Specific to unit linked life company processing, pControl provides the capability to manage open-ended investment structures through shareholder box management and deal consolidations.
Shareholder or manager ‘boxes’ are created and allocated to individual funds or groups of funds, to act as an internal counterparty when matching assets to liabilities during the cash allocation and rebalancing process.
The concept of a box allows the manager or life company itself to act as an internal counterparty, and in doing so ‘take a position’ on the asset when servicing investor liabilities. In this way, when liabilities are not fully matched by assets, the manager is able to assess if units should be created or liquidated to generate an unrealized gain or loss position on the shareholders account.
Standard product or client specific rules then manage how the box counterparty will trade with the market to match assets to investor liabilities.
Deal consolidation allows the amalgamation of incoming trades to match the trade that a base investment fund eventually places into the market. Any changes to the external market trade will result in automatic adjustments to the incoming trades in order to maintain a zero cash impact as a result of the cash allocation process. Confirmation of the external trade will result in the constituent trades also being confirmed.
Box Management and Deal Consolidation are fully integrated within Cash Allocation & Rebalancing.
When Box Management is deployed with pControl’s Fund Accounting capabilities then Fund Ledger processing, Gain / Loss Management and Account Views can report the financial impact on shareholder accounts.