MMF Investment Policy Management

Transcription

1 MMF Investment Policy Management Citibank Online Investments Transaction Services

2 MMF Investment Policy Management Table of Contents Table of Contents Money Market Funds Investment Policy Management...2 First-Time Setup of MMF Investment Policy Limits... 2 Modify MMF Investment Policy Limits... 5 Setting Up MMF Investment Policy Limits Scenarios... 9 Maker Checker Functionality for MMF Investment Policy Limits Setup) Alert Functionality...16 Additional Purchases: Sweeps, Future Dated, Bulk Upload and Dividend Recapitalization...17 Scheduled Sweep Purchase Future Dated Purchase Bulk Upload Purchase Dividend Recapitalization Override Setup, Alerts and Maker Checker User Roles...13 MMF Investment Policy Report...18 Override Features Trade Override Approval

3 MMF Investment Policy Management Money Market Funds Investment Policy Management Money Market Funds Investment Policy Management This section describes how to use the Investment Policy Management functionality for Money Market Funds (MMF) investments through Citibank Online Investments (OLI). The MMF Investment Policy functionality allows you to set up and modify Investment Policy rules for fund amount limits and the percentage of a fund that an investment makes of the Assets Under Management (AUM). This eliminates the need to manually monitor these controls once they are determined and set for improved risk control. The functionality also enables you to track your Investment Polices and to receive alerts if Investment Policy limits are breached during trading. First-Time Setup of MMF Investment Policy Limits The processes in the How to Trade in an MMF guide must be completed prior to setting Investment Policy limits. To set up the first Investment Policy limits: 1. Sign onto Citibank OLI and click the Administration on the main menu. 2. Click Investment Policy Management on the Administration drop-down menu. The Investment Policy Management screen appears. From this screen you can either set up a New Investment Policy (if one does not currently exist) or Modify Investment Policy. Money Market Funds will automatically appear in the Product Category field. 3. From the Client drop-down, select the client or subsidiary for which you wish to modify the Investment Policy. You may choose only clients or subsidiaries to which you have access. 4. Enter a policy name in the Investment Policy Name field. You may enter a name possibly relating to a company-specific regulation or the date on which the policy was drafted. 2

4 MMF Investment Policy Management Money Market Funds Investment Policy Management 5. Select the funds to which limits are applied: The fund listing will include all funds to which you are entitled; it is not restricted to funds with which you have an open account. Apply to All Products: Click the checkbox next to the Apply to All Products field at the top of the list of funds in order to apply a limit to all of the funds and enter a value in the uppermost box in the list under Amount Limit of Fund and/or % Limit of Fund AUM (see also the next step). Recommendation: Use this function when Creating an Investment Policy and Modifying an Investment Policy at the individual fund level. After checking Apply to All Products, you may uncheck the boxes next to funds for which you do not wish to apply these limits. You cannot simultaneously set different limits for different funds when the Apply to All Products is used. You must save the policy and then modify the policy on an individual fund basis or select the box to the left of the fund to which you would like to apply Investment Policy Limits. 6. Select your Investment Policy Limits: In the Amount Limit of Fund* field, enter an amount for the limit of the fund. The amount that you enter will correlate to the currency of the fund. In the % Limit of Fund AUM* field, enter the maximum percentage that you will allow your invested funds to be as a portion of the AUM of the fund. If an AUM fund changes, an notification will be sent if the MMF Investment Policy is in violation as a result of the change. Please refer to Override Setup, Alerts and Maker Checker User Roles and Alert Functionality for more information. *If both the Amount Limit and Percentage Limit fields are populated, the system will consider the lesser of the two as the limit for the fund. Please refer to Setting Up MMF Investment Policy Limits Scenarios for additional information and examples. 7. When you have completed your entries, click Save at the bottom of the screen. A Saved Successfully message will appear on the screen below the Save, Reset and View Changes buttons. The current limits just set will now be listed in the Current Limit columns to reflect the new set of values. 3

