Data overrides can be used as a temporary fix to ensure a high quality of input data before the positions file is amended permanently. However, data overrides are very powerful and must be managed carefully.
Using overrides as a permanent solution can result in an excess of overrides which makes internal audits difficult as users can easily lose track of them. Additionally, having too many overrides in place can end up altering the input file so much that it is hard to recognise. This article lists methods and best practices to mitigate this.
Best Practices for Override Management
1. Creating an Expiry Date for each override ensures that the overrides are used as a temporary measure. And should the data issue not have been resolved, the user will be prompted to investigate when the expiry date is exceeded.
2. Filling in the Notes section of overrides is highly useful because it allows you to track your audit trail as well as affected assets/instruments. The reason for setting up the override should always be entered in the Notes section. Furthermore, filling in this section will allow you to filter overrides on the main override page.
3. Using Last NAV Date shows the latest NAV date when the override was applied and can also be used to keep track of overrides and prevent them from piling up. Filtering by Last NAV Date is also possible and makes it easy to get a quick overview of which override should potentially be deleted as they might not have been used for a period of time.
4. Monthly Reviews of all your overrides is highly recommended can minimize the chances accumulating them unnecessarily. Point 1, 2 and 3 can be used as guideline for actions points during the review.
Reducing Data Overrides can be achieved through a variety of ways and should help you in keeping track of the numerous overrides on your system.
Setting up overrides cleverly can reduce the number of overrides needed. The creator of the override should think about at which level in the position file the override should apply.
The "Condition property name" is important in this respect. The property TotalSharesOutstanding will be identical across all share classes held in a specific issuer. The Condition should for this reason be IssuerId/Issuer and not ISIN/InstrumentId.
In short, applying one override at the Issuer level can be used instead of applying the same override to multiple share classes of the same issuer, using the InstrumentId match criteria.
If you have any further questions, please contact the FundApps support team.