The distribution process apportions a number of units, or an amount, amongst the members invested in an investment portfolio, according to the distribution detail captured for an effective date and for an investment portfolio. The apportionment can be a positive distribution of income (e.g. a dividend or surplus), or a negative distribution of an expense (e.g. an investment management fee, asset levies).
For the distribution of reserves, the distribution process apportions an amount based on the total book value of all of the member’s investment, i.e. the total amount invested per member. The amount to be distributed can be either positive or negative, e.g. it can be either for a surplus or for the recovery of an under-provision for costs.
The way in which the apportionment is performed is determined by the rules set up in the distribution structure at a global data level.
In the case of an umbrella arrangement, the redistribution of reserves will be to the members that contributed to the reserve. Such distributions will take place for all the members across all of the sub-schemes invested in the same investment medium.
The apportionment of expenses, e.g. audit fee, reserve, and investment management fees, will be to all of the members of an umbrella scheme invested in the same investment medium.
A reserve can be distributed among members linked to a specific membership group, or membership groups for a scheme, based on each member’s investment in all investment portfolios. The type of membership group applicable can be selected, e.g. contribution, benefit or investment.
This provides for the re-distribution of reserves to only those members within the applicable membership group who either contributed to the reserve, or who are liable for the cost.
A reserve can be distributed among members of a specific participating employer.
In the case of an umbrella arrangement, the amount to be apportioned to the members across all of the sub-schemes linked to a main scheme will be apportioned to each sub-scheme according the balances of the members in each sub-scheme, and separate distribution detail records will be created for each sub-scheme.
Refer to
Infrastructure
System Rules
Distribution Structure
Refer to
Product Launch Requirements
Additional Menu Options
Investments
For examples of accounting transactions (T-accounts), refer to
Supplements
Accounting Transaction Examples