Distributions

 

Distributions are allocated to the working portfolio and from there to the relevant clients:

 

  1. Transfer all the cash/units from the distribution to the working-portfolio using the distribution transaction
  2. For each investor, write a (specialised) exchange transaction from the working portfolio to the investor’s instrument account
  3. No rounding-error transactions is written – the rounding error is just the balance in the working portfolio after 1 – 2.

 

NOTE: On Cash Portfolio instrument distributions, no bank entry will be matched, as the distribution cash will be allocated from the Portfolio instrument cash account.

 

Calculation of withholding tax (interest / dividends) on unit and cash distributions:

d = value of the distribution transaction (amount field on the distribution)
t = total cents per unit
s = sum of taxable cents per unit categories (either interest or dividends)
taxable amount = d x (s / t)
tax = taxable amount x tax percentage (which comes from the relevant country)

Last Updated on 5 years ago by Antoinette Van Meyeren