Distributions

A - Minimum compliance

Where applicable, members should disclose:


  1. Their policy for income and capital distributions.
  2. Where it is their policy to distribute income:
    a. The frequency of their distributions
    b. Requirements for withholding tax
    c. The timing of the distributions and the date on which the units/participations in the fund are declared “Ex” distribution
    d. The expected timing of the payment of the distributions.
  3. The fund should calculate its distribution yields by expressing the income distributions (gross of tax) per unit over the previous 12 months as a percentage of their net asset value per unit as at the end of the period.

 

B - Best practice


  • Income distributions should be paid on fixed dates within two months of the end of the related distribution period, unless otherwise agreed with investors.
  • Capital distributions should be distributed as soon as practicable unless the fund permits otherwise.
  • Members should disclose whether they have the ability to defer/suspend distributions; if so, any suspensions should be reported on a regular basis.