Course Code: 111

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: Meyer Grumet

CPE Credits: 7

Prerequisite: No Prerequisite Required

This is a basic course designed for those individuals who want to have a broad understanding of the various types of income generated in a shareholder's portfolio. The course will examine and analyze all aspects of income processing and collection, focusing on equities and fixed income securities. The presentation will review the methodologies and conventions for calculating accruals, and will present various ways of accounting for the accruals and income on portfolio statements.

The course will also cover the responsibilities of custodians in collecting and distributing income on behalf of their clients, both for domestic and international securities.

This seminar would be helpful for those individuals in the dividends and interest departments whose responsibilities include calculating and properly crediting income due to shareholders. 

Topics for discussion include:

Overview: Types of Income

• Dividends
• Interest
• Equities
• Dividend Announcements
• Service Providers of Dividend Information
• Ex, Record and Pay Dates

Fixed Income

• Bonds - Corporate, Government, Muni's, MBS
• Accrued Interest Purchased / Sold
• Day Count Conventions
• Income from Discounted Securities

Trade Date Reporting

• Accruals for Dividends and Interest
• Income Statement

Custodian's Role

• Distributing Income
• Registration and Beneficial Owners
• Omnibus accounts
• Reconciliation

Income from Foreign Securities

• Paying in Local / Base currencies
• NRA Withholding

Other Ways of Generating "Income"

• Covered Calls
• Securities Lending

Upon completion of the course, participants will have a comprehensive overview of the fundamentals of securities income and will be familiar with the back-office requirements for processing, collecting and distributing dividends and interest.