS group, then GROUP (“M”) CONVERSION DATE is systematically set to the Valuation Date following Verification Date. The conversion period is then defined to be the period from Verification Date up to and including Conversion Date. When defining a Group (“M”) or Manager (“S) Account, the following must be true: On the Account Definition (AAAD) screen:

• POSN LEVEL PRICING ACT DATE must be “00 00 00”. • Only an existing “G” can be changed to a “M”. Group “G” accounts are not valid for

OEIC funds. A Group “M” account having fund type “O” must be created as a Group “M” account from its Inception Date.

• GROUP ACCOUNT NO must equal ACCOUNT NO for a Group M account. (A Group (“M”) Account may not be attached to other Group (“M”) Accounts). For a Manager “S” account, Group Account No must equal the account number of a Group “M” account.

On the Account Definition II – More Features (AAMF) screen:

• FUND TYPE must be “N”, “L”, “H”, “I”, or “O” and consistent within the group. • INCOME EQUALIZATION can be “Y”, “N”, “P”, or “B” for fund types “N” or “L”.

Income Equalization must be “Y” or “X” for fund type “O”. • For a Manager “S” OEIC account, Income Equalization must be initially defined as “Y”

or “X” (due to OEIC setup requirements). Once the Manager “S” account is attached to a Group “M” account via the AAAD screen, the system automatically changes the Income Equalization value for the Manager “S” account to “N”.

• UNDERLYING SECURITY is valid in a Group (M) Account in both a Separate Account and non-Separate Account relationship. See Section 5.1020 Separate Accounts-Account Definition Requirements or Section 5.700 Hierarchical Valuation Processing for more information on adding an Underlying Security to a Group (M) Account. Separate accounts are not valid for Multi-Manager/MCS OEIC funds. Underlying



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Security is valid for a Group (M) OEIC and is required for a Dual Priced Group (M) OEIC.

• UNDERLYING:OPTN must be blank for fund type “O”. • UNDERLYING SECURITY is not valid for a Manager (S) Account. • DEFAULT PRICE FOR CAPITAL TRANS must be blank or “1” for fund types “N”, “L”,

“H”, or “I”. Default Price For Capital Trans must be “1” for Single Priced Multi-Manager/MCS OEICs and must be “1” or “4” for Dual Priced Multi-Manager/MCS OEICs.

• BASE CURRENCY must be consistent within the group. • RECOG DEAL EXP must be “N”. • Master/Feeder processing is invalid.

On the Account Special Processing Definition (AASP) screen:

• MONTH-TO-DATE LAG DAYS must be zero for the Group (“M”) and the Manager (“S”) accounts.For a Single Priced Multi-Manager/MCS OEIC, DUAL must be blank.

• For a Dual Priced Multi-Manager/MCS OEIC, Dual must be “D”. For a Manager “S” OEIC account, once it is attached to a Group “M” account, the system automatically changes the Manager “S” account’s DUAL value to match the Group “M” Account’s Dual value (i.e. if the Group M account has a “D” for the DUAL field, the system changes the Manager “S” account’s value to “D” as well).If the MMMC EXP OPT (Multi Manager Multi Class Expense Option) field is “Blank”, expense transactions in Multi-Manager/MCS funds are allocated based on the percentages defined on the AAAP screen.

• If the MMMC EXP OPT (Multi Manager Multi Class Expense Option) field is defined with ‘P’, the expense transactions EXP, EXP -, EXP +, CAPEXP, CAPEX-, and CAPEX+ in a Multi-Manager/MCS fund are allocated based on each Manager S accounts percentage of Group M’s ‘Prior Net Assets’. NOTE: If the fund does not have a prior ‘Shareholder Equity’ value, the allocation of the Expense transactions, defaults to the percentages defined on the AAAP screen.

On the Account Class of Shares (AASL) screen:

• At least one class of shares must be activated on the Group (“M”) Account. • Class of Shares is invalid at the Manager (“S”) Account level. • The CURR field is used to define a currency for a specific share class. See Section

5.510 Multi-Currency Multi-Class of Shares for more information on AASL and Multi-Currency MCS processing.

• For Multi-Manager/MCS OEIC funds, CLASSES OF SHARES OPTION must be “5”, “A”, or “B”.

• For Multi-Manager/MCS OEIC funds, REALLOCATE CORPORATION TAX must be “N”. On the Account Fee Schedule (AAFS) screen:

• FEE BASIS TYPE must be “P”, “U”, or “C” for Group (“M”) Account. • FEE BASIS TYPE must be “P” for Manager (“S”) Accounts.

On the Unit Trust Fee Schedule (UTAAFS) screen for a Multi-Manager/MCS OEIC:

• FEE BASIS TYPE must be “M” or “C” for a Single Priced Group (M) OEIC. • FEE BASIS TYPE must be “M”, “B”, or “O” for a Dual Priced Group (M) OEIC. • FEE BASIS TYPE must be “M” for Single Priced Manager (S) Accounts. • FEE BASIS TYPE must be “M”, “B”, or “O” for Dual Priced Manager (S) Accounts.



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On the Account Definition-Expense Cap Analysis (AAEC) screen:

• In a Multi-Manager/MCS scenario, Expense Cap Processing can be done either at the Multi-Manager/MCS Fund (class of shares) level or at the Manager (“S”) level, but not at both levels. If done at the Multi-Manager/MCS Fund level, Expense Cap is dependent on the Multi-Manager/MCS Fund – Summation (MSUM) Process. If MSUM must be run, BGEW provides a warning message to alert the user.

• Expense Cap Processing is not valid for Multi-Manager/MCS OEIC funds. Consistency in account definition setup across all Manager (“S”) Accounts attached to a Group (“M”) Account is critical to ensure accurate reporting. The following items must be consistent across all Manager (“S”) Accounts:

• INCOME PROCESSING CODE (AAAD screen) • ALTERNATE SS PROC (AAAD screen) • FUND TYPE (AAMF screen) • Reporting Pre-schedules (AAPR screen) • BASE CURRENCY (AAMF screen)

The following items are recommended to be consistent across all Manager (“S”) Accounts:

• FISCAL YEAR END (AAAD/AAFY screens) • PRICING PROCESSING CODE (AAAD Screen) • ACCOUNT TYPE (AAAD Screen) • G/L PROFILE (AAAD Screen) • DECAL Distribution Dates (defining IAP dates for OEIC funds) per the AAAD Calendar • Corporation Tax Rates for OEIC funds (if entered at the account level via DECTA)

Class level corporation tax rates are not allowed for Multi-Manager/MCS OEICs. • Prior Fiscal Year Ends and prior IAP Distribution dates of the OEIC Manager (S)

accounts attached to a Group (M) account over time may vary if the new accounts are added mid-fiscal year or mid-IAP period of the accounts already established within the structure. However, at no point should fiscal year ends or IAP periods overlap amount accounts within the structure.

When attaching a Manager (“S”) Account to a Group (“M”) Account the following rules apply:

• Manager (“S”) Accounts should not be attached until after their initialization period if this period is not a regular cycle.

• The INCEPTION DATE (AAAD screen) of the first Manager (“S”) Account to be attached must equal the Inception Date of the Group (“M”) Account. Subsequent Manager (“S”) Accounts may have Inception Dates equal to or greater than the Group (“M”) Account's Inception Date.

• VERIFICATION DATE (AAAD screen) of the Manager (“S”) Account must be equal to or greater than the Group (“M”) Account's Verification Date.

• A Manager (“S”) Account may be attached to only one existing Group (“M”) Account. • A maximum of 50 Manager (“S”) Accounts may be attached to one Group (“M”)

Account.



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Once a Multi-Manager/MCS Fund relationship has been established, the following strict rules apply:

• An existing Group (“M”) Account may not be changed to a non-Group (“M”) Account. • An existing Manager (“S”) Account may not be detached (changed to a non-Manager

(“S”) Account or attached to a different Group (“M”) Account) unless the Manager (“S”) Account's Verification Date and Balance Date are both equal to its Inception Date.

• Group (“M”) and Manager (“S”) accounts may not be deleted unless the account's Verification Date is equal to its Inception Date.

• Group (“M”) Accounts may not be deleted if one or more accounts are attached to it. • A maximum of 30 Manager (“S”) Accounts are allowed for systematic allocation of

cash from/to the Group (“M”) Account. • Accounts CANNOT be renumbered if using the Multi-Manager/MCS structure.

Forward movement of the Group (“M”) Account's Verification Date (in Update Verification Date (AAUV) screen) automatically moves all attached Manager (“S”) Account's Verification Dates. A Manager (“S”) Account's Verification Date must be equal to or greater than the Group (“M”) Account's Verification Date. Therefore, in order to move Verification Date back in time, the date must first be moved back on the Group (“M”) Account. Then any Manager (“S”) Account may have its Verification Date moved back to any Valuation Date - up to and including the Group (“M”) Account's Verification Date.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER/MCS ALLOCATION PERCENTAGES


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4 MULTI-MANAGER/MCS ALLOCATION PERCENTAGES If the MMMC EXP OPT field on the AASP screen is defined with “Blank”, the Multi-Manager/MCS Allocation Percentages (AAAP and AAAP2) screens are used to designate the allocation percentages to be used on any Capital Share or Expense type transactions entered into the Group (“M”) Account If the AAAP2 screen is defined with valid Allocation Percentages, Fund Level Capital Share Redemption transactions are allocated using the allocation percentages defined on the AAAP2 screen instead of the Allocation Percentages defined on AAAP. AAAP2 functionality is not applicable for Class Level Capital Share transactions. If the MMMC EXP OPT field on the AASP screen is defined with “P,expense transactions EXP, EXP - , EXP +, CAPEXP, CAPEX-, and CAPEX+ are allocated based on each Manager S accounts percentage of Group M’s ‘Prior Net Assets’. Note: If the fund does not have a prior ‘Shareholder Equity’ value, the allocation of the Expense transactions, defaults to the percentages defined on the AAAP screen. The cash on these transactions is allocated to/from the Manager (“S”) Accounts based on these defined percentages. These percentages may be changed over time. After initial entry of allocation percentages, active Manager (“S”) Accounts with zero allocation percentages are not displayed on the screen. If an active account that had a previous zero allocation is to be assigned an allocation percentage, the account number must be manually entered. Any active Manager (“S”) Account belonging to the specified Group (“M”) Account is eligible for allocation percentages. The entry of new allocation percentages does not automatically change any transactions that have already been entered into the system. If any transactions must be re-allocated with the new allocation percentages, the transactions must be “triggered” by using the Multi-Manager/MCS Fund - Tran Correction (DAGT) screen. The accounts and amounts must be cleared. After pressing ENTER, the system recalculates the allocations based on the new percentages effective for that date. In the case of a Separate Account relationship, the new allocation percentages are re-allocated in the Separate Acct Contract Holder Correction (DACH) screen. See Section 5.1070 – Separate Accounts Contract Holder Transaction Entry for more information on this process. A maximum 20 Manager (“S”) Accounts may have percentages assigned per effective date. If more than 30 Manager (“S”) Accounts are active, and all should have cash allocated to/from them, we recommend that 100% of all Capital Share and Expense activity is allocated to one Manager (“S”) Account. As a result, periodically (that is, end of day), the net cash activity may be manually allocated from that manager to the other managers by means of MGROUT/MGRIN transaction codes (see Multi-Manager/MCS Fund Transaction Activities for more information on these transactions).



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AAAP Screen: Multi-Manager/MCS Allocation Percentages NEXT AAAP MODE REPORT FDMP156 MULTI-MANAGER/MCS ALLOCATION PERCENTAGES GROUP (M) ACCOUNT NUMBER: 000000000023421 EFFECTIVE DATE: 01 04 00 MGR (S) ACCOUNT PERCENT MGR (S) ACCOUNT PERCENT MGR (S) ACCOUNT PERCENT 000000002342101 40.0000 000000002342102 60.0000 LAST CHANGE DATE: 09/20/1999 BY: B0106DD TOTAL: 100.0000

Field Description. Fields Shaded Gray are Required. GROUP (M) ACCOUNT NUMBER

Account number of the Multi-Manager/MCS Fund.

EFFECTIVE DATE Date that the allocation percentages are to become effective. In ADD or CHANGE mode this date is required. In VIEW mode it can be left blank to view the most current allocation percentages.

MGR (S) ACCOUNT Account number for the individual Manager (“S”) Account

PERCENT Percentage of the transaction that should be allocated to that particular Manager (“S”) Account. Valid values are 0.0000% to 100.0000%.

TOTAL Sum of all percentages must equal 100%.

LAST CHANGE DATE System date that the Allocation Percentages displayed were entered or changed for audit trail purposes.

BY Operator ID of the person that made the entry or change for audit trail purposes.

Mode Actions ADD Both modes default with the previous record on file so that the user can do a

reasonableness check. When the first set of percentages is defined, all active attached Manager (“S”) Accounts are displayed. Only 20 accounts may have percentages assigned to them if more than 30 accounts are attached.

CHANGE

DELETE There is no DELETE mode. The only way to “delete” a record is to change all of its percentages to be equal to the previous effective date's percentages.

VIEW In VIEW mode the Effective Date may be left blank. • If no date is provided, the most current percentage is displayed. • If a date is entered, then the percentages for that date or the last date prior

to that date are displayed. Continue to press ENTER to scroll back through the percentages by effective date.



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AAAP2 Screen: Multi-Manager/MCS Redemption Percentages NEXT AAAP2 MODE REPORT FDMP156 MULTI-MANAGER/MCS REDEMPTION PCTS GROUP (M) ACCOUNT NUMBER: 000000000023421 EFFECTIVE DATE: 10 31 09 MGR (S) ACCOUNT PERCENT MGR (S) ACCOUNT PERCENT MGR (S) ACCOUNT PERCENT 000000002342101 40.0000 000000002342102 60.0000 LAST CHANGE DATE: 11/26/2009 BY: DEVBJB TOTAL: 100.0000

Field Description. Fields Shaded Gray are Required. GROUP (M) ACCOUNT NUMBER

Account number of the Multi-Manager/MCS Fund.

EFFECTIVE DATE Date that the Capital Share Redemption allocation percentages are to become effective. In ADD or CHANGE mode this date is required. In VIEW mode it can be left blank to view the most current allocation percentages.

MGR (S) ACCOUNT Account number for the individual Manager (“S”) Account

PERCENT Percentage of the Capital Share Redemption transaction that should be allocated to that particular Manager (“S”) Account. Valid values are 0.0000% to 100.0000%.

TOTAL Sum of all percentages must equal 100%.

LAST CHANGE DATE System date that the Allocation Percentages displayed were entered or changed for audit trail purposes.

BY Operator ID of the person that made the entry or change for audit trail purposes.

Mode Actions ADD Both modes default with the previous record on file so that the user can do a

reasonableness check. When the first set of percentages is defined, all active attached Manager (“S”) Accounts are displayed. Only 20 accounts may have percentages assigned to them if more than 30 accounts are attached.

CHANGE

DELETE There is no DELETE mode. The only way to “delete” a record is to change all of its percentages to be equal to the previous effective date's percentages.

VIEW In VIEW mode the Effective Date may be left blank. • If no date is provided, the most current percentage is displayed. • If a date is entered, then the percentages for that date or the last date prior

to that date are displayed.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER/MCS FUND – DOMESTIC TRAN ENTRY


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5 MULTI-MANAGER/MCS FUND - DOMESTIC TRAN ENTRY Use the DEGT Screen to add:

• A Capital Share Transaction for domestic class of shares • An Expense Transaction • A Prior Period Balance Adjustment Transaction, or • A Valuation Receivable Adjustment transaction

..to a Group (M) Account. This is the only transaction entry screen valid for entering such transactions in a domestic share class or expense for a Group (M) Account. See Section 5.250, Prior Period Balance Adjustments or Section 5.86, Special Transaction Codes for more information. This screen is also used for the entry of Manager (“S”) to Manager (“S”) Account cash transfer transactions. The system automatically generates the applicable cash (or receivable/payable) transfer transactions based on the originating transaction. In ADD mode the system automatically generates the necessary transactions to transfer cash (or receivable/payable) from/to the Group (“M”) Account to/from the Manager (“S”) Accounts based on the accounts and percentages specified on the Multi-Manager/MCS Allocation Percentage (AAAP) screen. In ADD mode for redemption transaction codes: PARW+, PARW+C, PARWAS, PRWASC, PARWP, PARWPC, PARWS, PARWSC, PARWX, PARWXC, PARWXP, PRWXPC, PARWXS, and PRWXSC. PARWCY, PARWY-, EXPRO, EXPRO-, EXPRCY, and EXPRY-, the system automatically generates the necessary transactions to transfer cash (or receivable/payable) from/to the Group (“M”) Account to/from the Manager (“S”) Accounts based on the accounts and percentages specified on the Multi-Manager/MCS Allocation Percentage (AAAP2) screen. The accounts and/or amounts may be subsequently changed by means of the Multi-Manager/MCS Fund - Tran Correction (DAGT) screen. The percentages used are the most recent allocation percentages effective, based on the effective date of the transaction.

CONSTRAINTS • Only the originating transaction is written to Audit Trail. The system-generated

transactions are not included on Audit Trail. If a change is made to the original transaction it is also captured on Audit Trail.

• For manager-to-manager transfer of cash transactions: o ACCOUNT NUMBER must belong to a Manager (“S”) Account. o The MANAGER ACCOUNT must belong to a Manager (“S”) Account that belongs to

the same Group (“M”) Account as the account specified in ACCOUNT NUMBER. o Only one Manager (“S”) Account may be specified to receive the cash (one for

one transaction). • There is a maximum of 30 Manager (“S”) transactions per each Capital Share, Expense,

Valuation Adjustment Receivable and Prior Period Balance Adjustment type transaction. • Foreign class of shares transactions cannot be entered on DEGT. They must be entered

on DEGTF.

TONTINE METHOD When determining the amounts to allocate to the Manager (“S”) Accounts, Investment Accounting (InvestOne) uses the “tontine” methodology to insure that the total amount from the original transaction is divided among the generated transactions without any



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penny rounding differences. The sum of all the generated transactions must always equal the total transaction that is being offset in the Group (“M”) Account.

MANUALLY MAINTAINED TRANSACTIONS “**** MANAGER ACCOUNTS MANUALLY MAINTAINED ****” is displayed if the original generated transactions are modified. To clear manually maintained transactions and re-generate them, the manager accounts and amounts must be blanked out on the Multi-Manager/MCS Fund – Tran Correction (DAGT) screen before pressing ENTER. Once ENTER is pressed, the system again determines the accounts and amounts based on the Multi-Manager/MCS Allocation Percentages (AAAP/AAAP2 screen) in effect. Users may not manually maintain generated transactions. Users may not add, change or delete the generated transaction directly; however, it may be viewed on the VSTE screen. The only way to change a generated transaction is to change the originating transaction. Users have the ability to process Capital Stock transactions (unit like transactions) for Group M Accounts to the Pending Transaction Browse Screen (VSPT). Use the ACTION field in the DEGT screen to determine whether trades are passed to the active file (“TS”) or the unit transaction should be posted to the pending transaction file (“T2”). These unit transactions can also be processed through pending with inbound messaging, Trade/Net and OLE. NOTE: Once the trade is in the pending transaction file (“T2”), the only way to change the transaction is to release the transaction to the active file. This allows users to change the unit transaction in DAGT.

MULTI-MANAGER/MCS OEICS For OEIC funds, Income Equalization on the DEGT screen is allocated to the Manager (S) accounts along with the AMOUNT. If manually maintaining the EQUALIZATION or AMOUNT fields in Change mode, the Manager (S) accounts and amounts must be blanked out on the DAGT screen before pressing ENTER. Once ENTER is pressed, the system determines the accounts and amounts based on the Multi-Manager/MCS Allocation Percentages (AAAP) screen in effect. Transaction activities originating in the Group (M) Account are accompanied by system generated transactions to transfer cash (or receivable/payable) from/to the Group (M) Account to/from the Manager (S) Accounts based on the accounts and percentages specified on the AAAP screen. Principal Cash transfers are offset to the Multi-Manager Transfer Account which is the same capital account used for Multi-Manager/MCS Mutual Fund and Hedge Fund Accounts. Income Cash transfers (including Income Equalization) are offset to the Multi-Manager Transfer Income account which is specific to OEIC funds. See Multi-Manager/MCS Fund Transaction Activities for a list of what transactions are generated in the Group (“M”) Account and the Manager (“S”) Accounts for each UNITS or EXPENSE transaction entered. Neither the DEGT screen nor the DETE screens allow you to BUY 1 share of an expense security in order to establish a fixed expense accrual balance to be manually maintained in a Group (“M”) Account. Therefore, you must use the Fixed Expense (DEFE) screen on the



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Group (“M”) Account in order to establish a fixed expense holding to be manually maintained.

DEGT Screen: Multi-Manager/MCS Fund – Tran Entry NEXT DEGT MODE ADD FDMP152 MULTI-MANAGER/MCS FUND – TRAN ENTRY ACCOUNT NUMBER…. SECURITY NUMBER... EFFECTIVE DATE.... TRANSACTION CODE............... ACTION. DESCRIPTION CODE............... TRADE DATE........ EXTERNAL ID. CONTRACTUAL SETTLE SHARES ACTUAL SETTLE..... AMOUNT EQUALIZATION MANAGER ACCOUNT AMOUNT MANAGER ACCOUNT AMOUNT

Field Description. Fields Shaded Gray are Required. ACCOUNT NUMBER Account number of the Multi-Manager/MCS Group (“M”) Account or Manager

(“S”) Account associated with this transaction. For Capital Share and Expense transactions the ACCOUNT NUMBER must belong to a Group (“M”) Account.

SECURITY NUMBER Security Number associated with this transaction.

EFFECTIVE DATE Date the transaction is to become effective.

ACTION Directs the trade to either the active or pending file.–A - Trades are passed to the active file (“TS”). Default.–H - Post unit transaction to the pending transaction file (“T2”). Once the trade is in the pending transaction file (“T2”), the only way to change the transaction is to release the transaction to the active file.

TRADE DATE Date the transaction activity occurred.

CONTRACTUAL SETTLE Date that the Cash effect of the transaction is expected to be reflected in the fund.

ACTUAL SETTLE Date that the Cash is actually received/delivered.

TRANSACTION CODE Appropriate Investment Accounting (InvestOne) transaction code for the activity. See Notes for eligible transaction codes.

