This part of the system documentation deals with the topic Clients and Mandates only. The topic is located on the MCM main menu Portfolios tab. It makes frequent references to other parts of the MCM main menu Portfolios tab or other parts of the full MCM documentation.

This topic includes the following sections:

The Clients and Mandates menu item provides access to client specific information that includes a client’s investment mandate(s) as well as portfolio(s). MCM presents the information by way of three distinct user forms and they are the Client Details, Client Mandate and Portfolio Details forms.

MCM stores all information of an investment mandate in the above three forms.

When pressing the menu item button Clients and Mandates the Client Details form is shown. From this from it is possible to zoom into a specific mandate and from there to a specific Portfolio. This chapter describes the Client Details and Client Mandate forms. The Portfolio Details form is discussed in the separate chapter.

Each form includes data that is not shown in any of the others and the following provides an overview of how MCM stores the underlying data.

The following is an illustration into the data storing logic that MCM applies when creating new clients/mandates/portfolios.

• One Client can have many (unlimited) Mandates
• One Mandate can have many (unlimited) Portfolios
• Investment Guidelines and Authorized Investment Limits are allocated to Portfolios
• One Portfolio can have many (unlimited) Investment Guidelines and Limits.

The above logic is important when creating new mandates and/or portfolios. The following are some of the issues that may arise when going through this process:

There are two ways to access the lowest level Portfolio Details form. The first is discussed in this chapter and it is by way of going through the client and the associated mandate and finally the mandate’s portfolio(s). The second way is discussed in the chapter Portfolio Register.

When opened, the Client Details form displays the details of the first client with active portfolios. The first client refers to the first record created in MCM. The form is shown below and it consists of several pages that are explained further below.

The first page of the Client Details form is the The Mandates page. This page provides an overview of all investment mandates for the selected client and the table grid contains 3 columns, the investment mandate’s effective date, any reference and the portfolios.

Selecting a record in the table grid and then double clicking the record in the first two columns will open the Mandate Details. Double clicking the record in the last column will open the Portfolio Details form if the mandate consists of 1 portfolio only. If there are several portfolios, the Mandate Details form will open. The above shown form page includes the following buttons:

In addition to the page buttons discussed above, the Client Details form also has the following two buttons:

The Client Details page is the second page of the Client Details form. The form page is shown below and it contains address and contact details only.

To edit the client details, press the button Edit Client. This will hide all pages of the above shown form with the exception of the Client Details page. The form in editing mode is shown below.

Press the button Save to save any changes alternatively press the button Cancel to discard any changes. Both buttons will show all form pages again.

The Funds page as shown below, contains a Client's underlying Funds (also known as Assets). Typically an investment mandate mentions the underlying funds of the mandate and MCM requires that one or more funds be allocated to mandates.

To add a new underlying fund for the client, press the button Add new fund…. The form that will appear is the same as the one when pressing the button Modify Fund…, the form is shown below.

To modify an existing fund, double-click a record in the list box or press the button Modify Fund…. The following form will appear.

Select the fund type (Trust Fund, Statutory Fund, Pooled Fund or Discrete Fund), enter any reference and provide a description. When complete, press the button Save.

Deleting a Fund is possible only if the fund is not allocated to a mandate or portfolio. MCM requires confirmation and will provide a message if the fund is allocated. To delete a fund press the button Delete Fund….

The Related Parties page is shown below and it is designed to list a client’s related parties. The listing of related client parties is only required if a corresponding investment guideline prohibits the trading in securities related to the client. If no such investment guideline exists in the investment mandate, no related parties need be listed here.

To add new related party, click the button Add New… and the following form will appear.

Select the related party and press the button Use Selected.

If the related party does not exist in the list shown on the left, click the button New. The small form shown below will appear. Enter the details and press Save, this will update the list shown on the left.

To modify the details of a related party, on the Related Parties page double-click the related party record or press the button Modify. The above shown small form will appear.

The FE Members page refers to Futures Exchange Members and the page is shown below. Similar to the related parties, if the investment mandate spells out the authorised FE Members of the Client and if a corresponding investment guideline is present in the mandate than the FE Members should be listed here.

To add a new FE Member, press the button Add New… and the following form will appear.

