Add share classes

A fund in FA Fund Management must have at least one share class. You can add share classes to a newly created fund, as well as to an existing fund that has been operating. To add a share class:

Go to NAV status view and select the fund.
Click the Add share class icon in the Fund details pane on the right. The Share class wizard guides you through the share class properties that you need to define. For details, see Share class properties in the Share class wizard.

When you create a share class in the Fund Management app, the system creates a security for this share class in FA Back. You can proceed to create initial investments in this security by adding transactions or trade orders in FA Back. See Create initial investments for instructions.

Share class properties in the Share class wizard

Basic info tab

Share class details and NAV calculation settings.

Name*: Name of the share class security.
Code*: A unique code defined for the share class. The code is used to identify the share class security and search for securities in the system. We recommend using numbers and letters (a-z) and avoiding special characters in the security code.
ISIN: The ISIN code of the share class security.
Type*: Share class security type. Choose the type that is configured for funds in Preferences. If you have standard solution configuration, use Collective investment vehicles type.
Holiday calendar*: A holiday calendar that determines business days and holidays in the market to set a settlement date for subscriptions and redemptions. Holiday calendar options are configured in Preferences. You can also set the default holiday calendar used for new securities in Preferences.

Decimals in transaction units

Number of decimals: Number of decimals used in the units field of the client transactions. If the field is empty, the number of decimals set for the security type is used.

Dividend payments

Enable dividend payments: Enable dividend payments for the share class. You can calculate and execute dividends in the Dividends view. For details, see Pay out fund dividends.

NAV tab

Unit price settings.

Currency

Share class currency – the currency share class units are quoted in.

Initial price*

Initial price of the share class unit. Initial unit price is used for the first NAV calculation. The price you enter is copied to the Market data info tab in the Security window in FA Back.

Date of initial price*

(Set for a new share class). The date for which the initial unit price is valid.

Format

Unit price multipliers to use in calculations. For more information about multipliers, see the description of the Basic info tab in the Security window. Choose one of the options:

Show price as is – Show the share class unit price without any multipliers.
In percentage – Use "100" in both Multiplier fields for the security.
Add manually – Enter the multipliers in the fields below.

Fee structure tab

The Fee structure tab defines costs and fees applied on the share class level. Share class-level fees are calculated after the fund level fees, in the order you put them in the Share class wizard. Click Add fee and enter the information about the share class fees:

Ongoing fees

Fee formula

Fee formula used to calculate the fee and generate fee transaction.

Fee transaction type

Transaction type linked to the chosen fee formula (filled in automatically once you choose the fee formula).

Amount or %

Fee percentage or amount in the fund currency, depending on the fee formula.

Decimals

The number of decimals used for calculating fees (0 to 10). The “Default” value is 2 decimals.

Ex-post cost category

Ex-post cost category for the fee. The categorization is used in cost analysis and reporting (see View ex-post costs and charges in FA User guide), as well as for creating kickbacks (see Rebate contracts (kickbacks) in FA User guide).View ex-post costs and charges

Account currency

The currency of the share class fee accrual account. Choose if the fees should be accrued in the fund currency or in the share class currency. The field is shown only if the share class currency is different from the fund currency.

Additional options

Additional fee setups.

Formula sets the transaction account: Set an account for the fee formula. For example, this can be useful with accrued account interest transactions over multiple accounts.
Include in income distribution: Include the fee in the income distribution calculation.
Use crystallization schedule for capitalization: Capitalize fees automatically on the crystallization date when you accept NAV. The crystallization dates are defined in the Fee crystallization schedule (Fund wizard, Schedules tab). Fees are capitalized to the account that has “Fee capitalization” tag. If no account is marked with this tag, fees are capitalized to the default cash account.

Performance fee equalization

The Performance fee equalization section contains parameters to calculate and equalize performance fee. Choose the fee parameters. Then, define the crystallization schedule in the Fund wizard, Schedules tab, and the fee formula in the Fund wizard, Fee structure tab.

Fee percentage: Fee percentage to calculate the fee amount.
Hurdle rate: The minimum NAV increase above HWM starting from which the performance fee is paid.
Day count: Day count convention to use in performance fee calculation with hurdle rate. If the calculation period is less than a year, the hurdle rate is adjusted proportionally using the day count convention you chose.
High-water mark: The initial high water mark (HWM) to use for the performance fee calculation. Usually, HWM is set to the highest NAV value in the share class. On the crystallization date, FA Fund Management compares the share class NAV to the HWM. If NAV is higher than HWM, the HWM value is updated to the current NAV value.
High-water mark date: The date on which high-water mark is set.

Transaction fees

The Transaction fees section contains parameters for subscription and redemption fees and charging them automatically when you calculate NAV. To learn more about setting up transaction fees, see Set up subscription and redemption fees

Enter the subscription and redemption fee parameters:

Calculate fee for net trade amount-based subscriptions

The amount from which the subscription fee is calculated in net trade amount-based trade orders: order trade amount or the sum invested in the fund.

Define default transaction fees

Settings for subscription and redemption fees calculated automatically in the share class currency and included in the transaction.

Cost percentage

Fee percentage to calculate the fee amount.

To set the fee as a fixed amount per transaction, enter "0" as a cost percentage and then specify the fee amount in the Minimum field.

Minimum

The minimum fee amount to charge.

Cash transactions tab

Account settings to handle deposits and withdrawals.

Account: A fund portfolio account to record deposits and withdrawals to. If the field is empty, the account in the fund settings or the default account is used.

FX hedging tab

FX hedging settings to apply if your share class currency is different from the fund currency and you want to use FX hedging to neutralize the effect of the exchange rate. Click Enable FX hedging and fill in the fields. For full instruction on how to set up and manage FX-hedged share classes, see Hedge currency exposure in FA User guide.

Formula: The formula for the FX hedge accrual. You can choose the "FX hedge formula" that comes pre-configured in Standard solution.
FX hedge transaction type: Transaction type linked to the FX hedging formula.
Hedge parent portfolio: ID and portfolio type of the hedge parent portfolio that links fund and hedge portfolios in FA Back. The hedge parent portfolio is empty. It is used to group the fund and hedge portfolios and share accounts between them. You can edit the hedge parent portfolio properties only when you enable hedging for one of the fund share classes for the first time. After that, hedge parent portfolio is set and can't be edited.
Hedge portfolio: ID and portfolio type of the hedge portfolio that contains FX contracts in FA Back. You can edit the hedge portfolio properties only when you enable hedging for a share class. After that, the hedge portfolio is set and can't be edited.

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