DESCRIPTION CODE Valid description code (MDDC screen) to further define the transaction (Optional).

EXTERNAL ID Transaction identifier from some other originating system may be entered for reference purposes (Optional).

SHARES Amount of the impact on the UNITS position for this transaction.

AMOUNT Amount of Cash (or Receivable/Payable) for this transaction.



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Field Description. Fields Shaded Gray are Required. EQUALIZATION Income Equalization for the transaction. This amount can be system

calculated or manually entered.

The following two fields can repeat up to twenty times to display the allocated amounts to/from each Manager (“S”) Account (DAGT/DDGT/VSGT only). For the most part these fields are not available in ADD mode (DEGT).

MANAGER ACCOUNT Account number of the individual Manager (“S”) Accounts.

AMOUNT Amount allocated to the corresponding Manager (“S”) Account. This amount is calculated from the Multi-Manager/ MCS Allocation Percentages (AAAP/AAAP2) but may be changed to any desired amount (in CHANGE mode only). For MGROUT transactions this field must be entered for one Manager (“S”) Account in ADD mode. For all other transactions this field is system calculated in ADD mode.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER/MCS FUND – GLOBAL TRAN ENTRY


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6 MULTI-MANAGER/MCS FUND – GLOBAL TRAN ENTRY Use the DEGTF Screen to :

• Add a Capital Share Transaction for foreign class of shares to a Group (“M) Account • Transfer currency from one Manager (“S”) Account to another Manager (“S”) Account

This is the only transaction entry screen valid for entering capital share transactions, income distributions and gain/loss distributions in a foreign share class for a Group (“M”) Account. Expense transactions, Prior Period Balance Adjustments and Valuation Adjustment Receivable transactions are not allowed on this screen. They must be entered on DEGT and cannot be entered for a foreign class of shares. See Multi-Manager/MCS Fund Transaction Activities for a complete list of eligible transaction codes. In ADD mode the system automatically generates the necessary transactions to transfer cash (or receivable/payable) from/to the Group (“M”) Account to/from the Manager (“S”) Accounts based on the accounts and percentages specified on the Multi-Manager/MCS Allocation Percentage (AAAP/AAAP2) screens. In ADD mode for redemption transaction codes: PARW+, PARW+C, PARWAS, PRWASC, PARWP, PARWPC, PARWS, PARWSC, PARWX, PARWXC, PARWXP, PRWXPC, PARWXS, and PRWXSC. PARWCY, PARWY-, EXPRO, EXPRO-, EXPRCY, and EXPRY-, the system automatically generates the necessary transactions to transfer cash (or receivable/payable) from/to the Group (“M”) Account to/from the Manager (“S”) Accounts based on the accounts and percentages specified on the Multi-Manager/MCS Allocation Percentage (AAAP2) screen. The accounts and/or amounts may be subsequently changed in the Multi-Manager/MCS Fund – Global Tran Correction (DAGTF) screen. The percentages used are the most recent allocation percentages effective, based on the effective date of the transaction. This screen is also used to process foreign currency movements between Manager (“S”) Accounts. These currency transfers are posted at Cost or Market using the Cost/Market flag on DEGTF. See Processing Foreign Currency Transfers Between Manager (“S”) Accounts for further information.

CONSTRAINTS • Only the originating transaction is written to Audit Trail. The system-generated

transactions are not included on Audit Trail. • There is a maximum of 30 Manager (“S”) transactions per each Capital Share

transaction. • If there is no system “FX” rate on file as of the trade date of the transaction, the user is

required to enter the base amount and/or the “FX” rate. o If both are entered, the base amount takes precedence. o If entering transactions through the transaction messaging interface and no

system “FX” rate exists, the base amount is required. o “FX” rate is not available for entry through messaging.

• Domestic class of shares transactions cannot be entered on DEGTF. They must be entered on DEGT.

REVERSAL PROCESSING IS NOT AVAILABLE FOR TRANSACTIONS PROCESSED ON DEGTF.TONTINE METHOD When determining the amounts to allocate to the Manager (“S”) Accounts, Investment Accounting (InvestOne) uses the “tontine” methodology to insure that the total amount from the original transaction is divided among the generated transactions without any



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penny rounding differences. The sum of all the generated transactions must always equal the total transaction that is being offset in the Group (“M”) Account.

MANUALLY MAINTAINED TRANSACTIONS “**** MANAGER ACCOUNTS MANUALLY MAINTAINED ****” is displayed if the original generated transactions are modified. To clear manually maintained transactions and re-generate them, the manager accounts and amounts must be blanked out on the Multi-Manager/MCS Fund – Global Tran Correction (DAGTF) screen before pressing ENTER. Once ENTER is pressed, the system again determines the accounts and amounts based on the Multi-Manager/MCS Allocation Percentages (AAAP/AAAP2 screen) in effect. Users may not manually maintain generated transactions. Users may not add, change or delete the generated transaction directly; however, it may be viewed on the VSFT screen. The only way to change a generated transaction is to change the originating transaction. Users have the ability to process Capital Stock transactions (unit like transactions) for Group “M” Accounts to the Pending Transaction Browse Screen (VSPT). Use the ACTION field in the DAGTF screen to determine whether trades are passed to the active file (“TS”) or the unit transaction should be posted to the pending transaction file (“T2”). These unit transactions may also be processed through pending with inbound messaging, Trade/Net and OLE. NOTE: Once the trade is in the pending transaction file (“T2”), the only way to change the transaction is to release the transaction to the active file. This allows users to change the unit transaction in DAGTF. See Multi-Manager/MCS Fund Transaction Activities for a list of what transactions are generated in the Group (“M”) Account and the Manager (“S”) Accounts for each UNITS transaction entered.

MULTI-MANAGER/MCS OEICS For OEIC funds, the base value of Income Equalization on the DEGTF screen is included in the TRD BASE AMT and is allocated to the Manager (S) accounts along with the TRD BASE AMT. If manually maintaining DEGTF fields in Change mode, the Manager (S) accounts and amounts must be blanked out on the DAGT screen before pressing ENTER. Once ENTER is pressed, the system determines the accounts and amounts based on the Multi-Manager/MCS Allocation Percentages (AAAP) screen in effect. When manually maintaining the TRADE DATE, AMOUNT, or EQUALIZATION, the TRD BASE AMT and TRD FX-RATE fields should be blanked out in order to recalculate the values based on the manually entered information. Transaction activities originating in the Group (M) Account are accompanied by system generated transactions to transfer cash (or receivable/payable) from/to the Group (M) Account to/from the Manager (S) Accounts based on the accounts and percentages specified on the AAAP screen. Principal Cash transfers are offset to the Multi-Manager Transfer Account which is the same capital account used for Multi-Manager/MCS Mutual Fund and Hedge Fund Accounts. Income Cash transfers (including Income Equalization) are offset to the Multi-Manager Transfer Income account which is specific to OEIC funds.



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RELATED SCREENS The following screens are available for amending, deleting or viewing transactions entered on DEGTF:

• DAGTF Multi-Manager/MCS Global Tran Update • DDGTF Multi-Manager/MCS Global Tran Delete • VSGTF Multi-Manager/MCS Global Tran View

DEGTF Screen: Multi-Manager/MCS Fund – Global Tran Entry

NEXT DEGTF MODE ADD FDMP528 MULTI-MANAGER/MCS FUND – GLOBAL TRAN ENTRY ACCOUNT NUMBER.... ACTION. SECURITY NUMBER... COST/MARKET EFFECTIVE DATE.... TRANS CODE........ DESC CODE.. TRADE DATE ....... CONTR STL......... ACTUAL STL. SHARES EXTERNAL ID. AMOUNT TRD BASE AMT. SETTLEMENT CURRENCY TRD FX-RATE.. EQUALIZATION.. MANAGER ACCOUNT AMOUNT MANAGER ACCOUNT AMOUNT

Field Description. Fields Shaded Gray are Required. ACCOUNT NUMBER Account number of the Multi-Manager/MCS Group (“M”) Account associated

with this transaction. For Capital Share transactions the ACCOUNT NUMBER must belong to a Group (“M”) Account.

SECURITY NUMBER Security Number associated with this transaction.

COST/MARKET Determines how a currency transfer transaction is processed. C – Currency Transfers are processed at Cost M – Currency Transfers are processed at Market This field is dynamic and only displays for a TCOTM transaction entry.

EFFECTIVE DATE Date the transaction is to become effective.

TRANS CODE Appropriate Investment Accounting (InvestOne) transaction code for the activity.

ACTION Directs the trade to either the active or pending file. A - Trades are passed to the active file (“TS”). Default. H - Post unit transaction to the pending transaction file (“T2”).

DESC CODE Valid description code (MDDC screen) to further define the transaction (Optional).

TRADE DATE Date the transaction activity occurred.

CONTR STL Date that the Cash effect of the transaction is expected to be reflected in the fund.

ACTUAL STL Date that the Cash is actually received/delivered.

TRANSACTION CODE Appropriate Investment Accounting (InvestOne) transaction code for the



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Field Description. Fields Shaded Gray are Required. activity.

SHARES Amount of the impact on the UNITS or Currency position for this transaction.

EXTERNAL ID Transaction identifier from some other originating system may be entered for reference purposes (Optional).

SHARES Amount of the impact on the UNITS position for this transaction.

AMOUNT Amount of Cash (or Receivable/Payable) for this transaction.

TRD BASE AMOUNT Amount translated to base currency using the exchange rate in effect at the time of the trade. This field may be input directly, in which the case the TRD FX RATE is calculated by the system. For Group (M) OEIC funds, the TRD BASE AMT includes the base amount of equalization entered on the transaction.

SETTLEMENT CURR Currency of the class of shares as defined on AASL.

TRD FX RATE Foreign exchange rate at the time of the trade, which is used to translate the local AMOUNT to the base currency of the fund. This field may be input directly, in which case the TRD BASE AMOUNT is calculated by multiplying the local AMOUNT by the supplied rate.

EQUALIZATION Equalization amount associated with the transaction. This amount can be calculated by the system or can be manually entered by the user.

The following two fields can repeat up to twenty times to display the allocated amounts to/from each Manager (“S”) Account (DAGTF/DDGTF/VSGTF only). For the most part these fields are not available in ADD mode (DEGTF).

MANAGER ACCOUNT Account number of the individual Manager (“S”) Accounts.

AMOUNT Amount allocated to the corresponding Manager (“S”) Account. This amount is calculated from the Multi-Manager/ MCS Allocation Percentages (AAAP) but may be changed to any desired amount (in CHANGE mode only).

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER GENERATED TRANSACTIONS


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7 MULTI-MANAGER GENERATED TRANSACTIONS The MMGT Screen allows users to view linked Multi-Manager/MCS transactions, as well as the transaction codes that were used. Up to 22 transactions may be displayed: the originating transaction and 21 generated transactions. Use this screen:

• To display a set of Multi-Manager/MCS Fund transactions that belong to each other. • When you only have the memo number of a generated transaction. • To help you determine the original transaction that created the set.

MMGT Screen: Multi-Manager Generated Transactions

NEXT MMGT MODE VIEW FDMP218 MULTI-MANAGER GENERATED TRANSACTIONS MEMO NUMBER: 00015919 ACCT NUMBER: 00000000023421 MEMO ACCOUNT TRAN MEMO ACCOUNT TRAN -------- --------------- ------ -------- --------------- ------ 00015919 000000000023421 PARC+ 00015920 000000000023421 TRCROT 00015921 000000002342101 TRCRIN 00015922 000000002342102 TRCRIN END OF REQUEST

Field Description. Fields Shaded Gray are Required. MEMO NUMBER Memo number of the transaction. It can belong to any one of the transactions

linked in the group.

ACCOUNT NUMBER Account number associated with the memo number entered.

MEMO Memo number of the transaction.

ACCOUNT Account number of the transaction.

TRAN Transaction code belonging to that memo number and account number.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER/MCS FUND - SUMMATION


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8 MULTI-MANAGER/MCS FUND – SUMMATION Use the MSUM Screen to perform the “summation” processing required finalizing the valuation of a Multi-Manager/MCS Fund for a given valuation period or contiguous series of valuation periods. This is the last processing step to take place for a given valuation period for this fund structure. The processing invoked consists of the following:

• Summation of valuation balances across active Manager (“S”) Accounts and the Group (M) Account.

• Calculation of Multi-Manager/MCS Fund management fees (common and class specific).

• Allocating (from Multi-Manager/MCS Fund to classes of shares) amounts common to all classes of shareholders. See Section 5.500, Multiple Classes of Shares for details.

The end result is a complete updated set of account balances for the Multi-Manager/MCS Fund, and each of its classes of shares for the valuation periods encompassed by MSUM such that these balances are then “current” for reporting and extract purposes. The MSUM screen functions in CHANGE mode only, where the account number of the Multi-Manager/ MCS Fund for which summation processing is to be performed is entered in the ACCOUNT field. Press ENTER and the short name of the account is displayed, with the default FROM DATE and TO DATE of the request. Typically, there is no need to override the default dates presented on the screen, as they are set by the system to encompass the valuation period(s) in need of MSUM processing. After reviewing the information on the screen, press ENTER a second time to complete the MSUM Process.

ADDITIONAL MSUM TOPICS Domestic and Global Sweeping Comprehensive Multi-Manager/MCS Fund Management Fees Defined Changing Default Start and End Dates (FROM and TO DATES) Screen Messages OEDC at MSUM Completion

MSUM Screen: Multi-Manager/MCS Fund – Summation NEXT MSUM MODE CHANGE FDMP157 * MULTI-MANAGER/MCS FUND – SUMMATION * ACCOUNT….: NAME..: FROM DATE..: TO DATE....:



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Field Description. Fields Shaded Gray are Required. ACCOUNT Enter the account number of the Multi-Manager / MCS Fund for which summation

processing is to be performed.

NAME Upon entry of the account number, the account short name is displayed.

FROM DATE Date from which summation processing is to be performed for the requested Multi-Manager/MCS Fund. See Notes.

TO DATE Date to which summation processing is to be performed for the requested Multi-Manager/MCS Fund. See Notes.

See Section 5.1030 Separate Accounts-Sweep/Translate/Summation Processing for more information on MSUM for a Group (“M”) Account in a Separate Account relationship.

DOMESTIC AND GLOBAL SWEEPING As part of MSUM processing: A domestic Group (M) Account is swept from the MSUM FROM DATE to the f’nd's Balance Date. Domestic Manager (“S”) Accounts are swept from the start of the valuation period in which each of their respective OEDCs occur to their respective Balance Dates. The message “nnn SWEEP COMPLETED” (where “nnn” represents the account number) seen in the body of the screen at completion of the process indicates that sweep processing has taken place for a given account. A global Group (M) Account is swept from the MSUM FROM DATE to the f’nd's Balance Date. Global Manager (S) Accounts are swept from the start of the valuation period in which each of their respective OEDCs occur to their respective Balance Dates. Global Manager (“S”) Accounts are then translated as required from their respective Translation Dates to their respective Balance Dates. Message* Meaning nnn SWEEP COMPLETED When only sweep processing was required for a given account, this

message appears in the body of the screen at completion of the process.

nnn TRANSLATED When translation is required for a given Manager (“S”) Account, this message appears in the body of the screen at completion of the process indicates that translation has taken place for the account.

*(“nnn” represents account number) Global Group (M) Accounts are not translated by MSUM. In the event a Group (“M”) Account must be translated, the MSUM process is halted and the user-prompted to translate the Group (“M”) Account.

SUMMATION OF VALUATION BALANCES A primary function of MSUM is the summing of account valuation balances across the funds involved such that a consolidated view is made available. Manager (“S”) Account valuation results may be reviewed and finalized before MSUM is invoked. Group (“M”) Account valuation results (other than those influenced by expense processing) may also be reviewed and finalized before MSUM is invoked. We suggest that funds are fully swept (and translated, if applicable) and reviewed before invoking MSUM. As post-MSUM accounting changes made in any fund(s) involved result in the eventual need to rerun MSUM to finalize the valuation of the Multi-Manager / MCS Fund, this practice keeps overall processing requirements to a minimum.



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COMPREHENSIVE MULTI-MANAGER/MCS FUND MANAGEMENT FEES DEFINED Group (“M”) Account capital shares and expense activities are reflected in Group (“M”) Account balances even before MSUM processing takes place. However, these balances should be regarded as, at best, “intermediate results” with regard to management fee effects on such balances. • The basis for a given Manager (“S”) Account management fee is a value derived from

the Manager (“S”) Account alone and is known and used in the calculation of management fees performed outside of MSUM processing (as would be the case for a regular fund).

• The basis for a given Group (“M”) Account management fee, however, is a value derived from the entire Multi-Manager/MCS Fund (or a class of shares thereof), and is known and used in the calculation of management fees performed only as part of MSUM processing.

The post-MSUM portion of management fees associated with the Group (“M”) Account, together with the portion represented by the sum of all Manager (“S”) Account management fees represents the true set of Multi-Manager/MCS Fund management fees. MSUM is relied upon to maintain this set of management fees and dependent valuation balances. See Section 5.112, Management Fees for further details on management fee processing.

CALCULATION OF MULTI-MANAGER/MCS FUND MANAGEMENT FEES Group (“M”) Account pre-MSUM MCS processing includes neither the calculation of functionally accurate common and class specific management fees nor the allocation of Multi-Manager / MCS Fund valuation period amounts common to all classes of shares from fund to classes. MSUM is relied upon to calculate the fees, perform the MCS allocations, and invoke other MCS-related processing for a Group (“M”) Account. The primary MCS-related responsibilities of MSUM are as follows: • Perform final management fee calculations for the Group (“M”) Account and classes of

shares. • Perform MCS allocations per the CLASSES OF SHARES OPTION as seen on the Account

Class Of Shares (AASL) screen. • Maintain the MULTI-CLASS CONVERSION DATE as seen on the Account Class Of Shares

(AASL) screen. • Update Multi-Manager/MCS Fund valuation balances for total fund and classes of shares • Detect MCS conflicts and MCS out-of-balance conditions, maintaining the MULTIPLE

CLASSES OF SHARES CONFLICT DATE as seen on the Net Asset Value Proof (VNAV) screen and alerting the client to such error conditions on MSUM screen displays (as would normally be seen on screens invoking Inventory processing for a regular MCS fund).

Bearing in mind the above information and the unique Multi-Manager/MCS Fund considerations documented elsewhere in this Section (for example, the use of DEGT vs. DETE for certain transaction entries), refer to Section 5.500, Multiple Classes of Shares for further information regarding the MCS aspects of processing a Multi-Manager/MCS Fund. Most of that information applies not only to a regular MCS fund but also to a Multi-Manager/MCS Fund. Two exceptions of note are:

• CLASSES OF SHARES option “8” is invalid for a Multi-Manager / MCS Fund. • The FEE BASIS TYPE value on a given Account Fee Schedule of a Group (“M”)

Account is interrogated when the schedule is being maintained (in the Account Fee Schedule (AAFS) screen or the Unit Trust Fee Schedule (UTAAFS) screen) to assure that it is a valid type for a Group (“M”) Account.



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CHANGING DEFAULT START AND END DATES (FROM AND TO DATES) The primary date controlling the start of the period for which MSUM is run by default (that is, the default FROM DATE) is the Oldest Effective Date Captured (hereafter referred to as the OEDC) of the Group (“M”) Account. Processes designed to have an immediate or eventual accounting affect on any of the accounts involved in a given Multi-Manager/MCS Fund structure cause the OEDC of the Group (“M”) Account to be set such that MSUM eventually must be run or rerun for the related valuation period(s) (See also OEDC at MSUM Completion). In a domestic fund structure, MSUM FROM DATE defaults to the start of the valuation period in which the least recent of the Group (“M”) Account and all active Manager (“S”) Accou’ts' OEDCs occurs. The same basic defaulting logic applies in a global fund structure, but is further augmented by checking the Translation Dates of active Manager (“S”) Accounts. If warranted, MSUM FROM DATE defaults to the least recent Translation Date of active Manager (“S”) Accounts. Although not a suggested practice, the MSUM default FROM DATE may optionally be moved back in time (before pressing enter a second time to proceed with the summation process) to cause summation processing to occur for older valuation periods for which the system has not determined that processing is required.

• The date may not be moved back in time to a date that is less than the Group (“M”) Account Verification Date, or not a Valuation Date of the funds involved.

• The date may not be moved forward in time. The primary date controlling the end of the period for which MSUM is run by default (that is, the default TO DATE) is the least recent of Balance Dates of all funds involved. Although not a suggested practice, the MSUM default TO DATE may optionally be moved back in time (before pressing enter a second time to proceed with the summation process) to cause summation processing to occur for fewer valuation periods than those for which the system has determined that processing is required.

• The date may not be moved back in time to a date that is not a Valuation Date of the funds involved.

• The date may not be moved forward in time.

SCREEN MESSAGES Thirteen lines are reserved for the display of informational messages in the body of the screen. Upon completion of the process, messages pertaining to the Manager (“S”) Accounts are displayed first (in ascending order by account number), followed by a message for the Multi-Manager / MCS Fund. Messages beyond the first thirteen are truncated from display. Two lines are reserved for the display of informational and error messages at the bottom of the screen. Message* Meaning SUMMARIZATION DONE Normal completion of the process. NOTHING TO SUMMARIZE No processing was effectively performed (a likely response

if FROM DATE and TO DATE are equal). “nnn SUB ACCOUNT HAS DIFFERENT CYCLE” Accompanied by SUMMARIZATION INCOMPLETE

Errors encountered with valuation cycles (for example, non-contiguous valuation periods for a given fund, inconsistent valuation cycles across funds processed) result in the process being halted and the message.

*”nnn” = the account number of the first account for which such an error was encountered



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System errors related to Multi-Manager / MCS Fund – Tran Entry (DEGT screen) activities are not expected to occur, but MSUM interrogates account balances to check for such errors as a precautionary measure. If MSUM encounters an error of this nature, the process is halted at that point and the date at which the error is encountered is displayed in the context of an error message. A summary of such error conditions and related error messages follows: Message* Meaning MSOOBL MM/DD/–Y - TRANSFER CASH NOT ZERO

The sum of the TRANSFER CASH ACCT balances of the Group (“M”) Account (as seen on the Account Valuation Balanc–s - MF (VBMF) screen when requested with MULT “M”) and all Manager (“S”) Accounts (as seen on the Account Valuation Balanc–s - MF (VBMF) screen) is not equal to zero.

