Please note:
Caruso currently only supports distribution reinvestment on funds where the entire net distribution can be reinvested without loss. For example if $123.45 is earned, and the fund's unit price is $1.00 but they trade in whole units (unit precision of 0), the $0.45 would be lost.
This means that reinvestments are only supported on funds where:
Fund Unit Value = $1.00
Fund Unit Precision = 2dp
Managing reinvestment preferences
Once a holding has been created, you can configure your investor's distribution settings including;
Distribution bank account
Distribution settings (enabled, disabled)
If enabled, reinvestment settings (yes, no)
If yes, you must select what unit class reinvestments will be issued into.
The example below shows three variations;
A holding with reinvestment - the user will select the unit class for reinvestment.
A holding who wants a cash distribution
A holding in a fund where reinvestments are not yet supported.
Investors can view these settings but they cannot change them.
Managing Distributions
As reinvestments are run in a seamless step as part of managing distributions, please review the Managing Distributions guide for more information.
For distributions with reinvestments a few of the steps in a distribution are enriched.
Creating a distribution - No change. Caruso will automatically process and calculate distributions and reinvestments if there are holdings set to reinvest.
Previewing a distribution - View the Total No. of Holdings with reinvestment as well as each holding's distribution reinvestment setting.
Reports - Reference the Reinvestment report to view the details of distributions which are being reinvested.
Confirming a distribution - Reference a Total No. of Holdings Reinvested and a Total Reinvested Amount. You will be prompted to select the Date of Issuance as described above.