Distribution Options

Distributions can be received as either units or cash from the asset manager:

See DistributionOptions for a summary of actions taken by the system for different client distribution setups

With Units reinvested we expect no cash from the asset manager and have an arrangement with him/her to automatically re-invest our “bulk” distribution.
We distribute the calculated UNITS on the Re-investment date of the distribution based on the total cents per unit declaration * the units each investment account had on the declaration date / latest available price on Re-investment date.
The bulk UNITS received is typed in and moved to the Working portfolio and nets off against the system calculated distribution of each client, to account for the difference in units allocated vs received in bulk.

On the distribution select ‘Units reinvested’

This is applicable where the asset manager pays out the full distribution in the bulk account in Cash.
We distribute the calculated CASH on the Re-investment date of the distribution based on the total cents per unit declaration * the units each investment account had on the declaration date.
The bulk CASH received is typed in and matched to the cash received in the bank account.
The cash received is moved to the Working portfolio and nets off against the system calculated cash distribution on each client account, to account for the difference in cash allocated vs received in bulk.

On the distribution select ‘Cash’

When ‘Cash’ is selected on the distribution, three possible Distribution options can be selected on the different Investor accounts:

This is where the fund manager pays out distributions in cash, but we want to reinvest the cash for the investor account.
The system will do the same as the CASH option above, but then load switches from Cash to Units on the relevant clients.
The switches then do normal buys back into the fund.
In addition to selecting ‘Cash’ on the distribution, as in option 2, ‘Reinvest Distribution’ need to be selected on the relevant Investor Accounts; Investor Account->View Details

Some investors might want their portion of the distribution to be paid out to them.
The system will do the same as the CASH option above, but then create an authorised withdrawal instruction on the relevant clients.
In addition to selecting ‘Cash’ on the distribution, as in option 2, ‘Payout Distribution’ need to be selected on the relevant Investor Accounts.

Investor Account->View Details

Some investors might want their portion of the distribution to be left as cash.
No further action will be taken on the account.
In addition to selecting ‘Cash’ on the distribution, as in option 2, ‘Leave Distribution in Cash’ need to be selected on the relevant Investor Accounts.

Investor Account->View Details

NOTES:

Distribution options, as set on the account, can be overridden on an instrument/instrument account level, where different options need to apply to different instruments on the same account.
If no Distribution option has been set on the instrument account level, the system will use/default the Distribution option as set on an account level.
To override Distributions options on an instrument level on an account, go to the Current Holdings Card.

Last Updated on 2 years ago by Antoinette Van Meyeren