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Handling Segregation of Mutual Fund Portfolio in FCPB (Doc ID 2631803.1)

Last updated on MARCH 03, 2020

Applies to:

Oracle FLEXCUBE Private Banking - Version 12.0.3 to 12.0.3 [Release 12]
Information in this document applies to any platform.

Goal

Handling of Segregation of portfolio in FCPB.
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Background - The governing body has allowed mutual funds to create segregated portfolio of debt and money market instruments in case of a credit event subject to certain conditions. In June 2019, Trustees of the Mutual Fund in question have approved the creation of segregated portfolio of the corresponding securities.

To cater to the above change, a new scheme will be created in FCPB v12.0.3 implementation at site, with restrictions on purchases, redemption and other transactions. All investors in the captioned schemes as on the day of creation of segregated portfolio (Scheme) shall be allotted equal number of units in the segregated scheme as held in the main scheme.

The NAV of both the segregated and normal schemes is reduced to accommodate the change till further notice.

Clarity is required on how these changes in FCPB will impact the below:

1. What is the impact/ calculation on Realized and unrealized gain/loss in case of redemption on non-NPA portfolio?
2. What is the impact /calculation on realized and unrealized gain/loss in case of redemption on NPA portfolio?
3. What is the impact on CGL in case of both?
4. What is the impact on brokerage / RM gradation?
5. What is the impact/ calculation for XIRR?
 

Solution

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