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Manual assignment to an AVR Equity Component line is necessary for securities that are reported on lines 5 through 16 on the Equity Component. You can use the Create AVR Allocation panel for this assignment by security at the SVO Company Code level.

You must first identify securities assigned to lines 5 through 16 as Affiliated – To Be Allocated using the Additional Classification field on the Edit Security Insurance Information panel.

To set up the placement of AVR Equity Component affiliated investments:

  1. In Accounting Center, in the left navigation pane, click Setup > Insurance > AVR Allocation > Create AVR Allocation.
    You see the Create AVR Allocation panel. 
    Create AVR Allocation panel
  2. Complete the options on the panel.
  3. To add additional allocation lines for a security, on the Form tab, in the Multi Row group, click Add Row.
  4. Click Submit.
    The system stores AVR Allocations in the ISTAR.ISTAR_AVR_ALLOCATION table. It assigns equity securities with an AVR Allocation assignment to the line(s) indicated via the allocation during the ISTAR Refresh process.

Create AVR Allocation Panel Options

The following table describes key options on the panel.

Option

Description

Required Parameters


SVO Company Code

Specifies the SVO Company Code. The system stores the SVO company code and allocation information in the database as entered.

Lookup Xref Security ID

Specifies the Primary Asset ID of the security to allocate.

Lookup Issue Name

Specifies the Primary Asset ID of the security to allocate. Entering a value in one lookup field populates the other lookup field when the lookup is successful.

Effective Date

Specifies the effective date for the allocation. Allocation can change over time, and the system uses the allocation effective as of the Refresh date when assigning the security to the AVR.

AVR Line Number

Specifies the AVR Equity Component line number to which the system assigns the security. Options include:

  • 5 FI Exempt
  • 6 FI Highest Quality
  • 7 FI High Quality
  • 8 FI Medium Quality
  • 9 FI Low Quality
  • 10 FI Lower Quality
  • 11 FI In or Near Default
  • 12 Unaffiliated CS Public
  • 13 Unaffiliated CS Private
  • 14 Real Estate
  • 15 Affiliated Certain Other
  • 16 Affiliated All Other

AVR Percentage

Specifies the percentage of the Book/Adjusted Carrying value to assign to the AVR Line Number. A given security can be assigned to multiple lines, and the total allocation percentage must sum to 100%.

Bond Flag

This option applies to AVR Line Numbers 5-11. Specifies whether to apply the AVR Basic, Reserve, and Maximum Factors corresponding to the equivalent line on the AVR Default Component. Options include:

  • Yes. Apply the corresponding bond factors from the AVR Default Component.
  • No. You define the three factors to apply.

Basic Factor

Specifies the factor to apply to calculate the Basic Contribution on the AVR. This field appears when you set the Bond Flag field to No or when the Line Number is 14 Real Estate.

Reserve Factor

Specifies the factor to apply to calculate the Reserve Objective on the AVR. This field appears when you set the Bond Flag field to No or when the Line Number is 14 Real Estate.

Max Factor

Specifies the factor to apply to calculate the Maximum Reserve on the AVR. This field appears when you set the Bond Flag field to No or when the Line Number is 14 Real Estate.

Total AVR Percentage

Displays the cumulative total of AVR Percentages for all lines. To submit a valid allocation, this value must be equal to 100.

Processing Security Type

Displays the processing security type as an edit check. You can only allocate Common Stocks and Mutual Funds.