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)
| Description | 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 |
