After you set up the share classes that elect to process share class hedging and set up sector exclusions, you can book and settle foreign capital stock for hedge share classes.WRITERS NOTE: FYI, we don’t currently document the Cap Stock transaction panels (including
Book
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Book Foreign Capital Stock for Hedge Share Classes
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In the Settle Capstock panel, you can settle the transaction for foreign capital stock for hedge share classes. When a share class settles a non base capital stock subscription or redemption and the share class hedging Share Class Hedging election is Yes, then the gain/losses from that settlement are fully allocated to the hedge share class.
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The system passes the Share Class Hedging field value in on the settlement event. This allows the ledger posting to know to post all gains/losses associated with the settlement directly to the share class. Ledger posting posts any calculated gains or losses associated with hedge share classes directly to that share class rather post to Currency gain losses are posted directly to the hedge share class rather than the total fund to be allocated to all share classes within of the entity.
In the following example, notice that you are settling a transaction for entity FX023 and share class G, where the Share Class Hedging field has a value of Y.
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