Share Purchase Plan (Notifications)

Overview

Share Purchase Plans (SPP) are an offer to purchase additional shares given to existing shareholders. Simple Fund 360 removes many of the friction points associated with recording SPPs, as the dashboard alerts you to which SPPs have taken place during the year. The required data will prefill on-screen allowing you to easily action these when applicable to your fund.

Update

Automatic matching has improved from Simple Fund 360 release 2.13 (16/12/2016). If the fund is using bank feeds such as BGL Bank Data Service, bank transactions loaded by the service will now automatically match to Share Purchase Plans processed from the Corporate Actions screen.

How to process

1. From the Corporate Actions screen, select the Optional tab and view the Type column. Confirm Share Purchase Plan appears under the column before proceeding.
   
   
2. Select Process under the Action column.
   
   
3. The Security will be automatically selected.
   
   
4. Share Purchase Plan will display as the Corporate Actions Type.
   
   
5. Confirm the chart account for the corporate action (for example, 77600/BOQ.AX).
   
6. The Ex / Balance Date (the Corporate Action Ex Date) and the Corporate Action Date (Transaction Date) will be selected. Simple Fund 360 will create a purchase transaction in the Transaction List.
   
   
7. The Share Purchase Plan Price is the price of each share.
   
   
8. Input the Units to Purchase under the plan and the Total Purchase Amount will be calculated as the price of each share multiplied by the number of units purchased.
   
   
9. The minimum and maximum entitlement to shares under the purchase plan for the fund will be displayed.
   
   
10. The minimum and maximum participation amount (total purchase amount) under the purchase plan for the fund will be displayed.
    
    
    
11. There is an option to enter in a refund or donation excess, this can be accessed by selecting 
    Then enter the values in
    
    
12. Select Process Corporate Action once all information has been input.
    
    

13. The purchase plan will be posted to the ledger. The action will post the following:
    
    DR: 77600/INVESTCODE (Increase number of units and cost base of units purchased)
    CR: 94910 (Investment Movement Data Clearing Account)
    
    
    
    Account 94910 is a suspense account. The next step is to match this transaction with the associated bank entry. If the transaction has not been automatically matched, manually post a bank entry in the Transaction List. The bank entry posted will be:
    
    DR: 94910
    CR:60400/BANKCODE

How to Delete

If you are required to change a corporate action, you can delete and re-process the action from the Corporate Action screen.

From the Main Toolbar, go to Investments.
Select Corporate actions from the list.

Alternatively, you can access the Corporate Actions screen from the Transaction List:

Locate the corporate action to delete. Select the check box located next to the transaction and Delete.