5.250 INVEST ONE - MUTUAL FUNDSdocs.sungard.com/.../System_Manual/Section_5/5_250.pdf · system...

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS

THIS DOCUMENT CONTAINS PROPRIETARY INFORMATION OF SUNGARD INVESTMENT MANAGEMENT SYSTEMS. NO COPY OR OTHER REPRODUCTION SHALL BE MADE WITHOUT WRITTEN PERMISSION OF SUNGARD.

5.250 Invest One - Mutual Funds 1 Overview .......................................................................................................... 1 2 Fund Initialization Activities ................................................................................. 2 3 Income Equalization ........................................................................................... 5

3.1 INCOME EQUALIZATION SETUP .............................................................................. 6 3.2 EQUALIZATION TRANSACTION CODES ...................................................................... 9 3.3 INCOME EQUALIZATION TRANSACTIONS.................................................................. 10

3.3.1 Results of Equalization Transactions ...................................................... 16 3.3.2 Income Distribution............................................................................. 18

4 Capital Share Accounting .................................................................................. 21 4.1 TRANSACTION PROCESSING................................................................................ 21 4.2 CLOSING TRANSACTIONS................................................................................... 27

5 Capital Gain Distribution ................................................................................... 30 5.1 INITIALIZATION.............................................................................................. 30 5.2 DISTRIBUTION............................................................................................... 31 5.3 REPORTING .................................................................................................. 31

6 Prior Period Balance Adjustments ....................................................................... 33 6.1 SCREEN VARIANCES AND REPORTING IMPLICATIONS ................................................... 34

6.1.1 NAV Change-Oriented Reports with Different Subscription Displays ............ 34 6.1.2 Adjustments ...................................................................................... 34

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS OVERVIEW


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1 OVERVIEW

This section describes the unique process and features within the Mutual Fund option of the system. The following topics are described:

• Fund Initialization Activities • Income Equalization • Capital Share Accounting • Capital Gain Distribution • Prior Period Balance Adjustments

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS FUND INITIALIZATION ACTIVITIES


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2 FUND INITIALIZATION ACTIVITIES

Depending on specific fund characteristics, the following fields may need to be initialized: • Subscriptions Exchanged • Dividends Re-invested • Redemptions • Redemptions Exchanged • Beginning balance for net undistributed capital gain/loss • Equalization debits and credits Activities required to initialize each of these fields are described below:

SUBSCRIPTIONS EXCHANGED Subscriptions exchanged are the subscriptions exchanged or transferred from another fund. To initialize this field, the transaction code PARCX should be used. The values to be entered in this transaction are as follows:

Account No. Account Number

Security No. UNITS

Trade Date Initialization date

Tran Code PARCX

Settle Date Initialization date

Inc. Effect 0

Shares/Par Number of shares of subscriptions exchanged as of the initialization date

Prin. Effect The principal cash amount related to the subscriptions exchanged

DIVIDENDS RE-INVESTED Dividends re-invested are those subscriptions that are issued in lieu of dividend distributions. To initialize this field, the transaction code PARCL should be used. The values to be entered in this transaction are as follows:


Security No. UNITS


Tran Code PARCL


Inc. Effect 0

Shares/Par Number of shares issued in lieu of dividend distributions

Prin. Effect The principal cash amount related to the subscriptions issued



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REDEMPTIONS Regular redemptions are handled in a similar manner to regular subscriptions (PARCR and PARCS tran codes). The User must initialize both the traded and settled balance of redemptions to establish the capital shares payable balance. To initialize the redemptions field and the capital shares payable field, the transaction codes PARWP and PARWS should be used. The values to be entered to establish the value of settled redemptions are as follows:


Security No. UNITS


Tran Code PARWS


Inc. Effect 0

Shares/Par Number of settled shares redeemed as of the initialization date

Prin. Effect The principal cash amount related to the settled redemptions

The value to be entered to establish the capital shares payable are as follows:


Security No. UNITS


Tran Code PARWP

Settle Date Set by the system

Inc. Effect 0

Shares/Par Number of shares payable plus settled share redemptions as of the initialization date

Prin. Effect The amount that, when subtracted from the principal amount on the PARWS transaction, results in the initial capital share payable balance

REDEMPTIONS EXCHANGED

Redemptions exchanged are those redemptions exchanged or transferred to another fund. To initialize this field, the transaction code PARWX should be used. The values to be entered in this transaction are as follows:


Security No. UNITS


Tran Code PARWX


Inc. Effect 0

Shares/Par Number of shares of redemptions exchanged as of the initialization date

Prin. Effect The principal cash amount related to the redemptions exchanged



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BEGINNING BALANCE FOR NET UNDISTRIBUTED CAPITAL GAIN/LOSS This balance contains any realized gain or loss that has not been distributed as of the initialization date. To initialize this field, the transaction code GLI+ (if a beginning gain balance) or GLI- (if a beginning loss balance) should be used. The values to be entered in this transaction are as follows:


Security No. UNITS


Tran Code GLI+ or GLI-


Inc. Effect 0

Shares/Par 0

Prin. Effect The amount of gain or loss to be initialized

EQUALIZATION DEBITS AND CREDITS Separate balances are maintained within the system for equalization debits and credits. To initialize the fields, the transaction codes EQUDRI (equalization debit initialization) and EQUCRI (equalization credit initialization) should be used. The values to be entered in this transaction are as follows:


Security No. UNITS


Tran Code EQUDRI (for debit initialization) EQUCRI (for credit initialization)


Inc. Effect 0

Shares/Par 0

Prin. Effect The amount required to initialize the balances

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS INCOME EQUALIZATION


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3 INCOME EQUALIZATION

Income Equalization is an accounting technique to prevent dilution of current shareholders' earnings. This is accomplished by applying a portion of the proceeds from shares issued and redeemed (equivalent to the amount of a per-share basis of undistributed net investment income on the date of the transaction through equalization debits or credits) to undistributed income. Equalization may also be applied to global funds. To illustrate the effects of equalization, we compare a dividend distribution without equalization and with equalization. In this example, an investor purchases 250,000 shares at 11.24 per share: Without Equalization Before After Account Effects Undistributed Net Investment Income 14,000,000 14,000,000 Shares Outstanding 25,000,000 25,250,000 Income Factor .56 .55 Earnings are diluted With Equalization Accounting Effects Debit Cash 2,810,000 Credit Subscriptions 2,670,000 Credit Equalization 140,000 Before After Undistributed Net Investment Income 14,000,000 14,140,000 Shares Outstanding 25,000,000 25,250,000 Income Factor .56 .56 Earnings are kept whole The following sections describe the equalization accounting capabilities.



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3.1 INCOME EQUALIZATION SETUP

To indicate that a fund uses the equalization technique, request the Account Definition - MF (AAMF) screen in CHANGE mode and enter the account number. Press 'ENTER'.