5 MMF Investment Policy Management Money Market Funds Investment Policy Management The system could also provide one of the following decision points before allowing you to continue: If you are setting up policy limits that are less than the current outstanding balance of the fund, an informational message will appear stating The outstanding balance is already more than the Limit being set for product(s). You may click OK to continue. If you do not check the box next to Apply to All Products or a box next to a specific fund, the following error message will appear when you try to save. 8. Click the Verify Investment Policy Limit button to test if the limits that you have entered (i.e., set or modified) are compliant with the current investments. NOTE: Clicking the Verify Investment Policy Limit button allows you to reference the modifications against your current investments; it does not save your changes. The results of the verification will be displayed with possible statuses as follows, in line with the list of funds: 4

6 MMF Investment Policy Management Money Market Funds Investment Policy Management 9. Click View Changes to review a history of the changes that have been made to the Investment Policy including: View Investment Policy via the icon to the left of status, displaying an expandable line that shows you the changes made to the policy for that modification. Status: May appear as: Pending: If Maker Checker functionality is enabled, you may see Pending if approval has not yet been granted. Revoked: If Maker Checker functionality is enabled, you may see Revoked if a Checker has denied the change. Approved: If Maker Checker functionality is not enabled, the status will show Approved upon saving the changes. Investment Policy Name Nature of Change Changes Done At Changes Done By Approved At Approved By 10. To return to the Investment Policy Management screen, click Close at the bottom of the pop-up window. Modify MMF Investment Policy Limits The processes in the How to Open a Money Market Fund Account and How to Invest in a Money Market Fund guides must be completed prior to setting Investment Policy limits. To set up the first Investment Policy limits: 1. Sign onto Citibank OLI and click the Administration on the main menu. 2. Click Investment Policy Management on the Administration drop-down menu. The Investment Policy Management screen appears. From this screen you can either set up a New Investment Policy (if one does not currently exist) or Modify Investment Policy. Money Market Funds will automatically appear in the Product Category field. 5

7 MMF Investment Policy Management Money Market Funds Investment Policy Management 3. From the Client drop-down, select the client or subsidiary for which you wish to modify the Investment Policy. You may choose only clients or subsidiaries to which you have access. 4. Enter a new or modify the existing policy name in the Investment Policy Name field. You may enter a name possibly relating to a company-specific regulation or the date on which the policy was drafted. 5. Select the funds to which limits are applied: The fund listing will include all funds to which you are entitled. Select the box to the left of the fund to which you would like to apply Investment Policy Limits. Apply to All Products: Click the check box next to the Apply to All Products field at the top of the list of funds in order to apply a benchmark standard to all of the funds and enter a value in the uppermost box in the list under Amount Limit of Fund and/or % Limit of Fund AUM (see also the next step). Recommendation: Use this function when limits are the same for all funds or for First-Time Setup of MMF Investment Policy Limits. After checking Apply to All Products, you may uncheck the boxes next to funds for which you do not wish to apply to all products to deselect them. You cannot simultaneously set different limits for different funds when the Apply to All Products is used. You must save the policy and then modify the policy on an individual fund basis or select the box to the left of the fund to which you would like to apply Investment Policy Limits. 6. Select your Investment Policy Limits: In the Amount Limit of Fund* field, enter an amount for the limit of the fund. The amount that you enter will correlate to the currency of the fund. In the % Limit of Fund AUM* field, enter the maximum percentage that you will allow your invested funds to be as a portion of the AUM of the fund. If a fund AUM fund changes, an notification will be sent if the MMF Investment Policy is in violation as a result of the change. Please refer to Override Setup, Alerts and Maker Checker User Roles and Alerts Functionality for more information. *If both the Amount Limit and Percentage Limit fields are populated, the system will consider the lesser of the two as the limit for the fund. Current Investment Policy Limits will be shown in the uneditable Current columns as well as in the columns for your modification. If you wish to remove an Investment Policy, enter a 0 (zero) in the Amount Limit of Fund or % Limit of Fund AUM field(s) for that particular fund. This field cannot be blank. Please refer to Setting Up MMF Investment Policy Limits Scenarios for additional information and examples. 6

