---
title: "Modelling a capital distribution (CAPD)"
slug: "modelling-a-capital-distribution-capd"
updated: 2026-09-01T12:52:04Z
published: 2026-09-01T12:52:04Z
canonical: "support.lusid.com/modelling-a-capital-distribution-capd"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://support.lusid.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Modelling a capital distribution (CAPD)

You can model a capital distribution as a corporate action of type `CapitalDistributionEvent` in LUSID. [See all supported corporate actions](/v1/docs/understanding-dedicated-corporate-action-events).

Note the following:

- `CapitalDistributionEvent` is valid for instruments of type `Equity` and `SimpleInstrument`.
- A capital distribution returns capital to holders rather than paying out profit. Loading works the same way as [CashDividendEvent](/v1/docs/modelling-a-cash-dividend-dvca), but the recommended economic impact is different: the book cost of the holding is reduced rather than the payment recognised as income.
- The entitlement date is the `exDate` specified when you load `CapitalDistributionEvent`, not `recordDate`.
- The distribution amount is calculated from the total number of instrument units held on the entitlement date, settled and unsettled.
- The transaction date of the automatically-generated output transaction is `exDate`, and the settlement date is `paymentDate`.

## Loading `CapitalDistributionEvent`

You must load `CapitalDistributionEvent` into a corporate action source registered with one or more portfolios. The event then impacts every registered portfolio with a holding in the underlying instrument. [See how to do this](/v1/docs/how-do-i-upload-corporate-actions-to-a-corporate-action-source).

For more information on fields, see the [CapitalDistributionEvent](https://www.lusid.com/docs/api/lusid/schemas/CapitalDistributionEvent/) schema. Where set, the following date validation rules apply: `announcementDate ≤ exDate ≤ recordDate ≤ paymentDate`

> **Note**: You can set `paymentDate` at event level, at election level, or both. The election-level date takes precedence. At least one must resolve, or LUSID rejects the event.

You must choose **one** of the following participation types:

| Participation type | Election(s) | Election choices | Further action required? |
| --- | --- | --- | --- |
| `Mandatory` | Exactly one `CashElection` keyed by currency | Set the following on the single election: ✅ **Is chosen** ✅ **Is declared** ✅ **Is default** | ❌ No. The single election always occurs automatically. |
| `MandatoryWithChoices` | At least one `CashElection`, each keyed by (the different) currency | The above options must be set but can be in any combination on any election. | ❓Optional. The **Is Chosen** election occurs unless you instruct to receive a different currency per portfolio (see below). |

Note there is no silent lapse outcome; a holder who takes no action always receives the chosen election currency rather than forfeiting the distribution.

Issuers specify multi-currency offers in different ways. [See how to handle multiple cash elections](/v1/docs/understanding-participation-types-and-elections-for-corporate-actions#specifying-multiple-cash-elections).

## Instructing to receive a different currency per portfolio

If you load `CapitalDistributionEvent` as `MandatoryWithChoices`, you can instruct to receive the distribution in a different currency. If you do not, you receive the chosen election currency.

To do this, load an *event instruction* into a portfolio. Note this is not an event, and you do not load it into a corporate action source, which means you can instruct differently in different portfolios. [See how to do this](/v1/docs/loading-an-event-instruction-to-override-an-instrument-event-for-a-particular-portfolio).

## Configuring the economic impact

You must create a `DistributionIncome` transaction type to handle the automatically-generated output transaction. This is not provided for you. [See our recommendation](/v1/docs/recommended-transaction-types-for-corporate-action-events#capitaldistributionevent).

You can give a transaction type any economic impact you like. Our recommendation:

- Reduces the book cost of the underlying holding by the distribution amount, leaving the number of units unchanged. This is what makes a capital distribution different from a cash dividend, where the cost of the holding is untouched.
- Because the cost of the holding falls, `ProfitAndLoss/Unrealised/*` [metrics](/v1/docs/what-is-a-metric) change, and a subsequent disposal realises a correspondingly larger gain.

## Reference examples

### Single-currency distribution

A EUR distribution of 0.1594 per share is announced, with no elective currencies. The single election is declared, chosen and default.

```json
[
  {
    "instrumentEventId": "CapitalDistribution-2026-03-25",
    "instrumentIdentifiers": {
      "Instrument/default/Isin": "IE0000669501"
    },
    "description": "Capital distribution of 0.1594 EUR per share",
    "participationType": "Mandatory",
    "instrumentEvent": {
      "instrumentEventType": "CapitalDistributionEvent",
      "announcementDate": "2026-02-24T00:00:00.0000000+00:00",
      "exDate": "2026-03-25T00:00:00.0000000+00:00",
      "recordDate": "2026-03-26T00:00:00.0000000+00:00",
      "paymentDate": "2026-05-17T00:00:00.0000000+00:00",
      "cashElections": [
        {
          "electionKey": "Euro",
          "dividendCurrency": "EUR",
          "dividendRate": 0.1594,
          "isDeclared": true,
          "isChosen": true,
          "isDefault": true
        }
      ]
    }
  }
]
```

### Multi-currency distribution

The same distribution is announced with a GBP alternative. EUR is the declared currency; the GBP election is chosen at an EURGBP exchange rate of 0.865618, unless overridden per portfolio by an event instruction.

```json
[
  {
    "instrumentEventId": "CapitalDistribution-2026-03-25",
    "instrumentIdentifiers": {
      "Instrument/default/Isin": "IE0000669501"
    },
    "description": "Capital distribution of 0.1594 EUR per share, paid in GBP by default",
    "participationType": "MandatoryWithChoices",
    "instrumentEvent": {
      "instrumentEventType": "CapitalDistributionEvent",
      "announcementDate": "2026-02-24T00:00:00.0000000+00:00",
      "exDate": "2026-03-25T00:00:00.0000000+00:00",
      "recordDate": "2026-03-26T00:00:00.0000000+00:00",
      "paymentDate": "2026-05-17T00:00:00.0000000+00:00",
      "cashElections": [
        {
          "electionKey": "Euro",
          "dividendCurrency": "EUR",
          "dividendRate": 0.1594,
          "isDeclared": true,
          "isDefault": true,
          "isChosen": false
        },
        {
          "electionKey": "GreatBritishPounds",
          "dividendCurrency": "GBP",
          "exchangeRate": 0.865618,
          "isDeclared": false,
          "isDefault": false,
          "isChosen": true
        }
      ]
    }
  }
]
```