RECALCULATION Recalculation occurs when AAMF equalization option 'Y' is selected. The verification date controls which valuation periods are updated when a re-calculation is requested. Recalculations occur when a rate is maintained, transactions are maintained or when a fund is re-swept. Recalculation does not occur if AAMF equalization option 'X' is selected.

CHANGE OF EQUALIZATION STATUS

When a fund elects not to use the equalization method after using equalization accounting for a period of time, the closing transactions should be used to zero the equalization amounts. Once the transactions have been entered, the income equalization indicator on the AAMF screen may be changed to an 'N'. IMPORTANT! Set the verification date to coincide with the valuation date on which the income equalization is changed to an 'N'.

NEGATIVE INVESTMENT INCOME

In the event the fund has negative undistributed investment income and the 'Income Equalization' indicator is 'Y', the system calculates equalization. If this is not desired, the equalization flag should be set to 'N' as described above.

NEXT AAMF MODE ADD FDMP37 * * * ACCOUNT DEFINITION - MF * * * ACCOUNT NO:.......... GLB-AVG-SL-T/D FUND TYPE.......................... SALES LOAD PERCENT............ INCOME EQUALIZATION ............... PAR VALUE.................. EXPENSES LIMITATION (%)....... NUMBER OF CLASSES OF SHARES....... CLASSES OF SHARES OPTION........... DEALING SPREAD (%)............ USER DT RULES.. VAL POINT.. REVALUATION FLAG................... PURCH/SOLD INTEREST OPTION.. LAG.. NASDAQ CALENDAR................... NOTIONAL UNITS ROUNDING OPTION..... UNDERLYING SECURITY........ DEFAULT PRICE FOR CAPITAL TRANS.... DAILY DIVIDEND FUND........ DAY COUNT DEFAULT............... INCOME PER SHARE OPTIONS... HIER VAL DEC... HV DIVD.... TRANSLATION DATE........... BASE CURRENCY.. PREC... BASE COUNTRY................... SPOT OPTION.... RECOG DEAL EXP.. FX ON INCOME OPTION............ SPOT EXPIRATION TREATMENT,,, SWEEP/TRANSLATE OPTION......... LAG CA.... EMU FX OPT..... MASTER/FEEDER INDICATOR........ M/F CONVERSION DATES........ *** FOR MULTIPLE CLASSES OF SHARES ACCOUNTS, SALES LOAD PERCENTS FOR INDIVIDUAL CLASSES ARE DEFINED VIA THE AASL SCREEN

Field Description. Fields Shaded Gray are Required.

INCOME EQUALIZATION Y - Calculate equalization for Mutual Funds as of the first valuation prior to the effective date of the transaction recalculate equalization amount in an open period. The verification date controls which valuation periods are updated when a re-calculation is requested. Recalculations occur when a rate is maintained, transactions are maintained or when a fund is re-swept. No automatic calculations occur for Unit Trusts (however, equalization balances may be maintained manually).



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Field Description. Fields Shaded Gray are Required.

X - Calculate equalization for Mutual Funds and Unit Trusts as of the first valuation prior to the effective date of the transaction. Equalization is calculated only at time of transaction entry. No recalculation occurs.

B - Calculate for Mutual Funds on both positive and negative income as of the first valuation prior to the effective date of the transaction. No recalculation occurs.

N - No equalization is calculated, nor are equalization balances maintained.

P - Calculate on Positive Income at the time of original entry only. Option is only valid for Fund Types L (Load Mutual Funds), N (NO Load Mutual Funds) and M (Top Level Mutual Funds).

G - Calculate and Recalculate using the German Equalization Method.

EQUALIZATION BEGINNING BALANCES When converting an existing mutual fund that has balances in the equalization debit and equalization credit accounts, two transaction codes are used for initialization.

• EQUDRI - Initialize Equalization Debit • EQUCRI - Initialize Equalization Credit

NOTE: Equalization of beginning balances should not be performed until other conversion steps are completed. EQUDRI To enter the equalization debit amount, request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date (conversion date), and the tran code (EQUDRI). Press 'ENTER'. Enter the equalization debit amount in the Income Effect field.

NEXT DETD MODE ADD FDMP02 * * * TRANSACTION ENTRY * * * 00000000 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 01 90 TRANSACTION CODE.. EQUDRI EXTERNAL ID. TRADE............. 01 01 90 CONTRACTUAL SETTLE DATE.. 01 01 90 ACTUAL SETTLE DATE....... 01 01 90 SHARES / PAR.... 0.0000 INCOME EFFECT.... 2,000.00 PRICE/SHARE...... TOTAL PRINCIPAL... 0.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 0.00 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION



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EQUCRI To enter the equalization credit amount, request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date (conversion date), and the tran code (EQUCRI). Press 'ENTER', then enter the equalization credit amount in the income effect field.

NEXT DETD MODE ADD FDMP02 * * * TRANSACTION ENTRY * * * 00000000 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 01 90 TRANSACTION CODE.. EQUCRI EXTERNAL ID. TRADE............. 01 01 90 CONTRACTUAL SETTLE DATE.. 01 01 90 ACTUAL SETTLE DATE....... 01 01 90 SHARES / PAR.... 0.0000 INCOME EFFECT.... 4,500.00 PRICE/SHARE...... TOTAL PRINCIPAL... 0.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 0.00 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION



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3.2 EQUALIZATION TRANSACTION CODES

NOTE: All of the transaction codes for capital share accounting are available only for mutual funds. Likewise, the PARC and PARW transaction codes are available only to non-mutual and non-unit trust funds. Equalization is calculated on the following transactions:

PARC+ Mutual Fund Admission

PARC+C Mutual Fund Admission Cancellation

PARCR Regular Participant Subscription

PARCRC Regular Participant Subscription Cancellation

PARCAS Participant Contribution (Auto Settle)

PRCASC Participant Contribution Cancellation (Auto Settle)

PARCX Participant Exchange

PARCXC Participant Exchange Cancellation

PARCXR Subscription Exchange Receivable

PRCXRC Subscription Exchange Receivable Cancellation

PARW+ Mutual Fund Redemption

PARW+C Mutual Fund Redemption Cancellation

PARWP Regular Participant Redemption

PARWPC Regular Participant Redemption Cancellation

PARCL Subscriptions in Lieu of Cash Distributions

PARCLC Cash Distributions in Lieu of Subscriptions

PARWAS Participant Withdrawal (Auto Settle)

PRWASC Participant Withdrawal Cancellation (Auto Settle)

PARWX Redemption Exchange

PARWXC Redemption Exchange Cancellation

PARWXP Redemption Exchange Payable

PRWXPC Redemption Exchange Payable Cancellation

RBPRC+ Rebook Mutual Fund Admission

RBPRCS Rebook Participant Contribution (Auto Settle)

RBPRW+ Rebook Mutual Fund Redemption

RBPRWS Rebook Participant Withdrawal (Auto Settle).