8 MMF Investment Policy Management Money Market Funds Investment Policy Management 7. When you have completed your entries, click Save at the bottom of the screen. A Saved Successfully message will appear on the screen below the Save, Reset and View Changes buttons. The current limits just set will now be listed in the Current Limit columns to reflect the new set of values. The system could also provide one of the following decision points before allowing you to continue: The system will present you with a warning message stating The system will override existing limits. Do you want to proceed? If you are setting up policy limits that are less than the current outstanding balance of the fund, an informational message will appear stating The outstanding balance is already more than the Limit being set for product(s). You may click OK to continue. If you do not check the box next to Apply to All Products or a box next to a specific fund, the following error message will appear when you try to save. 7

9 MMF Investment Policy Management Money Market Funds Investment Policy Management 8. Click the Verify Investment Policy Limit button to test if the limits that you have entered (i.e., set or modified) are compliant with the current investments. NOTE: Clicking the Verify Investment Policy Limit button allows you to reference the modifications against your current investments; it does not save your changes. The results of the verification will be displayed with possible statuses as follows, in line with the list of funds: 9. To view trades executed in excess of the set Investment Policy limits, you can use the Investment Policy Report and Out of Policy Trades Report. Please refer to MMF Investment Policy Report for more details. 10. Click Reset to reset the policy screen to the last saved version. 11. Click View Changes to review a history of the changes that have been made to the Investment Policy including: View Investment Policy via the icon to the left of status, displaying an expandable line that shows you the changes made to the policy for that modification. Status: May appear as: Pending: If Maker Checker functionality is enabled, you may see Pending if approval has not yet been granted. Revoked: If Maker Checker functionality is enabled, you may see Revoked if a Checker has denied the change. Approved: If Maker Checker functionality is not enabled, the status will show Approved upon saving the changes. Investment Policy Name Nature of Change Changes Done At Changes Done By Approved At Approved By 12. To return to the Investment Policy Management screen, click Close at the bottom of the pop-up window. 8

10 MMF Investment Policy Management Money Market Funds Investment Policy Management Setting Up MMF Investment Policy Limits Scenarios The Amount Limit and AUM percentage parameters checks are calculated each day, as well as when trades are being initiated. Examples of Investment Policy Management scenarios are provided below. The Amount Limit per Fund parameter functions as outlined below. 1. Active Purchase above the limit Amount Limit per Fund set by User = $250,000 Principal Balance across all the MMF Active and Sweep Accounts = $125,000 Purchase Trade Amount = $200,000 In this example the Purchase Trade Amount will bring the Principal Balance to $325,000, which exceeds the Amount Limit set and is required to go through the Override process. (Please refer to Override Features for more information.) 2. Active Purchase within the limit Amount Limit per Fund set by User = $250,000 Principal Balance across all the MMF Active and Sweep Accounts = $125,000 Purchase Trade Amount = $50,000 In this example the Purchase Trade Amount will bring the Principal Balance to $175,000, which is within the limits. 3. Sweep Purchases will be executed up to the Amount Limit set here and will not exceed the limit set for the fund. 4. Dividend Reinvestment above Limit Amount will be allowed. The AUM Percentage Limit per Fund parameter functions as outlined below. How AUM Percentage is calculated: 1. Active Purchase above the limit AUM Percentage Limit per Fund set by User = 2% AUM of Investment Fund = $10,000,000 Principal Balance across all the MMF Active and Sweep Accounts = $125,000 Purchase Trade Amount = $200,000 In this example the Purchase Trade Amount will bring the Principal Balance to $325,000 and 3.25% of the total Fund AUM, which exceeds the defined AUM Percentage Limit and is required to go through the Override process. (Please refer to Override Features for more information.) 9

