Fundriver has enhanced Spending functionality, this article highlights some of the new features!
Additional Parameters
The New Spending Interface has additional parameters to change withdrawal frequency and allocation date. Withdrawal frequency would be used in situations where you post more than once a year (i.e. monthly, quarterly). Allocation date, also known as valuation date, is used to calculate spending draw.
The New Spending Interface allows you to set up distribution rules when your calculation includes both calendar and fiscal year end dates.
In addition, there is a new parameter for underwater funds. This parameter allows you to limit spending on funds to above historical gift value, allows you to invade principal, set a historical gift threshold or limit to an amount above historical gift.
Fundriver’s New Spending Interface allows for the option of assigning a Secondary Spending Rule to funds, which is otherwise known as a Supplemental Distribution. This feature allows funds to be assigned to two spending rules at the same time, but the client can choose which rule to use during the posting of Distributions.
Transaction Type Flexibility
Users can now choose which distribution type is created through the Distribution process. This allows for custom transaction types or multiple transaction types.
Enhanced Reports
Estimated Spending Report (with Column Grouping and Drill Down)
This report shows your estimated gross distribution, reinvestments and net distribution. The report will show both your annual distribution as well as your withdrawal frequency. No more toggling back and forth between annual rates and quarterly rates! The drill down functionality is what we are most excited about here at Fundriver. By clicking any number on the report in blue text you can drill down to display how Fundriver is calculating the dollar amount:
The top-level Estimated Spending Report allows you to have the ability to change which spending rule is displayed, Show All, Primary Only, Secondary Only:
A fund will be flagged if any of the following situations exist:
- Negative Net Distribution
- Estimated Net Distribution will bring fund below $0 if entering distributions as of current posting period
- Fund has no Market Value as of prior period
- Fixed distribution rule does not match estimated spending calculation
Note: The spending proof sub-report does not currently factor in all variables. For example, adjustments to the Historical Gift Threshold, and other underwater restrictions.
Estimated Spending Report (with Column Grouping)
Spending Allocation Report for Osher Life Long Learning
