Distribution rates allow you to define time-based rate schedules at the unit class level for automated distribution calculations. This is particularly useful for cash funds or cash classes that require daily rate calculations based on changing interest rates.
While Caruso allows you to set a fixed % per annum distribution rate, ingesting a variable daily rate requires following this process to automatically calculate and aggregate distributions across rate periods.
Managing Distribution Rates
In the navigation pane, select Funds
Select the fund you want to configure
Select the relevant unit class
Go to the Distribution Rates tab
The Distribution Rates tab displays all configured rates for the unit class in a table, sorted by most recent first.
The table displays:
Effective date: When each rate starts applying
Rate type: Annual % or Daily Cents per Unit
Rate value: The configured rate
Date added: When the rate was created
Notes: Any commentary about the rate
Updating the Distribution Rates
To add a new rate to a unit class:
Go to the Distribution Rates tab on the unit class
Click Update distribution rate
Complete the required fields:
Effective date: When this rate starts applying
Rate type: Select either Annual % or Daily Cents per Unit
Rate value: Enter the rate (up to 6 decimal places)
Optionally add a Note with commentary about the rate
Click Confirm to save
Note: Each rate applies from its effective date until the next rate's effective date. No end date is needed as the next rate automatically supersedes the previous one.
Rate Types
Annual Percentage Rate
Annual Percentage Rate
Use this when the distribution is calculated as a percentage of holding value.
The system calculates:
Daily distribution = Daily holding value × (rate% ÷ 100) × (1 ÷ 365 or 366)
Example: A fund that pays 5% annual return, distributed daily or monthly based on holding value.
Daily Cents Per Unit (CPU)
Daily Cents Per Unit (CPU)
Use this when the distribution is calculated as a fixed amount per unit held.
The system calculates:
Daily distribution = Daily units held × rate × (1 ÷ 365 or 366)
Example: A cash fund that pays interest of $0.15 per unit per day.
Note: The system automatically adjusts for leap years when calculating daily rates.
Editing a Distribution Rate
You can edit any distribution rate, including historical rates:
Go to the Distribution Rates tab
Click the edit action on the rate you want to modify
Update the effective date, rate value, or note as needed
Click Confirm to save
Note: Date validation ensures no overlapping with other rates.
Deleting a Distribution Rate
To remove a rate:
Go to the Distribution Rates tab
Click the delete action on the rate
Confirm the deletion
Note: If you delete the most recent (active) rate, the previous rate becomes active.
Using Distribution Rates in a Distribution
When creating or editing a distribution, you can use your configured distribution rates for automatic calculations.
Navigate to Funds and select your fund
Go to Distributions
Create a new distribution or edit an existing one
Add a component
Select the Unit class (or select all unit classes)
For Apportionment method, select Distribution Rates (daily pro-rata)
Configure other component settings as needed
How it works:
When you use the Distribution Rates apportionment method:
The system retrieves distribution rates configured for each holding's unit class
Performs daily calculations based on the rate type and value across the distribution period
Automatically applies different rates if they change during the distribution period
Aggregates all daily calculations into the total distribution amount per holding
Validation:
When creating a distribution with the Distribution Rates apportionment method, the system validates that selected unit classes have distribution rates covering the full distribution period. You will see an alert if any unit classes are missing rates for the period.
Tips
Set up distribution rates before creating distributions that use them
Use notes to record context about rate changes, such as referencing RBA rate adjustments
You can configure unique distribution rates for each unit class if they have different rate structures
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If you have any questions or need help at any stage, please contact our Caruso Support team either by email or live chat.