pControl Distribution Processing automates the capture, calculation, allocation, accrual and settlement of income distributions for individual funds and across complex interfunded investment structures.
Distribution Processing imports income for allocation to unitholders within an interfunded investment structure or to an external registry or transfer agency. Income accrual values and the related receivable and payable journals are created and settled. Reinvestment orders are managed on behalf of unit holders, and the fund paying the distribution.
Periodic income distributions can create ‘peak load’ pressures and cause disruption to daily business processes where manual and semi automated processes are relied upon. These can be expensive, lack scalability and transparency, and carry significant operational risks that adversely impact customer service.
- Captures distributable income components as cents or pence per unit (CPU / PPU), distribution value or crediting rates.
- Integrates with NAV / Unit Pricing and Distribution Calculations modules for ex-distribution price calculation for distributing funds.
- Integrates with NAV/ Unit Pricing and Tax Expense Calculations modules for tax accrual processing for tax paying funds.
- Allocates distribution components to unit holders based on internal interfund structure or externally provided unit holdings.
- Allows for top down allocation based on percentage holding across interfund structure if required.
- Splitting of tax category values to unit holders based on type of investor.
- Records or allows import of unit holder reinvestment percentages.
- Settles distribution accruals from Distribution Calculations or using imported CPU / PPU amounts.
- Settles cash payments and reinvestment values separately or simultaneously.
- Online work-paper views detail CPU / PPU calculations, allocations and summaries of distribution income and settlement.
- Distribution control record allows navigation from summary to detail level with ability for user to approve or re-run processing.
- Rules and calculation engine provides flexibility and ease of implementation of taxation and legislative changes.
- Delivers rich client and SLA compliance reporting.
- Full audit trail of all distribution processing activity allows for review by all stakeholders and auditors.
- Production Summary dashboard delivers progress monitoring of all distribution processing activities for each processing date.
- Attention Status Monitor dashboard provides real-time exception monitoring for any activity with critical completion or Service Level Agreement deadlines.
The Distribution Processing end-to-end control framework and standard process template delivers a known end-state with defined target metrics. This simplifies client re-engineering decisions and ensures a predictable time-line to benefits.
The standard process template includes the following:
- Import of income amounts and unit holder details
- Distribution Calculations (if required)
- Distribution allocation to unit holders
- Interfund processing and follow-on calculations
- Distribution approval and release
- Cash settlement and reinvestment processing