Author Topic: Help interpreting jargon  (Read 398 times)

settlement

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Help interpreting jargon
« on: March 15, 2017, 08:44:15 PM »
Hi all,

In my ETF's factsheet it says

Distribution frequency: None.

Does this mean it does not pay dividends?


Mr. Rich Moose

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Re: Help interpreting jargon
« Reply #1 on: March 15, 2017, 10:29:08 PM »
Hi all,

In my ETF's factsheet it says

Distribution frequency: None.

Does this mean it does not pay dividends?

This would normally mean the fund does not intend on paying an distributions on a regular basis. There should be more details in the prospectus regarding distribution policies. For example in what circumstances the fund would pay a distribution, if it intends to pay any distributions at all, and in what forms of income the distribution would pay.
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settlement

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Re: Help interpreting jargon
« Reply #2 on: March 15, 2017, 11:00:50 PM »
The only other info I can find is that it says: use of income: accumulating

But I still thought that these would show up on my statements (there is nothing on them)

https://www.ishares.com/uk/individual/en/literature/fact-sheet/swda-ishares-core-msci-world-ucits-etf-fund-fact-sheet-en-gb.pdf

Mr. Rich Moose

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Re: Help interpreting jargon
« Reply #3 on: March 16, 2017, 10:00:54 AM »
The only other info I can find is that it says: use of income: accumulating

But I still thought that these would show up on my statements (there is nothing on them)

https://www.ishares.com/uk/individual/en/literature/fact-sheet/swda-ishares-core-msci-world-ucits-etf-fund-fact-sheet-en-gb.pdf

I took a look at the prospectus and it confirms no distributions are intended to be made on accumulating class ETFs. Basically all income is rolled back into the fund.

Essentially you are investing in a total return type product.
"Moostachian" Blogging Canadian Finance
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settlement

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Re: Help interpreting jargon
« Reply #4 on: March 16, 2017, 06:30:11 PM »
Is the idea behind this that distributions are not declared and hence don't trigger taxable events?

Heckler

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Re: Help interpreting jargon
« Reply #5 on: March 17, 2017, 07:53:13 AM »
It might be similar to this article. No, I did not look at your specific fund.

http://canadiancouchpotato.com/2017/02/17/a-new-etf-structure-for-accumulators/