This is the first financial year I am using BGL Simple Fund. I have largely found simple fund relatively user friendly, and the Corporate Actions for listed securities work okay.
I have received the tax statement for one of the managed funds (Magellan High Conviction Fund). I have watched the video on how the process works and I get most aspects of it. What I am struggling with is the following;
- Distibutions announced for 30/06/2020. I will process this to recognise the income for Financial Year ending 30/06/2020 - but I expect the exit unit price to fall by the amount of the distribution. However, the exit price being used to value the units isn’t the ex distribution price, but the days exit price. I will have the income, and final price will have a unit price that includes the income - looks like a double up to me?
- I am reinvesting the distributions - so need to create entries to recognise the asset (assuming entry 1 above is Debit Distribution Receivable, Credit Distribution Income), the entries to recognise this will Debit: the fund, credit distribution receivable
- Is this the way the process is supposed to work - i am trying to utilise the automation process but finding it a bit complicated
- One of the other funds - Hyperion, pays distributions quarterly - i have processed manual transactions throughout the financial year - how does this integrate with the year end process.
Just trying to understand how this all works.
Thanks in advance.