Each Fund has an option for the payment of distributions. For example, the Single Trust Funds pay monthly distributions while the Tax Class Funds have a variety of options based on our unique Tax Classes. The chart below provides an overview of the annualized distribution rates per share/unit and the payment frequency.
This chart is designed to provide a summary view of the Fund distributions. For more details, please read the Simplified Prospectus.
The payment of distributions for Dividend and Return of Capital should not be confused with a mutual fund’s performance, rate of return or yield. If distributions paid by a mutual fund are greater than the performance of the fund, then the investment will decline. Distributions paid as a result of capital gains realized by a mutual fund and income and dividends earned by a fund are taxable in the investor’s hands in the year they are paid. For Return of Capital, the adjusted cost base will be reduced by the amount of any returns of capital. If the adjusted cost base goes below zero, then investors will have to pay capital gains tax on the amount below zero.