--- title: "Preparing a fund for launch" slug: "preparing-a-fund-for-launch" updated: 2026-02-10T10:49:31Z published: 2026-02-10T10:49:31Z canonical: "support.lusid.com/preparing-a-fund-for-launch" --- > ## Documentation Index > Fetch the complete documentation index at: https://support.lusid.com/llms.txt > Use this file to discover all available pages before exploring further. # Preparing a fund for launch Let's imagine we are preparing a fund with two share classes for launch. For the purposes of this tutorial we assume we have performed [steps 1 and 2 in this checklist](/v1/docs/setting-up-a-fund-a-checklist) to set up an underlying IBOR with a single portfolio and created a suitable chart of accounts. | Fund Z | | --- | | Currency (same as underlying portfolio) | GBP | | Launch date | 2024-01-01 | | | **Share class A** | **Share class B** | | Launch price | 1 | 1 | | Currency | GBP | USD | | Initial funding | £15000 | $5000 | | Identifying short code | `ShareClassA` | `ShareClassB` | ## Mastering share classes as instruments in the LUSID Security Master We can call the [UpsertInstruments](https://www.lusid.com/docs/api/lusid/endpoints/instruments/UpsertInstruments/) API to master two instruments of type `FundShareClass` with different currencies and other characteristics in a custom `MyShareClassInstrumentScope`. [More on mastering share classes](/v1/docs/how-do-i-create-a-fund-share-class-as-an-instrument). ```json curl -X POST 'https://.lusid.com/api/api/instruments?scope=MyShareClassInstrumentScope'  -H 'Content-Type: application/json-patch+json'  -H 'Authorization: Bearer '  -d '{  "ephemeral-id-1": {    "name": "Share class A",    "identifiers": {      "ClientInternal": {"value": "ShareClassA-Id"}    },    "definition": {      "instrumentType": "FundShareClass",      "shortCode": "ShareClassA",      "fundShareClassType": "Income",      "distributionPaymentType": "Net",      "domCcy": "GBP",      "hedging": "None"    }  },  "ephemeral-id-2": {    "name": "Share class B",    "identifiers": {      "ClientInternal": {"value": "ShareClassB-Id"}    },    "definition": {      "instrumentType": "FundShareClass",      "shortCode": "ShareClassB",      "fundShareClassType": "Accumulation",      "distributionPaymentType": "Gross",      "domCcy": "USD",      "hedging": "ApplyHedging"    }  }, }' ``` Note that LUSID automatically generates a [LUID](/v1/docs/what-is-a-lusid-instrument-id-or-luid) for each mastered share class instrument that uniquely identifies it, for example: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/image(91).png) ## Setting up unitisation rules in the pricing template LUSID calculates fund GAV as follows: `GAV = Dealing + PnL` …where dealing is subscriptions into—and redemptions out of—the fund. The purpose of the pricing template is to identify which general ledger accounts store [journal entry lines](/v1/docs/how-does-lusid-generate-journal-entry-lines-from-economic-activity) representing dealing and PnL amounts. Imagine we have the following [chart of accounts](/v1/docs/how-do-i-create-a-chart-of-accounts): ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/image(89).png) We can call the [CreateFundConfiguration](https://www.lusid.com/docs/api/lusid/endpoints/fund-configuration-entities/CreateFundConfiguration/) API to create a template with a scope of `MyFunds` and a code of `Standard` identifying the relevant accounts. [More on creating pricing templates](/v1/docs/how-do-i-create-a-fund-configuration-module). ```json curl -X POST 'https://.lusid.com/api/api/fundconfigurations/MyFunds'  -H 'Content-Type: application/json-patch+json'  -H 'Authorization: Bearer '  -d '{  "code": "Standard",  "displayName": "Standard pricing template",  "dealingFilters": [    {      "filterId": "SUBS",      "filter": "generalLedgerAccountCode eq '3-Subscriptions'"    },    {      "filterId": "REDS",      "filter": "generalLedgerAccountCode eq '4-Redemptions'"    }  ],  "pnlFilters": [    {      "filterId": "PnL",      "filter": "generalLedgerAccountCode eq '5-PnL'"    }  ],  "backOutFilters": [] }' ``` ## Creating the fund We can now call the [CreateFund](https://www.lusid.com/docs/api/lusid/endpoints/funds/CreateFundV2) API