DFM - Bulk Share Class Conversions

Hubwise - DFM - Bulk Share Class Conversions

This process is for share class conversions instructed by a DFM, for when a DFM wishes to convert a fund in a model between two share classes without actioning a switch.  Please follow all the steps in this process and note the differences where a standard or floating model are in use.

1.    The DFM should check the Buy list to ensure that the new share class is available. If not, please complete the Asset Onboarding template - Asset Onboarding Process : Knowledge base

2.    The DFM should check with the fund manager that a conversion between the two funds is permissible. 

3.    The DFM should inform SS&C Hubwise of the funds to be converted and all affected models by raising a Freshdesk ticket

•    Full fund name of original fund

•    ISIN codes of original fund

•    Full fund name of new fund

•    ISIN codes of new fund

•    Model portfolio codes

•    Please also confirm if these are fixed or floating models

4.    A date should be agreed between the DFM and the adviser firm for the conversion to take place.  Once agreed, please confirm with SS&C Hubwise via the existing Freshdesk ticket to confirm that the resources are available to action the conversion.

5.    The DFM is responsible for communicating to the adviser that all accounts in the affected models are unable to be rebalanced during the conversion period. Accounts should not be removed from the trading suspended status during the conversion. 

6.    On the date of the conversion, SS&C Hubwise sets the impacted investor accounts to a trading suspended status.

7.    SS&C Hubwise requests the conversion with the fund manager.

8.    Once the fund manager settles the conversion, SS&C Hubwise processes the conversion on client accounts.

9.    SS&C Hubwise updates the affected models to use the converted to share class. This modifies the existing current model revision rather than creating a new model revision

10.    SS&C Hubwise removes the trading suspension from the client accounts.  If any client accounts had unsettled trades of the fund to be converted on the conversion date, these accounts are instead converted after those trades are instructed.

11.    For a DFM using a Floating Model: Post conversion, please create a new revision of the model and move the underlying investor accounts to this new revision

12.    Once all the steps have been completed, please complete a full check of all impacted model portfolios in Model Portfolio Manager. Once this is complete, please confirm via original Freshdesk ticket which will then be closed.

The conversions are not processed as a CGT event, and client's book cost of the original fund is retained. The duration of the conversion is dependent on the fund manager.