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Learning, Sharing, and Teaching => Investor Alley => Topic started by: settlement on March 15, 2017, 08:44:15 PM

Title: Help interpreting jargon
Post by: settlement 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?

Title: Re: Help interpreting jargon
Post by: RichMoose 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.
Title: Re: Help interpreting jargon
Post by: settlement 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
Title: Re: Help interpreting jargon
Post by: RichMoose 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.
Title: Re: Help interpreting jargon
Post by: settlement 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?
Title: Re: Help interpreting jargon
Post by: Heckler 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/