Equalization is input in the INCOME EFFECT field for the following transaction codes:

EQUCR Close Equalization Credit Balance

EQUCRI Initialize Credit Balance

EQUDR Close Equalization Debit Balance

EQUDRI Initialize Debit Balance



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3.3 INCOME EQUALIZATION TRANSACTIONS

SUBSCRIPTION RECEIVABLE Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (PARCR). Press 'ENTER'. Enter shares/par and principal effect.

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000520 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 31 90 TRANSACTION CODE.. PARCR EXTERNAL ID. TRADE............. 01 31 90 CONTRACTUAL SETTLE DATE.. 12 31 80 ACTUAL SETTLE DATE....... 12 31 80 SHARES / PAR.... 1,000.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 21,000000 TOTAL PRINCIPAL... 21,000.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 6,157.59 LOCATION CODE...

Equalization is calculated based on the sum of the previous day's undistributed income plus the equalization debit and credit (61,575.91) divided by the previous day's effectively traded shares (10,000.0000), resulting in a factor of 6.157591. The units amount of the PARCR transaction (1,000.0000) times the factor results in an equalization amount of 6,157.59. Accounting for this transaction is as follows: DR CAPITAL SHARES RECEIVABLE 21,000.00 CR SUBSCRIPTIONS 14,842.41 CR EQUALIZATION CREDIT 6,157.59



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SUBSCRIPTION CANCELLATIONS Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (PARCRC). Press 'ENTER'. Enter shares/par and principal effect.

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000521 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 31 90 TRANSACTION CODE.. PARCRC EXTERNAL ID. TRADE............. 01 31 90 CONTRACTUAL SETTLE DATE.. 12 31 80 ACTUAL SETTLE DATE....... 12 31 80 SHARES / PAR.... 100.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 21,000000 TOTAL PRINCIPAL... 2,100.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 615.76- LOCATION CODE...

Equalization is calculated based on the sum of the previous day's undistributed income plus the equalization debit and credit (61,575.91) divided by the previous day's effectively traded shares (10,000.0000), resulting in a factor of 6.157591. The units amount on the PARCRC transaction (100.0000) times the factor results in an equalization amount of 615.76. Accounting for this transaction is as follows: DR SUBSCRIPTIONS 1,484.24 DR EQUALIZATION DEBIT 615.76 CR CAPITAL SHARES RECEIVABLE 2,100.00



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SUBSCRIPTION EXCHANGES Request the Transaction (DETD) screen and enter security number (UNITS), trade date, and the tran code (PARCX). Press 'ENTER' and enter shares/par and principal effect.

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000523 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 31 90 TRANSACTION CODE.. PARXC EXTERNAL ID. TRADE............. 01 31 90 CONTRACTUAL SETTLE DATE.. 01 31 90 ACTUAL SETTLE DATE....... 01 31 90 SHARES / PAR.... 1,500.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 21.000000 TOTAL PRINCIPAL... 31,500.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 9,236.39 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION

Equalization is calculated based on the sum of the previous day's undistributed income plus the equalization debit and credit (61,575.91) divided by the previous day's effectively traded shares (10,000.0000), resulting in a factor of 6.157591. The units amount on the PARCX transaction (1,500.0000) times the factor results in an equalization amount of 9,236.39. Accounting for this transaction is as follows: DR CASH 31,500.00 CR SUBSCRIPTION EXCHANGES 22,263.61 CR EQUALIZATION CREDIT 9,236.39



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REDEMPTIONS PAYABLE Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (PARWP). Press 'ENTER'. Enter shares/par and principal effect.

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000524 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 31 90 TRANSACTION CODE.. PARWP EXTERNAL ID. TRADE............. 01 31 90 CONTRACTUAL SETTLE DATE.. 12 31 80 ACTUAL SETTLE DATE....... 12 31 80 SHARES / PAR.... 500.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 21.000000 TOTAL PRINCIPAL... 10,500.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 3,078.80- LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION

Equalization is calculated based on the sum of the previous day's undistributed income plus the equalization debit and credit (61,575.91) divided by the previous day's effectively traded shares (10,000.0000), resulting in a factor of 6.157591. The shares/par amount on the PARWP transaction (500.0000) times the factor results in an equalization amount of 3,078.80. Accounting for this transaction is as follows: DR REDEMPTIONS 7,421.20 DR EQUALIZATION DEBIT 3,078.80 CR CAPITAL SHARES REDEEMED 10,500.00



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REDEMPTION CANCELLATIONS Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (PARWPC). Press 'ENTER'. Enter shares/par and principal effect.

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000525 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 31 90 TRANSACTION CODE.. PARWPC EXTERNAL ID. TRADE............. 01 31 90 CONTRACTUAL SETTLE DATE.. 12 31 80 ACTUAL SETTLE DATE....... 12 31 80 SHARES / PAR.... 200.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 21.000000 TOTAL PRINCIPAL... 4,200.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 1,231.52 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION

Equalization is calculated based on the sum of the previous day's undistributed income plus the equalization debit and credit (61,575.91) divided by the previous day's effectively traded shares (10,000.0000), resulting in a factor of 6.157591. The shares/par amount on the PARWC transaction (200.0000) times the factor results in an equalization amount of 1,231.52. Accounting for this transaction is as follows: DR CAPITAL SHARES REDEEMED 4,200.00 CR REDEMPTIONS 2,968.48 CR EQUALIZATION CREDIT 1,231.52



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REDEMPTION EXCHANGES Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (PARWX). Press 'ENTER'. Enter units and principal effect.

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000529 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 01 31 90 TRANSACTION CODE.. PARWX EXTERNAL ID. TRADE............. 01 31 90 CONTRACTUAL SETTLE DATE.. 01 31 90 ACTUAL SETTLE DATE....... 01 31 90 SHARES / PAR.... 100.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 21.000000 TOTAL PRINCIPAL... 2,100.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 615.76- LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION

Equalization is calculated based on the sum of the previous day's undistributed income plus the equalization debit and credit (61,575.91) divided by the previous day's effectively traded shares (10,000.0000), resulting in a factor of 6.157591. The shares/par amount on the PARWX transaction (100.0000) times the factor results in an equalization amount of 615.76. Accounting for this transaction is as follows: DR REDEMPTIONS 1,484.24 DR EQUALIZATION DEBIT 615.76 CR CASH 2,100.00



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3.3.1 Results of Equalization Transactions

The VBMF, STAS, and EQUITY screens are available to view the results of the equalization transactions.

GLOBAL FUNDS Equalization may also be applied to global funds. The GLEQ screen is used to view the elements relating to the equalization factors. Also, GLSTAS is substituted for STAS. Beginning balances transactions and the seven transaction codes presented resulted in the following balances and are reported as follows:

Cash 78,781.93 Capital Shares Receivable 18,900.00 Accrued Income 65,486.72 Capital Shares Redeemed 10,500.00 Subscriptions 220,858.17 Subscription Exchanges 22,263.61 Redemptions 8,652.72 Redemption Exchanges 1,484.24 Undistributed Income 65,486.72 Equalization Debit 5,694.56 Equalization Credit 20,509.74

VBMF Request the Account Valuation Balances -MF Screen and the pertinent balances of a mutual fund is displayed.

NEXT VBMF MODE REPORT FDMP34 * * ACCOUNT VALUATION BALANCES - MF * * ACCOUNT NO: ...... 000000009203100 VALUATION DATE .............. 04 01 89 THE BALANCED FUND BEGIN DATE .................. 03 31 89 CAPT SHRS RECV 580,052.62 CAPT SHRS PAYBL -15,200.47 UNITS TRADED 480,383.0000 DIVD REINVESTED 0.00 EXCH SUBSCRIPT 494,825.00 EXCH REDEMPTIONS 0.00 UNDIST G/L 0.00 EQUAL DEBIT 0.00 EQUAL CREDIT 0.00 MISC ASSETS 0.00 G/L PAYABLE 0.00 DIVIDEND PAYABLE 0.00 GAINS DISTRIB -20,939.99 TOTAL SUBSCRIPTION 8,187,696.79 TOTAL REDEMPT -30,306.47



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STAS Request the Statement of Assets and Liabilities (STAS). Use GLSTAS for global funds.

NEXT STAS MODE REPORT FDMP35 * * * STATEMENT OF ASSETS AND LIABILITIES * * * ACCOUNT NO: 000000000000200 DAY FUND DATE: 01 31 90 * * * ASSETS * * * * * * LIABILITIES * * * SECURITIES AT VALUE 3,965,915.15 PAYABLES CASH 78,781.93 INCOME PAYABLE .00 RECEIVABLES CAP GAIN PAYABLE .00 ACCRUED INCOME INV SEC PURCHASED .00 INV SEC SOLD CAP SHRS REDEEMED -10,500.00 CAP SHRS SOLD ACCRUED EXPENSES .00 OTHER RECEIVABLES OTHER PAYABLES .00 OTHER ASSETS OTHER LIABILITIES .00 ** TOTAL ASSETS ** TOTAL LIABILITIES -10,500.00 SHAREHOLDERS EQUITY 4,251,701.87 SHARES OUTSTANDING 12,000.0000 N A V 354.31

EQUITY Request the Equity Balances (EQUITY).

NEXT EQUITY MODE REPORT FDMP36 * * * EQUITY BALANCES * * * ACCOUNT NO: 000000000000200 DAY FUND DATE: 04 01 89 OPTION: 1 CLASS OF SHARES: SUBSCRIPTIONS 220,858.17 UNDISTRIB INCOME 65,486.72 SUBSCRIPT EXCHANGED 22,263.61 SCTYS RECVD/DELVD -5,694.56 DIVIDENDS REINVESTED .00 NET EQUALIZATION 20,509.74 REDEMPTIONS -8,652.72 UNDISTRIBUTED G/L 4,016,134.57 REDEMP EXCHANGED -1,484.24 UNREALIZED G/L -77,719.42 ** TOTAL 232,984.82 SHAREHOLDERS EQUITY 4,251,701.87 SHARES OUTSTANDNG 12,000.0000 G/L PER SHARE 352.292506140351 N A V 354.3084 PERIOD INCM PER SHR 0.562351754386 DIVIDEND EARN SHR 11,400.0000 YIELD 55.04



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3.3.2 Income Distribution

When a dividend is declared for a fund using equalization, the User may elect to distribute income net of the equalization debit and credit. Two transactions are required to close equalization debits and credits into undistributed income prior to income distribution.

CLOSE EQUALIZATION DEBIT Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (EQUDR). Press 'ENTER'. Enter the amount in income effect. Press 'ENTER'. Accounting for this transaction is as follows: DR UNDISTRIBUTED INCOME 5,694.56 CR EQUALIZATION 5,694.56

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000530 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 02 01 90 TRANSACTION CODE.. EQUDR EXTERNAL ID. TRADE............. 02 01 90 CONTRACTUAL SETTLE DATE.. 02 01 90 ACTUAL SETTLE DATE....... 02 01 90 SHARES / PAR.... 0.0000 INCOME EFFECT.... 5,694.56 PRICE/SHARE...... 0.000000 TOTAL PRINCIPAL... 0.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 0.00 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION



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CLOSE EQUALIZATION CREDIT Request the Transaction (DETD) screen and enter the account number, security number (UNITS), trade date, and the tran code (EQUCR). Press 'ENTER'. Enter the amount in income effect. Press 'ENTER'. Accounting for this transaction is as follows: DR EQUALIZATION 20,509.74 CR UNDISTRIBUTED INCOME 20,509.74

NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000531 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 02 01 90 TRANSACTION CODE.. EQUCR EXTERNAL ID. TRADE............. 02 01 90 CONTRACTUAL SETTLE DATE.. 02 01 90 ACTUAL SETTLE DATE....... 02 01 90 SHARES / PAR.... 0.0000 INCOME EFFECT.... 20,509.74 PRICE/SHARE...... 0.000000 TOTAL PRINCIPAL... 0.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 0.00 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION

The final step for income distribution is accomplished with another transaction. To enter the income distribution transaction, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (INCD). Press 'ENTER'. Enter the settle date and the income effect. Press 'ENTER'. Accounting for this transaction is as follows: DR DISTRIBUTED INCOME 80,301.90 CR CASH - INCOME 80,301.90



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NEXT DATD MODE CHANGE FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000532 ACCOUNT NUMBER.... 000000000000200 DAY FUND SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 02 01 90 TRANSACTION CODE.. INCD EXTERNAL ID. TRADE............. 02 01 90 CONTRACTUAL SETTLE DATE.. 02 01 90 ACTUAL SETTLE DATE....... 02 01 90 SHARES / PAR.... 0.0000 INCOME EFFECT.... 80,301.90 PRICE/SHARE...... 0.000000 TOTAL PRINCIPAL... 0.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION REASON............... TRADE EXPENSE.......... 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. 0.00 EQUALIZATION........ 0.00 LOCATION CODE... PRESS ENTER TO CONFIRM THIS TRANSACTION

NOTES

1. Capital stock transactions that settle previously unsettled units, such as PARCS and PARWS, do not record equalization entries because the original receivable/payable recorded the appropriate equalization credits and debits.

2. The income amount debited for EQUCR and credited for EQUDR transactions is defined in the UNITS security definition ('INCOME CATE MAIN' on the STST screen).

