Pay special attention to underlined sections, as these highlight the most frequently encountered issues. Bold is used for navigation, modules, and screens. Italics are used for fields, tables, and errors. Fixed width
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Workflow Summaries
- SMF Update
- Update any relevant identifiers directly on the SMF using Reference Data Center or Issue Viewer
- Pros: all identifiers can be updated and all historical and future performance return information is maintained on a single line item
- Cons: users who process these transactions may not have access to update SMF data
- Name Change Corporate Action
- Set up a Name Change corporate action announcement, then trigger the action
- Pros: all historical and future performance return information is maintained on a single line item
- Cons: cannot be used to change the Primary Asset ID
- Exchange Offer Corporate Action
- Set up an Exchange Offer corporate action announcement with Share Taxability (3960) =
No
, then trigger the action - Pros: all identifiers can be updated
- Cons: performance return information from original purchase date through IPO date is captured on one line item, while information from IPO date forward is captured on a separate line item
- The security-level and fund-level returns on the post-IPO position will be identical to workflows 1 and 2 on IPO date and all future dates
- The security-level and fund-level life-to-date return on the post-IPO position will also be accurate because the position is transferred at cost, but you cannot do an accurate IRR calculation because the post-IPO position will reflect IPO date as the beginning of the calculation period
- Historical security-level performance reporting from initial purchase until IPO date must be done on the pre-IPO position
- Set up an Exchange Offer corporate action announcement with Share Taxability (3960) =
Workflow Details
SMF Update
This workflow does not require any special setup or configuration. Simply follow your normal security update process using Reference Data Center or Issue Viewer and change the relevant identifiers to their new values.
If you need to maintain a record of the old Primary Asset ID (14), you can either add it as the Alternate Asset ID (1795) or use Add Security XReference (V17+)/Add Security Cross Reference (prior to V17). You may choose to add a new XReference Security ID Type (1234), such as PREIPO
, to capture the old Primary Asset ID.
Name Change Corporate Action
The first step in this workflow is to set up the Name Change corporate action announcement. A list of the required fields is below. Once the announcement has been created, it can be triggered using the Name Change Processing global process.
- Asset ID (14): of private security
- Issue Name (961): of private security
- Sweep Date (1197): date when the global corporate action process will pick up and execute the corporate action (generally current date)
- Ex Date (65): date when the corporate action takes effect
- Corporate Action Status (54) =
Released
- To Issue Name (1711): of public security
- To Issue Description (1699): of public security
- Corporate Action Type (1728) =
Name Change
Exchange Offer Corporate Action
The first step in this workflow is to create a new SMF for the public security. Next, set up the Exchange Offer corporate action announcement. A list of the required fields is below. Once the announcement has been created, it can be triggered using the Exchange Offer global process.
- From Asset ID (14): private security
- From Issue Name (961): private security
- From Post Action Price (369): typically the open or first traded price of the private security
- Sweep Date (1197): date when the global corporate action process will pick up and execute the corporate action (generally current date)
- Ex Date (65): date when the corporate action takes effect
- Treatment of Fractional Shares (3965): defaults to
Round Down
, ensure appropriate value is selected - Corporate Action Status (54) =
Released
- Share Taxability (3960) =
No
- Mandatory/Voluntary Indicator (1734) = Mandatory
- To Asset ID (1348): public security
- To Issue Name (1141): public security
- To Post Action Price (319): typically the open or first traded price of the public security
- Rate Of Action (1001): specifies the ratio used to convert the private security to the public security
- A value of
1.00
will result in an equivalent number of shares, a value of2.00
will result in double the number of shares of the public security as the private security, etc.
- A value of
- Corporate Action Type (1728) =
Conversion
orExchange Offer
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