Select the FE Member and press the button Use Selected.

If the FE Member does not exist in the list shown on the left, click the button New. The small form shown below will appear. Enter the details and press Save, this will update the list shown on the left.

To modify the details of a FE Member, on the FE Member page double-click the FE Member record or press the button Modify. The above shown small form will appear.

The Counterparties page refers to a client’s authorised Counterparties and the page is shown below. Similar to the related parties, if the investment mandate spells out the authorised Counterparties of the Client and if a corresponding investment guideline is present in the mandate than the Counterparties should be listed here.

To add new Counterparties, press the button Add New… and a form similar to the Related Parties/FE Members will appear.

In addition, the Delete and Modify buttons behave in the same manner as described in the Related Parties/FE Members section.

To add a new client, press the button Add Client on the Client Details form. The Client set-up Wizard as shown below will appear. The set-up wizard provides a step-by-step guidance through the process of setting up a new client.

The first screen of the Client set-up Wizard simply requires the client name and at least one of the underlying funds/assets of the client. Enter the fund/asset details and press the button Add to list below. This information can usually be gained from the investment mandate. To continue, press the Next >> button. The following page will appear.

The above Client set-up Wizard page refers to Related Parties, FE Members and Counterparties. All three must be entered on the Client Details form after the completion of the set-up process, if applicable.

To continue, simply press the Next >> button.

The below example of adding a new mandate follows from the above discussed Adding a new Client. The example is also applicable to when simply adding a new mandate to an existing client.

In the above screen, most items can be selected from drop-down menus and list boxes. Only the effective data and mandate reference requires typing. To continue, press Next >>.

The above shown screen is designed to select the Asset Classes applicable for the new mandate. The left list box displays the available asset classes and the right list box shows the asset classes for this new mandate.

Select a record in the left list box and press the large arrow button to include the asset class in the right list box. To remove an asset class from the right list box, select the record and press the button Delete Asset Class.

To continue, press the button Next >>.

The page that follows describes the Individual Managers and Signatories. Both items are optional and can be added to the mandate later on the Client Mandate form.

To continue, press the button Next >>.

The next page will be the start of the portfolio details that will be set-up as part of the Adding a new Mandate.

The below example of adding a new portfolio follows from the above discussed Adding a new Mandate. The example is also applicable to when simply adding a new portfolio to an existing mandate.

To create the basic portfolio details, MCM requires a custodian code, the asset class/strategy the portfolios is based on and the underlying client fund and a benchmark.

If the portfolio is to mirror an existing MCM registered portfolio, tick the option check box.

To continue, press the button Next >>.

The next page of the Adding a new Portfolio chapter is shown below and it is only applicable if the new portfolio is mirrored on an existing MCM registered portfolio.

When selecting the existing portfolio that is used to mirror the new portfolio, MCM retrieves the authorised investment limit tables that may be applicable to the existing portfolio. If the existing portfolio does have a number of different authorised investment limit tables then this is represented by way of the check-boxes.

To continue, press the button Next >>.

The next page of the Adding a new Portfolio form is simply a summary of what was selected and is designed for the user to proof read what MCM is about to create.

To modify certain selection, press the button << Back

To continue and complete the process press the button Finish.

The final page of the Adding a new Portfolio form is shown below.

Press OK for MCM to exist the Wizard.

The Client Mandate form is shown below and when opened the The Portfolios page is shown first. The Client Mandate form displays the details of one investment mandate only. As previously mentioned, an investment mandate can contain an unlimited number of portfolios.

The The Portfolios page contains a table grid that lists the individual portfolios covered by the investment mandate and in addition the page has several buttons and a Show.. option section. Each is explained below.

The page buttons

The Show options

The default Show… option is to present only active portfolios in the table grid. To view inactive portfolios for the investment mandate (if applicable), click the option Inactive Portfolios.

The form buttons

The Details page of the Client Mandate form is shown below and it contains the effective date of the mandate, the type of mandate, any reference and a check box indicating if the manager is authorised to exercise proxy votes. In addition to this, a text box field for notes is available and a link to the original investment mandate file can be utilised (if applicable).