MULTIT MM/DD/YY – GROUP TRANSFER FAILURE

One or more of the following balances (as seen on the Account Valuation Balances – MF (VBMF) screen when requested with MULT “M”) of the Group (“M”) Account is not equal to zero:

• CAPT SHRS RECV • G/L PAYABLE • DIVIDEND PAYABLE • CAPT SHRS PAYBL

MSOOBL MM/DD/YY – TRANSFER CASH NOT ZERO

The PRINCIPAL and/or INCOME cash balance of the Group (“M”) Account (as seen on the Cash Balances (VSCB) screen when requested with MULT “M”) is not equal to zero.

MSOOBL MM/DD/YY – TRANSFER CASH INCOME NOT ZERO

The sum of the TRANSFER CASH INCM balances of the Group (“M”) Account (as seen on the Account Valuation Balance–s - MF (VBMF) screen when requested with MULT “M”) and all Manager (“S”) Accounts (as seen on the Account Valuation Balance–s - MF (VBMF) screen) is not equal to zero.

*MCS conflict and out-of-balance messages are also displayed, as space permits, in the messages area at the bottom of the MSUM screen, if necessitated by the detection of related error conditions during the MCS portion of the processing performed by MSUM. As is the case when such error conditions occur in a regular MCS fund during Inventory processing, such error conditions in a Multi-Manager/MCS Fund during MSUM processing are not regarded as being a severe enough problem to warrant halting the process. The following Exceptional Conditions result in related error messages being displayed at the bottom of the MSUM screen. Conditions encountered: • In the process of starting up a new Multi-Manager/MCS Fund (for example, failing to

activate a given Manager (“S”) Account). • In converting a Group (“G”) Account to a Group (“M”) Account (for example, failing to

rid a given Manager (“S”) Account of a management fee defined as being class specific). • In processing management fees for the Multi-Manager / MCS Fund (for example,

exceeding the maximum number of fee entries maintainable for a given fund).

OEDC AT MSUM COMPLETION At completion of the MSUM process, the OEDC of the Group (“M”) Account is set to indicate the MSUM status of the Multi-Manager/MCS Fund. If MSUM is “current” as of the balance date of the Group (“M”) Account, OEDC is cleared (that is, blank) to indicate that all Multi-Manager/MCS Fund balances are current through balance date. If MSUM was completed



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through some date prior to the balance date of the Group (“M”) Account (because an error was encountered or the MSUM TO DATE was manually moved back in time), OEDC is set to the day after the date through which the Multi-Manager/MCS Fund should be regarded as being “current”. The OEDC of a Group (“M”) Account, therefore, takes on special meaning: if set, it indicates the first of one or more days for which MSUM is not current for a given Multi-Manager/MCS Fund.

MULTI-MANAGER/MCS OEIC FUNDS As is the case for Multi-Manager/MCS Mutual or Hedge funds, the final step in valuing a Multi-Manager/MCS OEIC is to use the Multi-Manager/MCS Fund – Summation (MSUM) screen to sum valuation balances across active Manager (S) accounts and the Group (M) account, to compute Multi-Manager/MCS Fund management fees (common and class specific), and to allocate (from Multi-Manager/MCS fund to class of shares) amounts common to all classes of shareholders. The MSUM process is also responsible for calculating Corporation Tax for the Multi-Manager/MCS OEIC and its classes of shares as follows:

Sum the inputs to the Corporation Tax calculation across the Manager (S) accounts to get Unfranked Net Income across all Sub accounts. Retrieve the inputs to the Corporation Tax calculation from the Group (M) account. This would include any Group (M) specific expenses, and the result is the Group (M) Account’s contribution to Unfranked Net Income.

Add the result of (1) to the result of (2) and perform the Corporation Tax calculation at the Group M level.

For MCS allocations, where the AASL Classes of Shares option ‘A’ is selected, the allocation of amounts common to all classes of shares (including, but not limited to Corporation Tax) is based on assets after capital change relationships excluding the corporation tax liability, where the ‘excluding the corporation tax liability’ component of the allocation basis is that which was computed in step (3) above. MSUM processing allows for new Manager (S) accounts to be added in the middle of an IAP period of the accounts already in the structure. However, an MSUM edit exists to ensure none of the Manager (S) accounts have an IAP START DATE less than that of the Group (M) account. The edit checks the IAP START DATE for each valuation period processed as determined by the MSUM from/to date range and issues the following error message (and halts MSUM processing) if one or more Manager (S) accounts is found to have an IAP START DATE less than that of the Group (M) Account: MULT MM/DD/YY – IAP DATE OVERLAP The MM/DD/YY portion of the error message indicates the valuation date at which one or more Manager (S) accounts is found to have an IAP START DATE less than that of the Group (M) Account. The error must be researched and corrected (i.e. review IAP dates via the VSVBUK screen) before the user may return to MSUM to successfully process the period(s) in question.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MANAGER(S) ACCOUNT NAV


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9 MANAGER (S) ACCOUNT NAV Multi-Manager/MCS processing allows for the calculation of a manager level or performance NAV. This manager level NAV allows assessment of an investment manager's performance, in relation to the assets under management. It is important to note that the performance shares at the Manager (“S”) Account level are not the same as the outstanding shares of the Multi-Manager/MCS Fund. Manager (“S”) Account performance shares are used solely for tracking the manager level or performance NAV. PARC+, PARW+, APPRO, and EXPRO (regular subscription/redemption - same day settle) transaction codes are available to input shares at the Manager (“S”) Account level. The presence of performance shares (in PARC+ / PARW+ or APPRO/EXPRO) at the Manager (“S”) Account level triggers the computation of a performance NAV. System-Generated Transaction Codes that Qualify for Computation of Performance Shares Transaction Code Description TSAFNO/TSAFTO MM/MC Transfer Appropriation Foreign OEIC TSEFNO/TSEFTO MM/MC Transfer Expropriation Foreign OEIC TRARTO/TRARNO MM/MC Transfer Appropriation OEIC TRCCIN/TRCCOT Subscription settlement transfer cash through receivable. TRCINN/TRCINT MM/MC Transfer Income Valuation Adjustment. TRCPIN/TRCPOT MM/MC Transfer Capital Expense Payment OEIC TRCVIN/TRCVOT MM/MC Transfer Valuation Adjustment Subscription. TRCVRN/TRCVRT MM/MC Transfer Receivable Adjustment. TRRSIN/TRRSOT Redemption settlement transfer cash through payable. TRCRIN/TRCROT MM/MC subscription transfer cash. TRCUIN/TRCUOT MM/MC subscription transfer receivable. TREPNO/TREPTO MM/MC Transfer Expropriation OEIC TRGPIN/TRGPOT MM/MC transfer capital gain distribution. TRIPIN/TRIPOT MM/MC transfer income distribution. TRIPNO/TRIPTO MM/MC Transfer Income Distribution OEIC TROPIN/TROPOT MM/MC transfer expense payment. TRRPIN/TRRPOT MM/MC redemption transfer cash. TRRUIN/TRRUOT MM/MC redemption transfer payable. TRXPNO/TRXPTO MM/MC Transfer Expense Payment OEIC

Manually Entered Transaction Codes that Qualify for Computation of Performance Shares Transaction Code Description MGRIN/MGROUT Manager to manager transfer cash. VAINC+/VAINC- Income Valuation Adjustment. VAREC+/VAREC- Valuation Adjustment Received.



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The computation of performance shares is based on the Manager (“S”) Account's prior valuation performance NAV. If a calendar (“CALENDAR” on AAAD) has been defined on the Group (“M”) Account, then the prior business day (DECAL value of “.” or “D”) is used instead of prior valuation. The formula for calculating performance shares on qualifying transactions is the applicable transfer cash amount (and the transfer cash income amount for OEIC funds) divided by prior performance NAV (a rounded two decimal place performance NAV is used). Performance shares are calculated only on those transfers written against Manager (“S”) Accounts, not the Group (“M”) Account.



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NOTES 1. Initial PARC+, PARW+, APPRO, and EXPRO transactions may be added to a Manager

(“S”) Account through manual entry or messaging. The principal amount must be zero on these transactions (provided the effective date is after the Conversion Date, if applicable).

2. If the prior performance NAV is not current (based on checking the Oldest Effective Date Captured and Translation Date), is zero or negative, or the account is not valued on the prior business day, the performance share calculation is skipped (the applicable transaction is generated with zero performance shares) and a warning message issued (PRIOR PERFORMANCE NAV UNAVAILABLE ACCOUNT 9999).

3. The performance shares on generated transactions are not maintainable. Adjusting PARC+ or PARW+ transactions may be entered to change the performance shares in a Manager (“S”) Account.

4. If a prior performance NAV changes after being used in generating performance shares, the System does not automatically re-compute the share effect. The primary transaction must be “triggered” using the Multi-Manager/MCS Fund – Tran Correction (DAGT) screen or the Multi-Manager/MCS Fund – Global Tran Update (DAGTF) screen, in order to recalculate underlying performance shares. If performance shares are recalculated, upon pressing enter the message “MULTI-MANAGER FUND GENERATED TRANS CHANGED” is displayed.

5. Class level NAV calculations for the Group (“M”) Account exclude any performance shares from the Manager (“S”) Account.

6. The Multi-Manager/MCS Fund – Tran Correction (VSGT) screen or the Multi-Manager/MCS Fund – Global Tran View (VSGTF) screen do not display related performance shares. The Trade Correction (VSTE) screen can be utilized to view performance shares for a particular Manager (“S”) Account transaction.

7. TRCAIP and TRCAPI (prior period adjustment) transaction codes do not qualify for the computation of performance shares.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING CONVERTING A GROUP (G) ACCOUNT TO A MULTI-MANAGER/MCS FUND


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10 CONVERTING A GROUP (G) ACCOUNT TO A MULTI-MANAGER/MCS FUND The conversion of an Investment Accounting (InvestOne) Manager Reporting Group (“G”) Account to a Multi-Manager/MCS Fund is very similar to the Multiple Classes of Shares conversion process in Section 5.550. The conversion process is presented through an example. It addresses the conversion of a foreign Group (“G”) Account to a foreign Group (“M”) Account. IMPORTANT: A balance in SCTYS RECVD/DELVD (as seen on the Equity Balances (EQUITY/GLEQ) screen) is NOT allowed for Multiple Classes of Shares funds within Investment Accounting (InvestOne). Before the fund can be converted, this balance must be closed out (in the sub account that it originates from) through the Deliver Security at Market (DELVM) or Receive Security at Market (RECVM) transaction code. See Section 5.86, Special Transaction Codes for more information on these transactions. The first step in converting a fund is determining the Valuation Date to be used as Conversion Date. As of Conversion Date, capital share activity resides in the Group (“M”) Account and valuation balances are established for each class of shares. We recommend that Conversion Date be the most current open Valuation Date of the fund. The Conversion Date is systematically determined as the first Valuation Date immediately following Verification Date. A successful conversion has no impact on the valuation of the total fund for the conversion period.

10.1 CONVERSION PROCESS BY EXAMPLE Investment Accounting (InvestOne) foreign Group (“G”) Account #23441 is to be converted to a Multi-Manager/MCS Group (“M”) Account with two classes of shares (Class B and Class C).

STEP 1 OF 21 - DETERMINE CONVERSION DATE Desired Conversion Date has been determined to be January 1, 2000 (fiscal year-end is 12/31). Verification Date must be set to the Valuation Date prior to the desired Conversion Date, which in this example is 12/31/99.



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STEP 2 OF 21 - SET THE SUB-ACCOUNTS' VERIFICATION DATES ACCORDINGLY Make sure there is an open Valuation Date after Verification Date on the sub-accounts before the Verification Date is moved. Using the Update Verification Date (AAUV) screen for the Group (“G”) Account enter the new Verification Date. This moves Verification Date on all the attached sub-accounts.

NEXT AAUV MODE CHANGE FDMP93 * * * UPDATE VERIFICATION DATE * * * ACCOUNT NUMBER...: 000000000023441 MULTI-MGR CONVERTED 'G' COMPACTION DATE......: 00/00/00 OVERSELL/COVER DATE..: 00/00/00 VERIFICATION DATE....: 12/25/99 ACCOUNT LOCK DATE....: 00/00/00 BALANCE DATE.........: 01/01/00 VALUATION DATE PRIOR TO BALANCE DATE: 12/31/99 ALTERNATE LOCK DATE..: 00/00/00 LEVEL................: 0 FREEZE DATE/INDICATOR: 00/00/00 LOCK DATE TIME STAMP.: 00/00/00 00:00:00:00 LOCK DATE CHANGE ID: NEW VERIFICATION DATE: NEW LOCK DATE: NEW ALTERNATE LOCK DATE: NEW LEVEL: PROCESSING A GROUP ACCOUNT

In order to move the Verification Date on the Group (“G”) Account, request a balance type screen (for example, STAS/GLSTAS) on the group account for the Valuation Date after Verification Date. This will accomplish two things: 1) move Verification Date on the group account and 2) create the Valuation Date to be used as Conversion Date. IMPORTANT - Before proceeding, get a record of the EQUITY/GLEQ and INGL/GLINGL screens at the total fund level as of Conversion Date.



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STEP 3 OF 21 - MODIFY ACCOUNT FEE SCHEDULES (AAFS) FOR THE ATTACHED SUB-ACCOUNTS The only valid fee schedule type for a Manager (“S”) Account is based on prior day net assets (FEE BASIS TYPE “P”). All other fee basis types (if any) must be stopped as of Conversion Date. This is accomplished by creating a new fee schedule effective on Conversion Date with a FEE BASIS TYPE of “P” for all active sub-account fee schedules. To determine the existing fee schedules: 1. Request the Group/Rpt Acct Sub-Account Specification (AAAS) screen for the Group

(“G”) Account to determine the attached sub-accounts.

2. Request the Account Fee Balances (AAFB) screen for each sub-account as of Conversion Date to determine the active expense qualifiers.

3. Go to the Account Fee Schedule (AAFS) screen for each qualifier and add a “P” type schedule, if necessary, effective on Conversion Date.

a. In this example, the fee schedules for sub-accounts #2344101 and #2344102 must be checked to insure they are based on prior day net assets.

Class-specific management fees are disallowed in the Manager (“S”) Accounts. Prior to conversion a management fee defined to be class specific (non-zero CLASS OF SHARES on AAMF) in a non-MCS account was treated as a common expense. After conversion management fees defined to be class specific are disallowed. If any exist in the Manager (“S”) Accounts, effective on Conversion Date the balance must be plugged to zero on AAFB and the accrual must be stopped (create a new fee schedule with zero in the AMOUNT column).

NEXT AAFS MODE CHANGE FDMP75 * * * ACCOUNT FEE SCHEDULE * * * ACCOUNT NO: 000000002344101 SUB 1 23441 SECURITY QUALIFICATION: 00041 EXP M4200 PRIOR NAV EFFECTIVE DATE: 01 01 2000 ELIG FOR DELETE DATE: 12 31 2049 FEE BASIS TYPE:.......... P (* TO DELETE THE ENTIRE FEE SCHEDULE) AMOUNT ANNUAL (MILLIONS) RATE(%) 0 TO 0



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STEP 4 OF 21 - CHANGE THE ACCOUNT INDICATOR FIELD ON THE AAAD SCREEN A Multi-Manager/MCS Fund is identified by a value of “M” in the ACCT INDICATOR field on the Account Definition (AAAD) screen. Change the ACCT INDICATOR field for the group from a “G” to a “M”.

NEXT AAAD MODE CHANGE FDMP03 * * * ACCOUNT DEFINITION * * * ACCOUNT NO.......... 000000000023441 SHORT NAME MULTI-MGR CONVERTED 'G' MODEL ACCOUNT NO.... STATUS... E STATUS DATE.... 02 10 00 RPT-ACC NO: INCEPTION.................. 12 31 98 VERIFICATION................ 12 31 99 BALANCE.................... 01 01 00 SCHEDULE.................... 01 01 00 POSN LEVEL PRICING ACT DATE 00 00 00 DATA SOURCE. M FISCAL YEAR END. 12 POSITION TOLERANCE (SHRS)..... 0.00 TAX METHOD..... H TAXLOT CODE.... F INCOME PROCESSING CODE............ D ADVISOR ACCOUNTING................ N PRICING PROCESSING CODE........... * COST ASSIGN... F TRADE OVER.... N GNMA GEN... N WASH SALE ADJ GEN... N ACCOUNT TYPE...................... TRAN GENERATION.. N LAG DAYS... 0000 TRAN GENERATOR "TO-DATE".... FUND CATEGORY. MF FUND GROUP. OLDEST EFFT DATE CAPTURED... AMORT/ACCRET METHOD 6 DE MINIMUS N GAIN/LOSS CODE FOR AMORT/ACCRET.... 1 ACCR METHODS T/NT N ACCR INC OPT TAXLOT FOR ACCR T/N. Y ACCT INDICATOR. M G/L PROFILE... GROUP ACCOUNT NO.... 000000000023441 AMORT TO CALL.. 0 BOUNDARIES.... 0 OVERRIDE FUTURES SCTY G/L TREATMENT AMORT OPTION... AMORT SHORT... PROJ TAX RATE.. ADJUST INC CODE.. N OID. 0 MOD YTM. 0 POINT OF SALE. N TAX GROUP...... E CONFIRM DEFAULT.. C TEST ACCT.. N ALTERNATE SS PROC.. Y CALENDAR...... CORP-ACT PROCESS. N

The system responds with the message “M-ACCOUNT MUST BE MCS”. This is a reminder to define the account as Multiple Classes of Shares on the Account Class of Shares (AASL) screen (see Step 5 below). This change causes the system to set GROUP (“M”) CONVERSION DATE (as seen on AAMF) to the Valuation Date after Verification Date (01/01/00 for this example).

NEXT AAMF MODE CHANGE FDMP37 ACCOUNT DEFINITION II - MORE FEATURES ACCOUNT NO:.......... 000000000023441 MULTI-MGR CONVERTED 'G' FUND TYPE.......................... L SALES LOAD PERCENT............ 1.00 INCOME EQUALIZATION................ N PAR VALUE.................. 0.000000 EXPENSES LIMITATION (%)....... 0.00 DEALING SPREAD (%)............ 0.000 USER DT RULES.. N VAL POINT... REVALUATION FLAG................... N PURCH/SOLD INTEREST OPTION.. LAG.. 00 NASDAQ CALENDAR................... NOTIONAL UNITS ROUNDING OPTION..... UNDERLYING SECURITY........ DEFAULT PRICE FOR CAPITAL TRANS.... 1 UNDERLYING SECURITY OPTION......... NAV QUOTE.... TRD/STL SHRS.... DAILY DIVIDEND FUND........ DAY CNT DFLT. DANA DAY COUNT. 00 INCOME PER SHARE OPTIONS... HIER VAL DEC... HV DIVD.... N TRANSLATION DATE........... 01 01 00 BASE CURRENCY.. GBP PREC... 2 BASE COUNTRY................... GB SPOT OPTION.... RECOG DEAL EXP.. N FX ON INCOME OPTION............ SPOT EXPIRATION.. U NAV DISPLAY.. SWEEP/TRANSLATE OPTION......... LAG CA.... EMU FX OPT..... Y M/F INDICATOR... M/F OPTION...... M/F CONVERSION DATE........ 00 00 00 JIF ROUND OPT... JIF FX DATE OPT. GROUP (M) CONVERSION DATE.. 01 01 00 *** FOR MULTI-CLASS ACCOUNTS, USE AASL TO SET UP CLASS SPECIFIC DATA



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STEP 5 OF 21 - DEFINE THE ACCOUNT AS A MULTIPLE CLASSES OF SHARES ACCOUNT When the ACCT INDICATOR is changed from “G” to “M” the system responds with a message M-ACCOUNT MUST BE MCS. An account is defined to be Multiple Classes of Shares on the Account Class of Shares (AASL) screen. On this screen the desired CLASS OF SHARES OPTION is selected and the appropriate classes are activated (see Section 5.500 Multiple Classes of Shares for further information). For Group (“M”) Account #23441 the desired Class of Shares Option is blank and the desired classes are B and C with sales load 2.00 and 1.50, respectively.

NEXT AASL MODE CHANGE FDMP167 * * * ACCOUNT CLASS OF SHARES * * * ACCOUNT NO........... 000000000023441 MULTI-MGR CONVERTED 'G' SCROLL CLASS......... CLASSES OF SHARES OPTION: CLASS HEDGE.......... N REALLOCATE CORPORATION TAX: Y NASDAQ NASDAQ MM CLS VALID CURR NAV LOAD % CODE FOOTNOTE YLD --- ----- ---- --- ------- ------ -------- --- 01 CLASS A................... N 00.00 02 CLASS B................... Y 02.00 03 CLASS C................... Y 01.50 04 --- NOT DEFINED ---...... N 00.00 05 CLASS E................... N 00.00 06 --- NOT DEFINED ---...... N 00.00 07 --- NOT DEFINED ---...... N 00.00 08 --- NOT DEFINED ---...... N 00.00 09 --- NOT DEFINED ---...... N 00.00 10 UNITS CLASS 10............ N 00.00

STEP 6 OF 21 - DEFINE UNITS SECURITIES AS NEEDED UNITS securities with the appropriate unique security qualifier must be defined as documented in Section 5.20 Security Activities. For this example, the Multi-Manager/MCS Fund will have two classes of shares (unique qualifiers of 00002 and 00003).

STEP 7 OF 21 - DEFINE ACCOUNT PRESCHEDULE (AAPR SCREEN) Since the Group (“M”) Account now accepts limited transaction entry, report schedules must be established. The account preschedule request type (as defined on the AAPR screen) must be the same preschedule type as the attached Manager (“S”) Accounts. In this example, the Manager (“S”) Accounts are daily so a daily preschedule (“AA”) for the Group (“M”) Account must be added.

STEP 8 OF 21 - DEFINE ACCOUNT REPORT SCHEDULE (AARS SCREEN) A report schedule must be manually defined on the Group (“M”) Account for the Conversion Date and any existing open valuation periods in the Account Report Schedule (AARS) screen. In this example, a report schedule for 12/31/99 - 01/01/00 must be defined.

