LUSID is transitioning to a model where each kind of corporate action has a dedicated event, enabling you to handle those events in a seamless and consistent manner.
Note: You must contact us to enable this feature in your environment. It is disabled by default to prevent corporate action events impacting existing portfolios in an uncontrolled manner.
For example, LUSID emits a cash dividend event on the ex-dividend date of a cash dividend corporate action manually loaded into a corporate action source. In addition, we provide:
- A default cash dividend transaction template that automatically generates a transaction for the cash dividend amount.
- Recommendations for a cash dividend transaction type that confers a typical economic impact for a transaction representing a cash dividend.
You can use the default transaction template for cash dividend events, or create your own. You can configure the transaction type to have any economic impact you like.
When you enable this feature in your LUSID environment, for each portfolio subscribed to the corporate action source and with a holding in the underlying instrument, LUSID automatically:
- Generates an output transaction from the transaction template scaled to your holding in that portfolio on the ex date, and enriched with extra information such as gain/loss or a tax calculation.
- Implements the economic impact prescribed by the transaction type, for example adding the dividend amount to a particular cash balance.
Note you can override an event for a particular portfolio by loading an event instruction.
Recommended reading: Handling a cash dividend corporate action event
The following dedicated events are available or planned for instruments of type Equity and SimpleInstrument. For more information, start by calling the GetTransactionTemplateSpecification API for that event. If a particular event is not available yet, you can continue modelling any kind of corporate action as a TransitionEvent.
| Corporate action | Dedicated event | Participation | Choice(s) | Transaction type mandated by default transaction template * | Status |
| Accumulation (ACCU) | AccumulationEvent | Mandatory | Cash | FundAccumulationIncome | Available |
| Capital distribution (DRCA) | CapitalDistributionEvent | Mandatory | Cash | DividendIncome | Available |
| Mandatory with choices | Cash (choice of currencies) | ||||
| Cash dividend (DVCA) | CashDividendEvent | Mandatory | Cash | DividendIncome. See an example. | Available |
| Mandatory with choices | Cash (choice of currencies) | ||||
| Dividend option (DVOP) | DividendOptionEvent | Mandatory with choices | Security or cash | DvopCashIncome | Available |
| Dividend reinvestment (DRIP) | DividendReinvestmentEvent | Mandatory with choices | Security or cash | DripCashIncome | Available |
| Reverse stock split (SPLR) | ReverseStockSplitEvent | Mandatory | Security | ReverseStockSplit | Available |
| Scrip dividend (DVSC) | ScripDividendEvent | Mandatory | Security | StockDividend | Available |
| Stock dividend (DVSE) | StockDividendEvent | Mandatory | Security | StockDividend | Available |
| Stock split (SPLF) | StockSplitEvent | Mandatory | Security | StockSplit | Available |
| Payment in kind (PINK) | TBD | Mandatory | Security | TBD | Planned |
| Mandatory | Other | ||||
| Bonus issue (BONU) | TBD | TBD | TBD | TBD | Planned |
| Merger (MRGR) | TBD | TBD | TBD | TBD | Planned |
| Spin-off (SOFF) | TBD | TBD | TBD | TBD | Planned |
* If you use the default transaction template for an event you must ensure this transaction type exists in the default scope and source. You can nominate a different transaction type, perhaps in another scope and source, by creating your own custom transaction template instead.