Rule Assignments to Portfolios
Rules are organised into groups via Rule Folders, the Rule Folders that are present in an environment are dictated by the client contract. Portfolios can have any number of these Rule Folders assigned to them by a client.
How to Assign Rule Groups
Assignment of rule groups may be done via the UI under rule assignments when you edit a portfolio or in the uploaded portfolio file. To do so via the UI, click into a portfolio from the Portfolios screen and select Rule Assignment from the tabs on the left side. From this page, you can assign rules using the provided boxes.
Alternatively, you can add rule folders to different portfolios using a CSV file. On the Portfolio screen, click the "Export" tab. Then, in the CSV file, update the rule folders column for each portfolio. Once done, upload the CSV file to FundApps and then the rule folders should be correctly assigned.
Once assigned, FundApps looks at each rule in the group (e.g MajorES) to determine whether it is run on the portfolio and/or the entities this portfolio aggregates into(the Aggregation Level of a rule). You can’t assign Rules Folders to an Entity itself, the Rules Folders assigned are the superset of the constituent Portfolios.
Excluding Rules from Portfolios and Aggregation
“Excluded rules” allow for clients to exclude a rule from producing a result at a specific portfolio or entity level. It is important to note that this exclusion only stops the rule from running, and thus results from being produced, at the excluded level; the exclusion will not exclude the portfolios/entities positions from being aggregated as per the rules requirement. The exclusion functionality is intended to be used for situations where a jurisdiction might require notification at portfolio/entity levels but allows for a single notification on behalf of all. Clients must ensure that they are familiar with such allowances and seek their own legal counsel as to whether they can make use of this. Excluding rules carries a risk of missed disclosure, so it is important that this functionality is not used outside of the use case intended.
To exclude across multiple aggregation levels, each aggregation level will need to have the rule excluded; Excluding from a parent entity will not exclude the rule at a subsidiary level, this must be done explicitly. Similarly excluding from all subsidiaries will not exclude the rule at the parent level.
This can be accomplished directly in FundApps or in the portfolio file. While in FundApps, simply navigate to the Portfolio and Entities page, select the desired entity or portfolio, and select "Rule Properties" on the left sidebar. Here you will see the rule assignments as well as the ability to exclude specific rules as depicted below.
To accomplish this via the portfolio file, simply add an additional column titled "ExcludedRuleCodes" and then provide a comma-separated string list specifying the rule codes you would like to be excluded for that individual portfolio or entity.
For full details on the user permissions required to make changes to the rule assignments, please see this article.
Rule Folder Definitions
Disclosure - results from Major and Takeover rules
Short Selling - results from the Short-Selling rules
Validation Disclosure - results from applying disclosure rules where data has unknown elements, e.g unknown ISIN. These rules are informational in nature and report back to clients where they have certain key unknown fields, as follows: Unknown Countries, Unknown Currency, Unknown ISIN, Unknown Issuer, Markets
Validation - results from all validation rules. These rules check for specific important consistencies in your file and in the rule check. They are:
- Verify Funds Checked - shows how many rules were checked against a portfolio/entity. If no rules are run against an appropriate entity/portfolio, then a breach is thrown, informing the client.
- Verify all expected portfolios are aggregated - validation that all portfolios have been aggregated
- Verify the Number of rules checked has not changed - validation that the number of rules ran last time checks were made has not been changed. This would change when you have approved a brand new rule.
FundApps does not do any validation for changes to a portfolio or position static data. Change identification is managed by the client. Portfolio and position details may be downloaded via CSV to run checks if the client wishes to use FundApps functionality for checks.