STEP 9 OF 21 - ESTABLISH VALUATION BALANCES FOR THE GROUP (M) ACCOUNT After the preschedule and report schedule are defined, the Group (“M”) Account must be re-swept (AAIN) from Verification Date to balance date in order to create valuation balances. The Multi-Manager/MCS Fund – Summation process also must be run to create summary record valuation balances on Conversion Date.



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STEP 10 OF 21 - DEFINE ALLOCATION PERCENTAGES (AAAP SCREEN) The amount of cash that each Manager (“S”) Account is to systematically receive from or contribute to the Group (“M”) Account is based on the allocation percentages that are defined on the Multi-Manager/MCS Allocation Percentages (AAAP) screen (see Multi-Manager/MCS Allocation Percentages for more information). Percentages must be defined with an Effective Date equal to Conversion Date. In this example:

• Manager (“S”) Account #2344101 is allocated 33.3333%. • Manager (“S”) Account #2344102 is allocated 66.6667% effective 01/01/00.

NEXT AAAP MODE ADD FDMP156 MULTI-MANAGER/MCS ALLOCATION PERCENTAGES GROUP (M) ACCOUNT NUMBER: 000000000023441 EFFECTIVE DATE: 01 01 00 MGR (S) ACCOUNT PERCENT MGR (S) ACCOUNT PERCENT MGR (S) ACCOUNT PERCENT 000000002344101 33.3333 000000002344102 66.6667 LAST CHANGE DATE: 02/14/2000 BY: B0106DD TOTAL: 100.0000

STEP 11 OF 21 - DEFINE CLASS SPECIFIC EXPENSE SECURITIES AND “PLUG” CLASS-SPECIFIC EXPENSE (FIXED AND MANAGEMENT FEE) BALANCES AS REQUIRED IN THE GROUP (M) ACCOUNT Security definition information, fixed expense accrual amounts (DEFE) and management fee schedules for any common and class-specific expenses on the Group (“M”) Account, if applicable, must be defined. Only FEE BASIS TYPE “P” (prior NAV), “C” (current period shareholder activity), or “U” (current dividend earning shares) are valid in a Group (“M”) Account. Beginning balances in the Group (“M”) Account may be manually maintained (or “plugged”) as of Conversion Date in the Holdings Definition (DAHO) screen (for fixed expenses) or Account Fee Balances (AAFB) screen (for management fees).



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In the Manager (S) Accounts…

STEP 12 OF 21 - DELETE ANY PRIOR PERIOD BALANCE ADJUSTMENT TRANSACTIONS EFFECTIVE IN THE CONVERSION PERIOD If any Prior Period Balance Adjustment transactions (transaction codes DUGOUI, DUIOUG, ISOUI, DSOUI) became effective in the valuation period ending with Conversion Date, these must be deleted. At a later conversion step these transactions are re-entered as class-specific. The Data Analysis Transactions (VSDT) screen may be used to search the UNITS security in all applicable Manager (“S”) Accounts for such transactions.

STEP 13 OF 21 - CANCEL THE EFFECTS OF ANY AUTO-SETTLE CAPITAL SHARES TRANSACTIONS PENDING CONTRACTUAL SETTLEMENT AS OF THE CONVERSION DATE If any auto-settle capital shares transactions (PARCAS, PRCASC, PARWAS, PRWASC) are pending contractual settlement as of Conversion Date, they must now be forced to settle and then cancelled as of Conversion Date. At a later conversion step these transactions are re-entered as class-specific. The Data Analysis Transaction (VSDT) screen may be used to search the UNITS security in all applicable Manager (“S”) Accounts for auto-settle transactions having contractual settle date greater than Conversion Date. The settle dates of any such transactions found should then be changed (in the Trade Correction (DATE) screen) to be equal to Conversion Date. Finally, the effects of these transactions should be cancelled by entering cancellation equivalent transactions in the same amounts. For example, if a PARWAS transaction for 300,000.0000 shares and 425,000.00 principal is found where the contractual settle date is greater than Conversion Date; its settlement dates should be changed to be equal to Conversion Date. Then a PRWASC transaction for 300,000.0000 shares and 425,000.00 principal should be entered as of Conversion Date, to cancel the effects of the PARWAS transaction. The effects of the original PARWAS transaction are re-introduced in a later conversion step.



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STEP 14 OF 21 - CLOSE CAPITAL BALANCES MAINTAINED AT THE MANAGER (S) ACCOUNT LEVEL Through transactions entered against the UNITS security (no qualifier), the following balances (as seen on the Equity Balances (EQUITY/GLEQ) screen) are set to zero: SUBSCRIPTIONS REDEMPT EXCHANGED

SUBSCRIPT EXCHANGED SHARES OUTSTANDING

DIVIDENDS REINVESTED DIVIDEND EARN SHR

REDEMPTIONS

Standard transaction codes can be used to close out the indicated balances. We proceed with our example by performing the following transaction entries against the UNITS security (with no qualifier), effective on the 01/01/00 Conversion Date. Note that this step is performed for each Manager (“S”) Account. Account #2344101: BALANCE TO BE CLOSED TRAN CODE SHARES AMOUNT PRINCIPAL AMOUNT SUBSCRIPTIONS PARC+C 0.0000 33,395,666.10 SUBSCRIPT EXCHANGED PARCXC 0.0000 503,564.56 DIVIDENDS REINVESTED PARCLC 0.0000 0.00 REDEMPTIONS PARW+C 0.0000 -123,456.00 REDEMP EXCHANGED PARWXC 0.0000 -687,500.00

SHARES OUTSTANDING PARCRC 13,391,095.0000 0.00 DIVIDEND EARN SHR PARCSC 12,473,784.0000 0.00

Account #2344102: BALANCE TO BE CLOSED TRAN CODE SHARES AMOUNT PRINCIPAL AMOUNT SUBSCRIPTIONS PARC+C 0.0000 1,000,000.00 SHARES OUTSTANDING PARCRC 100,000.0000 0.00 DIVIDEND EARN SHR PARCSC 100,000.0000 0.00 (all other applicable balances are zero for this account) Note, optionally, one PARC+C transaction can be entered for 100,000.0000 shares and 1,000,000.00 principal to clear the balances in account 2344102.



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STEP 15 OF 21 - DELETE ANY INCOME AND GAIN(LOSS) DISTRIBUTION TRANSACTIONS EFFECTIVE IN THE CONVERSION PERIOD By viewing the Income/Gain (Loss) (INGL/GLINGL) screen, it can be seen if transactions hitting DISTRIBUTED INCM or DISTRIBUTED G/L were effective in the conversion period. Income distribution transactions have a net effect of -135,000.00 on NET UNDISTRIB INCOME, and gain (loss) distribution transactions having a net effect of 10,250.00 on NET UNDISTRIB G/L.

NEXT GLINGL MODE REPORT FDMP272 * GLOBAL FUND - INCOME / GAIN(LOSS) * ACCOUNT NO: 000000000023441 MULTI-MGR CONVERTED 'G' DATE: 01 01 00 OPTION: 1 CLASS OF SHARES: DAY COUNT OPT: WEEKEND DAYS: TRD/STL SHRS: * * * INCOME ACCOUNT * * * * * * GAIN/LOSS ACCOUNT * * * BEGINNING BALANCE 826,240.71 BEGINNING BALANCE 311,790.82 ADJUST TO BEG BAL 0.00 ADJUST TO BEG BAL 0.00 DISTRIBUTED INCM 0.00 DISTRIBUTED G/L 10,250.00 DISTRIBUTION ADJ -135,000.00 REAL GAIN/LOSS 0.00 INCOME EARNED 342.56 NET UNDIST G/L 322,040.82 AMORT/ACCR EARNED -9.50 TOTAL NET ASSETS 36,412,677.30 EXCH GAIN/LOSS 0.00 PREV DAY RNDG ADJ 0.00 EXPENSES -561.22 NET WITH EXPENSED 0.00 NET INVEST INCOME -228.16 NET UNDIST INCOME 691,012.55 SHARES OUTSTNDING 13,491,095.0000 GAIN/LOSS PER SHR 0.025612084636 N A V 2.6990 INCM/DIST PER SHR -0.000018145691 DIVIDEND EARN SHR 12,573,784.0000 YIELD -.23

These effects occurred as the result of the following transactions entered against the UNITS security (with no qualifier): In Account #2344101: Tran Tran Code Dates Income Amount Principal Amount INCD 01/01/00 150,000.00 0.00 GLDIST 01/01/00 0.00 35,000.00 In Account #2344102: Tran Tran Code Dates Income Amount Principal Amount INCD- 01/01/00 15,000.00 0.00 GLDST- 01/01/00 0.00 45,250.00 Delete any such transactions, as they are re-entered as class-specific UNITS transactions in a later conversion step.



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In the Group (M) Account…

STEP 16 OF 21 - RE-ESTABLISH THE CAPITAL BALANCES WHICH WERE SET TO ZERO IN STEP 14, BUT ESTABLISH THEM NOW AS CLASS-SPECIFIC INTO THE GROUP (M) ACCOUNT Determine how much of each total fund capital balance is associated with each class of shares, and establish these balances accordingly in the Multi-Manager/MCS – Tran Entry (DEGT) screen. Use standard transaction codes, where the UNITS security qualifier indicates the class of shares to which each transaction will be applied. The following transactions must be entered into Group (“M”) Account #23441: Security Security Tran Tran Shares Principal Number Qualifier Code Efft Date Amount Amount UNITS 00002 PARC+ 01/01/00 0.0000 11,665,222.03 UNITS 00003 PARC+ 01/01/00 0.0000 23,330,444.07 UNITS 00002 PARCX 01/01/00 0.0000 167,854.85 UNITS 00003 PARCX 01/01/00 0.0000 335,709.71 UNITS 00002 PARW+ 01/01/00 0.0000 41,152.00 UNITS 00003 PARW+ 01/01/00 0.0000 82,304.00 UNITS 00002 PARWX 01/01/00 0.0000 229,166.67 UNITS 00003 PARWX 01/01/00 0.0000 458,333.33 UNITS 00002 PARCR 01/01/00 4,497,031.6667 0.00 UNITS 00003 PARCR 01/01/00 8,994,063.3333 0.00 UNITS 00002 PARCS 01/01/00 4,191,261.3333 0.00 UNITS 00003 PARCS 01/01/00 8,382,522.6667 0.00

STEP 17 OF 21 - RE-ENTER ANY INCOME AND GAIN(LOSS) DISTRIBUTION TRANSACTIONS THAT WERE DELETED IN STEP 15, BUT ENTER THEM NOW AS CLASS-SPECIFIC INTO THE GROUP (M) ACCOUNT Determine to which class of shares each of the income and gain (loss) distribution transactions deleted in Step 15 were intended, and re-enter those transactions into the Group (“M”) Account, in the Multi-Manager/MCS – Tran Entry (DEGT) screen. Use standard transaction codes, where the UNITS security qualifier indicates the class of shares to which each transaction is applied. Security Security Tran Tran Income Principal Number Qualifier Code Efft Date Amount Amount UNITS 00002 INCD 01/01/00 100,000.00 0.00 UNITS 00003 INCD 01/01/00 50,000.00 0.00 UNITS 00002 GLDIST 01/01/00 0.00 25,000.00 UNITS 00003 GLDIST 01/01/00 0.00 10,000.00 UNITS 00002 INCD- 01/01/00 10,000.00 0.00 UNITS 00003 INCD- 01/01/00 5,000.00 0.00 UNITS 00002 GLDST- 01/01/00 0.00 30,000.00 UNITS 00003 GLDST- 01/01/00 0.00 15,250.00



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STEP 18 OF 21 - RE-ESTABLISH THE EFFECTS OF ANY AUTO-SETTLE CAPITAL SHARES TRANSACTIONS WHICH SHOULD BE PENDING CONTRACTUAL SETTLEMENT AS OF THE CONVERSION DATE, BUT ESTABLISH THEM NOW AS CLASS-SPECIFIC INTO THE GROUP (M) ACCOUNT If any auto-settle capital share transactions were found to be pending contractual settlement in Step 13 they now must be re-entered. When re-entering the transactions, the effective date must be equal to the Conversion Date and the settle dates must correspond to those on the original transaction. Enter these transactions into the Group (“M”) Account by means of Multi-Manager/MCS – Tran Entry (DEGT) screen using standard transaction codes, where the UNITS security qualifier indicates the class of shares to which each transaction will be applied.

STEP 19 OF 21 - RE-ENTER ANY PRIOR PERIOD BALANCE ADJUSTMENT TRANSACTIONS WHICH WERE DELETED IN STEP 12, BUT ENTER THEM NOW INTO THE GROUP (M) ACCOUNT AS CLASS-SPECIFIC If any Prior Period Balance Adjustment transactions (transaction codes DUGOUI, DUIOUG, ISOUI, DSOUI) were found and deleted in Step 12, then they must be re-entered now. Enter these transactions into the Group (“M”) Account through the Multi-Manager/MCS – Tran Entry (DEGT) screen using standard transaction codes, where the UNITS security qualifier indicates the class of shares to which each transaction will be applied.

STEP 20 OF 21 - REQUEST MULTI-MANAGER/MCS FUND - SUMMATION (MSUM) After all the original UNITS transactions have effectively been moved from the Manager (“S”) Accounts to the Group (“M”) Account, the Group (“M”) Account should be summed in the Multi-Manager/MCS Fund – Summation (MSUM) screen (see that section for further information). As a result of this process, the total fund may have several MCS out-of-balance conditions. However, the total fund (viewing the Group (“M”) Account on EQUITY/GLEQ and INGL/GLINGL) should appear the same as it did prior to any conversion steps taking place. The reason for the MCS OUT-OF-BAL messages is that NET UNDISTRIB INCOME and NET UNDISTRIB G/L balances summed across all classes of shares would not equal these amounts as seen at the total fund level. This can be determined by requesting the INGL/GLINGL screen for each class of shares. These MCS OUT-OF-BAL conditions are due to the beginning balance amounts for the total fund INCOME and GAIN/LOSS accounts not being available for each class of shares. Because these balances were unavailable, the resulting ending balances summed across classes of shares will not equal the total fund balances. The final conversion steps will adjust these balances at the class of shares level in order to bring the sum of the classes in balance with the total fund.



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STEP 21 OF 21 - ENTER MCS INITIALIZATION TRANSACTIONS INTO THE GROUP (M) ACCOUNT, AS REQUIRED TO CLEAR MCS OUT-OF-BAL CONDITIONS In the Group (“M”) Account using the Transaction Entry (DETE) screen, the following MCS Initialization transactions (see Section 5.500 Multiple Classes of Shares Initialization Transaction Codes for further information) may have to be entered to clear the MCS OUT-OF-BAL conditions. Multi-Manager/MCS Fund – Summation (MSUM screen) must be rerun several times throughout this process in order to assess your progress. Investment Accounting (InvestOne) can only issue two MCS OUT-OF-BAL messages at a time, so after clearing two out-of-balance conditions, request summation (MSUM) again. If more errors exist they will be issued.

Possible Error Messages and Correcting Transaction Codes: MCS OUT-OF-BAL Message Initialization transaction codes MCS NET UNDISTRIB INCOME OUT-OF-BAL UNDI+ / UNDI- MCS NET UNDISTRIB G/L OUT-OF-BAL UNDGL+ / UNDGL- MCS NET UNREALIZED G/L OUT-OF-BAL UNRLI+ / UNRLI- MCS NET UNREAL G/L (TR BAL) OUT-OF-BAL UNRTB+ / UNRTB- MCS NET UNREAL EXCH G/L OUT-OF-BAL UNRFX+ / UNRFX- MCS UNREALIZED FUT OUT-OF-BAL UFUTI+ / UFUTI- MCS REALIZED FUT OUT-OF-BAL RFUTI+ / RFUTI-

Positive out-of-balance amounts should be initialized with the “+” transaction codes; negative out-of-balance amounts should be initialized with the “-” transaction codes. The conversion is complete when no MCS OUT-OF-BAL messages are displayed.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING PROCESSING A MULTI-MANAGER/MCS FUND


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11 PROCESSING A MULTI-MANAGER/MCS FUND This is a description of general processing of an account defined as a Multi-Manager/MCS Fund on Investment Accounting (InvestOne) since its actual inception. It also applies for all periods beyond the GROUP (“M”) CONVERSION DATE of an account that was converted to a Multi-Manager/MCS Fund. For the Group (“M”) Account, all domestic UNITS and EXPENSE type transaction entry (except MCS Initialization, SELEXP, CLODR, CLORED, CLORX, CLOSX, GLI+, and GLI- transactions) must be entered on the Multi-Manager/MCS Fund – Tran Entry (DEGT) screen. See Multi-Manager/MCS Fund Transaction Activities for a complete list of eligible transaction codes. MCS Initialization, SELEXP, CLODR, CLORED, CLORX, CLOSX, GLI+, and GLI- transactions are entered against the Group (M) Account by means of the Trade Entry (DETE) screen. Note that Batch and Online messaging are supported for Group (“M”). For the Group (“M”) Account, all foreign UNITS transaction entry must be entered on the Multi-Manager/MCS Fund – Global Tran Entry (DEGTF) screen. See Multi-Manager/MCS Fund Transaction Activities for a complete list of eligible transaction codes. Note that Batch and Online messaging are supported for Group (“M”). For Manager (“S”) Accounts, all transaction activity is entered in the standard transaction entry screens (DETE, DEFT etc.). The only exceptions to this rule are the manager-to-manager cash transfer (MGROUT) transaction, which is entered on the Multi-Manager/MCS Fund – Tran Entry (DEGT) screen, and the Manager-to-Manager currency transfer ( TCOTM) transaction, which is entered on the Multi-Manager/MCS Fund – Global Tran Entry (DEGTF) screen. Almost every activity performed on a Manager (“S”) Account sets the Oldest Effective Date Captured (OEDC) on the Group (“M”) Account to the effective date of the activity (daily funds), or to the first day in the period that the activity occurred (non-daily funds). OEDC in a Group (“M”) Account has a slightly different meaning than it does in a non-Group (“M”) Account. For a Group (“M”) Account it indicates that some activity occurred which renders the balances unreliable; therefore, the fund must re-summarize (MSUM) from a date earlier than OEDC in order for balances to be correct. Inventory does not clear OEDC for a Group (“M”) Account as it does for non-Group (“M”) Accounts. Only Multi-Manager/MCS Fund – Summation (MSUM) can clear the date. Before any transactions can be entered into the Group (“M”) Account, allocation percentages (AAAP screen) must first be defined. These percentages determine what portion of the cash (or receivable/payable) must be systematically allocated to or from which Manager (“S”) Accounts. See Multi-Manager/MCS Allocation Percentages for more information. After all activity has been entered for the day/period, Multi-Manager/MCS Fund – Summation (MSUM) must be requested in order for the total fund, as well as classes of share balances, to be computed. See Multi-Manager/MCS Fund – Summation for more information on this process.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING PROCESSING A MULTI-MANAGER/MCS FUND


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All reporting type online screens report balances for the Multi-Manager/MCS Fund when requested for the Group (M) Account number. Several online screens have a MULT option that allows the user to select which type of balances are displayed. Valid Values: Value Display Blank (default) View post-MSUM Multi-Manager/MCS Fund balances. M View pre-MSUM Group (“M”) Account balances. D View the balances representing the difference between post-MSUM Multi-

Manager/MCS Fund balances and the sum of Manager (“S”) Account balances for corresponding fields. This represents the true (that is, post-MSUM) portion of the Multi-Manager/MCS Fund balances attributable to the Group (“M”) Account.

For a Multi-Manager/MCS Fund, the integrity of the results seen is dependent on summation (MSUM) status at the requested Valuation Date. Multi-Manager/MCS Fund and Group (“M”) Account balances should not be relied upon if Multi-Manager/MCS Fund – Summation (MSUM screen) processing is required for the requested Valuation Date, which will be the case if the message INCOMPLETE DATA - SUMMARIZATION (MSUM) REQUIRED is seen at the bottom of the screen.

CONSTRAINTS • Capture into Group (“M”) Account not supported. • MGROUT transaction transfers cash from one manager to another manager of the same

group. • All of the UNITS transactions entered against the Group (“M”) Account must be class-

specific. • While EXPENSE securities defined to the Group (“M”) Account may be either common or

class-specific, EXPENSE securities defined to the Manager (“S”) Accounts must be common.

• Reversals are not supported in Group (“M”) accounts. See Section 5.500 Multiple Classes of Shares for more information on MCS specific processing.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING PROCESSING A MULTI-CURRENCY MULTI-MANAGER/MCS FUND


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12 PROCESSING A MULTI-CURRENCY MULTI-MANAGER/MCS FUND This is a description of general processing of an account defined as a Multi-Currency Multi-Manager/MCS Fund on Investment Accounting (InvestOne). It also applies for all periods beyond the GROUP (“M”) CONVERSION DATE of an account that was converted to a Multi-Manager/MCS Fund. This section describes activity specifically related to Multi-Currency Multi-Manager/MCS Fund processing. For a more general description of Multi-Manager/MCS Fund processing, see Processing a Multi-Manager/MCS Fund. For the Group (“M”) Account, all foreign UNITS transaction entry must be entered on the Multi-Manager/MCS Fund – Global Tran Entry (DEGTF) screen. All transactions for domestic class of shares must be entered on the Multi-Manager/MCS Fund – Tran Entry (DEGT) screen. See Multi-Manager/MCS Fund Transaction Activities for a complete list of eligible transaction codes for each screen. Note that Batch and Online messaging are supported for Group (“M”). Processing Activities in this section: Account Class of Shares (AASL) Screen Multi-Manager/MCS Fund – Global Transaction Entry (DEGTF) Equalization Translation Income Distribution Transactions Spectra Class Currency – Equity Balances (CLCEQ) Screen

ACCOUNT CLASS OF SHARES (AASL) SCREEN Allows share classes to be defined in a currency different than the base currency of the fund. Use the CURR field to define a currency for a specific share class. See Section 5.510 Multi-Currency Multi Class of Shares for more information on AASL and foreign share class definition.

