A corporate action is an elective activity that impacts the shareholders and/or bondholders of a company, for example a dividend, stock split or spin off.
You can create a corporate action source in LUSID and upload your stream of corporate actions from an external provider to it. You can then subscribe any number of transaction portfolios to the corporate action source, and LUSID automatically applies corporate actions to portfolios with holdings in the underlying instruments on appropriate dates.
For example, you could upload a corporate action representing a Microsoft cash dividend of $0.20 per share that has an ex-dividend date of 6 February and a payment date of 10 February. For each portfolio with a holding in Microsoft on 6 February, LUSID automatically increases the cash balance by 20 cents per unit held on 10 February (or an equivalent amount in an elective currency). See this in action.
LUSID is transitioning to a model where corporate actions have dedicated events, for example CashDividendEvent, DividendReinvestmentEvent and AccumulationEvent. If a dedicated event isn't available yet, you can continue modelling any kind of corporate action as a TransitionEvent.
Providing you have appropriate permissions, you can create a corporate action source and upload corporate actions to it using the LUSID web app, via the Data Management > Corporate Actions dashboard:
Alternatively, you can perform these operations programmatically:
- Using the APIs in the Corporate Action Sources collection.
- Using equivalent methods in the SDKs in various languages.
- If you have a Luminesce license, using dedicated read and write providers.
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