Apportioning of amounts on recurring withdrawals

When selecting to work in ‘amount’ (1) on recurring withdrawals, the instruction amount field can be edited (2), and the ‘amount as percentage of holdings’ (3) will be automatically calculated and displayed in this field.

If ‘entire instruction’ is selected in the capture amount field, the table of instruments displayed will indicate the currency-amount to be withdrawn per instrument (the amounts are not editable). A tick-box indicating ‘specify amount as percentage’ (1) will be available when the ‘capture amount’ field is set to ‘for entire instruction’, selecting the ‘specify amount as percentage’ (1) option will allow the ‘amount as percentage of holdings’ field to be edited (2) and ‘instruction amount’ will now be automatically calculated.

If ‘per instrument’ is selected at the capture amount field (1) , the currency-amount per instrument can be edited (2) and will update the total ‘instrument amount’ as well as the ‘amount as percentage of holdings’ field.

Selecting ‘Sell proportionally over all available instruments’ will proportionately recalculate the amount to be sold per instrument based on the market value of the instruments at the point when the next recurring commencement date comes up.

Should the account have bought into another instrument (or done a full withdrawal from one of the instruments) since the previous recurring, the adjusted instruments will be considered in the recurring withdrawal. I.e. units will be sold proportionally over all instruments with value at that point in time. This prevents the need for the instruction to be updated, following a change in instruments in the contract.

When ‘Sell proportionally over all available instruments’ has not been selected, the user can select which instruments should be included to make up the recurring withdrawal amount.

Only the instruments marked as ‘include in withdrawal’ will be used to proportionately recalculate the amount to be sold per instrument based on the market value of the instruments at the point when the next recurring commencement date comes up.

In order to accommodate this change the following has been done:

On an instrument (Instrument card->View details) a field ‘Can be used for recurring withdrawal’ has been added and is by default selected, also when a new instrument is added to the system.

2. Existing recurring withdrawals in amount for the entire instruction has been migrated as ‘Sell proportionally over all available instruments’ as false. This provide the administrator with the option to reject an existing instruction and set ‘Sell proportionally over all available instruments’ if need be to ‘True’.

Last Updated on 1 year ago by Adrienne Dill