About Fund Distributions

ETF's pay distributions at pre designated intervals. You can enter these as a Cash Dividend Corporate Action.

In Reference Data Center's Create Cash Dividend panel, ensure you set the Periodic Distribution Type (tag 1737) field to a value of Income Distribution. The system uses only Income Distributions in the Systematic Value calculation. Capital Gains Distributions do not affect the calculation.

The system factors Distributions, recorded as Cash Dividends, into the Systematic Valuation calculation. This is critical to properly accounting for ETF holdings.

Distributions can be released in total and broken out by income and ST /LT capital gains or Return of Capital at a later date. If this is the case, the original corporate action should be cancelled and rebooked as individual distributions to ensure the correct effective yield going forward.