This guide explains why Raiz distributions and reinvestments can differ from Navexa, and what to check when reconciling your portfolio.

A Raiz Investment Account is an interest in the Raiz Invest Australia Fund, rather than a separate CHESS Holder Identification Number (HIN) for each underlying ETF.

Raiz allocates fractional interests in ETF units to individual accounts. The underlying whole units can be held in a pooled account with the custodian.

This structure allows Raiz to invest small amounts across a selected portfolio without waiting until there is enough cash to buy a whole ETF unit.

Raiz automatically reinvests distributions received from the underlying investments allocated to your account into your Raiz Investment Account.

Raiz calculates account income daily and states that it is automatically reinvested within two business days of calculation. Reinvested income can still be taxable income.

This is different from receiving a cash distribution and participating directly in an ETF provider’s Dividend Reinvestment Plan (DRP).

An issuer-operated DRP uses the ETF provider’s own price and allocation rules for that ETF.

Raiz reinvests income through its account and portfolio structure. Its use of fractional allocations, portfolio rebalancing and transaction netting can mean an account’s reinvestment is not a purchase of more units in the ETF that paid the distribution.

The reinvested amount, transaction date, price, fractional units and investments receiving the money can therefore differ from the official DRP information published by an ETF provider.

Navexa records dividends and distributions from your holding quantity, trade history and the income data available for each security.

For a holding represented in a Raiz portfolio, Navexa may initially show the underlying ETF’s distribution and official DRP information instead of Raiz’s account-level reinvestment activity.

How Navexa Adds Dividends And Distributions explains how Navexa uses holding history and available income data.

A difference does not necessarily mean the underlying distribution is wrong. It can mean Raiz and Navexa are representing what happened after the distribution differently.

First identify whether the difference is in the underlying distribution or in the way Raiz reinvested the income.

If the original income amount matches but the units or reinvestment transactions do not, the difference is likely to be Raiz’s reinvestment process rather than the underlying distribution.

The ETF provider’s published DRP information describes the provider’s own reinvestment plan. It does not necessarily describe how Raiz reinvested income inside your Raiz Investment Account.

Use the account-specific information provided by Raiz when you need to reproduce the transaction that occurred in your Raiz account.

Reinvesting a distribution does not mean the income can be ignored for tax purposes.

Raiz provides an annual tax statement after 30 June that includes taxable distributions. Use that statement to reconcile the final tax information for the relevant financial year.

Remember, this is general information, not personal financial advice.

If many Raiz distributions or reinvestments do not match, contact Navexa Support with one clear example before changing a large number of records.