To edit the mandate details, click the button Edit Mandate. This will hide all pages with the exception of the Details page. The form is shown in editing mode below.

The The Funds page of the Client Mandate form is designed to capture the underlying funds/assets of the client on which the investment mandate is based upon.

This means that a client may have numerous funds/assets but a particular investment mandate might be based on only 1 or 2 of a client’s funds.

Adding a new Fund to an Investment Mandate

Adding a new fund to an investment mandate may be required if the investment mandate was altered and now includes for example an asset class that previously was not covered by the mandate.

This could mean that additional portfolios are added to the investment mandate and that these portfolios are applicable to the new asset class.

The client may have a special underlying fund vehicle that contains the assets.

In this case, the fund/asset must be first added to the Client Details form and then referenced here in the investment mandate.

To add/reference a new fund to the above shown Client Mandate form, press the button Add Fund…. The following form will appear.

The Select Fund for Mandate screen allows the selection of multiple records. Press the button Use Selected to allocate the selected records to the above shown Client Mandate form.

To delete a fund from the Client Mandate form, select the record and press the button Delete Fund.

NOTE if the fund is allocated to a portfolio, the system will not delete the fund.

The Asset Classes/Managers page of the Client Mandate form is designed to record 2 items. The first item is the Asset Classes covered by the investment mandate.

Subsequent portfolios allocated to this mandate must be based on an asset class from this mandate. The second item Individual Managers is used by MCM to produce sign-off reports for investment guidelines that MCM cannot monitor.

The report contains the individual managers if they are recorded here on the investment mandate.

Adding a new Asset Class to the Mandate

To add one or more asset classes to the investment mandate, click the button Add New.. located in the left-hand section of the above shown form. The following screen will appear.

The form allows the selection of multiple records. Select the required asset classes and then press the button Use Selected to allocate the record to the above shown Client Mandate.

The above shown Select an Asset Class form allows also to add a new asset class or modify the description of an existing asset class. This can also be done on the proper Asset Classes and Strategies form that is located on the main menu page Registers. Adding and modifying asset classes is discussed in the manual Registers under the chapter Asset Classes and Strategies.

To delete an asset class, press the button Delete… located in the left-hand section of the above shown Client Mandate form. NOTE the system will not delete the asset class if it is allocated to a portfolio of the investment mandate.

Adding individual managers

To add one or more individual managers to the investment mandate, click the button Add New.. located in the right-hand section of the above shown form. The following screen will appear.

To allocate an individual manager to the investment mandate, select a record from the Registered ‘Individual Managers and Dealers’ form shown on the left and then press the button Allocate to Mandate.

Adding a new individual manager to the overall manager is discussed in the manual Registers in the chapter Investment / Fund Managers. To view this chapter, click here.

The Signatories page of the Client Mandate form is shown below. The facility allows allocating individuals nominated in the investment mandate to be signatories to the mandate. The available signatories within MCM originate from the MCM Users. For more information on MCM Users refer to the manual System in the chapter Users and Business Groups.

To view the signatories belonging to a particular setting, place a tick in the appropriate check box in the Show option section. To delete a signatory, select the record to be deleted and press the button Delete. To add one or more signatories, press the button Add New. This will open the available signatories within MCM as shown below.

Select from the Registered ‘Signatories to Mandates’ screen, shown on the left, one or more records and press the button Use Selection.

This will update the Signatories page on the Client Mandate form and close the screen on the left.

Portfolios are allocated to mandates and mandates in turn are allocated to clients. This chapter explains how to move an existing portfolio from one mandate to another.

The operation is only possible from the Client Mandate form, which means that the client and applicable mandate must be known. To get to the Client Mandate form requires going first via the Client Details form.

On the Client Mandate form select the page The Portfolios and in the table grid select the portfolio that should be changed to a different mandate.

Click the button Change… and MCM will show a confirmation message box as shown below.

To cancel at this stage, press the button Cancel. To continue and allocate the selected portfolio to a different mandate, press the button OK and the following screen will appear.

The only selection required is from the Client drop-down menu. The drop-down menu contains all MCM registered clients and their respective mandates. Once a new mandate is selected the remaining fields are filled automatically.

Press the button OK for MCM to allocate the portfolio to the selected new mandate.