3. The components used to calculate an equalization factor to be applied to valid unit transactions can be viewed on the Equity Balances (EQUITY) screen. View the equity balance screen for the valuation date prior to the unit transaction's effective date to obtain the values used in the factor computation.

UNDISTRIB INCOME + EQUALIZATION CREDIT EQUALIZATION FACTOR = - EQUALIZATION DEBIT SHARES OUTSTANDING

4. In a Multiple Cost Bases scenario, income equalization is computed at the primary account level and copied to each alternate. Equalization is not re-computed based on the alternate account's data.

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS CAPITAL SHARE ACCOUNTING


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4 CAPITAL SHARE ACCOUNTING

This series of transactions allows the User to account for receivables/payables on subscriptions, redemptions, cancellations, exchanges, and dividend re-investments. NOTE: All of the transaction codes for capital share accounting are available only for mutual funds. Likewise, the PARC and PARW transaction codes are available only to non-mutual and non-unit trust funds.

4.1 TRANSACTION PROCESSING

To enter any of the following transactions, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (PARCR). Press 'ENTER'. INVEST ONE sets the settle date to a future date (MM/DD/YY). Enter the shares/par (shares outstanding) and the principal effect (receivables amount). Press 'ENTER'.

CAPITAL SHARES RECEIVABLE NEXT VSTD MODE VIEW FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000206 ACCOUNT NUMBER.... 000000009203100 THE BALANCED FUND SECURITY NUMBER... UNITS 00 00 0000 0000 UNITS EFFECTIVE DATE.... 01 31 83 TRANSACTION CODE.. PARCR EXTERNAL ID. TRADE DATE........ 01 31 83 CONTRACTUAL SETTLE DATE... 12 31 80 ACTUAL SETTLE DATE........ 12 31 80 SHARES / PAR.... 2,000,000.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 10.000000 TOTAL PRINCIPAL... 20,000,000.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION IND... COMM REASON. TRADE EXPENSE........ 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. EQUALIZATION........ 0.00 LOCATION CODE... 0.00

The accounting effects of this transaction are as follows: DR CAPITAL SHARES RECEIVABLE 20,000,000.00 CR SUBSCRIPTIONS 20,000,000.00 Traded shares were increased by 2,000,000.0000.



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SUBSCRIPTIONS SETTLED Enter the account number, security number (UNITS), trade date, and the tran code (PARCS). Press 'ENTER'. Enter the shares/ par (shares settled) of 1,000,000 and principal effect (cash) of 10,000,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR CASH 10,000,000.00 CR CAPITAL SHARES RECEIVABLE 10,000,000.00 Settled shares were increased by 1,000,000.00.

SUBSCRIPTIONS CANCELLED Enter the account number, security number (UNITS), trade date, and the tran code (PARCRC). Press 'ENTER'. Enter the shares/ par (shares settled) of 5,000,000 and principal effect (cash) of 50,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR SUBSCRIPTIONS 50,000.00 CR CAPITAL SHARES RECEIVABLE 50,000.00 Traded and settled shares were decreased by 5,000.0000.

SUBSCRIPTIONS EXCHANGED To enter subscriptions exchanged, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (PARCX). Press 'ENTER'. Enter the settle date, shares/par of 10,000,000, and principal effect (cash) of 1,000,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR CASH 1,000,000.00 CR SUBSCRIPTION EXCHANGES 1,000,000.00 Traded shares were increased by 10,000.0000.



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DIVIDEND RE-INVESTMENTS Enter the account number, security number (UNITS), trade date, and the tran code (PARCL). Press 'ENTER'. Enter the settle date, shares/par of 2,000,000, and principal effect (cash) of 20,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR CASH 20,000.00 CR DIVIDEND REINVESTMENTS 20,000.00 Settled and traded shares were increased by 2,000.0000. To cancel part or all of a dividend re-investment transaction, the transaction code PARCLC is used. This transaction will debit Dividend Reinvestments and credit Cash for the principal amount of the PARCLC transaction.

REDEMPTIONS PAYABLE Enter the account number, security number (UNITS), trade date, and the tran code (PARWP). Press 'ENTER'. INVEST ONE sets the settle date to a future date (MM/DD/YY). Enter the shares/par (shares outstanding) of 15,000 and the principal effect (payables amount) of 150,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR REDEMPTIONS 150,000.00 CR CAPITAL SHARES PAYABLE 150,000.00 Traded shares were decreased by 15,000.0000.

REDEMPTIONS SETTLED

Enter the account number, security number (UNITS), trade date, and the tran code (PARWS). Press 'ENTER'. Enter the shares/par (shares settled) of 1,000 and principal effect (cash) of 10,000. Press 'ENTER'.

Accounting effects of this transaction are as follows: DR CAPITAL SHARES PAYABLE 10,000.00 CR CASH 10,000.00 Settled shares were decreased by 1,000.0000.



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REDEMPTIONS CANCELLED Enter the account number, security number (UNITS), trade date, and the tran code (PARWPC). Press 'ENTER'. Enter the shares/ par (shares settled) of 500 and principal effect (cash) of 5,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR CAPITAL SHARES PAYABLE 5,000.00 CR REDEMPTIONS 5,000.00 Traded and settled shares were increased by 500.0000

REDEMPTIONS EXCHANGED Enter the account number, security number (UNITS), trade date, and the tran code (PARWX). Press 'ENTER'. Enter the posting date, shares/par of 1,500 and principal effect (cash) of 15,000. Press 'ENTER'. Accounting effects of this transaction are as follows: DR REDEMPTION EXCHANGES 15,000.00 CR CASH 15,000.00 Traded shares were decreased by 1,500.0000 The following three screens, VBMF, STAS, and EQUITY, are available to view the results of these transactions. Beginning balances transactions and the seven transaction codes illustrated in this lesson resulted in the following balances and are reported as follows: Cash 10,995,000.00 Capital Shares Receivable 9,950,000.00 Capital Shares Redeemed 140,000.00 Subscriptions 19,950,000.00 Subscription Exchanges 1,000,000.00 Dividend Re-investments 20,000.00 Redemptions 150,000.00 Redemption Exchanges 15,000.00



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VBMF Request the Account Valuation Balances -MF (VBMF).

NEXT VBMF MODE REPORT FDMP34 * * ACCOUNT VALUATION BALANCES - MF * * ACCOUNT NO: ...... 000000009203100 VALUATION DATE ............. 03 31 83 THE BALANCED FUND BEGIN FUND ................. 12 31 82 CAPT SHRS RECV 9,950,000.00 CAPT SHRS PAYBL -140,000.00 UNITS TRADED 1,991,000.0000 DIVD REINVESTED 20,000.00 EXCH SUBSCRIPT 1,000,000.00 EXCH REDEMPTIONS -15,000.00 UNDIST G/L 0.00 EQUAL DEBIT 0.00 EQUAL CREDIT 0.00 OTHER ASSETS 0.00 G/L PAYABLE 0.00 DIVIDEND PAYABLE 0.00 GAINS DISTRIB 0.00 TOTAL SUBSCRIPTION 19,950,000.00 TOTAL REDEMPT -150,000.00

STAS

Request the Statement of Assets and Liabilities (STAS).

