Create a fund switch order
You can transfer investment from one fund to another by switching a fund position to another fund. A fund switch consists of a redemption trade order in one fund and a subscription trade order in another fund that are linked together. When you execute the redemption trade order, the subscription trade order is automatically updated with the exact net trade amount of the redemption trade order. Switch orders can be entered between funds in the switch groups assigned to the fund that you are switching from.
Define switch groups
To define the switch groups, do the following:
In the Groups view, define the security groups in which you can switch from one fund to another. For more information about security groups, see Groups view in FA Back reference.
In Preference → Tags → Security tags, select the Switch group tag definition. If you do not have this tag definition, add it as a multi-select group (see Preference - Tags in FA Back reference).
In the Tags within a group field, add the security group codes for the groups you defined.
Click Save.
Link switch groups to fund securities
To link switch groups to a fund security, do the following:
In the Securities view, search for a security to link to a switch group and open it.
Select the Switch group tag that corresponds to the security group code.
Click Save & close.
Create switch order
To create a switch order, do the following:
Open the portfolio with the fund position you want to switch in the Overview. Make sure you have a single portfolio and not a contact or group selected in the Portfolio hierarchy on the right-hand side.
Right-click the fund position you want to switch from and select New switch order.
Fill in the fields:
Switch from: The fund position you want to sell.
Execution method: Choose if you want to execute the redemption leg in units (a fixed percentage of the position) or in trade amount (a fixed amount of money).
Position percentage: The percentage of the position to switch (available if the chosen execution method is "units").
Trade amount: The trade amount (in portfolio currency) to switch (available if the chosen execution method is "trade amount").
Switch to: The fund you want to switch to.
Click Save & close and confirm the switch.
The fund redemption is saved with the execution method that you selected. The subscription is always in net trade amount, since the exact cash received from the redemption should be reinvested. The subscription is originally saved with 0 amount – this helps you see when it has been updated with the final trade amount available after the redemption leg is executed.
Both the subscription and redemption trade order are tagged with Fund switch.