Has anyone invested in the beta shares AU 200?
Been watching it for 12 months and the return is still less than the VAS equivalent (300 shares).
looks like the the distributions are looking more like the VAS levels for the last 3 distributions. But the total for the 12 months is about a dollar less for beta shares compared with VAS. But VAS cost $79 vs $104 for beta shares.
So the dividend yield is 4.8% for VAS and 2.6% for beta shares.
Not sure why there should be so much difference. Any ideas anyone?
A200 is quite new right? This means as it grows it will have a lot of new unit holders coming in over a given quarter.
Consider for (ridiculous, but not too ridiculous) example if in January through to November the fund size was $10m. The fund may have earned $400,000 of dividends in that time (4% yield).
In December, a big investor comes into the fund and applies for $10m of units. Suddenly the fund size is $20m.
On 31 December, the fund pays a distribution of its income for the year. The distribution is $400,000, spread over $20m of unit holders. So all of a sudden, the yield is 2%.
Depending on the ability of the fund to implement the AMIT tax regime (which attempts to correct for distortions like this), your distribution may be affected by large inflows and outflows, especially early on in the life of a fund.