NEXT STAS MODE REPORT FDMP35 * STATEMENT OF ASSETS AND LIABILITIES * ACCOUNT NO: 000000009203100 THE BALANCED FUND DATE: 03 31 83 * * * ASSETS * * * * * * LIABILITIES * * * SECURITIES AT VALUE .00 PAYABLES CASH 10,995,000.00 INCOME PAYABLE .00 RECEIVABLES CAP GAIN PAYABLE .00 ACCRUED INCOME .00 INV SEC PURCHASED .00 INV SEC SOLD .00 CAP SHRS REDEEMED -140,000.00 CAP SHRS SOLD 9,950,000.00 ACCRUED EXPENSES .00 OTHER RECEIVABLES .00 OTHER PAYABLES .00 OTHER ASSETS .00 OTHER LIABILITIES .00 ** TOTAL ASSETS 20,945,000.00 ** TOTAL LIABILITIES -140,000.00 SHAREHOLDERS EQUITY 20,805,000.00 SHARES OUTSTANDING 1,991,000.0000 N A V 10.45



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EQUITY Request the equity balances (EQUITY).

NEXT EQUITY MODE REPORT FDMP36 * * * EQUITY BALANCES * * * ACCOUNT NO: 000000009203100 DAY FUND DATE: 03 31 83 OPTION: 1 CLASS OF SHARES: SUBSCRIPTIONS 19,950,000.00 UNDISTRIB INCOME .00 SUBSCRIPT EXCHANGED 1,000,000.00 SCTYS RECVD/DELVD .00 DIVIDENDS REINVESTED 20,000.00 NET EQUALIZATION .00 REDEMPTIONS -150,000.00 UNDISTRIBUTED G/L .00 REDEMP EXCHANGED -15,000.00 UNREALIZED G/L .00 ** TOTAL 20,805,000.00 SHAREHOLDERS EQUITY 20,805,000.00 SHARES OUTSTANDNG 1,991,000.0000 G/L PER SHARE 0.000000000000 N A V 10.4495 PERIOD INCM PER SHR 0.000000000000 DIVIDEND EARN SHR 1,009,500.0000 YIELD .00



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4.2 CLOSING TRANSACTIONS

Each fiscal year end, or at any other time elected by the User, capital share balances may be closed or netted into regular subscriptions. This process allows for periodic comparative reporting of capital share balances. Closing transaction codes are as follows: • CLOSX - Close Subscription Exchanges • CLODR - Close Dividend Redemptions • CLORED - Close Redemptions • CLORX - Close Redemption Exchanges To illustrate this procedure, the current account balances from this section will be used. To enter the closing transaction, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (CLOSX). Press 'ENTER'. Enter the closing amount in the principal effect. Press 'ENTER'.

CLOSE SUBSCRIPTION EXCHANGES

NEXT VSTD MODE VIEW FDMP57 * * * TRANSACTION CORRECTION * * * MEMO NUMBER 00000206 ACCOUNT NUMBER.... 000000009203100 THE BALANCED FUND SECURITY NUMBER... UNITS 00 00 0000 0000 UNITS EFFECTIVE DATE.... 03 31 83 TRANSACTION CODE.. PARCR EXTERNAL ID. TRADE DATE........ 03 31 83 CONTRACTUAL SETTLE DATE... 12 31 80 ACTUAL SETTLE DATE........ 12 31 80 SHARES / PAR.... 2,000,000.0000 INCOME EFFECT.... 0.00 PRICE/SHARE...... 10.000000 TOTAL PRINCIPAL... 20,000,000.00 EXECUTING BROKER........... COMMISSION............ 0.00 CLEARING BROKER............ COMMISSION IND... COMM REASON. TRADE EXPENSE........ 0.00 PRINCIPAL/AGENT FLAG............. EXCHANGE......................... COST............. EQUALIZATION........ 0.00 LOCATION CODE... 0.00

Accounting effects are as follows: DR SUBSCRIPTION EXCHANGES 1,000,000.00 CR SUBSCRIPTIONS 1,000,000.00



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CLOSE DIVIDEND RE-INVESTMENTS To enter the closing transaction, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (CLODR). Press 'ENTER' and enter the closing amount in the principal effect. Press 'ENTER'. Accounting effects are as follows: DR DIVIDEND REINVESTMENTS 20,000.00 CR SUBSCRIPTIONS 20,000.00

CLOSE REDEMPTIONS To enter the closing transaction, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (CLORED). Press 'ENTER' and enter the closing amount in the principal effect. Press 'ENTER'. Accounting effects are as follows: DR SUBSCRIPTIONS 150,000.00 CR REDEMPTIONS 150,000.00

CLOSE REDEMPTION EXCHANGES To enter the closing transaction, request the Transaction (DETD) screen. Enter the account number, security number (UNITS), trade date, and the tran code (CLORX). Press 'ENTER' and enter the closing amount in the principal effect. Press 'ENTER'. Accounting effects are as follows: DR SUBSCRIPTIONS 15,000.00 CR REDEMPTION EXCHANGES 15,000.00



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To view the valuation balances note that subscription exchanges, dividend re-investments, and redemptions all reflect a zero balance. Subscriptions reflect the net of all the capital shares transactions.

NEXT EQUITY MODE REPORT FDMP36 * * * EQUITY BALANCES * * * ACCOUNT NO: 000000009203100 THE BALANCED FUND DATE: 03 31 83 OPTION: 1 CLASS OF SHARES: SUBSCRIPTIONS 20,805,000.00 UNDISTRIB INCOME .00 SUBSCRIPT EXCHANGED .00 SCTYS RECVD/DELVD .00 DIVIDENDS REINVESTED .00 NET EQUALIZATION .00 REDEMPTIONS .00 UNDISTRIBUTED G/L .00 REDEMP EXCHANGED .00 UNREALIZED G/L .00 ** TOTAL 20,805,000.00 SHAREHOLDERS EQUITY 20,805,000.00 SHARES OUTSTANDNG 1,991,000.0000 G/L PER SHARE 0.000000000000 N A V 10.4495 PERIOD INCM PER SHR 0.000000000000 DIVIDEND EARN SHR 1,009,500.0000 YIELD .00

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS CAPITAL GAIN DISTRIBUTION


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5 CAPITAL GAIN DISTRIBUTION

The system calculates and accumulates realized capital gain/loss that may be distributed at the User 's option. This section is divided into the following topics:

5.1 INITIALIZATION

When converting an existing mutual fund that has a balance in undistributed gain/loss, INVEST ONE has two transaction codes for initialization: GLI+ (gain/loss positive balance) and GLI- (gain/loss negative balance). In this example, a positive balance will be initialized. To enter the opening undistributed gain/loss, request the TRANSACTION ENTRY (DETD) screen. Enter the account number, security number (UNITS), the effective date (conversion date), and the tran code (GLI+). Press 'ENTER'. Enter the amount in principal effect. Press 'ENTER'.