11 MMF Investment Policy Management Money Market Funds Investment Policy Management 2. Active Purchase within the limit AUM Percentage Limit per Fund set by User = 2% AUM of Investment Fund = $10,000,000 Principal Balance across all the MMF Active and Sweep Accounts = $125,000 Purchase Trade Amount = $50,000 In this example the Purchase Trade Amount will bring the Principal Balance to $175,000 and 1.75% of the total Fund AUM, which is within the limits. The Amount Limit per Fund and the AUM Percentage Limit function simultaneously as outlined below. 1. Active Purchase above the limit Amount Limit per Fund set by User = $250,000 AUM Percentage Limit per Fund set by User = 3% AUM of Investment Fund = $10,000,000 Principal Balance across all the MMF Active and Sweep Accounts = $125,000 Purchase Trade Amount = $200,000 In this example the lower of the two limits set is the Amount Limit per Fund, for which the Purchase Trade Amount would total $325,000. Therefore, the Purchase Trade Amount exceeds defined limits and is required to go through the Override process. (Please refer to Override Features for more information.) 2. Active Purchase within the limit Amount Limit per Fund defined by User = $250,000 AUM Percentage Limit per Fund set by User = 2% AUM of Investment Fund = $10,000,000 Principal Balance across all the MMF Active and Sweep Accounts = $125,000 Purchase Trade Amount = $100,000 In this example the lower of the two limits set is the AUM Percentage Limit per Fund, for which the Purchase Trade Amount would total 2.25%. Therefore, the Purchase Trade Amount exceeds defined limits and is required to go through the Override process. (Please refer to Override Features for more information.) 10

12 MMF Investment Policy Management Maker Checker Functionality for MMF Investment Policy Setup Maker Checker Functionality for MMF Investment Policy Setup The Maker Checker process for Investment Policy Management in Citibank OLI requires that limits entered by one user must be approved by a different user (Checker). Once the Maker Checker process has been enabled for MMF Investment Policy Setup and an MMF Investment Policy has been implemented, Makers (or Checkers) will be able to submit changes to a policy. These changes must then be approved by a Checker (or different Checker). Approvals are also required for trades that are out of Investment Policy limits when this functionality is enabled. Please refer to the Maker Checker section in the How to Trade in an MMF guide for more information. Checkers can access Investment Policies that require approval as follows: 1. Sign onto Citibank OLI. A pop-up window, similar to the one below, notifying them that an Investment Policy Approval is required will appear. Click the Investment Policy name displayed to go to the Investment Policy Management screen; OR: Click on Pending Approval on the main menu and then click the Investment Policy tab. NOTE: All users will see the pop-up window and the Pending Approval menu option regardless of whether they have access as a Checker. 11

13 MMF Investment Policy Management Maker Checker Functionality for MMF Investment Policy Setup The Investment Policy Management screen will appear. The status of the policy will be displayed in the top left corner of the screen. 2. Choose one of the following options: View Changes to review a history of the changes that have been made to the Investment Policy. Approve to approve the Investment Policy changes. When you click Approve, a Changes Approved message will appear on the screen. Reject to reject the Investment Policy changes. When you click Reject, a Changes Rejected message will appear on the screen. 12

14 MMF Investment Policy Management Override Setup, Alerts and Maker Checker User Roles Override Setup, Alerts and Maker Checker User Roles Override setup for Investment Policy limits, alert functionality and Maker and Checker roles are described below. To set up an override for Investment Policy limits: 1. Sign onto Citibank OLI and click Administration on the main menu. 2. Click on Assign User Parameters. A screen similar to one displayed below will appear. For information on the Checker Parameters tab, please refer to the How to Invest in an MMF guide. 3. Allow Investment Policy Override column enables you to set up a specific user to allow them to trade above the Investment Policy Limits. This capability must be set for both the Maker and the Checker if Maker Checker Functionality is enabled. 4. Use the Send Alert column to set up a user to receive notification s to inform them when MMF Investment Policy limits have been exceeded. The will be sent to the address on file corresponding to that user ID. The Send Alert selection is available for selection when Allow Investment Policy Override is set to Yes. NOTE: If a violation occurs, an alert will automatically be sent. Please refer to Additional Purchases: Sweeps, Future Dated, Bulk Upload and Dividend Recapitalization for additional information. 13