to create a fund with a scope of `MyFunds` and a code of `FundZ` that sets up a primary NAV type and references the underlying IBOR, the pricing template, and the two share class instruments with their launch prices in the custom instrument scope. [More on creating funds](/v1/docs/how-do-i-create-a-fund). ```json curl -X POST 'https://.lusid.com/api/api/funds/MyFunds'  -H 'Content-Type: application/json-patch+json'  -H 'Authorization: Bearer '  -d '{  "code": "FundZ",  "displayName": "Growth Fund",  "description": "Fund for growth",  "baseCurrency": "GBP",  "portfolioIds": [    {      "scope": "Scope1",      "code": "Portfolio1",      "portfolioEntityType": "SinglePortfolio"    }  ],  "fundConfigurationId": {    "scope": "MyFunds",    "code": "Standard"  },  "shareClassInstrumentScopes": [    "MyShareClassInstrumentScope",  ],  "shareClassInstruments": [    {      "instrumentIdentifiers": {        "Instrument/default/LusidInstrumentId": "LUID_00003E1X",        "launchPrice": 1,      }    },    {      "instrumentIdentifiers": {        "Instrument/default/LusidInstrumentId": "LUID_00003E1Y",        "launchPrice": 1,      }    }  ],  "type": "Standalone",  "inceptionDate": "2024-01-01T00:00:00Z",  "decimalPlaces": 6,  "primaryNavType": {    "code": "Daily",    "displayName": "Daily",    "description": "This is the primary NAV type",    "chartOfAccountsId": {      "scope": "ChartOfAccountsScope",      "code": "ChartOfAccountsCode"    },    "postingModuleCodes": [      "PostingModule1"    ],    "cleardownModuleCodes": [      "CleardownModule1"    ],    "valuationRecipeId": {      "scope": "RecipeScope",      "code": "RecipeCode"    },    "holdingRecipeId": {      "scope": "RecipeScope",      "code": "RecipeCode"    },    "accountingMethod": "FirstInFirstOut",    "subHoldingKeys": ["Transaction/default/ShareClassShortCode"],    "amortisationMethod": "EffectiveYield",    "transactionTypeScope": "TransactionTypeScope",    "cashGainLossCalculationDate": "Default"  } }' ``` ## Assigning particular transactions to share classes Transactions in the underlying portfolio that only apply to a particular share class must be explicitly assigned to that share class. Typically these are: - Subscription (funds in) and redemption (funds out) transactions (manually loaded into LUSID). - Certain share class-specific fee transactions (auto-generated by LUSID). - Distribution transactions. > **Note:** Transactions recording the purchase/sale of instruments typically do not belong to share classes but rather to the whole fund. There are numerous ways to assign transactions to share classes and the following is just a recommendation. ### Creating a property type to tag subscriptions and redemptions We can call the [CreatePropertyDefinition](https://www.lusid.com/docs/api/lusid/endpoints/property-definitions/CreatePropertyDefinition/) API to define a `Transaction/MyFundProperties/ShareClass` [custom property](/v1/docs/properties) in preparation for tagging appropriate transactions (such as subscriptions and redemptions) with the `shortCode` of the share class to which they belong: ```json curl -X POST 'https://.lusid.com/api/api/propertydefinitions"'  -H 'Authorization: Bearer '  -H 'Content-Type: application/json-patch+json'  -d '{    "domain": "Transaction",    "scope": "MyFundProperties",    "code": "ShareClass",    "displayName": "Fund share class",    "dataTypeId": {"scope": "system", "code": "string"},    "lifeTime": "Perpetual",    "constraintStyle": "Property",    "propertyDescription": "Share class to which a transaction belongs"  }' ``` ### Creating suitable transaction types for subscriptions and redemptions The most effective way to assign suitably-tagged subscription/redemption transactions to a share class is to use their respective [transaction types](/v1/docs/what-is-a-transaction-type) to map the tagging custom property to the `Transaction/default/ShareClassShortCode` [system property](/v1/docs/what-is-a-system-property). Note we only want to do this on the `Capital` [movement](/v1/docs/what-is-a-movement) and not on the `CashAccrual` movement. We can call the [SetTransactionType](https://www.lusid.com/docs/api/lusid/endpoints/transaction-configuration/SetTransactionType/) API