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.

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

- The DFM should inform Hubwise of the funds to be converted and the affected models by raising a Freshdesk ticket.

- A date should be agreed between the DFM and the IFA firms for the clients for when the conversion will take place, all accounts in the affected models are unable to rebalance during the conversion period. The DFM is responsible for communicating this to the IFAs and that accounts should not be removed from the trading suspended status during the conversion.

- Hubwise will then confirm that they will action the conversion on the chosen date.

- On the date of the conversion, Hubwise sets the affected client accounts to a trading suspended status.

- Hubwise requests the conversion with the fund manager.

- Once the fund manager settles the conversion, Hubwise processes the conversion on client accounts.

- 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.

- 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.

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 depends on how quickly the fund manager is able to process it, this is faster for fund managers that allow electronic conversions.