MULTI-MANAGER/MCS FUND – GLOBAL TRANSACTION ENTRY (DEGTF) Use this screen to enter transactions for foreign class of shares. Use DEGT for domestic class of shares transactions. All transactions are input against the UNITS security with a qualifier. The user inputs the SHARES and the local AMOUNT. SHARES are normally input, but this is not a mandatory field and is not calculated by Investment Accounting (InvestOne) if left blank. The user may optionally enter the TRADE BASE AMOUNT and/or the TRADE FX RATE. If both are input, the TRADE BASE AMOUNT takes precedence. If the TRADE FX RATE and/or TRADE BASE AMOUNT are not input, the trade date spot rate on file is used to calculate the base amount. If nothing is input and there is no spot rate on file, an edit is issued requiring the user to enter the TRADE BASE AMOUNT and/or the TRADE FX RATE. When entering transactions through the transaction messaging interface, the TRADE FX RATE cannot be manually supplied. The user may supply the TRADE BASE AMOUNT or use the trade date spot rate in Investment Accounting (InvestOne) to calculate the base amount. If there is no spot rate on file, the TRADE BASE AMOUNT is a required entry. The transactions process as follows:



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• After entering a capital share transaction, system generated transfer transactions are created to transfer the cash or receivable/payable amount from/to the Group “M” to/from the Manager Account. These transactions are generated using the base amount of the capital share transaction.

• On settlement date, a CUP/CDN transaction is generated to move the foreign currency. • On settlement date, a CBUY/CSELL transaction is generated to exchange the local

currency value to the base currency of the fund. • The TRD BASE AMOUNT and the TRD FX RATE fields show “U” (for user-supplied) after

them instead of “S” (system supplied) even when the user has not manually entered these amounts. “U” shows because capital transactions for foreign class of shares cannot allow revaluation in a Multi-Manager Fund scenario. The fields are treated as user supplied even if they are populated by the system.

EQUALIZATION Equalization is calculated on subscriptions, redemptions and cancellation transactions if the Account option on AAMF is “B” or “P” for fund types “L” or “N”. The calculation is the same as for domestic class of shares transactions: • Calculate the equalization factor as the sum of the previous day’s positive undistributed

income for that share class plus the previous day’s equalization balance for the share class. If the total is positive (positive or negative for option “B”), divide it by the previous day’s traded shares for the share class.

• Multiply the units on the subscription or redemption by the equalization factor. • Credit Equalization for a subscription. • Debit Equalization for a redemption. Note: If equalization is set to option “P”, equalization is calculated only if income is positive. If the equalization is set to option “B”, equalization is calculated on both positive and negative income. See Section 5.96 Income Equalization for more information on equalization processing.

TRANSLATION Translation functionality for foreign class of shares transactions for a Multi-Manager/MCS fund processes as follows: • There is no revaluation of subscription, redemption, cancellation and distribution

transactions for foreign class of share transactions. • There is no revaluation of receivable/payable currency amounts in the Group “M”

structure. • There is no unrealized exchange gain/loss between trade and settle dates of a

transaction as the TRADE FX RATE effectively equals the SETTLE FX RATE for these transactions. Cash or Receivable/Payable allocations only happen once (at the time of transaction entry) from the Base Amount of the capital share transaction. As a result, the allocation is not subject to fluctuations due to revaluation of the currency amount between Trade and Settlement Dates.

• Once the transactions settle, the currency is no longer tracked separately; it is part of the Assets and Liabilities of the Fund.

• If a spot rate is changed on Investment Accounting (InvestOne) after a transaction has been entered, re-triggering the transaction in Change mode does not update the TRD BASE AMOUNT or the TRD FX RATE. This occurs because capital transactions for a foreign class of shares cannot be revalued in a Multi-Manager Fund scenario.



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INCOME DISTRIBUTION TRANSACTIONS When an INCD, INCD+ or INCD- transaction is entered for a foreign class of shares, the transfer transaction (TRIFIN/TRIFOT) for the Group M account updates Principal Cash, while the transfer transaction (TRIPIN/TRIPOT) for the Manager account updates Income Cash. The Principal Cash in the Group M account is offset by a CBUY/CSELL transaction, so the end result is a zero cash balance in the Group M account and the appropriate Income Cash balance in the Manager Account. The reasoning for this scenario is as follows: • For a foreign class of shares, the INCD, INCD+/- transaction updates Distributed Income

and Currency Allowance. A CUP/CDN transaction is generated to move the foreign currency. Since there cannot be a currency balance in the Group “M” account, a CBUY/CSELL transaction is also generated to exchange the local currency amount with the fund’s base currency. The CBUY/CSELL updates Principal Cash.

• The Group “M” transfer transaction (TRIFIN/TRIFOT) also updates Principal Cash in order to offset the CBUY/CSELL transaction and reduce the Cash balance in the Group “M” account to zero. The Manager account then receives the cash through another transfer transaction (TRIPIN/TRIPOT). The Manager account transfer transaction updates Income Cash, since the INCD, INCD+/- is an income distribution.

• If the Group “M” account’s transfer transaction were to update Income Cash, the result would be a positive balance in Principal Cash and a negative balance in Income cash or vice versa. This cannot happen in the Group “M” account because it cannot maintain a cash balance.

An example of the general ledger entries for an INCD transaction is as follows. The result is a zero cash and currency balance in the Group “M” account and an Income Cash balance in the Manager account. Group M Account Manager Account INCD TRIPOT DR. Distributed Income DR. Multi-Manager Transfer CR. Currency Allowance CR. Cash (Income) TRIFIN DR. Cash (Principal) CR. Multi-Manager Transfer CDN DR. Currency Allowance CR. Currency at Value CBUY DR. Currency at Value CR. Cash (Principal)

SPECTRA A number of Fund Trend data items report class account balances in the currency of the class. See Section 5.510 Multi-Currency Multi-Class of Shares for more information on the Spectra codes available for multi-currency reporting.



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CLASS CURRENCY – EQUITY BALANCES (CLCEQ) SCREEN Reports class level data in class currency and account base currency. This screen is only valid for foreign class of shares. Domestic class of shares will not report on this screen. For more information on CLCEQ, see Section 5.510 Multi-Currency Multi-Class of Shares.

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER/MCS FUND TRANSACTION ACTIVITIES


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13 PROCESSING FOREIGN CURRENCY TRANSFER TRANSACTIONS BETWEEN MANAGER (“S”) ACCOUNTS

Multi Manager funds are able to process foreign currency transfers between Manager (“S”) Accounts. The Multi-Manager/MCS Fund – Global Tran Entry (DEGTF) screen is used to transfer foreign currency between various accounts within a Group M structure through the use of transfer out ( TCOTM) and transfer in ( TCINM) transaction codes. A transfer can be posted at Cost or Market depending on the option chosen for the COST/MARKET field on DEGTF. All transfers are processed at cost on the accounting system no matter which option is chosen, but if a transfer is posted at market, performance data is stored for the Manager (“S”) Accounts involved in the transfer. This data is viewable on CBAL6, through Spectra codes and through a select number of Browser Reports. Processing Activities in this section: Multi-Manager/MCS Fund – Global Transaction Entry (DEGTF) Global Trans Entry – (DEFT) Position/Taxlot Processing Valuation Processing Spectra Enterprise Reporting Examples

MULTI-MANAGER/MCS FUND - GLOBAL TRANSACTION ENTRY (DEGTF)

• Foreign currency transfer transactions are entered on DEGTF. Following four new transaction codes are introduced which handles same day settlement & pending settlement of currency transfers. TCOTM :- MM / MCS SUB TO SUB CURRENCY TRANSFER OUT CDNT :- MM/MCS SUB CURRENCY TRANSFER OUT TCINM :- MM / MCS SUB TO SUB CURRENCY TRANSFER IN CUPT :-MM/MCS SUB CURRENCY TRANSFER IN Users to enter TCOTM transaction code in transfer out sub, TCINM / CDNT/CUPT are generated transaction codes. With introduction of these transaction codes TFCOUT/TFCIN transaction codes are retired from system.

• TCOTM transactions are posted at Cost or Market using the Cost/Market field on DEGTF. This field is dynamic and will only appear when a TCOTM transaction is being entered. If a user wants to post the TCOTM transaction at cost, then option “C” is selected. If a user wants to post the TCOTM at market, then option “M” is selected.

• Transfers processed at market have the same accounting effects as transfers posted at cost as these transfers have no impact on the Group “M” Account. However, each Manager “S” Account is able to view their own performance, so any performance gain/loss resulting from the currency transfer is stored in the system for reporting use only. As all transfers are reported at cost on the accounting system, for a Manager (“S”) Account transferring currency out, there is no gain/loss reported on the Balance Sheet or Income Statement resulting from transfers processed at market. For the Manager (“S”) Account receiving the currency transfer, there may be realized fx gain/loss in the event of the transfer closing/covering a negative position. This is similar to processing a CBUY entry against a currency that holds a negative balance.



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• TCOTM transaction is entered against UNITS. User to provide currency of transfer in "STL CC" field , quantity of currency to be transfer in "Amount " field and account in the MANAGER ACCOUNT field .

• Transfers moves through capital and thus will be processed against UNITS (no share class). TCOTM/TCINM transaction codes takes care of receivable & payable part when transfer of currency is with pend settlement & actual movement in currency happens on settlement with CDNT/CUPT transaction codes.

• To post a TCOTM transaction at cost, the user enters a “C” in the COST/MARKET field. Posting a transfer at cost does not affect the performance values of either Manager (“S”) Account as market equals cost unless a taxlot/position with UPA is relieved. Once a TCOTM transaction is entered, the system automatically generates a TCINM transaction in the Manger (“S”) Account receiving the currency. CDNT /CUPT transactions of actual currency movement will be generated in transfer out & transfer in sub respectively. TCINM / CDNT / CUPT transactions cannot be manually maintained and are only viewable on the VSFT screen. TCOTM transactions can be maintained on DEGTF, DAGTF and DDGTF. They can also be viewed on VSGTF and VSFT.

• To post a TCOTM transaction at Market, the user enters a “M” in the COST/MARKET field. When User enters TCOTM transaction at Cost / Market, TRADE BASE AMT / TRADE FX RATE will be picked by system from FX file , User can also define values in these fields. Similarly, SETL BASE AMT & SETL FX RATE are picked by system from FX rates defined in system & User is allowed to enter values in these fields too. Edit is placed in system when TRADE BASE AMT is "Zero" for TCOTM transaction codes.

• When TCOTM transaction is posted at Market , based upon intial position of currencies in transfer out sub & transfer in sub , transaction codes TCOTM & CDNT ( Transfer Out Sub ) & TCINM ( Transfer In Sub) will create values for Off balance sheet items such as "PERF REAL ADJ" / "UNDST PERF REAL AD" / "PERF UNREAL ADJ" which are populated on CBAL6 online screen.

• Currency transfer processed at Cost or Market will have no impact on NAV of overall fund (Group M Account). Only sub a/c NAV’s will be impacted due to currency transfer.

• The following rules apply to TCOTM and TCINM transactions: • Currency transfer transactions are only valid for Manager (“S”) Accounts. Each

transaction can only be transferred to one Manager (“S”) Account. The Manager (“S”) accounts involved in the transfer must belong to the same Group (“M”) account.

• Currency transfer transactions can only be processed against the UN asset group. Therefore, the Security Number on DEGTF needs to be a UNITS security (No Class).

• Descriptions associated with cash transfers are posted on the separate transaction screen DEDE.

• TCOTM/TCINM/CDNT/CUPT will flow to IA view when IA view is attached to Sub A/C's. • Conventional date logic for pend settled transactions is applicable to TCOTM

/TCINM/MGROUT/MGRIN transaction codes. System allows User to enter Trade Date to be lesser than Effective Date for these transaction codes.

• Currency Transfer out transactions (TCOTM) can only be entered on DEGTF. They can be changed and deleted on DAGTF/DDGTF and viewed on VSGTF and VSFT. TCINM / CDNT / CUPT are system generated transactions which cannot be manually maintained.

• Only the originating transaction ( TCOTM) is written to Audit Trail. The system-generated transaction ( TCINM / CDNT/ CUPT) is not included on Audit Trail.



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• If the account processing a currency transfer is a tax lot account (and processes currencies as tax lots), the delivery transaction (CDNT) & receipt transaction (CUPT) relieves tax lots based on the cost assignment that is on AAAD or AAGO. CDNT/CUPT are transactions which actually handles currency movement.

• Edit is placed in system when TRADE BASE AMT is "Zero" for TCOTM transaction code when User processed at Cost / Market.

• In change mode, when User wants to change some of the field values of transactions such as Currency Of Transfer / Dates / amount of transfer, User needs to blank out TRADE BASE AMT/TRADE FX RATE/SETTLEMENT BASE AMT/STL FX RATE. Post changes User needs to press submit transaction; system will recalculate following fields TRADE BASE AMT/TRADE FX RATE/SETTLEMENT BASE AMT/STL FX RATE based on changes made on data edit screen (DAGTF).

• Performance shares will not be impacted on account of TCOTM/TCINM transaction codes. • Restriction is imposed that does not allow exchange rates to differ between Managers for

these transfer transactions. Thus, even if the AAFP and PLP definitions for a manager use a different Source/Type/Time for the CU asset group, the rates will be forced to equal when processing currency transfers with pending settlement. This same restriction cannot be imposed when calculating unrealized FX gain/loss on Rec/Pay. Thus, it will be up to the user to ensure the From and To managers are using the same exchange rates.

• TCOTM/TCINM transaction codes are not eligible for reversal processing. • When relieving a taxlot/position (example: CSELL) with UPA, the UPA is moved to

Performance Realized Adjustment on effective date of the relief transaction.

GLOBAL TRAN ENTRY – (DEFT) DEFT screen allows a user to manually increase or decrease UNREALIZED PERFORMANCE ADJUSTMENT through the use of a CBUY or CSELL transaction. This function is used when the maximum number of tax lots is reached and the user has to process CSELL and CBUY transactions to reconfigure tax lots. To enter a manual amount for UNREALIZED PERFORMANCE ADJUSTMENT, the UPA field on the DEFT screen is used. This field is dynamic and is only displayed for a CBUY or CSELL transaction. The current carry on the position needs to be equal to zero before the UPA field can be populated. The value entered in the UPA field can be either positive or negative. This field is maintainable on DEFT, DAFT and DDFT, and is viewable on VSFT. Whenever a CBUY or CSELL transaction with UPA manually populated is processed, the amount in the UPA field is added to the PERF UNREAL ADJ balance for the currency security on CBAL6. The same amount also reduces the PERF REAL ADJ and the UNDST PERF REAL AD amounts on CBAL6. The following example shows how these entries are processed and the effect of each on account balances: A Manager (“S”) Account holds the following GBP tax lot/position:

Lot # Shares Cost Unreal Performance Adj 1 1,000 500 20 2 500 220 30 … … … … … … … …



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4999 600 280 10 552,100 250,955 130

The account reaches the maximum number of lots allowed per security, so the user needs to process a CSELL transaction to close all current taxlots and reconfigure the taxlot with a CBUY transaction. The Principal on the CSELL must be equal to the cost so there is no realized fx gain/loss on this entry.

Tran Code Shares Principal Realized Gain/Loss CSELL 552,100 250,955 0

The CSELL also moves the 130 Unrealized Performance Adjustment balance into Realized Performance Adjustment. Consequently, the Unrealized Performance Adjustment is reduced to zero and the new value of Realized Performance Adjustment becomes 130.



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In order to complete reconfiguring of the taxlot, the user now processes a CBUY entry.

Tran Code Shares Principal Unreal Performance Adj CBUY 552,100 250,955 130

The end result of the above CBUY is that Unrealized Performance Adjustment is re-established back to its original value of 130. This CBUY entry also needs to reduce the Realized Performance Adjustment by 130 so the CSELL and CBUY entries do not result in any Realized Performance Gain.

POSITION/TAXLOT PROCESSING Every foreign currency transfer has following transactions associated with it: a TCOTM & CDNT for the manager transferring out and a TCINM & CUPT for the manager transferring in. These transactions are capable of changing a net currency position in the accounts from long to short or short to long. When these transactions cause a position to “cross zero”, the existing position is closed out and a positive or negative position is established for the remainder. Manager accounts transferring the currency out ( CDNT) will never recognize FX gain/loss when processing the transfer, but the Manager account receiving the transfer in ( CUPT) may realize FX gain/loss in the event the transfer closes/covers a negative position. For the account receiving the transfer in ( TCINM & CUPT) transaction, Unrealized Performance Adjustment is saved at the position or taxlot level when the transfer entry creates a new taxlot. This is calculated after considering off balance sheet figures created due to TCOTM & CDNT in transfer out Sub. . Unrealized Performance Adjustment balances do not dictate which taxlots are relieved when a relieving transaction is subsequently processed. The relief is still based on the cost assignment on AAAD or AAGO. When a position or taxlot that carries an Unrealized Performance Adjustment balance is relieved, the system proportionately reduces the amount of unrealized performance adjustment and moves it into the realized performance adjustment balance. For example, if a $100 Unrealized Performance Adjustment is in effect and one half of the taxlot is sold (50% of shares are relieved), then one half of the Unrealized Performance Adjustment associated with that taxlot is also relieved. The sum of the Unrealized Performance Adjustment across taxlots for the currency produces the Unrealized Performance Adjustment at the holding level. If a currency holding is average cost, off balance sheet figure created due to TCOTM & CDNT is saved at the position level. It is then added to the existing Unrealized Performance Adjustment balance. For an average cost position, the Unrealized Performance Adjustment is still relieved proportionately with shares/par.

VALUATION PROCESSING The CURR BALANCES – BASE (CBAL6) screen stores the Performance Values for the Manager (“S”) Accounts. The following fields contain the stored values for foreign currency transfers: PERF REAL ADJ: For the Manager Account transferring out ( TCOTM transaction), the difference between trade date base amount on settlement base amount for TCOTM transaction ( e.g. difference created due to change in FX rate between trade date of receivable & settlement date of receivable) & difference between Settlement Base Amount and cost of currency on CDNT



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transaction code and/or any relief of UPA on a taxlot/position is displayed. This is the current amount of Performance Realized Adjustment for a specific valuation date. For the Manager Account transferring in ( TCINM transaction), Unrealized Performance Adjustment that is relieved (on a negative position/taxlot) due to the relief of the associated postion/taxlot is displayed. This is the current amount of Performance Realized Adjustmen for a specific valuation date. UNDST PERF REAL AD: This is the cumulative value of all Performance Realized Adjustment for the currency security. PERF UNREAL ADJ: For the Manager Account transferring out ( TCOTM transaction), this field displays a value when transfer out account does not hold any initial position & TCOTM transaction is entered with pend settlement creating payable due to TCOTM transaction. When Payable is settled with different amount due to FX rate difference in trade date & settlement date, this difference is populated as PERF UNREAL ADJ in CBAL6. For the Manager Account transferring in ( TCINM transaction), this field displays the opposite of the difference created due to TCOTM & CDNT transaction. . Please refer to system manual 8.110 for details on Journal Entries of TCOTM/TCINM/CDNT/CUPT.

SPECTRA The following spectra codes are available for foreign currency transfers through Ole Spectra, Browser Spectra, and FOMI/Pure Batch Spectra: Transaction Analysis

Spectra Code Spectra Code Description YP Cost/Market Flag YQ Transfer (In/Out Proceeds) YR Performance Realized Adjustment YS Relieved Performance Unrealized Adjustment

Security Distribution

Spectra Code Spectra Code Description Y0 Performance Cost Value X0 Performance Unrealized Adjustment

Fund Trend Analysis

Spectra Code Spectra Code Description ZQ Performance Realized Adjustment ZS Performance Cost Value ZP Performance Unrealized Adjustment ZR Undistributed Performance Realized Adjustment

These fields are also available through EDW.



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ENTERPRISE REPORTING When running the following Browser Reports, users have the option to display either Accounting or Performance data for Manager (“S”) Accounts. To display Performance data, the INCLUDE PERFORMANCE RESULTS box needs to be checked. When this parameter is checked, the reports display Performance data in place of Accounting data. See Enterprise Reporting documentation for further information on these reports: Cash Positions Report Investment Profit and Loss Report Transaction Activity By Security Report Transaction Listing Report

EXAMPLES Example#1 Transfer at Cost In this example, a transfer of foreign currency (GBP) is processed between two Manager accounts. The transfer takes place on 1/10/2005 and is posted at cost with same day settle. Here are some additional details for the transfer: Manager Account Number (Transfer Out) 227121

Manager Account Number (Transfer In) 227122

Currency Transfer GBP

Units of Transfer 1500

GBP/USD FX rate as on 01/10/2005 0.580476

Cost Assignment (Both Accounts) FIFO

Settlement Same Day Settled –

01/10/2005

Transfer @ Cost / Market Cost GBP Position as on 01/09/2005 in Sub - 227121 ( Transfer out Sub)

Memo Date Share / Par Cost

2 1/5/2005 1000 1785.71

3 1/7/2005 1000 1666.67 No GBP Position as on 01/09/2005 in Sub - 227122 (Transfer In Sub) A foreign currency transfer is processed on DEGTF

NEXT DAGTF MODE CHANGE FDMP529 MULTI-MMGR/MCS GLOB UPDATE MEMO NUMBER 00000006 ACCOUNT NUMBER.... 000000000227121 SUB 1 - FA SECURITY NUMBER... UNITS COST/MARKET C EFFECTIVE DATE.... 01 10 05 TRANS CODE.... TCOTM D/CODE: STL CC: GBP T/D: 01 10 05 C/S: 01 10 05 A/S: 01 10 05 E/ID: SHARES 0.0000 TRD BASE AMT. 2,584.09 U AMOUNT 1,500.00 TRD FX-RATE.. .580475138 STL BASE AMT. 2,584.09 S *** MGR ACCTS MANUALLY MAINTAINED *** STL FX-RATE.. .580475138 MANAGER ACCOUNT AMOUNT MANAGER ACCOUNT AMOUNT 000000000227122 1,500.00

Note:- 1) User to specify security as "UNITS" for TCOTM transaction code.



