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Pay out fund dividends

FA allows you to run dividends for a fund and create dividend transactions via a corporate action. You can view the dividend history in the Dividends view and refresh the list with the refresh.png button.

To enable dividend payments for a fund share class, open the Share class wizard, Basic info tab and select the Enable dividend payments option (see Add share classes).

dividends-view.png

Create and execute a dividend

To calculate dividends and create dividend transactions in the shareholder portfolios, follow the steps:

  1. Open the Dividends view.

  2. Click Add dividend in the top-right corner of the view and fill in the fields:

    Fund

    The fund that pays the dividend.

    Share class

    The share class that pays the dividend.

    Declaration date

    The date when the dividend payment is announced.

    Ex-date

    The dividend ex-date. The dividend is calculated based on the number of share class units in the shareholder's portfolio on the morning of the ex-date (the position after the previous day's transactions). This date will become the transaction date of the created dividend transaction. When you calculate NAV on the ex-date, the dividend isn't anymore included in NAV.

    Payment date

    The payment date of the dividend, when the dividend is actually paid to the shareholder. Payment date becomes the settlement date of the created dividend transaction.

    Dividend per unit

    The dividend to pay per share class unit.

    Transaction type

    Transaction type to use for the dividend transactions. By default, FA Fund Management uses the Fund dividend (FMDIV) transaction type.

    Memo

    Memo note for the dividend.

  3. If the dividend execution date is today, proceed to executing the dividend by clicking Save and execute.

    Alternatively, save the dividend and execute it later (click Execute in the Dividends view).

  4. Check the tax rates and FX rate in the Dividend view that opens. Click Execute to generate dividend transactions. The dividend status changes to "Executing", and then to "Executed" in the Dividends view. You can view the dividend transactions by double-clicking the dividend.

dividends-view-sidepane.png

As a result, FA Fund management does the following:

  • Creates dividend transactions in the shareholder portfolios.

  • Creates a cashout transaction (FMDWD type) to take out the dividend amount from the fund portfolio. Next time you calculate NAV, the total dividend amount is excluded from the calculation.

You can ensure that all shareholders received dividends by clicking Reconcile in the Dividends view. The system shows a confirmation message that reads "Dividend transactions are created for all shareholders".

Edit dividends or dividend transactions

You can edit an unexecuted dividend by doing the following:

  1. For the dividend you want to modify, click the dividends-select.png icon and select Edit.

  2. Make your changes in the side pane that opens.

  3. If you want to proceed to executing the dividend, click Save and execute and fill in the tax rates and FX rate. If you want to execute the dividend later, click Save.

You can cancel dividend transactions for executed dividends, for example, if you notice that some tax rates are incorrect or if the error is due to incorrect positions in shareholder portfolios. To cancel dividend transactions, do the following:

  1. Double-click an executed dividend in the list.

  2. Select the dividend transactions to delete and click the delete-selected.png icon.

  3. If needed, make corrections in the shareholders' portfolios.

  4. Click Reconcile next to the dividend in the Dividends view and confirm that you want to execute missing transactions (Execute).

  5. Enter the correct dividend parameters (you can only correct tax or exchange rates that are not used in any transactions) and click Execute.

Dividend transaction properties

For executed fund dividends, the following information is available in the Dividend transactions view when you double-click a dividend row:

Portfolio

Shareholder's portfolio.

Shareholder

Shareholder name.

Units

Amount of dividend units.

Dividend (currency)

Amount of dividend assigned to the shareholder in the fund currency.

Tax country

Shareholder's tax country.

Tax (currency)

Amount of tax on the dividend amount in the fund currency.

Amount paid (currency)

Amount of dividend paid in the fund currency.

Amount in account currency

Amount of dividend paid in the shareholder's account currency.

Account currency

Shareholder's account currency.

FX rate

The FX rate used.

Run time

Run date and time of the fund dividend payment.

Download dividend information

In the Dividends view, you can download the whole dividend list as an XLXS or CSV file by clicking Export.

To download a list of selected dividends, choose the dividends and click Export → Download as XLSX.