Using the Generate Distribution Utility

This is available only for the DST FAN Mail interface.

Overview

DST sends only the market value for Fixed Annuities down each month.  The market value imports in as the number of shares and the price stays $1.  These Fixed Annuity values change each month, however there are no transactions sent down to account for this value change.  Morningstar has a tool that is available within the DST FAN Mail Import interface only, to generate distribution reinvest transactions for the market value difference.  This can be done during the monthly reconciliation.

How to identify if you need to Generate Distribution Reinvest transactions for DST Fixed Annuities

You will see a negative Out of Balance (OOB) in the +/- Difference from Custodian (Shares) field.  You will receive this negative OOB monthly when you reconcile your fund company.  You will need to follow the steps below to generate Distribution Reinvest transactions. 

Using the Generate Distributions Utility to Create Distribution Reinvest Transactions

This utility looks at the position files to determine if the holding is a Fixed Annuity. Transactions will only be generated if the holding is a fixed annuity, so there is no harm in attempting to use this feature on negative OOB. 

Note:  You should never Generate Distributions on a positive OOB.  As an example:  If the holding is a fixed annuity that is OOB +15 shares and you generate distributions, the system will generate a distribution reinvest transaction for 15 shares, and you will now be OOB +30 shares.

  1. From the Failed blotter, select the negative OOB positions by checking the box to the left of the OOB

  2. Select Action, and then Generate Distributions.

  3. You will receive the following warning message. Click Yes to continue.

  4. A popup message indicates the number of transactions generated. Click OK.

  5. You will be prompted to re-run reconciliation. Click Yes.

  6. You should no longer have any OOB. The distribution reinvest transactions are now Pending Transactions and located in your Transactions Blotter, with a warning message of “Distribution Reinvestment transaction added.  Please verify amount(s) for accuracy.”  To verify this transaction, review the Number of Shares listed on the Distribution Reinvest transaction.  If you are now reconciled, then this also indicates that this transaction generated correctly.