Handle year end processing with income distribution

Step 1. Calculate NAV 31/12/20XX – this will get you the % of income distribution (calculates the final accrual that is stored in market value on each share class security, normally corresponds to dividend payout).

-Any Subscriptions and Redemptions for December 31st are executed in this step when running NAV

Step 2. Update market values on each share class security

-Close 1 is adjusted down with dividend to be paid out

-Accrual and close 5 is set to zero

After calculating 31/12/20XX - NAV

Step 1.

Go to the Corporate Actions click “New corporate action”

Step 2

Choose type DIVIDEND.

Step 3.

Choose fund security you want to register the dividend for. - State dividend per share. - Set the Ex-date to NAV-date you want the dividend to be registered, i.e. 31/12/20XX. - Choose transaction type “Yearly dividend” - Choose group “All portfolios”, all shareholders that have a share in that share class will now receive dividend. - Click “Run & Close”. This will state how much the dividend will give in pay out

Step 4.

Go to Transactions view - Click on View: Yearly Dividend Transactions. - Mark all transactions and click “Cash transactions yearly dividend” This will book the outflow of cash from the fund.

If shareholder want to receive dividend in cash, then you are done. If shareholder want to reinvest shares, please proceed by steps below and reinvest dividend to the adjusted NAV.

Step 5.

Go to Position view - Search for group “Reinvested Dividend Fund XX” (make sure all portfolios that should have reinvested dividend are included) - Search for fund share class security - Set date to date the day before you did the dividend, i.e. 30/12/20XX, this will give you the correct amount of units - Search. Click on “Transactions from positions”.

Step 6.

Choose create “Trade order” - Transaction type “Reinvested yearly dividend, FUSR”­­­­­­ -Amount (% of position size) set this to “100 %” always - Set unit price to the ratio of the dividend -Transaction date 31/12/20XX. - Click “Generate preview” to see if trade amount aligns with what should be reinvested. - Confirm.

Step 7.

Go to trade order view - Go to view “Reinvested yearly dividend” - Mark all trade orders - Execute the orders through standard trade order execution process at the adjusted NAV per 20XX/12/31.

Reset balance on Income distribution accounts to zero

-Book a WD transaction of balance on income distribution account

-This will make next NAV start with a zero balance

Bring forward any negative income distribution balance

If there was any negative income distribution balance that need to be brought over in next year: