In Caruso, distributions are calculated on a daily pro-rata basis, reflecting the proportion of active holdings held by an investor at the close of each day. This means that during a selected distribution period, investors will receive distributions based on the number of days they held an active holding within the fund.
In the following examples, the fund structure is set to a limited partnership, and the distribution received by each investor is determined using the formula provided below. For portfolio investment entities and some other fund structures, an additional calculation considering taxation may be incorporated.
Formula for Calculating Distributions
Example A
Where two investing entities have active holdings throughout the distribution period of 31 days and the Gross distribution amount applied is NZD 2,200
Core Management Trust =2200 x ((200x31) / (560x31))
Silver Group Trust = 2200 x ((360x31) / (560x31))
Example B
Where Silver Group Trust (Seller) has sold and transferred 60 units to Gina Lisa Brennan (Buyer) on 20 January, in between the distribution period of 31 days and the Gross distribution amount is NZD 2,200.
Core Management Trust =2200 x ((200x31) / (560x31))
Silver Group Trust = 2200 x ((300x31) / (560x31))
Silver Group Trust = 2200 x ((60x20) / (560x31))
Gina Lisa Brennan = 2200 x ((60x11) / (560x31))
Transfer Day Management for Distributions
In cases of transfer, the day of transfer favours the seller. In the above scenario, Core Management Trust gains benefit on the day of transfer (20 January), while the buyer starts benefiting from their investment from the following day (21 January) onwards.