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2) User to specify amount of currency transfer in “Amount” field. 3) User to specify currency of transfer in "STL CC" field. 4) This is an example of same day settlement currency transfer. 5) COST / MARKET = C 6) TRD BASE AMT & STL BASE AMT is populated based on FX rates defined in system in given example. VSFT view of TCOTM transaction in transfer out sub:-

NEXT VSFT MODE VIEW FDMP149 GLOBAL TRANS CORRECTION SG00SIMSDEV2 MEMO NUMBER 00000006 ACCOUNT NUMBER.... 000000000227121 SUB 1 - FA SECURITY NUMBER... UNITS SHAREHOLDER ACTIVITY EFF DT.. 01 10 05 TR CD. TCOTM DESC CD.. GST REV 0.00 S EXT ID. SOURCE.. A SETTLE CC. GBP TRD DT 01 10 05 W/S Y C/S DT 01 10 05 A/S DT 01 10 05 GSTPD 0.00 S B/ID R/CASH 0.00 S L/S/S. BRK CLR PKT 0000 H/I N TRD BASE AMT. 2,584.09 U SHRS/PAR.. 0.0000 TRD FX-RATE.. .580475138 PRICE/SHR. 0.000000 STL BASE AMT. 2,584.09 S PRIN. 1,500.00 GBP F/P. STL FX-RATE.. .580475138 INCOME.... 0.00 GBP SETTLE AMT.... 1,500.00 S S/D GSTRC 0.00 S COMM IND. C COMM RSN. P/A FLG. COMM 0.00 COM MEMO TR EXP 0.00 ADVISOR C/A CONFRM C EXCHANGE ASST EVNT SRC COST 0.00 C/F C/O EQUALIZATION 0.00 (REL MEMO 00000007)(MEM: 00000002 FX... SWP=>

Journal Entry Passed for TCOTM transaction.

NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000006 DISPLAY..: N FUND NO: 000000000227121 SUB 1 - FA TRANSACTION DESCRIPTION: TCOTM UNITS SHAREHOLDER ACTIVITY DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/10/05 MULTI-MANAGER TRANSFER 2,584.09 CURRENCY ALLOWANCE 2,584.09 TOTAL 2,584.09 2,584.09

Journal entry passed depicts that even though transfer is made at cost & account is having GBP position, system uses FX rates defined in system to pass TCOTM transaction. This difference is nullified in CDNT transaction in such a way that net effect of TCOTM & CDNT is shown as transfer is made at cost.



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VSFT view of CDNT transaction code in transfer out sub:-

NEXT VSFT MODE VIEW FDMP149 GLOBAL TRANS CORRECTION SG00SIMSDEV2 MEMO NUMBER 00000007 ACCOUNT NUMBER.... 000000000227121 SUB 1 - FA SECURITY NUMBER... GBP GREAT BRITAIN POUND EFF DT.. 01 10 05 TR CD. CDNT DESC CD.. GST REV 0.00 S EXT ID. SOURCE.. A TRD DT 01 10 05 W/S Y C/S DT 01 10 05 A/S DT 01 10 05 GSTPD 0.00 S B/ID R/CASH 0.00 L/S/S. BRK CLR PKT 0000 H/I N SHRS/PAR.. 1,500.0000 PRICE/SHR. 0.580475 PRIN. 2,584.09 F/P. INCOME.... 0.00 S/D GSTRC 0.00 S COMM IND. C COMM RSN. P/A FLG. COMM 0.00 COM MEMO TR EXP 0.00 ADVISOR C/A CONFRM C EXCHANGE ASST EVNT SRC COST 2,619.05 C/F C/O AMORTIZATION 0.00 (REL MEMO 00000006) FX... SWP=> GREAT BRETAIN POUND

Journal Entry for CDNT transaction code:-

NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000007 DISPLAY..: N FUND NO: 000000000227121 SUB 1 - FA TRANSACTION DESCRIPTION: CDNT GBP GREAT BRITAIN POUND DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/10/05 MULTI-MANAGER TRANSFER 34.96 CURRENCY ALLOWANCE 2,584.09 CURRENCY AT VALUE 2,619.05 TOTAL 2,619.05 2,619.05

By debiting Multi Manager Transfer Ledger with amount of 34.96/- in CDNT transaction, system debits Multi- Manager Transfer ledger & credits Currency At value ledger with amount of 2619.05/- in totality with TCOTM & CDNT transaction. System passes TCOTM & CDNT transactions in such a way so that net impact is as similar to transfer at cost.



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VSFT view of TCINM transaction code in Sub 227122

NEXT VSFT MODE VIEW FDMP149 GLOBAL TRANS CORRECTION SG00SIMSDEV2 MEMO NUMBER 00000002 ACCOUNT NUMBER.... 000000000227122 SUB 2 - FA SECURITY NUMBER... UNITS SHAREHOLDER ACTIVITY EFF DT.. 01 10 05 TR CD. TCINM DESC CD.. GST REV 0.00 S EXT ID. SOURCE.. A SETTLE CC. GBP TRD DT 01 10 05 W/S Y C/S DT 01 10 05 A/S DT 01 10 05 GSTPD 0.00 S B/ID R/CASH 0.00 L/S/S. BRK CLR PKT 0000 H/I N TRD BASE AMT. 2,584.09 U SHRS/PAR.. 0.0000 TRD FX-RATE.. .580475138 PRICE/SHR. 0.000000 STL BASE AMT. 2,619.05 U PRIN. 1,500.00 GBP F/P. STL FX-RATE.. .572726752 INCOME.... 0.00 GBP SETTLE AMT.... 1,500.00 U S/D GSTRC 0.00 S COMM IND. C COMM RSN. P/A FLG. COMM 0.00 COM MEMO TR EXP 0.00 ADVISOR C/A CONFRM C EXCHANGE ASST EVNT SRC COST 0.00 C/F C/O EQUALIZATION 0.00 (REL MEMO 00000003)(GENER TRANS) FX... SWP=>

TRD BASE AMT & STL BASE AMT field’s values are driven from TCOTM & CDNT transaction codes. Journal Entry passed for TCINM transaction code:-

NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000002 DISPLAY..: N FUND NO: 000000000227122 SUB 2 - FA TRANSACTION DESCRIPTION: TCINM UNITS SHAREHOLDER ACTIVITY DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/10/05 CURRENCY ALLOWANCE 2,619.05 MULTI-MANAGER TRANSFER 2,619.05 TOTAL 2,619.05 2,619.05

Journal entry is passed with amount 2619.05/- which is cost transferred from transfer out sub for GBP.



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Journal Entry for CUPT transaction code:-

NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000003 DISPLAY..: N FUND NO: 000000000227122 SUB 2 - FA TRANSACTION DESCRIPTION: CUPT GBP GREAT BRITAIN POUND DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/10/05 CURRENCY AT VALUE 2,619.05 CURRENCY ALLOWANCE 2,619.05 TOTAL 2,619.05 2,619.05

Currency At Value debited with 2619.05/- amount through CUPT transaction codes. CUPT transaction may result in realized exchange gain/loss in a situation where transfer in account is holding negative position in currency & currency transfer results in covering of negative position. Post transfer of currency position of GBP:- Position of GBP as on 01/10/2005 in transfer out sub 227121:-

NEXT VSTH MODE REPORT FDMP98 TAX LOT HOLDINGS VIEW SG00SIMSDEV2 ACCOUNT NO: ...... 000000000227121 SUB 1 - FA SECURITY NO: ........... GBP CCYY LONG/SHORT... HOLDINGS DATE: .......... 01 10 05 GREAT BRITAIN POUND BASIS (T,S): ................... T B/L: ........ L ADVISOR CODE. ---MEMO-- -DATE- -----SHARES/PAR---- --------COST----- --AMORT/ACCRET-- 3 010705 500.0000 833.33 0.00

VSTH of transfer out sub depicts CDNT uses FIFO cost assignment during relief of tax lot. Position of GBP as on 01/10/2005 in transfer in sub 227122:-

NEXT VSTH MODE REPORT FDMP98 TAX LOT HOLDINGS VIEW SG00SIMSDEV2 ACCOUNT NO: ...... 000000000227122 SUB 2 - FA SECURITY NO: ........... GBP CCYY LONG/SHORT... HOLDINGS DATE: .......... 01 10 05 GREAT BRITAIN POUND BASIS (T,S): ................... T B/L: ........ L ADVISOR CODE. ---MEMO-- -DATE- -----SHARES/PAR---- --------COST----- --AMORT/ACCRET-- 3 011005 1,500.0000 2,619.05 0.00

As currency is transfer at cost in given example, no impact is shown on CBAL6 screen for off balance sheet items. Example#2 Transfer at Market



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In this example, a transfer of foreign currency (GBP) is processed between two Manager Accounts. The transfer take place as on trade date 1/15/2005 & settlement date 01/20/2005 and is posted at market with pend settlement. Here are some additional details for the transfer: Manager Account Number (Transfer Out) 229121

Manager Account Number (Transfer In) 229122

Currency Transfer GBP

Units of Transfer 1000



Cost Assignment (Both Accounts) AVG

Settlement Pend Settlement

Transfer @ Cost / Market Market GBP Position as on 01/14/2005 in Sub - 229121 (Transfer Out Sub)

Memo Date Share / Par Cost 2 1/5/2005 1000 1,612.90 3 1/10/2005 1000 1,754.39

Total Cost 2000 3367.29 GBP Position as on 01/14/2005 in Sub - 229122 (Transfer In Sub)

Memo Date Share / Par Cost 2 1/10/2005 -1000 -1,470.59

DEGTF Screen when TCOTM is entered at Market with lagged settlement:-

NEXT DAGTF MODE CHANGE FDMP529 MULTI-MMGR/MCS GLOB UPDATE MEMO NUMBER 00000004 ACCOUNT NUMBER.... 000000000229121 SUB 1 - FA SECURITY NUMBER... UNITS COST/MARKET M EFFECTIVE DATE.... 01 15 05 TRANS CODE.... TCOTM D/CODE: STL CC: GBP T/D: 01 15 05 C/S: 01 20 05 A/S: 01 20 05 E/ID: SHARES 0.0000 TRD BASE AMT. 1,742.26 U AMOUNT 1,000.00 TRD FX-RATE.. .573967146 STL BASE AMT. 1,756.80 S *** MGR ACCTS MANUALLY MAINTAINED *** STL FX-RATE.. .569216758 MANAGER ACCOUNT AMOUNT MANAGER ACCOUNT AMOUNT 000000000229122 1,000.00

Journal entry passed for TCOTM



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NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000004 DISPLAY..: N FUND NO: 000000000229121 SUB 1 - FA TRANSACTION DESCRIPTION: TCOTM UNITS SHAREHOLDER ACTIVITY DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/15/05 MULTI-MANAGER TRANSFER 1,742.26 CAPITAL SHARES REDEEMED PAYB 1,742.26 TOTAL 1,742.26 1,742.26 01/20/05 CAPITAL SHARES REDEEMED PAYB 1,742.26 MULTI-MANAGER TRANSFER 14.54 CURRENCY ALLOWANCE 1,756.80 TOTAL 1,756.80 1,756.80

As trade date & settlement date is different for TCOTM transaction, payable ledger is credited on trade date & same is getting offset on settlement date. Difference created due to trade date fx rate & settlement date fx rate in payable is transferred to Multi-Manager Transfer Ledger. Purpose behind transferring difference to Multi Manager Transfer ledger as system does not account for realize exchange gain loss on this transaction in books & system needs to account transfer transactions at cost . Amount of 14.54/- which is being debited to Multi-Manager transfer ledger becomes a part of PERF REL ADJ to be reflected on CBAL6 screen. As in given example , Account holds currency which is being transferred ,amount 14.54/- is being consider as a part of PERF REL ADJ. (Note: - When Account does not hold any position in currency & makes currency transfer , this amount will be consider as a part of PERF UNREL ADJ ) Journal Entry passed for CDNT

NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000005 DISPLAY..: N FUND NO: 000000000229121 SUB 1 - FA TRANSACTION DESCRIPTION: CDNT GBP GREAT BRITAIN POUND DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/20/05 CURRENCY ALLOWANCE 1,756.80 CURRENCY AT VALUE 1,683.65 MULTI-MANAGER TRANSFER 73.15 TOTAL 1,756.80 1,756.80

Multi Manager Transfer Ledger is credited with amount 73.15/- . Further, due to TCOTM & CDNT transaction codes, Multi Manager Transfer ledger is debited with net amount of 1683.65/- (1742.26+14.54-73.15) which is exact cost of GBP to be transfer. Thus net impact of both these transaction makes transfer at cost accounted in system. Amount 73.15/- becomes a part of PERF REL ADJ. Please find attached CBAL6 screen which explains impact on off balance sheet items.



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CBAL6 Screen for Transfer out Sub 229121 Impact on CBAL6 is reflected on settlement date of transaction. CBAL6 screen as on 01/20/2005.

NEXT CBAL6 MODE REPORT FDMP502 CURR BALANCES - BASE SG00SIMSDEV2 ACCT.. 000000000229121 DATE.. 01 20 05 CURR.. GBP OPTION.. D REAL EXCH GL FUT 0.00 UNREAL EXCH GL FUT 0.00 REAL EXCH GL OPT 0.00 UNREAL EXCH GL OPT 0.00 PASS UNFR INCM IAP 0.00 PASS FR INCM IAP 0.00 PASS UNFR EXPN IAP 0.00 PASS FR EXPN IAP 0.00 PASSED UNDIS INCM 0.00 PASSED RECL PAYA 0.00 PASSED EARN LIAB 0.00 PASSED UNDIS LIAB 0.00 PASSED NRT EXP 0.00 PREPAID EXPENSES 0.00 POOL ACCRUED EXP 0.00 POOL EXPENSES 0.00 NOTL INVEST PAYB 0.00 NOTL INVEST RECV 0.00 LCL NOTL RECV/PAYB 0.00 0.00 REBAL GAIN LOSS 0.00 REBAL SUSPENSE 0.00 POOL COST OF CURR 0.00 PERF REAL ADJ 58.61 UNDST PERF REAL AD 58.61 PERF UNREAL ADJ 0.00

PERF REAL ADJ = PERF REAL ADJ (created on account of TCOTM / TCINM) + PERF REL ADJ (created on account of CDNT) As given in above example 58.61 = -14.54 (TCOTM) + 73.15 (CDNT) Same is being transferred to UNDST PERF REAL AD as on 01/20/2005. CBAL6 as on 01/21/2005 UNDST PERF REAL AD balance carry forwarded from 01/20/2005.

NEXT CBAL6 MODE REPORT FDMP502 CURR BALANCES - BASE SG00SIMSDEV2 ACCT.. 000000000229121 DATE.. 01 21 05 CURR.. GBP OPTION.. D REAL EXCH GL FUT 0.00 UNREAL EXCH GL FUT 0.00 REAL EXCH GL OPT 0.00 UNREAL EXCH GL OPT 0.00 PASS UNFR INCM IAP 0.00 PASS FR INCM IAP 0.00 PASS UNFR EXPN IAP 0.00 PASS FR EXPN IAP 0.00 PASSED UNDIS INCM 0.00 PASSED RECL PAYA 0.00 PASSED EARN LIAB 0.00 PASSED UNDIS LIAB 0.00 PASSED NRT EXP 0.00 PREPAID EXPENSES 0.00 POOL ACCRUED EXP 0.00 POOL EXPENSES 0.00 NOTL INVEST PAYB 0.00 NOTL INVEST RECV 0.00 LCL NOTL RECV/PAYB 0.00 0.00 REBAL GAIN LOSS 0.00 REBAL SUSPENSE 0.00 POOL COST OF CURR 0.00 PERF REAL ADJ 0.00 UNDST PERF REAL AD 58.61 PERF UNREAL ADJ 0.00

VSFT view of TCINM transaction code in transfer in sub 229122:-



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NEXT VSFT MODE VIEW FDMP149 GLOBAL TRANS CORRECTION SG00SIMSDEV2 MEMO NUMBER 00000003 ACCOUNT NUMBER.... 000000000229122 SUB 2 - FA SECURITY NUMBER... UNITS SHAREHOLDER ACTIVITY EFF DT.. 01 15 05 TR CD. TCINM DESC CD.. GST REV 0.00 S EXT ID. SOURCE.. A SETTLE CC. GBP TRD DT 01 15 05 W/S Y C/S DT 01 20 05 A/S DT 01 20 05 GSTPD 0.00 S B/ID R/CASH 0.00 L/S/S. BRK CLR PKT 0000 H/I N TRD BASE AMT. 1,742.26 U SHRS/PAR.. 0.0000 TRD FX-RATE.. .573967146 PRICE/SHR. 0.000000 STL BASE AMT. 1,683.65 U PRIN. 1,000.00 GBP F/P. STL FX-RATE.. .593947673 INCOME.... 0.00 GBP SETTLE AMT.... 1,000.00 U S/D GSTRC 0.00 S COMM IND. C COMM RSN. P/A FLG. COMM 0.00 COM MEMO TR EXP 0.00 ADVISOR C/A CONFRM C EXCHANGE ASST EVNT SRC COST 0.00 C/F C/O EQUALIZATION 0.00 (REL MEMO 00000004)(GENER TRANS) FX... SWP=>

TRD BASE AMT & STL BASE AMT values of TCINM transaction code are driven from TCOTM & CDNT transaction codes. Journal Entry for TCINM transaction code

NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000003 DISPLAY..: N FUND NO: 000000000229122 SUB 2 - FA TRANSACTION DESCRIPTION: TCINM UNITS SHAREHOLDER ACTIVITY DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/15/05 CAPITAL SHARES RECEIVABLE 1,742.26 MULTI-MANAGER TRANSFER 1,742.26 TOTAL 1,742.26 1,742.26 01/20/05 MULTI-MANAGER TRANSFER 58.61 CURRENCY ALLOWANCE 1,683.65 CAPITAL SHARES RECEIVABLE 1,742.26 TOTAL 1,742.26 1,742.26

Using similar rationale of TCOTM transaction, settlement differences created on receivable part is transfer to Multi-Manager Transfer ledger. Amount 58.61/- debited to Multi Manager Transfer Ledger is being considered as a part of PERF REAL ADJ. Journal entry for CUPT transaction code:-



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NEXT GLIN MODE REPORT FDMP344 G/L TRANS INQUIRY - BASE SG00SIMSDEV2 MEMO NUMBER: 00000004 DISPLAY..: N FUND NO: 000000000229122 SUB 2 - FA TRANSACTION DESCRIPTION: CUPT GBP GREAT BRITAIN POUND DATE ACCOUNT DESCRIPTION DEBIT AMOUNT CREDIT AMOUNT -------- ---------------------------- -------------------- -------------------- 01/20/05 CURRENCY AT VALUE 1,470.59 REALIZED EXCHANGE GAIN/LOSS 213.06 CURRENCY ALLOWANCE 1,683.65 TOTAL 1,683.65 1,683.65

As transfer in sub 229122 was holding negative position before transfer, due to CUPT transaction, negative position is covered which resulted in realized exchange gain/loss. This realized exchange gain / loss of amount 213.06/- is not reflected in CBAL6 as this is accounted in books. CBAL6 of transfer in Sub 229122:-

NEXT CBAL6 MODE REPORT FDMP502 CURR BALANCES - BASE SG00SIMSDEV2 ACCT.. 000000000229122 DATE.. 01 20 05 CURR.. GBP OPTION.. D REAL EXCH GL FUT 0.00 UNREAL EXCH GL FUT 0.00 REAL EXCH GL OPT 0.00 UNREAL EXCH GL OPT 0.00 PASS UNFR INCM IAP 0.00 PASS FR INCM IAP 0.00 PASS UNFR EXPN IAP 0.00 PASS FR EXPN IAP 0.00 PASSED UNDIS INCM 0.00 PASSED RECL PAYA 0.00 PASSED EARN LIAB 0.00 PASSED UNDIS LIAB 0.00 PASSED NRT EXP 0.00 PREPAID EXPENSES 0.00 POOL ACCRUED EXP 0.00 POOL EXPENSES 0.00 NOTL INVEST PAYB 0.00 NOTL INVEST RECV 0.00 LCL NOTL RECV/PAYB 0.00 0.00 REBAL GAIN LOSS 0.00 REBAL SUSPENSE 0.00 POOL COST OF CURR 0.00 PERF REAL ADJ 58.61- UNDST PERF REAL AD 58.61- PERF UNREAL ADJ 0.00

As transfer in account was holding negative position in GBP & due to transfer in, position is covered & which resulted in amount 58.61/- is being transferred to PERF REAL ADJ bucket. In given example, when account is not holding initial position in currency or having a positive currency position, off balance sheet impact would have transfer to PERF UNREAL ADJ. Receivables & Payables created due to pend settlement is mark to market till settlement.



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Payable created in Transfer Out account 229121 on account of TCOTM. Capital shares redeemed payable credited for 1742.26/- as on 01/15/2005. Value of payable as on 01/17/2005 is 1739.99/-. Unrealized portion is reported on Equity screen.

NEXT GLSTAS MODE REPORT FDMP107 * * GLOBAL - STATEMENT OF A & L * * ACCOUNT NO: 000000000229121 SUB 1 - FA DATE: 01 17 05 HIERARCHICAL VALUATION FLAG: N * * * ASSETS * * * * * * LIABILITIES * * * SECURITY VALUE 0.00 PAYABLES CASH 46,632.71 INCOME PAYABLE 0.00 FOREIGN CURRENCY 3,479.97 CAP GAIN PAYABLE 0.00 RECEIVABLES INV SEC PURCHASED 0.00 ACCRUED INCOME 0.00 UNRL LOSS ON FFX 0.00 INV SEC SOLD 0.00 CAP SHRS REDEEMED -1,739.99 UNRL GAIN ON FFX 0.00 ACCRUED EXPENSES 0.00 CAP SHRS SOLD 0.00 ACCRUED POOL EXP 0.00 OTHER RECEIVABLE 0.00 OTHER PAYABLES 0.00 RECLAIM RECEIVABL 0.00 OTHER LIABILITIES 0.00 OTHER ASSETS 0.00 TOTAL LIABILITIES -1,739.99 CONTRA LEV ASSETS 0.00 TOTAL ASSETS 50,112.68 SHAREHOLDER EQUITY 48,372.69 SHARES OUTSTANDING 0.0000 N A V 0.00 PUBLIC OFFERING PR 0.00

Receivable created in Transfer In account 229122 on account of TCINM. Capital Shares Receivable debited for 1742.26/- as on 01/15/2005. Value of receivable as on 01/17/2005 is 1739.99/-. Unrealized portion is reported on Equity screen.

