About Processing Complex Corporate Actions

Eagle Performance requires that STAR to PACE Direct generate traded cash activity records for complex corporate actions to support accurate performance measurement calculations.

Complex corporate actions, such as mergers, spinoffs, exchange offers, and assimilations, do not generate real cash movements in Eagle Accounting and there is no cash activity row in the ESTAR_TRADED_CASH_ACTIVITY table. For these types of transactions, STAR to PACE Direct must generate the cash activity record from the ESTAR Cost object.

When you run STAR to PACE Direct in Batch mode or Delta mode, the S2P Direct process updates the CASH_ACTIVITY table for fixed income debt securities and equity securities involved with complex corporate actions.

For these S2P cash activity calculations:

• "From side" cash activity records reflect a decrease in the security's value.
• "To side" cash activity records reflect the increase in the security's value.

There is no net cash flow effect on the total portfolio level. The two "sides" offset each other. The overall effect is that accurate performance cash flow information exists at the security level to support the calculation of security-level returns. For this reason, the ESTAR_TRADED_CASH_ACTIVITY table and the Eagle PACE CASH_ACTIVITY table do not contain identical information.

The following table lists the type of cash activity stored for each table.