Dividend Data and Time Held

nxdmsandkaskdjaqd

If a fund has bi-annual dividend date, how long do I have to hold the fund to receive the dividend?

The specifics are: fund purchased 30 April, ex-dividend date of the 1 July 2019. Am I due the dividend? Or is it prorata?

masonic

For a fund, you will initially receive Group 2 units. These units will entitle you to an equalisation payment (treated as a return of capital for tax purposes) of any income accrued within the fund up to that point. You will then begin to earn income on your holding. Your next dividend payment will consist of the equalisation payment plus the income you have earned, which will add up to the total dividend payable. The equalisation payment is to compensate you for buying the fund at a price which includes accrued income.

From the ex-dividend date your Group 2 units will become Group 1 units and all of the income accrued within the fund from that point will be paid to you as income.

ColdIron

You won't receive the dividend on the ex date. If you hold the fund on the ex date you are entitled to the dividend which will be paid, in the manner that masonic describes, on the payment date, a few weeks or perhaps a couple of months later

dividendhero

masonic wrote: »

For a fund, you will initially receive Group 2 units. These units will entitle you to an equalisation payment (treated as a return of capital for tax purposes) of any income accrued within the fund up to that point. You will then begin to earn income on your holding. Your next dividend payment will consist of the equalisation payment plus the income you have earned, which will add up to the total dividend payable. The equalisation payment is to compensate you for buying the fund at a price which includes accrued income.

From the ex-dividend date your Group 2 units will become Group 1 units and all of the income accrued within the fund from that point will be paid to you as income.

Have seen that on my UT statements, never really took it in before shredding them

It does seem a bit of an over engineered way of paying out distributions. Nothing wrong with plain ex divi data al a shares