The following, as an example of the endowment payout process by share type, is an illustration of monthly payout $1 per share - $0.10 from earnings $0.90 from appreciation.

(Monthly payout $1 per share, $0.10 from earnings $0.90 from appreciation)

  Pure B Limited, Pure C Pure B Unlimited, Pure D Quasi B, C, D, T Pure B Limited, Pure C – Underwater Pure B Limited, Pure C – Partially Underwater

Step 1 – Calculate Maximum Payout

Number of Shares 1,000 1,000 1,000 1,000 1,000
Maximum Total Payout
(# shares x $1 share)
$1,000 $1,000 $1,000 $1,000 $1,000

Step 2 – Evaluate Payout Resources

Book Value $250,000 $250,000 $250,000 $350,000 $299,500
Market Value
(Ending Share Value for prior period = $300)
$300,000 $300,000 $300,000 $300,000 $300,000
Payout Resources
(for appreciation portion of payout)
$50,000
(MV – BV)
$300,000
(Full MV)
$300,000
(Full MV)
$0
(MV – BV)
$500
(MV – BV)

Step 3 – Allocate Payout to Income Fund

Payout from Earnings $100 $100 $100 $100 $100
Payout from Appreciation $900 $900 $900 $0 $500
Actual Payout to Income Fund $1,000 $1,000 $1,000 $100 $600

Step 4 – Reinvest Undistributed Payout

Reinvest Undistributed Payout
(maximum total payout less actual payout)
N/A N/A N/A $900 $400
# Shares Purchased at $299 per share
(interim share value)
N/A N/A N/A 3.01
($900/$299)
1.34
($400/$299)
Number of Shares at End of Month 1,000 1,000 1,000 1003.01 1001.34
Ending Market Value $299,000 $299,000 $299,000 $299,900 $299,400

Questions?

arrow_upward
Back to Top