Royal London Short Term Money Market Fund Y Inc

Barbados7

Just another clarification regarding the RL STMM income fund, if I may?

If a purchase of the fund had been made on the 1st of the month, let's say 1st December, would the expectation be that an interest payment for that specific fund purchase would still be made on the last working day of December (31st)?

If not, as the XD could have occurred on 1st December, or a subsequent first working day of the month, would any interest earned during December then be deferred and added together with a payment for interest covering the following month of January and therefore paid as one overall interest payment for both December and January combined at the end of January please?

Thank you.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81897795#Comment_81897795

If you buy it before it goes ex-dividend you'll receive the next distribution, if you buy it after you won't. When it goes ex-dividend the unit price of fund will drop by a similar amount to the upcoming distribution.

Barbados7

https://forums.moneysavingexpert.com/discussion/comment/81897812#Comment_81897812

Thank you for this, so if bought after it goes XD during the specific month, then you won't receive any interest for that month, but you will effectively buy the fund at a lower price than at the pre-XD date. Balancing it out really.