How we Calculate Income Stream
Our income stream strategy employs a dividend reinvestment calculation, utilizing the net asset value (NAV) of products, their weights in the portfolio, and the initial portfolio value. To determine the number of shares owned for each product, we convert distributions into fractional shares, where the number equals the dividend amount divided by the current NAV.
At the end of each month, we compute the total market value by multiplying the number of shares owned for each product by its NAV.
Deposits, Withdrawals, and Distributions
When showing a deposit or withdrawal, the product's NAV is used to calculate the required share purchase or sale. Using for the "Harvest all distributions" feature results in monthly payments instead of reinvesting distributions into the portfolio.
Portfolio Redistribution and Longer History Functionality
Portfolio holdings are only redistributed in the "Longer History" functionality. This feature displays data based on the longest available history. In this mode, the full initial investment is allocated to remaining holdings for periods without newer data. Upon the inception date of newer products, redistribution occurs based on the portfolio's weighting.
Recommended Reading
A full walkthrough of the Income Stream tool can be found here.