15 MMF Investment Policy Management Override Setup, Alerts and Maker Checker User Roles Override Features Following the instructions in the How to Invest in an MMF guide, you may enter a purchase amount that exceeds the MMF Investment Policy Limits from the Deal Entry screen in Citibank OLI. After entering an investment amount that exceeds the MMF Investment Policy Limits and clicking Confirm Order, you may see four possible scenarios as described below. Scenario 1: If you have the capability to Override Limit and the total balance is below the MMF Investment Policy Limits, a pop-up window such as the following one will appear. From this window, you may click: Accept This Amount: This option modifies the investment amount to the amount proposed by the system which is within the MMF Investment Policy guidelines. In the example above, the investment amount would be modified to $84, Enter New Trade to return to the Deal Entry screen. Override Limit: Allows you to continue with the amount that was entered which exceeds the MMF Investment Policy Limit. The transaction would then show up in the Out of Policy Trades. (Please refer to MMF Investment Policy Report for more information.) In the example above, the investment amount would be $200, NOTE: If Alerts are enabled, all designated users will receive an alert notification that the MMF Investment Policy has been violated. (Please refer to Override Setup, Alerts and Maker Checker User Roles for more information.) You must click Confirm Order after making the appropriate selection to go to the confirmation page from which you may Place Order or Cancel Order. Scenario 2: If you do not have the capability to Override Limit and the total balance is below the MMF Investment Policy Limits, a pop-up window such as the following one will appear. 14

16 MMF Investment Policy Management Override Setup, Alerts and Maker Checker User Roles From this window, you may click: Accept This Amount: This option modifies the investment amount to the amount proposed by the system which is within the MMF Investment Policy guidelines. In the example above, the investment amount would be modified to $84, Enter New Trade Amount to return to the Deal Entry screen. You must select Confirm Order after making the appropriate selection to go to the confirmation page from which you may Place Order or Cancel Order. Scenario 3: If you have the capability to Override Limit and the total balance is above the MMF Investment Policy Limits, a pop-up window such as the following one will appear. From this window, you may click: Enter New Trade to return to the Deal Entry screen. Override Limit to continue with the amount that was entered which exceeds the MMF Investment Policy Limit. The transaction would then appear in the Out of Policy Trades. (Please see MMF Investment Policy Report for more information.) In the example above, the investment amount would be $200, NOTE: If Alerts are enabled, all designated users will receive an alert when the MMF Investment Policy has been violated. (Please refer to Override Setup, Alerts and Maker Checker User Roles for more information.) You must click Confirm Order after making the appropriate selection to proceed to the confirmation page from which you may Place Order or Cancel Order. Scenario 4: If you do not have the capability to Override Limit and the total balance is above the MMF Investment Policy Limits, a pop-up window such as the following one will appear. 15

17 MMF Investment Policy Management Override Setup, Alerts and Maker Checker User Roles From this window you may click: Enter New Trade Amount to return to the Deal Entry screen. As you do not have override capabilities, you will be unable to invest in this fund as the limit has already been exceeded. Trade Override Approval If Maker Checker Functionality is enabled and the Maker (or Checker) has the capability to enter a trade with the Override Function, the Checker (or a different Checker) is required to approve the trade. Both the Maker and Checker must have Override capabilities set. Please refer to Override Setup, Alerts and Maker Checker User Roles for more information. When a trade is approved, a pop-up message stating The Trade being approved is allowed investment policy override. Do you want to Approve the trade? appears with the OK and Cancel options. Please refer to the Maker Checker section of the How to Trade in an MMF guide for more information on the Maker Checker Process for trades. Alert Functionality An will be sent to client users in the following circumstances: 1. If a violation of the MMF Investment Policy occurs as a result of a purchase trade. The notification will be sent at the time the trade is confirmed. 2. If a violation occurs as a result of a dividend reinvestment or fund AUM change. The notification will be sent at the beginning of the business day. The will contain the following components: Sender ID: citi.onlineinvestments.alert@citi.com Subject Line: MMF Investment Policy rule breached in Citibank Online Investments Text: Please note that the trade booked for fund [Fund Name, Fund Number] breached user-defined Investment Policy rules. For details view Investment Policy Tracking Report. Do not reply to the sender ID. 16

