Isnin, 7 Jun 2010

Ditribution 2010

Distribution 2010

* Fund total return includes both realized & unrealized gains/losses.

** Distributions can only be paid out of realized gains which include net capital gains on disposal of stocks, & dividends & interest received.

Distribution yield is generally higher among the moderate funds especially in the case of Public Dividend Select Fund which aims to provide steady recurring income by investing in stocks which offer or have the potential to offer attractive dividend yields.

Another reason for the very attractive gross distribution yield of 11.9% calculated above for Public Dividend Select Fund is due to its lower Net Asset Value on 1 June 2010 after the recent market drops due to the EU financial crisis. This means that this is a good opportunity to get more units if u invest NOW. Eventually, when u need cash flow income in your retirement, dividend type of funds will be most suitable & the more units u have, the more distributions u will receive as distributions are paid on units

U will also note that some funds have higher distributions than returns. Distributions are paid out of gains realized throughout the financial year whereas returns are based on a beginning date & an end date, & if the end date value is lower than the beginning date value, the return will show a loss. The fund manager has the discretion to pay distributions or retain the realized gains to offset the unrealized losses & they will act according to their fund management principles & strategies.

Pls do let me know if u or your elderly friends / parents / uncles aunts (who are living on their FD interest which is currently only about 2.75%) would like to invest for distribution yields. (Distributions can be paid out annually to investors if they so choose.) The above yields on the dividend & bond funds show that this is a good time to invest into these funds as u will get more units which will in turn give u more distributions later.

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