Manage Net Investment Income (NII) Distributions

When you use net investment income (NII) as your fund's daily distribution method, the system distributes income less expenses based on a user defined income and expense general ledger account range. You can base this on outstanding or settled shares. The system supports the actual income available method with a user defined income and expense range. You can define this for each fund.

When funds use NII distributions, you indicate whether individual share classes either distribute net investment income or accumulate net investment income. When a share class elects to distribute net investment income, the NII distribution process posts the distribution amount and calculates mil rate and yield figures. However if a share class elects to accumulate net investment Income, the NII distribution process calculates mil rate and yield figures for the share class but does not book distribution amount to the ledger and subledger. At a later time you can use a separate process to book the accumulated distribution amounts for the share class to the ledger and subledger.