NEXT DETD MODE ADD FDMP02 * * * TRANSACTION ENTRY * * * 00000000 ACCOUNT NUMBER.... 000000007003100 MUTUAL FUND I SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 11 03 86 TRANSACTION CODE.. GLI+ EXTERNAL ID. TRADE DATE........ 11 03 86 CONTRACTUAL SETTLE DATE.. 11 03 86 ACTUAL SETTLE DATE....... 11 03 86 SHARES / PAR.... 0.0000 INCOME EFFECT... $0.00 PRICE/SHARE..... TOTAL PRINCIPAL.. 1713400.26 $0.00 EXECUTING BROKER............ COMMISSION........... $0.00 CLEARING BROKER............. COMMISSION REASON.............. TRADE EXPENSE......... $0.00 PRINCIPAL/AGENT FLAG............ EXCHANGE......................... COST............ $0.00 EQUALIZATION..... $0.00 LOCATION CODE...

Important! This step should not be done until other conversion steps are complete.



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5.2 DISTRIBUTION

To enter a capital gain distribution, request the TRANSACTION ENTRY (DETD) screen. Enter the account number, security number (UNITS), effective date, and the transaction code (GLDIST). Press 'ENTER'. Enter the amount of distribution in principal effect. Press 'ENTER'.

NEXT DETD MODE ADD FDMP02 * * * TRANSACTION ENTRY * * * 00000000 ACCOUNT NUMBER.... 000000007003100 MUTUAL FUND I SECURITY NUMBER... UNITS 00 00 0000 00000 CAPITAL SHARES EFFECTIVE DATE.... 11 03 86 TRANSACTION CODE.. GLDIST EXTERNAL ID. TRADE DATE........ 11 03 86 CONTRACTUAL SETTLE DATE.. 01 01 87 ACTUAL SETTLE DATE....... 01 01 87 SHARES / PAR.... 0.0000 INCOME EFFECT... $0.00 PRICE/SHARE..... TOTAL PRINCIPAL.. 1713400.26 $0.00 EXECUTING BROKER............ COMMISSION........... $0.00 CLEARING BROKER............. COMMISSION REASON.............. TRADE EXPENSE......... $0.00 PRINCIPAL/AGENT FLAG............ EXCHANGE......................... COST............ $0.00 EQUALIZATION..... $0.00 LOCATION CODE...

5.3 REPORTING

A reconciliation of gain/loss can be viewed on the Equity Balances (EQUITY) screen. Enter the account number.

NEXT EQUITY MODE REPORT FDMP36 * * * EQUITY BALANCES * * * ACCOUNT NO: 000000007003100 MUTUAL FUND I DATE: 11 03 86 OPTION: 1 CLASS OF SHARES: SUBSCRIPTIONS 4,327,601,562.91 UNDISTRIB INCOME 3,980,483.33 SUBSCRIPT EXCHANGED 277,555,000.00 SCTYS RECVD/DELVD .00 DIVIDENDS REINVESTED 355,659,000.00 NET EQUALIZATION .00 REDEMPTIONS -217,180,000.00 UNDISTRIBUTED G/L .00 REDEMP EXCHANGED -224,896,000.00 UNREALIZED G/L 80,743,571.93 ** TOTAL 4,518,739,562.91 SHAREHOLDERS EQUITY 4,603,463,618.07 SHARES OUTSTANDNG 293,284,254.0000 G/L PER SHARE 0.000000000000 N A V 15.6962 PERIOD INCM PER SHR 0.014748606806 DIVIDEND EARN SHR 269,870,253.0000 YIELD 31.56



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The liability for the capital gain payable can be viewed on the Statement of Assets and Liabilities (STAS) screen. Enter the account number and the date.

NEXT STAS MODE REPORT FDMP35 * * * STATEMENT OF ASSETS AND LIABILITIES * * * ACCOUNT NO: 000000007003100 MUTUAL FUND I DATE: 11 03 86 * * * ASSETS * * * * * * LIABILITIES * * * SECURITIES AT VALUE 4,284,236,464.60 PAYABLES CASH 21,549,244.14 INCOME PAYABLE -21,507,245.21 RECEIVABLES CAP GAIN PAYABLE -1,713,400.26 ACCRUED INCOME 24,173,363.79 INV SEC PURCHASED -1,928,615.00 INV SEC SOLD .00 CAP SHRS REDEEMED -17,180,000.00 CAP SHRS SOLD 322,200,000.00 ACCRUED EXPENSES -6,366,193.99 OTHER RECEIVABLES .00 OTHER PAYABLES .00 OTHER ASSETS .00 OTHER LIABILITIES .00 ** TOTAL ASSETS 4,652,159,072.53 **TOTAL LIABILITIES -48,695,454.46 SHAREHOLDERS EQUITY 4,603,463,618.07 SHARES OUTSTANDING 293,284,254.0000 N A V 15.70

In addition to the EQUITY BALANCES and INCOME GAIN (LOSS) screens, several batch reports reflect gain/loss including the Sales Journal (R054) and the Summary of Realized Gains/Losses (R058). NOTES 1. Only mutual funds have the capability of using the GLI+, GLI- and GLDIST tran codes. 2. INVEST ONE mutual funds also have the capability of using the LTDIST, MTDIST and

STDIST transaction codes to label distributions as being either long-term, mid-term or short-term. Transaction codes LTDST-, MTDST- and STDST- may be used to adjust the initial distributions.

SYSTEM MANUAL - SECTION 5.250 - INVEST ONE - MUTUAL FUNDS PRIOR PERIOD BALANCE ADJUSTMENTS


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6 PRIOR PERIOD BALANCE ADJUSTMENTS

Prior Period Balance Adjustments provide the ability to reclassify undistributed net income, accumulated net realized capital gains and paid-in capital as required by the Statement of Position 93-2 (ROCSOP). The adjustments are accomplished via a series of Transaction Codes and are described herein primarily from a General Ledger perspective. The adjustments available are as follows: From the Trial Balance (Batch Report ID R092) perspective, reclassification effective within the current report period of a portion of the prior fiscal year-end: • ..UNDISTRIBUTED GAIN/LOSS balance to (or from) PRIOR UNDISTRIBUTED INCOME.