NEXT GLSTAS MODE REPORT FDMP107 * * GLOBAL - STATEMENT OF A & L * * ACCOUNT NO: 000000000229122 SUB 2 - FA DATE: 01 17 05 HIERARCHICAL VALUATION FLAG: N * * * ASSETS * * * * * * LIABILITIES * * * SECURITY VALUE 0.00 PAYABLES CASH 51,470.59 INCOME PAYABLE 0.00 FOREIGN CURRENCY -1,739.99 CAP GAIN PAYABLE 0.00 RECEIVABLES INV SEC PURCHASED 0.00 ACCRUED INCOME 0.00 UNRL LOSS ON FFX 0.00 INV SEC SOLD 0.00 CAP SHRS REDEEMED 0.00 UNRL GAIN ON FFX 0.00 ACCRUED EXPENSES 0.00 CAP SHRS SOLD 1,739.99 ACCRUED POOL EXP 0.00 OTHER RECEIVABLE 0.00 OTHER PAYABLES 0.00 RECLAIM RECEIVABL 0.00 OTHER LIABILITIES 0.00 OTHER ASSETS 0.00 TOTAL LIABILITIES 0.00 CONTRA LEV ASSETS 0.00 TOTAL ASSETS 51,470.59 SHAREHOLDER EQUITY 51,470.59 SHARES OUTSTANDING 0.0000 N A V 0.00 PUBLIC OFFERING PR 0.00



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SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING PROCESSING A MULTI-MANAGER/MCS OEIC FUND


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14 PROCESSING A MULTI-MANAGER/MCS OEIC FUND This is a description of general processing of an account defined as a Multi-Manager/MCS OEIC Fund on Investment Accounting (InvestOne). This section describes activity specifically related to Multi-Manager/MCS OEIC Fund processing. For a more general description of OEIC Fund processing, see section 5.900 United Kingdom/Unit Trust Fund Processing. Multi-Manager/MCS OEIC funds utilize the same account setup and processing as Multi-Manager/MCS Mutual and Hedge Funds but also include OEIC specific setup and processing requirements. OEIC specific processing is highlighted below:

ACCOUNT SETUP For Multi-Manager/MCS OEIC funds, account setup follows the edits in place for other Multi-Manager/MCS funds as well as edits in place for standard OEICs and Dual Priced OEICs. In addition to those edits, the Income Equalization field on AAMF and the Dual field on AASP have special setup requirements for Multi-Manager/MCS OEIC funds. For a Group (M) OEIC, Income Equalization must be ‘Y’ or ‘X’. For a Manager (S) OEIC, Income Equalization must be ‘N’. Due to standard OEIC edits on AAMF, for online setup, an account intended to be a Manager (S) account must first be setup up with Income Equalization equal to ‘Y’ or ‘X’ on the AAMF screen. Once the Manager (S) account is attached to a Group (M) account, the system automatically changes the Income Equalization value to ‘N’ on AAMF for the Manager ‘S’ account. For account messaging, the Manager (S) account should be messaged in with Income Equalization equal to ‘N’. For a Dual Priced Multi-Manager/MCS OEIC fund, each account in the structure must have the DUAL field on the AASP screen equal to D. The Group (M) account should be setup the same as a regular Dual Priced OEIC. The Manager (S) account should be setup like a regular Manager (S) account OEIC. Once the Manager (S) account is attached to the Group (M) account, the system automatically sets the Dual field to ‘D’ for the Manager (S) account. At this point, the user can then set up items such as flexible pricing and notional dealing expenses for the Manager (S) account.

TRANSACTION PROCESSING Multi-Manager/MCS OEIC funds use OEIC specific transaction codes on the DEGT and DEGTF screens. These funds also have transfer transaction codes that are specific to OEICS. OEIC funds have two transfer accounts to transfer cash from the Group (M) account to the Manager (S) accounts. Principal Cash is transferred via the Multi Manager Transfer general ledger account while Income Cash is transferred via the Multi Manager Transfer Income general ledger account. The following transaction codes can be used for a Multi-Manager/MCS OEIC on the DEGT screen: APPRO INCD EXP - CAPEX+ APPRO- INCD- EXP + MGROUT (sub account) EXPRO INCD+ CAPEXP EXPRO- EXP CAPEX- The following transaction codes can be used for a Multi-Manager/MCS OEIC on the DEGTF screen: APPRCY INCD APPRY- INCD-



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EXPRCY INCD+ EXPRY- TCOTM

INCOME EQUALIZATION Income Equalization is allocated from the Group (M) account to the Manager (S) account’s based on the accounts and percentages specified on the Multi-Manager/MCS Allocation Percentage (AAAP) screen. For foreign capital share transactions, the TRD BASE AMT field on the DEGTF screen includes the base amount of the EQUALIZATION field. The TRD BASE AMT field is then allocated to the Manager (S) accounts. For domestic capital share transactions, the value allocated to the Manager (S) accounts is the sum of the AMOUNT and EQUALIZATION fields on the DEGT screen.

EXPENSES Multi-Manager/MCS processing allows for the calculation of fixed and variable expenses at the level of the individual Manager (S) accounts and at the Group (M) account. Manager (S) account expenses are summed to arrive at the contribution of those expenses to the Multi-Manager/MCS fund in total and are treated as ‘common’ expenses in the Multi-Manager/MCS fund. Group (M) account expenses are additional expenses contributing to the Multi-Manager/MCS fund and may be either ‘common’ or ‘class specific’. Group (M) account management fees use Multi-Manager/MCS fund values as the basis for ‘common’ expenses and use Multi-Manager/MCS Class of Shares values as the basis for ‘class specific’ expenses. For OEICS, expenses are either classified as ‘Income’ expenses or as ‘Capital expenses’. If the MMMC EXP OPT field on AASP is blank, Expense transactions entered into a Group M account via the DEGT screen are allocated to the manager S accounts based on the percentages stored on the AAAP screen. However if the MMMC EXP OPT field on AASP is defined with ‘P’, expense transactions EXP, EXP - , EXP +, CAPEXP, CAPEX-, and CAPEX+ are allocated based on each Manager S accounts percentage of Group M’s ‘Prior Net Assets’. NOTE: If the fund does not have a prior ‘Shareholder Equity’ value, the allocation of the Expense transactions, defaults to the percentages defined on the AAAP screen. The calculation of the percentage of “Prior Net Assets’ for each manager S account is as follows: Value of ‘Shareholder Equity’ from the GLSTAS screen for the Manager S account on the first valuation date prior to Trade date / Value of ‘Shareholder Equity’ from the GLSTAS screen for the Group M account on the first valuation date prior to Trade date. The Unit Trust Fee Schedule (UTAAFS) screen is supported for Group (M) and Manager (S) OEIC accounts. The Fee Basis support is as follows: Group M Standard Priced OEICS allow fee basis equal to ‘C’ or ‘M’ Group M Dual Priced OEICS allow fee basis equal to ‘M’, ‘B’, or ‘O’ Manager S Standard Priced OEICS allow fee basis equal to ‘M’ Manager S Dual Priced OEICS allow fee basis equal to ‘M’, ‘B’, or ‘O’



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CORPORATION TAX Corporation tax rates may be entered at the account level on DECTA for a Multi-Manager/MCS OEIC fund. However, they cannot be entered at the class of shares level. Corporation tax is calculated as follows for a Multi-Manager/MCS OEIC fund:

1. Sum the inputs to the Corporation Tax calculation across the Manager (S) accounts to get Unfranked Net Income across all Sub accounts.

2. Retrieve the inputs to the Corporation Tax calculation from the Group (M) account. This would include any Group (M) specific expenses, and the result is the Group (M) Account’s contribution to Unfranked Net Income.

3. Add the result of (1) to the result of (2) and perform

the Corporation Tax calculation at the Group M level.

FOR MCS ALLOCATIONS, WHERE THE AASL CLASSES OF SHARES OPTION ‘A’ IS SELECTED, THE ALLOCATION OF AMOUNTS COMMON TO ALL CLASSES OF SHARES (INCLUDING, BUT NOT LIMITED TO CORPORATION TAX) IS BASED ON ASSETS AFTER CAPITAL CHANGE RELATIONSHIPS EXCLUDING THE CORPORATION TAX LIABILITY, WHERE THE ‘EXCLUDING THE CORPORATION TAX LIABILITY’ COMPONENT OF THE ALLOCATION BASIS IS THAT WHICH WAS COMPUTED IN STEP (3) ABOVE.DUAL PRICED OEICS A Multi-Manager/MCS OEIC supports Dual Pricing functionality at the level of the Group (M) account and its classes of shares, which is where unitized pricing for valuation and publication purposes occurs. A Manager (S) account supports Dual Pricing functionality to the extent of accepting bid and offer security prices (per AAFP pricing schemes) and computing Notional Dealing Expense to support bid, mid, and offer values. Notional Dealing Expense is calculated at the Manager (S) account level and is then summed (via MSUM) to arrive at the Multi-Manager/MCS OEIC level result.

TRANSLATION Translation functionality for foreign class of shares transactions for a Multi-Manager/MCS OEIC processes as follows: There is no revaluation of appropriation, expropriation, or distribution transaction receivables/payables for foreign class of share transactions. There is no unrealized exchange gain/loss between trade and settle dates of appropriation, expropriation, or distribution transactions because the TRADE FX RATE effectively equal the SETTLE FX RATE for these transactions. Cash or receivable/payable allocations happen only once (at the time of transaction entry) from the base amount of the capital share transaction. As a result, allocation is not subject to fluctuations due to revaluation of the currency amount between trade and settlement dates. Once appropriation, expropriation, or distribution transactions settle, the currency is no longer tracked separately (i.e. by class of shares). It is part of the Net Assets of the fund. If a spot rate is changed on InvestOne Enterprise after a transaction has been entered, re-triggering the transaction in change mode does not update the TRD BASE AMT or the TRD FX RATE. This is because capital transactions for a foreign class of shares cannot be revalued in a Multi-Manager Fund scenario.



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15 MULTI-MANAGER/MCS FUND TRANSACTION ACTIVITIES The following charts identify the generated transactions (except for MGROUT) associated with Multi-Manager/MCS Fund processing, their requirements and accounting effects: Transaction Code Requirements – Multi-Manager/MCS Funds

M

T T T T

T

T T T T T

T

T T T T T T T T T T T T T T T T T T T T T T T P P V V V V

M G R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R A A A A A A G R C C C C C C C C C C G G G G I I I I O O R R R R R R R R C C C C C C R R I I R R R O A A C C F F R R U U F F P P F F P P P P F F P P S S U U I I V V V V V V N N E E I U I P I O I O I O I O I O I O I O I O I O I O I O I O I O N N I O R R A A C C C C

TRAN CODE N T

T C I N M

TCOTM P I N T N T N T N T N T N T N T N T N T N T N T N T N T T N N T N T + - + - + -

ACCOUNT NUMBER X

X X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X

X

X

X

X

X

X

X

X

X

X

X

X

X X X X X X X X X X X X X

SECURITY NUMBER X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

SECURITY DATE S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S SECURITY UNIQUE S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S S

EFFECTIVE DATE X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

TRANSACTION CODE X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

DESCRIPTION CODE O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O EXTERNAL ID O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O

TRADE DATE D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D CONTRACTUAL SETTLE DATE D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D ACTUAL SETTLE DATE D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D D

SHARES E E E

E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E

AMOUNT E E X X E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E

S - Security dependent; required only if, when the security was defined on the Security Master file, these fields were used. X - Required O - Optional D - Defaults to effective date. E - Expected, but not required.



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ACCOUNTING EFFECTS These Accounting Effects are specified on the Transaction Code Definition (“CD”) Master Record. General Ledger accounting effects (as seen on the GLIN screen) are documented in Section 8.130 General Ledger Entries.

-------Accounting Effects-------

Tran Code Description Cash Inc Prin Share Cost Class

MGRIN Manager to Manager Transfer Cash In N + N N TRMG

MGROUT Manager to Manager Transfer Cash Out N - N N TRMG

PARVA+ Subscriptions Valuation Adjustment Positive N + N N PARV

PARVA- Subscriptions Valuation Adjustment Negative N - N N PARV

TCOTM MM / MCS Sub to Sub Currency Transfer Out N - N N TCOM

TCINM MM / MCS Sub to Sub Currency Transfer In N + N N TCIM

TMAFNO MM/MC Transfer Group M Appropriation Foreign In OEIC + +/-

TMAFTO MM/MC Transfer Group M Appropriation Foreign Out OEIC

- +/-

TMEFNO MM/MC Transfer Group M Expropriation Foreign In OEIC + +/-

TMEFTO MM/MC Transfer Group M Expropriation Foreign Out OEIC

- +/-

TRAPIN MM/MC Transfer Capital Asset Payable In OEIC +

TRAPOT MM/MC Transfer Capital Asset Payable Out OEIC -

TRARIN MM/MC Transfer Capital Asset Receivable In OEIC +

TRARNO MM/MC Transfer Appropriation In OEIC + + +/-

TRAROT MM/MC Transfer Capital Asset Receivable Out OEIC -

TRARTO MM/MC Transfer Appropriation Out OEIC - - +/-

TRCAIP Transfer Cash Income to Principal - + N N TRCI

TRCAPI Transfer Cash Principal to Income + - N N TRCI

TRCCIN Subscription Stlmnt Trnsf Cash In thru Receivable N + N N TRCC

TRCCOT Subscription Stlmnt Trnsf Cash Out thru Receivable N - N N TRCC

TRCFIN MM/MC Subscription Transfer Cash In Foreign N + + N TRCF

TRCFOT MM/MC Subscription Transfer Cash Out Foreign N - - N TRCF

TRCINN MM/MC Transfer Income Valuation Adjustment In + N N N TRVI

TRCINT MM/MC Transfer Income Valuation Adjustment Out - N N N TRVI

TRCPIN MM/MC Transfer Capital Expense Payment In OEIC + +

TRCPOT MM/MC Transfer Capital Expense Payment Out OEIC - -

TRCRIN MM/MC – Subscription Transfer Cash In N + N N TRCR

TRCROT MM/MC – Subscription Transfer Cash Out N - N N TRCR

TRCVIN MM/MC Transfer Valuation Adjustment Subscription In N + N N TRVA

TRCVOT MM/MC Transfer Valuation Adjustment Subscription Out N - N N TRVA

TRCVRN MM/MC Transfer Receivable Adjustment In + N N N TRVR



72

-------Accounting Effects-------

Tran Code Description Cash Inc Prin Share Cost Class

TRCVRT MM/MC Transfer Receivable Adjustment Out - N N N TRVR

TREPNO MM/MC Transfer Expropriation In OEIC + + +/-

TREPTO MM/MC Transfer Expropriation Out OEIC - - +/-

TRGFIN MM/MC Transfer Capital Gain Distribution In Foreign N + + N TRGF

TRGFOT MM/MC Transfer Capital Gain Distribution Out Foreign N - - N TRGF

TRGPIN MM/MC – Transfer Cap Gain Dist In N + N N TRGP

TRGPOT MM/MC – Transfer Cap Gain Dist Out N - N N TRGP

TRIFIN MM/MC – Transfer Income Distribution In Foreign + N + N TRIF

TRIFOT MM/MC – Transfer Income Distribution Out Foreign - N - N TRIF

TRIPIN MM/MC – Transfer Income Dist In + N N N TRIP

TRIPNO MM/MC Transfer Income Distribution In OEIC + +

TRIPOT MM/MC – Transfer Income Dist Out - N N N TRIP

TRIPTO MM/MC Transfer Income Distribution Out OEIC - -

TROPIN MM/MC – Transfer Expense Payment In + N N N TROP

TROPOT MM/MC – Transfer Expense Payment Out - N N N TROP

TRRFIN MM/MC – Redemption Transfer Cash In Foreign N + + N TRRF

TRRFOT MM/MC – Redemption Transfer Cash Out Foreign N - - N TRRF

TRRPIN MM/MC – Redempt Transfer Cash In N + N N TRRP

TRRPOT MM/MC – Redempt Transfer Cash Out N - N N TRRP

TRRSIN Redemption Stlmnt Trnsf Cash In Thru Payable N + N N TRRS

TRRSOT Redemption Stlmnt Trnsf Cash Out Thru Payable N - N N TRRS

TRRUIN MM/MC – Redempt Transfer Payable In N + N N TRRU

TRRUOT MM/MC – Redempt Transfer Payable Out N - N N TRRU

TRXPNO MM/MC Transfer Expense Payment In OEIC + +

TRXPTO MM/MC Transfer Expense Payment Out OEIC - -

TSAFNO MM/MC Transfer Sub Appropriation Foreign In OEIC + + +/-

TSAFTO MM/MC Transfer Sub Appropriation Foreign Out OEIC - - +/-

TSEFNO MM/MC Transfer Sub Expropriation Foreign In OEIC + + +/-

TSEFTO MM/MC Transfer Sub Expropriation Foreign Out OEIC - - +/-

VAINC+ Income Valuation Adjustment Positive - N N N VAIN

VAINC- Income Valuation Adjustment Negative + N N N VAIN

VAREC+ Valuation Adjustment Received Positive - N N N VARE

VAREC- Valuation Adjustment Received Negative + N N N VARE

NOTES 1. These transactions are only generated in the Multi-Manager/MCS Fund – Tran Entry

(DEGT/DAGT) or Multi-Manager/MCS Fund – Global Tran Entry (DEGTF/DAGTF) screens



73

or by messaging the originating capital share or expense transaction into a Group (M) Account.

2. The generated transactions may not be manually maintained. Modifying the originating capital share or expense type transaction will subsequently modify the generated transactions.

3. Capture (batch and online) does not support Group (“M”) Accounts.

4. The attached list describes the originating capital share or expense type transaction that can be entered into the Group (“M”) Account in the Multi-Manager/MCS Fund – Tran Entry (DEGT) screen or the Multi-Manager/MCS Fund – Global Tran Entry (DEGTF) screen and the resulting offsetting transactions that are generated in the Group (“M”) and Manager (“S”) Accounts.

5. See Manager(s) Account NAV section regarding Performance Shares.

6. For more information on Valuation Adjustment transactions (PARVA+/-, VAINC+/- and VAREC+/-), see Section 5.86, Special Transaction Codes.



74

MULTI-MANAGER/MCS FUND – TRAN ENTRY (DEGT) SCREEN TRANSACTIONS:

Tran Code Description Group (M) Generated Transactions

Manager (S) Generated Transactions

PARC+ Regular Subscription (Trade/Settle Same Day) TRCROT TRCRIN

PARC+C MF Admission Cancellation (same-day settle) TRCRIN TRCROT

PARCAS Participant Contribution (auto settle) TRCROT TRCRIN

PRCASC Participant Contribution Cancellation (auto settle) TRCRIN TRCROT

PARCR Regular Participant Subscription TRCUOT TRCUIN

PARCRC Regular Participant Subscription Cancellation TRCUIN TRCUOT

PARCS Settled Participant Subscription TRCCOT TRCCIN

PARCSC Settled Participant Subscription Cancellation TRCCIN TRCCOT

PARCX Participant Exchange TRCROT TRCRIN

PARCXC Participant Exchange Cancellation TRCRIN TRCROT

PARCXR Subscription Exchanges Receivable TRCUOT TRCUIN

PRCXRC Subscription Exchanges Receivable Cancellation TRCUIN TRCUOT

PARCXS Subscription Exchanges Settled TRCCOT TRCCIN

PRCXSC Subscription Exchanges Settled Cancellation TRCCIN TRCCOT

PARCL Subscriptions in lieu of Cash Distribution TRCROT TRCRIN

PARCLC Cash Distributions in Lieu of Subscriptions TRCRIN TRCROT

PARW+ Regular Redemption (Trade/Settle Same Day) TRRPIN TRRPOT

PARW+C Redemption Cancellation (same-day settle) TRRPOT TRRPIN

PARWAS Participant Withdrawal (auto settle) TRRPIN TRRPOT

PRWASC Participant Withdrawal Cancellation (auto settle) TRRPOT TRRPIN

PARWP Regular Participant Redemption TRRUIN TRRUOT

PARWPC Regular Participant Redemption Cancellation TRRUOT TRRUIN

PARWS Settled Participant Withdrawal TRRSIN TRRSOT

PARWSC Settled Participant Withdrawal Cancellation TRRSOT TRRSIN

PARWX Redemption Exchanged TRRPIN TRRPOT

PARWXC Redemption Exchanged Cancellation TRRPOT TRRP IN

PARWXP Redemption Exchanges Payable TRRUIN TRRUOT

PRWXPC Redemption Exchanges Payable Cancellation TRRUOT TRRUIN

PARWXS Redemption Exchanges Settled TRRSIN TRRSOT

PRWXSC Redemption Exchanges Settled Cancellation TRRSOT TRRSIN



75



GLDADJ Capital Gain Distribution Reinvestment TRGPOT TRGPIN

GLDIST Capital Gain Distribution TRGPIN TRGPOT

GLDST- Capital Gain Distribution Adjustment TRGPOT TRGPIN

LTDIST Long-Term Capital Gain Distribution TRGPIN TRGPOT

LTDST- Long-Term Capital Gain Distribution Adjustment TRGPOT TRGPIN

MTDIST Mid-Term Capital Gain Distribution TRGPIN TRGPOT

MTDST- Mid-Term Capital Gain Distribution Adjustment TRGPOT TRGPIN

STDIST Short-Term Capital Gain Distribution TRGPIN TRGPOT

STDST- Short-Term Capital Gain Distribution Adjustment TRGPOT TRGPIN

INCD Income Distribution TRIPIN TRIPOT

INCD+ Income Distribution Adjustment TRIPIN TRIPOT

INCD- Income Distribution Adjustment TRIPOT TRIPIN

EXP Expense Payment TROPIN TROPOT

EXP - Expense Payment Adjustment TROPIN TROPOT

EXP + Expense Payment Adjustment TROPOT TROPIN

DSOUI Decrease Subscript; Offset Prior Period Und Inc TRCAIP TRCAPI

ISOUI Increase Subscript; Offset Prior Period Und Inc TRCAPI TRCAIP

DUGOUI Decrease Prior Und G/L; Offset Prior Und Inc TRCAIP TRCAPI

DUIOUG Decrease Prior Und Inc; Offset Prior Und G/L TRCAPI TRCAIP

PARVA+ Subscriptions Valuation Adjustment Positive TRCVOT TRCVIN

PARVA- Subscriptions Valuation Adjustment Negative TRCVIN TRCVOT

VAINC+ Income Valuation Adjustment Positive TRCINT TRCINN

VAINC- Income Valuation Adjustment Negative TRCINN TRCINT

VAREC+ Valuation Adjustment Received Positive TRCVRN TRCVRT

VAREC- Valuation Adjustment Received Negative TRCVRT TRCVRN

APPRO Appropriation of Units (Auto-Settle Subscription) TRARTO TRARNO

APPRO- Appropriation of Units Cancellation TRARNO TRARTO

APPRA Appropriation Adjustment (Decrease Capital Assets) TRAROT TRARIN

APPRA- Appropriation Adjustment (Increase Capital Assets) TRARIN TRAROT

EXPRO Expropriation of Units (Auto-Settle Redemption) TREPNO TREPTO

EXPRO- Expropriation of Units Cancellation TREPTO TREPNO



76



EXPRA Expropriation Adjustment (Increase Capital Assets) TRAPIN TRAPOT

EXPRA- Expropriation Adjustment (Decrease Capital Assets) TRAPOT TRAPIN

INCD Income Distribution OEIC TRIPNO TRIPTO

INCD+ Income Distribution Adjustment OEIC TRIPNO TRIPTO

INCD- Income Distribution Adjustment OEIC TRIPTO TRIPNO

EXP Expense Payment OEIC TRXPNO TRXPTO

EXP - Expense Payment Adjustment OEIC (Decrease Income Cash)

