Just Released - Distribution Reinvestments

At Caruso, we understand that fund managers face increasing pressure to provide flexible distribution options while maintaining operational efficiency. Reinvestment programs allow investors to compound their returns automatically, provide funds with stable capital retention, and reduce the administrative burden of processing repeat investments. Our latest feature addresses these operational challenges head-on by automating the entire reinvestment workflow within the existing distribution process.

Streamlined Distribution and Reinvestment Process

Fund managers can now offer investors the option to automatically reinvest their distributions, creating a seamless experience for both administrative teams and investors. This enhancement has been carefully integrated into our existing distribution management workflows, ensuring a smooth transition for teams already familiar with Caruso's platform.

The new functionality enables:

• Comprehensive Reinvestment Management: Administrators can configure reinvestment preferences at the holding level, specifying which unit class distributions should be reinvested into.
• Automated Processing: Reinvestments are automatically calculated and processed alongside cash distributions, eliminating separate workflows and reducing administrative overhead.
• Enhanced Visibility: Clear reporting and dashboard metrics provide instant visibility into reinvestment activity, with dedicated reports showing reinvestment amounts, applicable unit prices, and units to be issued.

Tailored for Financial Operations Teams

For finance teams managing complex fund operations, this feature streamlines month-end and quarter-end processing by consolidating distribution and reinvestment workflows into a single, efficient process.

Managing Investor Preferences with Precision

Administrators can now configure comprehensive distribution preferences for each holding, including:

• Distribution bank account details
• Distribution settings (enabled/disabled)
• Reinvestment preferences (yes/no)
• Target unit class for reinvestments

This granular control ensures fund managers can accurately implement investor preferences while maintaining regulatory compliance and operational efficiency.

Enhanced Reporting and Visibility

With this update, administrators gain additional reporting capabilities specifically designed for managing reinvestments:

• Reinvestment Reports: Detailed breakdowns of all reinvestment transactions
• Enhanced Distribution Previews: Clear visibility of holdings set for reinvestment before finalization
• Comprehensive Distribution Confirmation: Summary metrics showing total holdings reinvested and total reinvestment amounts

These tools provide finance teams with the transparency needed to ensure accurate processing and maintain detailed audit trails.

Investor Experience

While investors can view their current reinvestment settings through the investor portal, changes to these preferences must be facilitated by the fund manager. This approach ensures proper oversight and compliance with fund rules and regulatory requirements.

Once a distribution has been paid, investors who prefer to reinvest will see two transactions that notify them that they earned a distribution and that it was reinvested.

Reinvestments Made Easier

These configurations allow fund managers to implement reinvestment options across different fund structures while maintaining compliance with tax and regulatory requirements.

If you'd like to explore how Distribution Reinvestments can enhance your fund operations, please email [email protected] to arrange a product demonstration.