From a more general reporting perspective (including that of the Batch Report ID R122 Detail Trial Balance): reclassification effective within the current report period of a portion of the report from date UNDISTRIBUTED GAIN/LOSS balance to (or from) PRIOR UNDISTRIBUTED INCOME;

• ..UNDISTRIBUTED INCOME balance to (or from) SUBSCRIPTIONS. From a more general reporting perspective (including that of the Batch Report ID R122 Detail Trial Balance): reclassification effective within the current report period of a portion of the report from date UNDISTRIBUTED INCOME balance to (or from) SUBSCRIPTIONS.

Available Prior Period Balance Adjustment Transaction Codes

Transaction Code Transaction Description

DUGOUI Decrease Prior Und G/L; Offset Prior Und Income

DUIOUG Decrease Prior Und Income; Offset Prior Und G/L

ISOUI Increase Subscriptions; Offset Prior Und Income

DSOUI Decrease Subscriptions; Offset Prior Und Income

General Ledger Effects for each of the Prior Period Balance Adjustment Transaction Codes

Transaction Code Debit Entries Credit Entries

DUGOUI Prior Undistributed Gain/Loss Prior Undistributed Income

Cash (Income) Cash (Principal)

DUIOUG Prior Undistributed Income Prior Undistributed Gain/Loss

Cash (Principal) Cash (Income)

ISOUI Prior Undistributed Income Subscriptions

Cash (Principal) Cash (Income)

DSOUI Subscriptions Prior Undistributed Income

Cash (Income) Cash (Principal)

Effects for each of the Codes outside of General Ledger Reporting

Transaction Code Decrease Increase

DUGOUI ADJ TO BEG UND G/L ADJ TO BEG UND INC

PRINCIPAL CASH INCOME CASH

DUIOUG ADJ TO BEG UND INC ADJ TO BEG UND G/L

INCOME CASH PRINCIPAL CASH

ISOUI ADJ TO BEG UND INC SUBSCRIPTIONS

INCOME CASH PRINCIPAL CASH

DSOUI SUBSCRIPTIONS ADJ TO BEG UND INC

PRINCIPAL CASH INCOME CASH



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Key online screens on which the above effects can be seen are as follows:

Field Name Description Screen

SUBSCRIPTIONS SUBSCRIPTIONS EQUITY (GLEQ for Global Funds)

ADJ TO BEG UND INC ADJUST TO BEG BAL (Income Account) INGL (GLINGL for Global Funds)

ADJ TO BEG UND G/L ADJUST TO BEG BAL (Gain/Loss Account) INGL (GLINGL for Global Funds)

PRINCIPAL CASH PRINCIPAL CASH VSCB

INCOME CASH INCOME CASH VSCB

Online and batch General Ledger reporting reflect Prior Period Balance Adjustment transaction effects per the accounting effects described previously. General Ledger reports affected are as follows: • G/L Transaction Inquiry - Base (GLIN) Online Screen

• G/L Transaction Inquiry - Local (GLINL) Online Screen

• General Ledger Detail Summary Listing (R079) Batch Report

• Trial Balance (R092) Batch Report

• Detail Trial Balance (R122) Batch Report

Online and batch reporting outside of the optional General Ledger module reflect Prior Period Balance Adjustment transaction effects per the accounting effects described previously.

6.1 SCREEN VARIANCES AND REPORTING IMPLICATIONS

6.1.1 NAV Change-Oriented Reports with Different Subscription Displays

In NAV-change-oriented reports showing subscriptions $ activities but not showing beginning balances in undistributed income or undistributed gain(loss), the DSOUI & ISOUI entries to subscriptions are reflected in the subscription-like line item of the report and a separate line item labeled 'Prior Period Balance Adjustments' is reported to contain the offsetting entry required to balance. The separate line item appears only when there is a non-zero amount to support it. Reports in this category include: • NAV Impact Summary (R086) batch report

• Weekly Fund Activity Summary (R012) batch report

• Statement of Changes in Net Assets (R088) batch report

• Global Statement of Changes in Net Assets (R111) batch report

• Statement of Changes in Net Assets (FS03) batch report

• Statement of Changes in Net Assets (F203) batch report

• Statement of Changes in Net Assets (R154) batch report

6.1.2 Adjustments

In the valuation period in which an adjustment occurs, calculations dependent on prior net assets, prior undistributed income or prior undistributed gain/loss use the unadjusted value, rather than the adjusted value. Such calculations include (but are not limited to): • Management fees

• Income equalization

• Account yields

• Most multiple classes of shares allocation factors.



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The transfer of cash is done such that income is ultimately distributable from income cash and realized gain is ultimately distributable from principal cash. The adjustment transactions are therefore transparent to reports for which income and principal cash effects or balances or not separately reported on. Some examples of reports falling into this category are: • Analysis of Cash Flow (ANCF and R052) online and batch reports

• Cash Disbursements Journal (R051) batch report

• Cash Receipts Journal (R050) batch report

• Statement of Cash Flows (R025) batch report

• Global Local Cash Forecasting (R120) batch report

Where income and principal cash effects and/or balances are reported separately, the adjustments impact the report. Some examples of reports falling into this category are: • Cash Balances (VSCB) online report screen

• Daily Cash Balances (VDCB) online report screen

• Cash Forecasting (BGCM and R204) online and batch reports

MULTIPLE CLASSES OF SHARES REPORTING IMPLICATIONS For the MCS NAV Worksheet (R211) batch report, adjustments to Prior Undistributed Income are reflected in the Prior Undistributed Income line; adjustments to Prior Undistributed Gain(Loss) are reflected in the Prior Undistributed Gain(Loss) line; adjustments to Subscriptions are reflected in the Shareholder $ Activity line (thereby influencing Assets After Capital Change amounts and allocation factors). For the Net Asset Value Proof (VNAV) online report screen:

• Income includes - ISOUI/DSOUI/DUGOUI/DUIOUG transaction effects

• Real Gain/Loss includes - DUGOUI/DUIOUG transaction effects

• Cap Shr Activity includes - ISOUI/DSOUI transaction effects.

MASTER/FEEDER ACCOUNTING REPORTING IMPLICATIONS

For the Master/Feeder Worksheet (R240) batch report, adjustments to: • Prior Undistributed Income made in feeder accounts are reflected in the Prior Undistributed

(Income) line

• Prior Undistributed Gain(Loss) made in feeder accounts are reflected in the Prior Undistributed (Gain(Loss)) line

• Subscriptions made in feeder accounts are reflected in the Shareholder Activity line.

NOTES 1. Use of these transactions is limited to Domestic and Global (Single or Multiple Classes of Shares)

Mutual Fund Accounts. Commingled and UK Unit Trust funds are denied use. 2. All transactions are written against the UNITS security. All amounts associated with the

transactions are assumed to be stated in the base currency of the fund. 3. For a given transaction, all transaction dates must be equal and Principal and Income amounts

must be equal.

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