Pay out fund dividends
FA platform lets you calculate dividends for the fund and run a corporate action to create dividend transactions. You can then pay out dividends to the fund shareholders as cash or reinvest it into fund units.
To turn on dividend payments for the fund share class, open the Share class wizard, Basic info tab and click Enable dividend payments.
To calculate dividends and create dividend transactions in the shareholder portfolios, follow the steps:
Open FA Fund Management app and go to the Dividends view.
Click Add dividend at the top-right 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.
Proceed to executing the dividend (Save and execute), if the dividend execution date is today.
Alternatively, you can save the dividend and execute it later by clicking the Execute button in the Dividends view).
Check the tax rates and exchange rate in the Dividend window 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.
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.