2.1.10.1 Dividend Processing for Fund

This topic provides information on dividend processing for fund details.

In Oracle FLEXCUBE Investor Servicing, there are two types of dividend that can be processed for a fund:

• Cash Dividend
• Stock Dividend

In the case of cash dividends, the unit holders receive the dividend in monetary form. If an income distribution setup record is defined for an investor, then the dividend received is reinvested according to the framework of the same. Cash dividends could be declared for capital gains or income.

In the case of stock dividends, the unit holders receive dividend in the form of units in addition to their holdings as on the record date, which are reinvested in the same fund.

In Oracle FLEXCUBE Investor Servicing, you can define an individual corporate actions record for each of the dividend types, in the Corporate Actions screen. For a fund, if both cash and stock dividends are declared, a separate Corporate Actions profile must be set up for each of the dividend types.

Refer the chapter Dividend Maintenance in the Fund Manager User Manual for information about the static maintenance for processing dividends in the system.

• Setting up Rules for Cash Dividend for Fund
  This topic provides information on setting up rules for cash dividend for fund.
• Setting up Rules for Stock Dividend for Fund
  This topic provides information on setting up rules for stock dividend for fund.