Fund Dividends

lemon26

Hi All,

Hopefully someone in the know will be able to explain about dividends to me please? I'm invested in the Invesco Perptual Corporate Bond Inc (with income re-invested) and the income distribution date is 31 Dec (and 30 Jun) with the accounting period ending 31 Oct (and 30 Apr) - does this mean that I will receive income based on my holding in the fund on 31 Oct of this year? Which yield figure will this be based on?

Thank you for taking the time to read this and I hope you have a Happy New Year! L

RayWolfe

You will receive the dividend (more correctly interest on a bond fund) on the distribution dates. As you have asked for reinvestment, you wont actually take possession of any cash. If the fund is in an ISA you will receive (not physically) a tax refund a couple of months later.
The yield figure you are seeing is the historic yield. The actual yield will be announced on the accounting date (ex-dividend date) and you income will be based upon the number of units you hold on that date.

Richard_DandR

The accounts for the period end 31 October 2009 are on their website:

http://investor.invescoperpetual.co.uk/UK/onshoreliterature/FixedInterestlong%28interim%29.pdf

The net distribution rate is 1.6980p per income unit and the income tax is 0.4245p (see page 24).

So if your holding was 1,000 shares at the xd date, the income distribution would be £16.98. If reinvested at the current price (78.43p), that would give you another 21.65 shares.

When the tax is refunded and reinvested (if held in an ISA) that would give you another 5.41 shares, depending what the reinvestment price is at that date.

Prices used are illustrative as I don't know which date will be used for reinvestment and there is no mention in the Invesco prospectus of reinvestment.

barak

Richard_DandR wrote: »

The accounts for the period end 31 October 2009 are on their website:

http://investor.invescoperpetual.co.uk/UK/onshoreliterature/FixedInterestlong%28interim%29.pdf

The net distribution rate is 1.6980p per income unit and the income tax is 0.4245p (see page 24).

Anyone looking for any fund's Dividend/Interest distributions might like to know - if they don't already - that you can [usually!] find them on the Trustnet site, which I find very useful.

For example, the following confirms Richard DandR's figure of 1.698p per unit for the IP Corporate Bond Fund.

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=PPPB&univ=U&typeCode=FPPPBI&pagetype=dividends

Just be careful to select the correct 'version' of the fund - as can be seen, there are six different versions of this one.

Richard_DandR

Just a thought.

If this is a comparatively new investment, bought between 1 May 2009 and 31 October 2009, the distribution would be based on the Group 2 figures in the accounts.

Thus, the cash distribution would still be £16.98 (per 1,000 shares) but this would be made up of equalisation (in effect a capital repayment) of £7.26 and income distribution of £9.72. The tax refund (if held in an ISA) would then be reduced to £2.43.

If bought before 1 May 2009, you hold Group 1 shares for this distribution and the figures referred to earlier would apply. You would also have received a distribution on 30 June 2009.