The behaviour of a “Closed to New Business” fund within a model

An instrument can have a status of “Closed to New Business” which implies that existing investments can continue to invest in that instrument but brand new money can’t buy into the instrument. With regards to Model Portfolios, the system behaves in the following way with regards to various incoming money instructions:

1. Debit order instructions will still buy into this fund.
2. Once-off investments, that are created after the funds are closed, don’t buy into the “closed to new business” funds, these funds are replaced with buys into settlement cash instruments.
3. If the once-off investment however is in a “submitted” state at the time of the fund being closed to new business, then that fund is still included in the buy.
4. Model rebalance instructions adhere to the “closed to new business” status so it doesn’t do any buy into the fund, even if you increase the fund allocation, it eventually starts buying into inflow cash.

Last Updated on 1 year ago by Debra Hart