setr.013 — Switch Order

The arbitrage order between two investment funds: redeem one + subscribe to another, in a single netted transaction. Building block of the fund switch post-trade flow — the asset allocator's preferred operation to rebalance a portfolio without triggering an intermediate taxable gain (jurisdiction dependent).

Purpose and place in the flow

setr.013 instructs the transfer agent to arbitrate between two investment funds: the red leg redeems units of a source fund, and the subscription leg acquires units of a target fund. The two operations are netted — cash from the redemption directly feeds the subscription, without transiting through the investor's cash account.

Use cases: rebalancing an asset allocation (equity to bond), share-class change (retail to institutional), intra-umbrella restructure after mandate change. Flow context: the investor sends setr.013 before the day's NAV cut-off; the TA executes both legs at the same NAV; confirmation via setr.014 with effective NAVs. Cash settlement is often immediate (T+0) intra-umbrella, otherwise T+2 standard UCITS.

XML structure

setr.013 is wrapped in <Document> then the root <SwtchOrdr>. Structure:

• MsgId — Unique switch message identifier + CreDtTm.
• MltplOrdrDtls — Main block: reference, investor, legs, dates.
• SwtchExctnDtls — Switch execution details.
• RedLegDtls (Redemption Leg Details) — Red leg: source ISIN, quantity in units or cash.
• SbcptLegDtls (Subscription Leg Details) — Subscription leg: target ISIN, quantity in units or cash.

Key fields

• MsgId/Id — Unique switch identifier (max 35 chars).
• MltplOrdrDtls/MstrRef — Master order reference on the investor side.
• MltplOrdrDtls/Invstr — Ultimate investor identification.
• RedLegDtls/FinInstrmDtls/Id/ISIN — Source fund ISIN.
• RedLegDtls/UnitsNb/Unit — Quantity in units to redeem (alternative GrssAmt in cash).
• SbcptLegDtls/FinInstrmDtls/Id/ISIN — Target fund ISIN.
• SbcptLegDtls/GrssAmt — Gross amount to invest (alternative UnitsNb).
• MltplOrdrDtls/CshSttlmDt — Cash settlement date (T+0 intra-umbrella, T+2 standard).

XML example

ACME SARL switch order on 16 May 2026: redeem 100 units of Amundi Funds Global Equity (ISIN FR0010315770), subscribe for EUR 12,500 of Amundi Funds Euro Bonds (ISIN FR0010315788), equity → bond rebalance, settlement T+2:

<?xml version="1.0" encoding="UTF-8"?>
<Document xmlns="urn:iso:std:iso:20022:tech:xsd:setr.013.001.04">
  <SwtchOrdr>
    <MsgId>
      <Id>ACME-SWITCH-20260516-001</Id>
      <CreDtTm>2026-05-16T09:30:00+02:00</CreDtTm>
    </MsgId>
    <MltplOrdrDtls>
      <MstrRef>ACME-SWITCH-2026-187</MstrRef>
      <OrdrRef>ACME-SWITCH-2026-187</OrdrRef>
      <Invstr>
        <Pty>
          <Pty>
            <PrsnNm>ACME SARL</PrsnNm>
          </Pty>
        </Pty>
      </Invstr>
      <SwtchExctnDtls>
        <RedLegDtls>
          <FinInstrmDtls>
            <Id>
              <ISIN>FR0010315770</ISIN>
            </Id>
            <Nm>Amundi Funds Global Equity</Nm>
          </FinInstrmDtls>
          <UnitsNb>
            <Unit>100.0000</Unit>
          </UnitsNb>
        </RedLegDtls>
        <SbcptLegDtls>
          <FinInstrmDtls>
            <Id>
              <ISIN>FR0010315788</ISIN>
            </Id>
            <Nm>Amundi Funds Euro Bonds</Nm>
          </FinInstrmDtls>
          <GrssAmt Ccy="EUR">12500.00</GrssAmt>
        </SbcptLegDtls>
      </SwtchExctnDtls>
      <CshSttlmDt>2026-05-19</CshSttlmDt>
    </MltplOrdrDtls>
  </SwtchOrdr>
</Document>

Versions

Common pitfalls

• RedLeg vs SbcptLeg mismatch — if the red leg is in units (100) and the subscription leg in cash (EUR 12,500), there should be a units × NAV ≈ cash consistency. Otherwise the residual cash transits through the investor's account.
• Cross-TA or cross-umbrella — a switch between two funds with different TAs cannot be netted: plan a separate redemption order + subscription order.
• Different NAV cut-offs — if source and target funds have different cut-offs, the switch executes only at the latest cut-off. Check each fund calendar.
• Misunderstood tax angle — an intra-umbrella switch is not automatically tax-exempt. Depends on the investor's jurisdiction (beyond the fund's jurisdiction). Consult a tax adviser.
• Different currencies — a switch between EUR equity and USD bond implies an implicit FX leg. SwtchExctnDtls does not directly carry the FX rate; the TA applies the day's rate.
• Forgotten switch fees — some umbrellas apply a switch fee (1-2% of the amount). Check the prospectus before sending.

Related messages

• setr.001 — Subscription Order (subscription leg standalone).
• setr.010 — Redemption Order (red leg standalone).
• setr.014 — Switch Order Confirmation (response).
• setr.015 — Switch Order Cancellation Request.
• reda.001 — Price Report (source / target NAV cut-off).