to create suitable `Subscription` and `Redemption` transaction types in the `default` [scope and source](/v1/docs/grouping-related-transaction-types-using-scopes-and-sources), for example: | `Subscription` transaction type | `Redemption` transaction type | | --- | --- | | ```json curl -X PUT 'https://.lusid.com/api/api/ transactionconfiguration/types/default/Subscription?scope=default' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "aliases": [ { "type": "Subscription", "description": "Transaction type for subscriptions", "transactionClass": "Longer", "transactionRoles": "AllRoles", "isDefault": false } ], "movements": [ { "name": "Add cash to fund", "movementTypes": "CashAccrual", "side": "Side1", "direction": 1 }, { "name": "Assign cash to share class", "movementTypes": "Capital", "side": "Side1", "direction": 1, "mappings": [ { "propertyKey": "Transaction/default/ShareClassShortCode", "mapFrom": "Transaction/MyFundProperties/ShareClass" } ] } ] }' ``` | ```json curl -X PUT 'https://.lusid.com/api/api/ transactionconfiguration/types/default/Redemption?scope=default' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "aliases": [ { "type": "Redemption", "description": "Transaction type for redemptions", "transactionClass": "Shorter", "transactionRoles": "AllRoles", "isDefault": false } ], "movements": [ { "name": "Remove cash from fund", "movementTypes": "CashAccrual", "side": "Side1", "direction": -1 }, { "name": "De-assign cash from share class", "movementTypes": "Capital", "side": "Side1", "direction": -1, "mappings": [ { "propertyKey": "Transaction/default/ShareClassShortCode", "mapFrom": "Transaction/MyFundProperties/ShareClass" } ] } ] }' ``` | ### Registering the SHK with the underlying transaction portfolio We must register the `Transaction/default/ShareClassShortCode` system property as a [sub-holding key](/v1/docs/what-is-a-sub-holding-key-shk) (SHK) with the portfolio in the underlying IBOR in order to segregate share class-specific transactions from generic fund transactions (such as purchase and sale transactions). We can call the [PatchPortfolioDetails](https://www.lusid.com/docs/api/lusid/endpoints/transaction-portfolios/PatchPortfolioDetails/) API to patch an existing portfolio with a scope of `MyPortfolios` and code of `Equities` as follows: ```json curl -X POST 'https://.lusid.com/api/api/transactionportfolios/MyPortfolios/Equities/details' -H 'Authorization: Bearer ' -H 'Content-Type: application/json-patch+json' -d '[  {    "value": "Transaction/default/ShareClassShortCode",    "path": "/subHoldingKeys/-",    "op": "add"  } ]' ``` Note `/-` at the end of `"path": "/subHoldingKeys/-"` *appends* this SHK to the end of the list; otherwise, existing portfolio SHKs are overwritten. ## Funding the fund at the start of Day 1 We can call the [BatchUpsertTransactions](https://www.lusid.com/docs/api/lusid/endpoints/transaction-portfolios/BatchUpsertTransactions/) API to upsert two subscription transactions and tag the share class to which they belong using the `Transaction/MyFundProperties/ShareClass` custom property. The total considerations are: - £15000 for `ShareClassA`. - $5000 for `ShareClassB` at a USD/GBP trade to portfolio rate of 0.75. | Subscription transaction for `ShareClassA` | Subscription transaction for `ShareClassB` | | --- | --- | | ```json curl -X POST 'https://.lusid.com/api/api/transactionportfolios/ MyPortfolios/Equities/transactions/$batchUpsert?successMode=Partial' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "ephemeral-id-1": { "transactionId": "Txn-001", "type": "Subscription", "instrumentIdentifiers": { "Instrument/default/LusidInstrumentId": "CCY_GBP" }, "transactionDate": "2024-01-01T00:00:00.0000000+00:00", "settlementDate": "2024-01-01T00:00:00.0000000+00:00", "units": 15000, "totalConsideration": {"amount": 15000, "currency": "GBP"}, "properties": { "Transaction/MyFundProperties/ShareClass": { "key": "Transaction/MyFundProperties/ShareClass", "value": { "labelValue": "ShareClassA" } } } } }' ``` | ```json curl -X POST 'https://.lusid.com/api/api/transactionportfolios/ MyPortfolios/Equities/transactions/$batchUpsert?successMode=Partial' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "ephemeral-id-1": { "transactionId": "Txn-002", "type": "Subscription", "instrumentIdentifiers": { "Instrument/default/LusidInstrumentId": "CCY_USD" }, "transactionDate": "2024-01-01T00:00:00.0000000+00:00", "settlementDate": "2024-01-01T00:00:00.0000000+00:00", "units": 5000, "totalConsideration": {"amount": 5000, "currency": "USD"}, "properties": { "Transaction/MyFundProperties/ShareClass": { "key": "Transaction/MyFundProperties/ShareClass", "value": { "labelValue": "ShareClassB" } }, "Transaction/default/TradeToPortfolioRate": { "key": "Transaction/default/TradeToPortfolioRate", "value": { "metricValue": { "value": 0.75, "unit": "USD/GBP" } } } } } }' ``` | ## Valuing the fund at the end of Day 1 Let’s imagine there has been a small change in the USD/GBP exchange rate during the day (from 0.75 to 0.8) but no other activity. We can call the [UpsertDiaryEntryTypeValuationPoint](https://www.lusid.com/docs/api/lusid/endpoints/funds/UpsertDiaryEntryTypeValuationPoint/) API and then the [GetValuationPointData](https://www.lusid.com/docs/api/lusid/endpoints/funds/GetValuationPointData/) API to estimate the fund’s value at the end of the day. Note the response is large so it is broken down below into sections. [More on striking a NAV](/v1/docs/striking-a-nav). ### Fund valuation Note the following: - This is the first fund valuation, so the `previousValuationPointData.nav` is 0. - Fund `gav` is `previousValuationPointData.nav` plus the sum of subscriptions/redemptions *and* P&L in this period: £0 + £18750 + £250 = £19000. - Fund `nav` in this period is the same since no [fees have yet been added](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions) to the fund. ```json  "fundValuationPointData": {    "backOut": {},    "dealing": {      "SUBS": {        "value": 18750      },      "REDS": {        "value": 0      }    },    "pnL": {      "nonClassSpecificPnl": {        "PNL": {          "value": 250        }      },      "aggregatedClassPnl": {        "PNL": {          "value": 0        }      },      "totalPnl": {        "PNL": {          "value": 250        }      }    },    "gav": 19000,    "fees": {},    "nav": 19000,    "miscellaneous": {},    "previousValuationPointData": {      "nav": {        "amount": 0      }    }  } ``` ### Share class A valuation £15000 was added to this share class (whose currency is the same as the fund currency). Note the following: - `classDealingUnits` is total dealing units in this valuation period: 15000 (subscriptions) + 0 (redemptions) = 15000. - `classDealing` is the total value of these dealing units in fund currency: £15000 (subscriptions) + £0 (redemptions) = £15000. - `sharesInIssue` is `classDealingUnits` from the previous valuation period plus `classDealingUnits` in this period: 0 + 15000 = 15000. - `capitalRatio` is share class A’s `nav` from the previous valuation period plus `classDealing` in this period divided by the total of the same for all share classes in the fund: (£0 + £15000) / £18750 = 0.8 (this means the `capitalRatio` of share class B is 0.2). - `totalPnl` is total fund PnL apportioned to share class A using `capitalRatio`: £250 × 0.8 = £200. - `gav` is `classDealing` plus `totalPnl`: £15000 + £200 = £15200 (and `nav` is the same since there are no fees). - `unitPrice` is `nav` divided by `sharesInIssue`: 15200 / 15000 = 1.013333. ```json   "ShareClassA": {      "shareClassBreakdown": {        "backOut": {},        "dealing": {          "classDealing": {            "SUBS": {              "fundCurrencyAmount": 15000,              "shareClassCurrencyAmount": 15000            },            "REDS": {              "fundCurrencyAmount": 0,              "shareClassCurrencyAmount": 0            }          },          "classDealingUnits": {            "SUBS": {              "value": 15000            },            "REDS": {              "value": 0            }          }        },        "pnL": {          "apportionedNonClassSpecificPnl": {            "PNL": {              "fundCurrencyAmount": 200,              "shareClassCurrencyAmount": 200            }          },          "classPnl": {            "PNL": {              "fundCurrencyAmount": 