Preference Shares and Convertible Preference Shares

The asset class PreferredEquity exists to correctly capture the disclosure of preference shares and convertible preference shares.

The instrument property IsConvertiblePreferred relates to preference shares:

• IsConvertiblePreferred - set this to TRUE if the preferred equity has the option to be converted into ordinary shares.

If you hold any preference shares or convertible preference shares, please use the AssetClass  PreferredEquity to denote them in the positions file. If the shares convert into ordinary shares, please set IsConvertiblePreferred to TRUE and also specify the ConversionRatio.

ConversionRatio will be used only in jurisdictions where post-conversion disclosures are required. There will be other nuances that might need to be considered in certain jurisdictions, e.g. control of conversion or maturity dates (for the US and Canada). We advise you therefore to populate the properties InControlOfConversion and MaturityDate for convertible preference shares.

You will notice the following DataViews in rule expressions that reference preference shares:

• PreferredEquities - Preference shares, including convertible preference shares if a disclosure is required on a pre-conversion basis.  
• ConvertiblePreferredEquities - Preference shares with the option to convert into ordinary shares.