Just Released - Modular Distributions

At Caruso, we understand that managing fund distributions is one of the most complex operational challenges fund managers face. Caruso has upgraded its distributions feature to be fully configurable and provide funds of any size to follow a flexible, streamlined and efficient process.

Why Modern Distribution Management Matters

The investment landscape is evolving rapidly, with funds becoming increasingly sophisticated in their structure and distribution requirements. Traditional approaches to distribution management often struggle to keep pace, leading to increased operational overhead and risk of errors. Caruso’s new modular approach directly addresses these challenges, offering fund managers a more flexible and efficient way to manage distributions.

Streamlining Complex Operations

Caruso’s modular distributions allows fund managers to:

• Manage multiple distribution calculations, tax treatment and payment types through a single, unified process
• Reduce administrative overhead through automated workflows
• Maintain precise control while improving operational efficiency

For instance, a fund manager handling multiple unit classes can now process all distributions through a single workflow, rather than managing separate processes for each class. This not only saves time but also reduces the risk of errors and inconsistencies.

Enhancing the Investor Experience

Modern investors expect clear, consistent, and timely communications about their investments. Caruso’s modular distributions delivers this by:

• Delivering streamlined communications through a single channel
• Maintaining consistency across all investor interactions by driving investors to log into the investor portal to view the relevant transactions, statements and impact on their holding
• Consolidated, clear statements that show the breakdown of their distribution (for example, how much was earned over different periods, especially if they made additional investments or withdrawals during the period)

This approach significantly improves the investor experience while reducing the administrative burden on fund management teams.

Building Confidence Through Control

Quality control is paramount in distribution management. Our system includes comprehensive validation checks that:

• Ensure the latest investor details are used in calculations
• Consider any unit movement during a distribution
• Flag potential issues needing review
• Provide fund managers with granular reporting to inspect calculations
• Maintain detailed audit trails for compliance purposes

These controls help to give fund managers confidence that investor returns are accurate.

Real-World Impact

The value of modular distributions is seen where the same workflow can be applied across various fund types:

• Private Credit Funds: Fund managers can now handle multiple unit classes paying different interest rates through a single, streamlined process.
• Property Funds: Multiple income streams can be managed efficiently through a single distribution, with clear differentiation between different payment types. Fund managers with operating funds as limited partnerships can rely on the calculations to check for unit movement during a distribution period and be confident that the distribution is being accurately apportioned.
• New Zealand PIE Funds: Fund managers can break out taxable and non-taxable elements of a distribution payment and automatically withhold PIR tax.

A Foundation for Growth

Having a flexible, scalable distribution management system enables fund managers to:

• Adapt quickly to changing requirements
• Scale operations efficiently
• Maintain high standards of service as they grow

Looking Ahead

The introduction of modular distributions represents more than just a new feature – it's a fundamental shift in how fund managers can approach distribution management. In today's competitive investment landscape, operational efficiency is a key differentiator. By streamlining distribution management, fund managers can focus more resources on what matters most, growing their investments and serving their clients.

If you'd like to explore how modular distributions can transform your fund operations, email [email protected] to arrange a product demonstration.