TRXPNO TRXPTO

EXP + Expense Payment Adjustment OEIC (Increase Income Cash)

TRXPTO TRXPNO

CAPEXP Capital Expense Payment TRCPIN TRCPOT

CAPEX- Capital Expense Adjustment (Decrease Principal Cash)

TRCPIN TRCPOT

CAPEX+ Capital Expense Adjustment (Increase Principal Cash)

TRCPOT TRCPIN



77

Multi-Manager/MCS Fund – Global Tran Entry (DEGTF) Screen Transactions:



APPRCY Multi-Currency MCS Subscription OEIC TMAFTO TSAFNO

APPRY- Multi-Currency MCS Subscription Cancel OEIC TMAFNO TSAFTO

EXPRCY Multi-Currency MCS Redemption OEIC TMEFNO TSEFTO

EXPRY- Multi-Currency MCS Redemption Cancel OEIC TMEFTO TSEFNO

PARCCY Multi-Currency MCS Subscription Mutual TRCFOT TRCRIN

PARCY- Multi-Currency MCS Subscription Cancellation Mutual

TRCFIN TRCROT

PARWCY Multi-Currency MCS Redemption Mutual TRRFIN TRRPOT

PARWY- Multi-Currency MCS Redemption Cancellation Mutual

TRRFOT TRRPIN

GLDIST Capital Gain Distribution TRGFIN TRGPOT

GLDST- Capital Gain Distribution Adjustment TRGFOT TRGPIN

LTDIST Long-Term Capital Gain Distribution TRGFIN TRGPOT

LTDST- Long-Term Capital Gain Distribution Adjustment TRGFOT TRGPIN

MTDIST Mid-Term Capital Gain Distribution TRGFIN TRGPOT

MTDST- Mid-Term Capital Gain Distribution Adjustment TRGFOT TRGPIN

STDIST Short-Term Capital Gain Distribution TRGFIN TRGPOT

STDST- Short-Term Capital Gain Distribution Adjustment TRGFOT TRGPIN

INCD Income Distribution TRIFIN TRIPOT

INCD+ Income Distribution Adjustment TRIFIN TRIPOT

INCD- Income Distribution Adjustment TRIFOT TRIPIN

INCD Income Distribution OEIC TRIPNO TRIPTO

INCD+ Income Distribution Adjustment OEIC TRIPNO TRIPTO

INCD- Income Distribution Adjustment OEIC TRIPTO TRIPNO

TCOTM MM / MCS Sub to Sub Currency Transfer Out N/A TCINM

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING MULTI-MANAGER/MCS FUND REPORTING


78

16 MULTI-MANAGER/MCS FUND REPORTING All existing online and batch reports are available at the Manager (“S”) Account level. The following reports are available for a Multi-Manager/MCS Fund:

16.1 ONLINE REPORTS

Screen ID Screen Title STAS / GLSTAS Statement of Assets and Liabilities EQUITY / GLEQ / OEEQ * Equity Balances INGL / GLINGL * Income / Gain(Loss) OECOST OEIC Fund Cost Sheet AYIELD * Account Yields DYIELD * Daily Yield Change Analysis VSVB / VSVB2 / VSVB3 / VBMF / VSVBUK / VSVBU2 *

Valuation Balances

CBAL / CBAL2 / CBAL3 / CBAL6 *

Currency Balances

VNAV * Net Asset Value Proof NAVI * NAV Impact Summary ANCF Analysis of Cash Flows VSCB Cash Balances CLCEQ * † Class Currency – Equity Balances

* INCOMPLETE DATA – SUMMARIZATION (MSUM) REQUIRED message will be displayed at the bottom of the screen if the date requested is on or after the OLDEST EFFECTIVE DATE CAPTURED as seen on the Account Definition (AAAD) screen of the Group (“M”) Account. See Multi-Manager/MCS Fund – Summation for more information. MULTI-MNGR TRANSFER line item added to the Equity Balances (EQUITY/GLEQ) screen at the Manager (“S”) Account level only. This item reports the cash balance due to capital share/expense activity originating from the Group (“M”) Account that was allocated to the Manager (“S”) Account. † CLCEQ screen is available for foreign class of shares only.



79

16.2 BATCH REPORTS See Section 3, Report Formats for details on these reports. Report ID Report Title Report ID Report Title

R012** Weekly Fund Activity Summary R088** Statement of Changes In Net Assets

R013 Summary of Realized Gain/Loss R089 Statement of Assets & Liabilities (MF)

R014 Summary of Purchases and Sales R091 Price Variance Report

R017 Maturity Cross Range Tabulation R092 Trial Balance

R018 Investment Restriction Report R094 Wash Sales Report

R019** Net Asset Value Reconciliation R101 Summary of Investments

R020 Per Share Income and Capital Changes R102 Global Statement of Realized Capital Gain/Loss

R022 Broker Commissions Paid on Portfolio Transactions R103 Global Income Journal

R023 Portfolio Trans with Entities Acting as Principals R104 Global Sales Journal

R024 Form 13f R105 Global Purchases Journal

R027 Subscription/Redemption Journal R106 Global Schedule of Investments - Position

R029 Fee Schedule Report R107 Global Schedule of Investments - Tax Lot

R050 Cash Receipts Journal R108** Global Net Asset Value Reconciliation

R051 Cash Disbursements Journal R109 Global Summary of Receivables/Payables

R052 Analysis of Cash Flow R110 Global Statement of Operations

R053 Security Holdings Ledger R111** Global Statement of Changes

R054 Sales Journal R112 Global Statement of Assets & Liabilities

R055 Purchases Journal R113 Global Earned Income

R056 Broker Volumes R114 Global Earned Amortization/Accretion

R057 Earned Income R115 Global Aged Reclaim Receivable

R058 Summary of Receivables and Payables R116 Global Statement of 988 Gain/Loss

R059 Summary of Net Assets R117 Global Statement of Unreal Exchange Gain/Loss

R060 Unrealized Gain/Loss Report R118 Forward Exchange Contracts Market Value Report

R066 Schedule of Investments (Position) R119 Global Investment Restriction

R067 Security Acquisitions R201 Intercompany Transaction Report

R068 Security Dispositions R203 Repo Collateral Comparison

R069 Expense Summary R204 Cash Forecasting Report

R076 Statement of Operations R207 Collateral Pricing Exception Report

R079 General Ledger Summary Listing R208 Collateral - Projected Events

R082 Schedule of Investments - Tax Lot R211 Multiple Classes of Shares NAV Worksheet

R084 Summary of Broker Commissions R233 Income Effect Comparison Report

R085 NAV Impact of Price Changes on Holdings R448 GCR Multiple Classes of Shares NAV Worksheet

R086** NAV Impact Summary



80

Reports – Multi-Manager/MCS OEICS

R079 General Ledger Summary

R092 Trial Balance

R100 Year-End Cleardown Report R130 Valuation Summary Sheet On A Bid Basis

R131 Valuation Summary Sheet On An Offer Basis

R132 Portfolio Valuation

R133 Cost Sheet

R134 Portfolio Valuation II

R135 Income Entitlement Report

R136 Statement Of Changes In Net Assets

R137 Fee Invoice

R138 Daily Transaction Impact Summary Report

R139 Daily Transaction Impact Detail Report

R140 Notional Dealing Expenses Transaction Report (Dual Priced OEICS)

R241 Bid/Offer Price Spread Exception

R243 Income Reconciliation Report R245 Irrecoverable Act Provision

Financial Statements Report ID Report Title FS01 / F201 Statement of Assets

FS02 / F202 Statement of Operations

FS03 / F203** Statement of Changes

FS04 / F204 Per Share Income ** MULTI-MNGR TRANSFER line item is added to report at the Manager (“S”) Account level only. This item reports the cash balance due to capital share/expense activity originating from the Group (“M”) Account that was allocated to the Manager (“S”) Account. NOTE: INCOMPLETE DATA – SUMMARIZATION (MSUM) REQUIRED message is displayed at the bottom of the Net Asset Value Reconciliation (R019) and the NAV Impact Summary (R086) reports if the date requested is on or after the OLDEST EFFECTIVE DATE CAPTURED, as seen on the Account Definition (AAAD) screen.

INCLUDING GROUP (M) ACCOUNTS IN REPORTING ACCOUNTS The Group/Rpt Account Sub-Account Specification (AAAS) screen allows a Group (“M”) Account to be added as a sub-account of a Reporting Account. The primary reason is to allow a Group (“M”) Account to be included when a Reporting Account is used for NAV Reporting that includes NASDAQ entry. This same Reporting Account may also be used for reporting purposes. It is important to note, dependent upon the report; data may be incomplete and/or inaccurate when only the Group (“M”) Account is included as a sub-account. For some reports, both the Group (“M”) and Group (“S”) Accounts must be included. This analysis must be done on a report-by-report basis. Reports generated for Reporting Accounts also have EXPAND functionality to produce reports for each individual sub-account within the reporting account. Again, as mentioned above, when only the Group (“M”) is included, reports may be incomplete and/or inaccurate. For a more detailed explanation of the Reporting Account “expand” functionality, refer to Section 4.20, File Access, Notes.



81

SYSTEM MANUAL - SECTION 5.550 - MULTI-MANAGER/MCS FUND PROCESSING REDEMPTION FEE PROCESSING


82

17 REDEMPTION FEE PROCESSING The purpose of Redemption Fee Processing is to support the two methods of allocation: Fund level posting of redemption fees are summed at the fund level, and then redistributed to the individual classes as capital, according to the existing MCS allocation method.

Class level posting are unchanged and are posted as capital at the specified class level.

• Redemption Fee Processing is valid for the following account structures:

o Group (V) (Multi-View MC/MCS) o Single account MC/MCS

• Redemption Fee Processing is valid for the following fund types:

o L - Load Mutual Fund o N - No-Load Mutual Fund o H - No Load Hedge Fund o I - Load Hedge Fund

• Redemption fees may ONLY be processed for daily valuation funds. Valid AAPR screen (Account

Preschedule Report) values that may be selected for a fund processing redemption fees are: Request Type Service Level Description AA VALU Daily (report is produced for one day; that is, FROM DATE

is one day before TO DATE.)

• If the AASP Redemption Fee Indicator equals “F” -- A fund must have at least one active MCS share class to process the redemption fee accounting.

• Redemption fees may be processed against domestic or global funds.

• The Redemption Fee Allocation Indicator is set on the AASP (Account Special Processing Definition)

screen:

o Blank” (Default) – Post class level redemption fees directly at the class level “as is” (no summing and reallocating here).

o “F” (Fund Level) – Sum class level redemption fees to the fund level, then reallocate

the fees to the classes of shares based on the current MCS allocation option on AASL screen (Account Class of Shares).



83

AASP Screen: Account Special Processing Definition

NEXT AASP MODE CHANGE FDMP140 ACCOUNT SPECIAL PROC DEFN ACCOUNT NO.......... VAL PDS REQ: 988 RULE OVRD: S/C GENERATED EFF DATE: TAXLOT/SEC.: 988 ACT DT: S/C GENERATED TRD DATE: MTD LAG DAY: TOFA EFF DT: SHADOW ORIG ACCT..: BYPASS TRANSLATION FLAG..........: SHADOW REPL DATE..: VSPT PRICING......: BRNM.....: CORPORATION TAX CALC...: PAYDN: CNF TOL CHK: MMMC EXP OPT: DOUBLE TAXATION RELIEF.: VERIA: CNF TOL PCT: IFRS COMM TRMT: DFLT INT: INIT PRM/DC DT: CASH MNGT..: RELF BY STRATEGY..: INCOME EVENT DATA......: WSTLA: POOL ALLOC: RV/RB: RB TOL: C/F USER DEFINED FIELDS.: REINVEST INC: FLG CORP ACT: CAL EFF DATE: UP HV PR: 13F MGT CODE: 13F INV DIR: 13F VOTE AUTH: HV LST B-DAY: TTZ.: TOFA MTH: EDW OLD DT: TARGET PERCENT EQUITY...: ADDL TAXLOT DATA: TARGET PCT FIXED INCOME.: EXT EQTY/EXPNS MGMT: FUTURES PRICING: PERFORM TEMPLATE..: TRUST BANK.: JPN SCTY CRITERIA: TAX IND: IFRS: RDMP FEE: DIVD ACCRUE: INC CASH OPT: AT%: SRC ACCT: EXT SYST FLAG: DEALER SPOT: VAR MAR BY ADVISOR: CAP AUTOFX: LOCAL PROCESS: CASH CTRY: RATING WEIGHT: DUAL:

Note: If the AASP Redemption Fee Indicator is set to “F” (Fund Level), class level redemption fees will be summed to the fund level. Afterward, the fund level redemption fees will be allocated to the individual class level capital accounts. For this class level allocation, the system will use the existing Classes of Shares Allocation Option that is setup on the AASL screen (Account Class of Shares) for the fund. MCS allocation percents applied will be calculated as of the Effective Date (post date).

Redemption fees may be added at the class level via these screens: Screen Description DETE Trade Entry DEFT Global Transaction Entry DEGTF Multi-Manager/MCS Global Transaction Entry Redemption Fees may be changed at the class level via these screens: Screen Description DATE Trade Correction DAFT Global Transaction Correction DAGTF Multi-Manager/MCS Global Transaction Update Redemption Fees may be viewed at the class level via these screens: Screen Description VSTE Trade Correction VSFT Global Transaction Correction VSGTF Multi-Manager/MCS Global Transaction Update Redemption Fees may be reversed and/or rebooked at the class level via: Screen Description DARV Reversal Transaction Entry



84

Redemption Fee Transactions

Tranaction Code Description Primary Account

Generated Trans Sub Account

Generated Trans RDMFEE MCS redemption fee (CasC) n/a TRRDIN

RDFEE- MCS redemption fee adjustment downward (CasC) n/a TRRDOT

RRDFEE MCS redemption fee reversal (CasC) n/a n/a RBRDMF MCS redemption fee rebook (CasC) n/a n/a RDMFCY MC/MCS redemption fee n/a n/a RDFCY- MC/MCS redemption fee adjustment downward n/a n/a RRDFCY MC/MCS redemption fee reversal n/a n/a RBRFCY MC/MCS redemption fee rebook n/a n/a

RDMFC+ MC/MCS redemption fee initialization adjustment upward n/a n/a

RDMFC- MC/MCS redemption fee initialization adjustment downward n/a n/a

Note: RDMFC+ and RDMFC- transactions must be entered in pairs, so that there will be no MCS out of balance conditions. There are NO reversals of these transactions. General Ledger transactions: "Domestic" redemption fee transactions -- accounting for domestic and global accounts (non-Cash as Currency): On Effective Date On Actual Settle Date

Tran Code Description Debit Entry Credit Entry Debit Entry Credit Entry

RDMFEE Redemption fee receivable (Add).

Receivable for Redemption Fees (fund

level)

Redemption Fees (Capital)

(class level) Cash (fund level)

Receivable for

Redemption Fees (fund

level)

RDFEE- Redemption fee

adjustment


(class level)

Receivable for Redemption

Fees (fund level) Receivable for Redemption

Fees (fund level) Cash (fund

level)

RRDFEE Reversal of

redemption fee


(class level)

Receivable for Redemption

Fees (fund level) Receivable for Redemption

Fees (fund level) Cash (fund

level)

RBRDMF Rebook of redemption

fee


level)


(class level) Cash (fund level)

Receivable for


level)



85

"Domestic" redemption fee transactions -- accounting for Cash as Currency Accounts: Note: AAMF (Account Definition II) Cash as Currency Indicator = Yes.

On Effective Date On Actual Settle Date


RDMFEE Redemption fee receivable (Add).


level)

Redemption Fees (Capital) (class

level)

Currency Allowance (fund

level)


level)

RDFEE- Redemption fee

adjustment


(class level)

Receivable for Redemption Fees

(fund level)


(fund level) Currency Allowance

(fund level)

RRDFEE Reversal of

redemption fee


(class level)


(fund level)


(fund level) Currency Allowance

(fund level)

RBRDMF Rebook of

redemption fee


level)


level)


level)


level)

Foreign" redemption fee transactions -- accounting for Global accounts:

On Effective Date On Actual Settle Date


RDMFMCY Redemption fee receivable (Add).


(fund level)

Redemption Fees

(Capital) (class level)

Currency Allowance (fund level)


level)

RDFCY- Redemption fee

adjustment


level)

Receivable for


level) Receivable for Redemption

Fees (fund level)


level)

RRDFCY Reversal of

redemption fee


level)

Receivable for


level) Receivable for Redemption

Fees (fund level)


level)

RBRFCY Rebook of

redemption fee


(fund level)

Redemption Fees

(Capital) (class level)

Currency Allowance (fund level)


level)



86

Redemption Fee Flow Activity

Tranaction Code Description

Flows FA to

A1 Flows

FA to IA Flows Sub to

IA of Sub RDMFEE MCS redemption fee (Cash as Currency) Yes Yes Yes

RDFEE- MCS redemption fee adjustment downward (Cash as Currency) Yes Yes Yes

RRDFEE MCS redemption fee reversal (Cash as Currency) Yes Yes n/a RBRDMF MCS redemption fee rebook (Cash as Currency) Yes Yes n/a RDMFCY MC/MCS redemption fee Yes Yes n/a RDFCY- MC/MCS redemption fee adjustment downward Yes Yes n/a RRDFCY MC/MCS redemption fee reversal Yes Yes n/a RBRFCY MC/MCS redemption fee rebook Yes Yes n/a

RDMFC+ MC/MCS redemption fee initialization adjustment upward No Yes n/a

RDMFC- MC/MCS redemption fee initialization adjustment downward No Yes n/a

Note: The Effective Date of a redemption fee transaction is the date at which accounting effects begin. Defaults to System Date. The Actual Settle Date of redemption fee transactions is the date at which the transaction updates the cash balances. Defaults to System. Date. All redemption fee transactions will be “auto settle”. That is, the Actual Settle Date will default to the next business day after the Effective Date.

EXAMPLES:

Example of the fund level accounting entries if the AASP Redemption Fee Indicator is set to “F” (Fund Level). Redemption fees will be added up at the fund level and then be re-allocated to the class level.

Example on Business Date 7/27/09: (Redemption Fees actually charged to each class) Class A 5,000.00 Class B 3,000.00 Class C 0.00 8,000.00 Total Redemption Fees MCS Class Allocations are Calculated by InvestOne on 7/27: Class A 50% * 8,000.00 = 4,000.00 Class B 30% * 8,000.00 = 2,400.00 Class C 20% * 8,000.00 = 1,600.00

8,000.00 Total Redemption Fees allocated from the fund level to the class level

Postings to InvestOne on 7/27: Receivable for Redemption Fees (fund level) DR 8,000.00 Redemption Fees Class A (capital) CR 4,000.00 Redemption Fees Class B (capital) CR 2,400.00 Redemption Fees Class C (capital) CR 1,600.00 Note: InvestOne only posts the equity side of redemption fees at the MCS class level. Any asset or liability accounting is posted at the fund level.



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MCS Class Allocations Calculated on 7/28: Class A 60% Class B 35% Class C 5% Actual Settle Date on 7/28: (“Auto settle” accounting will be generated by InvestOne.) Cash DR 8,000.00

Receivable for Redemption Fees CR 8,000.00

Example if the AASP Redemption Fee Indicator is set to Blank (Class Level). The default value, redemption fees will be posted directly to the class level “as is”.

Example of the class level accounting entries:

Example on Business Date 7/27/09: (Redemption Fees actually charged to each class) Class A 5,000.00 Class B 3,000.00 Class C 0.00 8,000.00 Total Redemption Fees (NO summing to the fund level and reallocation to the classes occurs.) Postings on 7/27: (Class level accounting flows) Receivable for Redemption Fees (fund level) DR 8,000.00 Redemption Fees Class A (capital) CR 5,000.00 Redemption Fees Class B (capital) CR 3,000.00 Note: InvestOne only posts the equity side of redemption fees at the MCS class level. Any asset or liability accounting is posted at the fund level. Actual Settle Date on 7/28: (“Auto settle” accounting will be generated by InvestOne.) Cash DR 8,000.00

Receivable for Redemption Fees (fund level) CR 8,000.00



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SPECTRA

The following spectra codes are available Ole Spectra, Browser Spectra, and FOMI/Pure Batch Spectra:

Fund Trend Spectra Code Description RFI Redemption Fee Indicator RFC Redemption Fee Capital(Local) RCC Redemption Fee Capital Cumulative(Local) RCR Redemption Fees Receivable RIP Redemption Fees Input RFB Redemption Fee Capital(Base) RCB Redemption Fee Capital Cumulative(Base)

Online Screens

The following online screens utilized for redemption fees include:

Screen Description Global MCS Valuation Balances (GLVBCL) Redemption Fee Indicator Class of Shares Balances (VBCL) Redemption Fee Indicator Class Currency – Equity (CLCEQ) Redemption Fee Equity Balances (EQUITY) Redemption Fee Global Fund – Equity (GLEQ) Redemption Fee Account Special Processing Definition (AASP) Redemption Fees Indicator Account Class of Shares (AASL) Classes of Shares Option (Option F)

5.550 multi-manager/mcs fund processing -...

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