Introduction
Use Share Classes to manage payout rules, redemption penalties, and investor-specific fees. Customize these settings to align with fund objectives and investor expectations while maintaining compliance.
Navigation to This Section
From the main dashboard, click the dollar sign/star icon on the left to select a fund.
Click Settings in the top-right corner.
In the left-hand panel, scroll to or click Share Settings.
Scroll to Share Classes.
Tip: If you cannot access Share Classes, ensure you have the necessary permissions or check with your administrator.
Share Classes
Changing Share Settings
To change a share class configuration, click Change Share Settings. You will be prompted to select an Effective Date for the changes, after which fields become editable. Once updated, click Update Share Settings.
🔴 Important: These changes apply only from the selected effective date forward. Past records and payouts are not updated.
Field | Description |
Class | Name of the share class (e.g., A, B). You must have at least one class. Classes can be added or removed. |
1st Share # | Starting share certificate number for the class. |
Share Price | The fixed price per share used to calculate investor balances. |
Regular Payout ($ or %) | A recurring monthly payout as either a dollar amount or a percentage of the investment. |
Enable Subscription Agreement | Toggle to attach a default subscription agreement template for deposits made into the share class. |
Enable Management Fee on One-Time Distribution | Apply a management fee (percentage or fixed amount) to one-time dividend distributions. |
Enable Performance Bonus | Set a performance-based bonus amount for distribution. |
Exclude Withdrawn Investor for One-Time Distribution | Exclude investors who have withdrawn when issuing one-time distributions. |
Enable Management Fee on Regular Payouts | Apply a fixed or variable management fee to regular investor payouts. |
Email Share Certs with Fund Statement | Automatically attach share certificates when sending out fund statements. |
Email Trade Confirmation with Fund Statement | Automatically include trade confirmations with emailed fund statements. |
Staged Payout
If earnings change over time, use staged payouts to create time-based earning tiers. Stages apply sequentially and can be added or modified.
Field | Description |
First # of Months | Number of months the stage is active. Leave blank for ongoing stage. |
Regular Payout ($ or %) | The dollar or percentage value distributed monthly during this stage. |
New Stage | Add another stage with different values. |
Enable Redemption Penalty
Create penalties for investors who redeem shares early. The penalty may be based on earnings or deposit value. This feature helps discourage premature withdrawals and is visible in the Fund Dashboard for easy identification.
Field | Description |
First # of Months | Time period after deposit during which the penalty applies. |
Penalty Amount | The value of the penalty, either as a percentage or dollar amount. |
Based On | Apply the penalty to the investor's earnings or original deposit. |
New Period | Add another time period with different penalty terms. |
Management Fee on Regular Payouts
Use this section to define a recurring management fee structure on monthly payouts. You can set a flat fee or apply percentage-based logic, with optional min/max boundaries.
Field | Description |
Type | Choose either Fixed Amount or Ongoing fee structure. |
Fixed Fee Amount | Amount charged per period. Visible only for Fixed Amount type. |
Fee Per Distribution | Apply the fee to: % of Earnings, % of Initial Deposit, or % of Invested Balance. |
% | The percentage value applied when using percentage-based logic. |
Min / Max | Optional bounds for fees, in dollars or percentage. |
MinMax Based On | Define whether bounds are based on earnings, deposit, or balance. |
Compliance Information
Assign classification codes to each share class to comply with fund and tax requirements.
Code | Description |
CMS | Common Shares – Standard equity shares with no special preferences. |
FTS | Flow-Through Shares – Often used in tax-advantaged investments. |
FTU | Flow-Through Units – Similar to FTS but issued as units, not shares. |
PRS | Preferred Shares – Shares with fixed dividends and preferential rights. |
UNT | Units – Used for investment trusts, combining equity and interest benefits. |
FAQs
How many share classes can I create?
There’s no set limit—you can create multiple share classes as needed to reflect different investment tiers or structures.
Will changing share settings affect existing records?
No. Any changes only apply from the effective date onward and won’t impact prior records or payouts.
Can share settings be deleted if no activity has occurred?
Yes. You can delete share classes or future-dated settings, provided they haven’t been used in transactions.
Need Further Assistance?
For additional support, contact us:
📧 Email: support@mortgageautomator.com
💬 Live Chat: Click the question icon at the top-right corner of your screen.