0,              "shareClassCurrencyAmount": 0            }          },          "totalPnl": {            "PNL": {              "fundCurrencyAmount": 200,              "shareClassCurrencyAmount": 200            }          }        },        "gav": {          "fundCurrencyAmount": 15200,          "shareClassCurrencyAmount": 15200        },        "fees": {},        "nav": {          "fundCurrencyAmount": 15200,          "shareClassCurrencyAmount": 15200        },        "unitisation": {          "sharesInIssue": 15000,          "unitPrice": 1.013333,          "netDealingUnits": 15000        },        "miscellaneous": {},        "shareClassToFundFxRate": 1,        "capitalRatio": 0.8,        "previousShareClassBreakdown": {          "nav": {            "amount": {              "fundCurrencyAmount": 0,              "shareClassCurrencyAmount": 0            }          },          "shareClassToFundFxRate": 1        }      },      "shareClassDetails": {        "lusidInstrumentId": "LUID_00003E1X",        "instrumentScope": "MyShareClassInstrumentScope",        "domCurrency": "GBP",        "instrumentActive": true      }    } ``` ### Share class **B valuation** $5000 was added to this share class at a USD/GBP rate of 0.75 = £3750. Note the following: - `classDealingUnits` is total dealing units in this valuation period: 5000 (subscriptions) + 0 (redemptions) = 5000. - `classDealing` is the total value of these dealing units in fund currency: £3750 (subscriptions) + £0 (redemptions) = £3750. - `sharesInIssue` is `classDealingUnits` in the previous valuation period plus `classDealingUnits` in this period: 0 + 5000 = 5000. - `shareClassToFundFxRate` is the USD/GBP exchange rate at the valuation point: 0.8. - `capitalRatio` is share class B’s `nav` from the previous valuation period plus `classDealing` in this period divided by the total of the same for all share classes in the fund: (£0 + £3750) / £18750 = 0.2 (this means the `capitalRatio` of share class A is 0.8). - `totalPnl` is total fund PnL apportioned to share class B using `capitalRatio`: £250 × 0.2 = £50. - `gav` is `classDealing` plus `totalPnl`: £3750 + £50 = £3800 (and `nav` is the same since there are no fees). - `unitPrice` is `nav` divided by `sharesInIssue` and further divided by `shareClassToFundFxRate` to convert to share class currency: (3800 / 5000) / 0.8 = 0.95. ```json    "ShareClassB": {      "shareClassBreakdown": {        "backOut": {},        "dealing": {          "classDealing": {            "SUBS": {              "fundCurrencyAmount": 3750,            },            "REDS": {              "fundCurrencyAmount": 0,            }          },          "classDealingUnits": {            "SUBS": {              "value": 5000            },            "REDS": {              "value": 0            }          }        },        "pnL": {          "apportionedNonClassSpecificPnl": {            "PNL": {              "fundCurrencyAmount": 50,              "shareClassCurrencyAmount": 62.5            }          },          "classPnl": {            "PNL": {              "fundCurrencyAmount": 0,              "shareClassCurrencyAmount": 0            }          },          "totalPnl": {            "PNL": {              "fundCurrencyAmount": 50,              "shareClassCurrencyAmount": 62.5            }          }        },        "gav": {          "fundCurrencyAmount": 3800,          "shareClassCurrencyAmount": 4750        },        "fees": {},        "nav": {          "fundCurrencyAmount": 3800,          "shareClassCurrencyAmount": 4750        },        "unitisation": {          "sharesInIssue": 5000,          "unitPrice": 0.95,          "netDealingUnits": 5000        },        "miscellaneous": {},        "shareClassToFundFxRate": 0.8,        "capitalRatio": 0.2,        "previousShareClassBreakdown": {          "nav": {            "amount": {              "fundCurrencyAmount": 0,              "shareClassCurrencyAmount": 0            }          },          "shareClassToFundFxRate": 1        }      },      "shareClassDetails": {        "lusidInstrumentId": "LUID_00003E1Y",        "instrumentScope": "MyShareClassInstrumentScope",        "domCurrency": "USD",        "instrumentActive": true      }    } ```