Feb 2 • Community Lounge
🎯 NAV Pro Tip #10: The Distribution & Dividend Reinvestment Check
Before you finalise the NAV, take 3 minutes to validate distributions (cash + reinvestment/DRIP):
✅ Is the distribution event set up correctly?– Correct ex-date / record date / pay date?– Correct share class and rate (per share / %)?– Withholding tax rules applied correctly?
✅ Does reinvestment (DRIP) create the right shares?– Reinvestment price/source correct?– New shares posted to units outstanding (class-level)?– Fractional shares / rounding handled per policy?
✅ Do cash and accrual movements tie out?– Accrued income reversed correctly on ex-date?– Cash outflow (or payable) matches distribution ledger?– Custody vs accounting reconciliation still clean after event?
Why this matters:
Distributions hit multiple places at once: income, cash/payables, and shares outstanding (if reinvested). If one leg is wrong, the NAV can look fine but still be incorrect.
Pro move:
Treat DRIP like dealing: reconcile rate → reinvest price → shares created → cash movement, with evidence.
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🎯 NAV Pro Tip #10: The Distribution & Dividend Reinvestment Check
