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 clientservices@allangray.com.au. For details on how earnings on your investments may affect your personal tax position, we recommend you talk to a tax specialist or accountant.