Income Processing automates the capture, calculation, allocation, accrual and settlement of income distributions across complex interfunded investment structures.
Income Processing imports income for allocation to cross-invested unitholders within an interfunded structure, where 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 operational stress where manual and semi-automated processes are relied upon. Manually processed income accruals and settlements can be expensive, lack scalability and transparency, and carry significant operational risks that adversely impact customer service.
- Allocates income distribution components to unit holders based on internal interfund structure or externally provided interfund unit holdings.
- Allows for top down allocation based on percentage holding across interfund structure if required.
- Splitting of tax category values to interfund unit holders based on type of investor.
- Records or allows import of interfund unit holder reinvestment percentages.
- Settles income distribution accruals from Income Distributions or using imported cents per unit (cpu) or pence per unit (ppu) amounts.
- Settles cash payments and reinvestment values separately or simultaneously.
Integration and Extensibility
- Integrates with NAV / Unit Pricing and Income Distributions for ex-distribution price calculation for distributing funds.
- Integrates with Tax Expense for tax accrual and settlement processing for tax paying funds.
- Where Fund Accounting functions are undertaken within pControl then Income Processing automatically accrues and settles directly on pControl's single record Fund Ledger which can be reported via Account Views.
Service Level Aware
All pControl solutions are Service Level Aware and can internally monitor and escalate late running events such as late data arrival, and late override / approvals and final release within operational cut-offs and processing calendars.
Investment operations teams can monitor Service Level compliance through the following dashboards:
- Production Summary dashboard to deliver progress monitoring of all income processing activities for each processing date
- Attention Status Monitor dashboard to provide real-time exception monitoring and aging for any activity with critical completion or Service Level Agreement deadlines
Income Processing is stakeholder and auditor friendly through a full audit trail of all income accrual and settlement activity, while delivering rich client SLA reporting.
Income Processing was previously known as pControl Distribution Processing.