Will I earn dividends and distributions on my Investment portfolio?

Some of our investment funds each invest in companies that may pay dividends (a share of the company’s earnings) to shareholders.

If a company pays a dividend, it will be treated as income by the relevant fund, and will generally be distributed to unitholders in the portfolio annually.

To be eligible for a distribution, you must be a unitholder — that is, you must be invested in the fund — on the distribution calculation date. The distribution calculation date generally takes place annually, and is on or around 30 June each year.

Why didn’t I receive a distribution?

If you withdraw your entire balance before the annual distribution calculation date, you will not receive a distribution.

However, because dividends are treated as income, they are reinvested in the portfolio and this is reflected in the unit price.

On the distribution date, we deduct the total distribution from the portfolio, which in turn, reduces the unit price of the portfolio. So, while you will not receive a distribution, your share of the portfolio’s income is reflected in the unit price you receive when you withdraw your balance.