Managing Reinvestments

As reinvestments are run in a seamless step as part of managing distributions, please review Managing Reinvestments in conjunction.

Creating a Distribution

You can either create a new distribution from scratch or duplicate a previous distribution to save time. Here's what you need to know:

Basic Information

Distribution Name: Provide an internal name for your reference
Distribution Period: Select the date range for the distribution using the date picker
Payment Date: Select a date when the distribution will be paid. This date is used for the distribution transactions.

Components

You can create one or more components and configure them to target who is being paid, using what calculation and how you would like that to show on the distribution statement.

Unit Class Selection

Choose between "All Unit Classes" or select a specific unit class
You can create separate components for different unit classes within the same distribution

Apportionment Methods

Choose how you want to distribute the funds:

Total Dollar Amount (daily pro-rata)
- Specify a fixed dollar amount
- System automatically distributes proportionally based on daily unit holdings
- Accounts for any unit ownership changes during the period
Annual % (daily pro-rata)
- Set an annual percentage rate
- Applied to daily holding balances
- Automatically adjusts for leap years

Withholding Tax Options

None: No tax withheld (Default)
WHT: Applies RWT/WHT rate set on the investing entity
PIR: Applies PIR rate set on the investing entity
WHT & NWHT (Selective): Applies a selected tax rate either withholding or non-withholding tax. The rule that determines which rate is selected is:
- Investing Entity's Primary Tax Residency = Fund Country, apply the WHT rate
- Investing Entity's Primary Tax Residency ≠ Fund Country, apply the NWHT rate
- Investing Entity's Primary Tax Residency is not populated, assume they are in the Fund Country and apply the WHT rate

Distribution Type and Label

Type: Choose between Income and Capital.
- Examples of income distributions are; Dividends, Rental Income, Operating Income, Foreign Income, Royalty Income, Income Rebate, Other Income
- Examples of capital distributions are; Return of Capital, Capital Gains, Capital Rebate, Other Capital Return
- Note:
  - If income is selected, the sum of the gross unrounded distribution for these components are applied to the holding's Cash Distribution.
  - If capital is selected, the sum of the gross unrounded distribution for these components are applied to the holding as Capital Returned.
Label: Customise the description that appears on tax statements

Previewing Your Distribution

Before confirming, you can:

Download draft reports:
- Calculation Summary Report
- Audit Report
- Reinvestment Report
- Payment File
Review any alerts:
- Missing bank account information
- Calculation timestamp warnings

Important Alerts

If you see a "Missing Bank Accounts" alert:

Download the Payment File
Filter the bank account column for empty values
Use the "Investing Entity - URL" to update missing bank information
The distribution cannot be confirmed until all bank accounts are added

Note: The alert is triggered when:

An investing entity has no bank accounts
If the holding has an assigned bank account:
1. The bank account is missing (only we can delete these accounts)
2. The bank account isn't verified
If the holding doesn't have a bank account:
1. There is no default bank account
2. The default bank account is unverified
If the holding’s bank account is missing key details that will fail at payment:
1. All: Missing bank account number
2. AUD: Missing BSB code
3. USD: Missing Routing number
4. GBP: Missing Sort Code

Confirming the Distribution

After confirmation, the system will process:

Transactions
Statements
Email notifications

You will be prompted to set notification preferences (email, statements and a publish date) as well as a date of issuance (if reinvestments are being processed).

Statements and emails will be sent out at the publish date and time, referencing the dates relevant for each item. For example:

Emails & Statements

Generated at Publish Date/Time

* Distribution email (shows Payment Date)
* Unit issuance email (shows Date of Issuance)

Transactions

Generated at Publish Date/Time

* Distribution transaction (shows Payment Date)
* Unit issuance transaction (shows Date of Issuance)

Note:
1. If the Payment Date is dated in the future, the transactions will only show on the admin app (in a pending state). Once the date has past, transactions will show on both the admin app and investor portal (in a completed state).
2. The Date of Issuance will process new units in accordance with your configured processing schedule (T+1, T+0 etc).

Distribution Statements

Investors receive consolidated communications:

One statement showing all component breakdowns
One email with the net distribution amount
One transaction record for the net distribution

The statement contents are dynamic based on the way the distribution has been created.

Distribution Reports

Several reports are available. The full catalog is available here.

Calculation Summary Report - A summary of the distribution inputs. The summary shows the total gross, tax withheld and net for each component of a distribution.
Audit Report - A detailed breakdown of calculations within one distribution.
Payment File - A formatted payment file
Reinvestment File - A detailed breakdown of reinvestments within one distribution.

Why doesn’t the Total Gross Distribution match the Component Gross Distribution, or sum of Components?

The discrepancy occurs because one amount is the sum of already-rounded calculations, while the other is an amount that does not get rounded, it is an input value to calculations. This can cause slight discrepancies.

The Total Gross Distribution is the sum of apportioned and rounded amounts. This is your total liability.
The Component Gross Distribution on the other hand simply represents what has been allocated to this component before being further divided across individual holdings.
- For a component that is paying a total dollar distribution, this will simply equal the Component Input Amount.
- For a component that is paying an annual %, this will represent the calculated gross dollar amount that can then be further divided across individual holdings.

Pro tip: You can review the granular calculations in the Audit Report:

Distribution - Period Gross Distribution (un-rounded) - These are the most granular, raw amounts. The sum of Distribution - Period Gross Distribution (un-rounded) will equal the input value Distribution - Component Gross Distribution
Distribution - Holding Gross Distribution (rounded) - To calculate a payable amount, the Distribution - Period Gross Distribution (un-rounded) is aggregated per holding and then rounded to 2dp to ensure accurate payments. The sum of Distribution - Holding Gross Distribution (rounded) per holding will equal the Total Gross Distribution

Common Use Cases

Private Credit with Multiple Unit Classes
- Create one reusable distribution
- Add components for each unit class
- Set different interest rates per class
- This allows you to process all unit classes in one distribution
- Next time, the distribution can simply be duplicated and the interest rates updated
New Zealand PIE Funds
- Set up two components:
  - "Taxable Distribution" with PIR tax
  - "Non-Taxable Distribution" with no tax
Limited Partnerships (No tax)
- Create one simple single-component that does not withhold any tax
- Customise the label shown on investor statement e.g. "Dividend" or "Cash Distribution"