How we Calculate Income Stream
Income stream leverages a dividend reinvestment calculation utilizing the net asset value of the products, the weights of these products in the portfolio, and the initial value of the portfolio. Using these, we can calculate the number of shares owned between each product. Each time a product has a distribution, it is converted into fractional shares, the number of which is equal to the dollar amount of the dividend divided by the current net asset value of the product. At the end of each month, we compute the total market value of the portfolio by taking the number of shares owned between each product and multiplying it by its net asset value.
When making a deposit or withdrawal, the net asset value of the product used to calculate how many shares need to be purchased or sold. When selecting the "Harvest all distributions" option when creating a scenario, any distribution made will be taken out as a monthly payment and not reinvested into the portfolio.
Holdings are only redistributed in the "Longer History" functionality. The "Longer History" functionality shows portfolio data based on the longest history available. When "Longer History" is selected, the full initial investment is allocated to the remaining holdings for any historical period where newer data is unavailable. At the inception date of the newer products, the products are redistributed appropriately based on the weighting of the portfolio.