To prevent the over and underselling of instruments there is a setting on the product called: “Maximum amount sell as a % of market value of instrument”. If this is set to e.g 95%, this setting prevents you from doing more than 95% sell in Amount and will force you to sell units.

If this is set to 100% OR the Instrument deals in Amount only then an over or undersell can occur. Or if the market move more than the remainder % of the “Maximum amount sell as a % of market value of instrument” e.g this is set to 95% and the market moves more than 5%.

The system will do an automatic adjustment on the Withdrawal/Switch based on the price of the confirmed bulk instruction. This adjustment is done through a unit and cash exchange between the Investor account and the Working portfolio of the administrator.

E.g. You load an instruction to withdraw 100% of the instrument on the investor account (1000 units) at the last available price of R1.50. The instruments deals in amount only so you instruct the fund manager to sell R1500. The fund manager sells R1500 on your bulk account and when you confirm the sell you create a new price at R1.25. In other words the market decline and it implies you need to deduct a 1200 units @ R1.25 = R1500 received from fund manager. The client only has 1000 units. In reality the client’s investment is only worth R1250 (1000 * R1.25) and he should be paid R1250 for his 100% withdrawal.

The system does the following automatically on confirmation of the bulk instruction.

It deducts 1200 units from the investor’s account and does an “exchange” of 200 units from the working portfolio to the investors account. For this 200 units the system takes R250 from the investors cash account (200 units * R1.25)

The unit account is now 1000 – 1200 + 200 = 0 units. the cash account is now R1500 – R250 = R1250. The system creates a payment for R1250 and pays the client making the cash account R0.

In short the system exchanges 200 units for R250 cash and pays the client what his units where sold for.

If the price of the bulk sell was R1.75 (instead of R1.25), the opposite happens to the above and there are units that remain on the investor account although he wanted to sell all the units. IF the “Amount remainder threshold for 100% under sell” setting under System -> Product -> select product -> “Amount remainder threshold for 100% under sell” is SMALLER than the value of the remaining units on the investor account the unit are exchanged for cash and the investor is paid MORE than originally estimated.

In other word should the value if the units be more than this setting, the units will be left on the investor account and one would need to do another withdrawal.