18 MMF Investment Policy Management Additional Purchases: Sweeps, Future Date, Bulk Upload and Divided Recapitalization Additional Purchases: Sweeps, Future Dated, Bulk Upload and Dividend Recapitalization Scheduled Sweep Purchase The Max Limit set at the Sweep Rule level will still limit the amount that can be executed in a Sweep trade, up to the limit that is set for that Fund, for an individual account. The MMF Investment Policy Limit (amount limitation or percentage AUM limitation) is applicable to all accounts for a particular Fund. The MMF Investment Policy Limit applies to all holdings across all accounts for a particular Fund and aggregates all holdings in the Fund to determine the maximum available. The system will calculate the lower of the two limits: the Sweep Rule or the MMF Investment Policy. It will then calculate the maximum available based on the current balance and future dated trades. The Sweep will execute for the calculated maximum available. Therefore, the Investment Policy will not be breached by the Sweep Purchase at any point. Future Date Purchase If the MMF Investment Policy Limit is violated by an approved Future Dated transaction, an notification will be sent. The Override amount will be displayed in the Trade History Report. Please refer to Override Setup, Alerts and Maker Checker User Roles for more information on alert settings. Bulk Upload Purchase In the event of a Trade Bulk Upload, the MMF Investment Policy check will be done upon upload. If the policy is breached, the Reviewer will see an error message in the error file for corrective action. Please refer to the Bulk Upload Purchase section of the How to Trade in an MMF guide for more information. Dividend Recapitalization If the MMF Investment Policy is violated in the event of a Dividend Recapitalization purchase, the purchase will be processed and an notification will be sent. The Override amount will be displayed in the Trade History Report designated with a corresponding color code. Please refer to Override Setup, Alerts and Maker Checker User Roles for more information on alert settings. 17

19 MMF Investment Policy Management MMF Investment Policy Report MMF Investment Policy Report The MMF Investment Policy Report is available for you to review all your open accounts, balances and MMF Investment Policy Limits. To view an MMF Investment Policy Report: 1. Sign onto Citibank OLI and click Reports on the main menu. 2. Click on Investment Policy Report. 3. You have the option to modify the report content using these options: Client: You may view the Investment Policy Report for clients and subsidiaries to which you have access by selecting the appropriate client from the drop-down menu. Products: MMF will automatically appear in this field. Currency: You many choose to view all or a single currency in which you invest. Additional information available in the report: Funds: Fund listing will include all funds with which you have an open account. If you do not see a fund that you expect to see on the list, please refer to the How to Open a Money Market Fund Account guide. 1-Day Net Yield (%) Total Net Assets (MM) Current Balance Future-Dated Trade Balances Total Balances % of Fund % Limit of Fund $ Limit of Fund Maximum Available Trade View Out of Policy Trades 18

20 MMF Investment Policy Management MMF Investment Policy Report 4. You also have the following options in the upper right of the screen: Export to Excel Download to Adobe PDF Print 5. If you select the checkbox for a line item under the Trade column, you will go to the Deal Entry page in order to enter a trade. If you select Back from the Deal Entry page, you go to the Investment Request page and not back to the report. 6. Out of Policy Trades A link to View Out of Policy Trades may appear under this heading. This report stores information for trades that have taken place which override the MMF Investment Policy at the time of the trade. Click on View and a separate report. When you click the View Out of Policy Trades link, you will go to a filtered version of the Trade Inquiry report, where you will see information for the Fund that you chose to View including: Override Amount: Amount over the set MMF Investment Policy Limit for which the trade was executed. Amount of the trade, Override Amount and Investment Policy Limit will be indicated in red (in the on-screen version) as the trades were executed in excess of the policy limit at the time. This DOES NOT indicate which funds are in or out of MMF Investment Policy limits. To review the Funds in relation to the current MMF Investment Policy, please refer to the Verify Investment Policy Limit section. You also have the following options in the upper right of the screen: Export to Excel Export to PDF Print 19

21 MMF Investment Policy Management MMF Investment Policy Report For future service support, please contact the below: NA Operations Phone: Fax: EMEA Operations Phone: investment.support@citi.com Fax:

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