We often get a number of questions about unit pricing and distributions around the end of the financial year. Here are the most frequently asked questions:
Are all Funds distributing at the end of the financial year?
Yes, we expect that our managed funds will be making a distribution for the financial year ending 30 June 2020.
When can I expect to receive my distribution?
Investors who have nominated to have their distribution paid to a bank account can expect payment on or around Wednesday 15 July 2020.
Investors who have chosen to reinvest their distributions will have additional units applied to their account on 1 July 2020. Please note that the processing times will mean there will be a delay before you see these additional units in your account.
When can I expect to receive my end-of-year statement?
End-of-year statements will be sent to you in mid-July 2020. This statement pack will consist of a distribution statement and tax statement together with a periodic statement that details all transactions on your investment over the last year.
Can I change my nominated bank account now for the distribution payment?
Yes. We require written notice on or before 24 June 2020 to change a nominated bank account for the distribution payment to meet the 30 June 2020 deadline. Please download and complete the ‘Change of details’ form to change your bank account details.
Why does a Fund’s unit price fall after a distribution?
A Fund’s unit price reflects the value of the Fund’s investments together with any income accrued but not yet distributed to investors. After a distribution is paid to investors, the value of the Fund falls by the amount of income that’s distributed to investors. This means that whilst it may appear your investment is worth less on the day after the distribution, you actually have received the difference as income so the net impact for the investor is nil. This is shown in the chart.
Source: Allan Gray. For illustrative purposes we have assumed the unit price increases at a constant rate. This is unrealistic, as investment performance doesn’t follow a straight line. We have also ignored any tax implications for simplicity.
What should I do if I have any further questions?
Our Client Services team can answer any general questions relating to our products and can be contacted on 1300 604 604 or at [email protected]. For details on how earnings on your investments may affect your personal tax position, we recommend you talk to a tax specialist or accountant.
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Equity Trustees Limited ABN 46 004 031 298, AFSL No. 240975 is the issuer of units in the Allan Gray Australia Balanced Fund ARSN 615 145 974, Allan Gray Australia Equity Fund ARSN 117 746 666 and Allan Gray Australia Stable Fund, ARSN 149 681 774 (Allan Gray Funds) and units in the Orbis Global Equity Fund (Australia registered) ARSN 147 222 535, Orbis Global Equity LE Fund (Australia registered) ARSN 613 753 030 and Orbis Global Balanced Fund (Australia registered) ARSN 615 545 170 (Orbis Funds). Allan Gray Australia Pty Limited ABN 48 112 316 168, AFSL No. 298487 is the investment manager of the Allan Gray Funds.
Past performance is not a reliable indicator of future performance. There are risks involved with investing and the value of your investments may fall as well as rise. This represents Allan Gray Australia Pty Limited and Orbis Investment Advisory Pty Limited’s view at a point in time and may provide reasoning or rationale on why we bought or sold a particular security for the Allan Gray or Orbis Funds or our clients. We may take the opposite view/position from that stated, as our view may change. If this article is authored by Orbis, it does not prohibit the Orbis Funds from dealing in the securities before or after this article is published. This article constitutes general advice or information only and not personal financial product, tax, legal, or investment advice. It does not take into account the specific investment objectives, financial situation or individual needs of any particular person and may not be appropriate for you. We have tried to ensure that the information here is accurate in all material respects, but cannot guarantee that it is.
You should consider the relevant funds’ Product Disclosure Statement (PDS) or Information Memorandum (IM), as applicable, before acquiring, holding or disposing units in the Allan Gray or Orbis Funds. The PDS or IM can be obtained from
www.orbis.com.au and www.allangray.com.au.
Target Market Determinations (TMDs) for the Allan Gray products can be found at
allangray.com.au/PDS-TMD-documents,
while TMDs for the Orbis Funds can be found at www.orbis.com.au on the 'Forms' page under 'How to Invest'. Each TMD sets out who an investment in the relevant Allan Gray or Orbis Funds might be appropriate for and the circumstances that trigger a review of the TMD.
Managed investment schemes are generally medium to long-term investments. They are traded at prevailing prices and the value of units may go down as well as up. There are risks with investing the Fund and there is no guarantee of repayment of capital or return on your investment. Subject to relevant disclosure documents, managed investments can engage in borrowing and securities lending. A schedule of fees and charges is available in the PDS.
