The fund's dividend rules
- Eligibility: Subscriptions must generally be completed before 9:00 AM on the "Record Date" specified in the fund announcement to qualify for the dividend distribution. Specific requirements are subject to the trading rules of each individual money market fund.
- Distribution Options: Options include Cash Dividends and Dividend Reinvestment.
Cash Dividend: The fund's Net Asset Value (NAV) decreases while the number of units held by the client remains unchanged. Cash equivalent to (NAV Decrease × Units Held) is deposited into the client's securities account, which can be tracked in the account transaction history.
Dividend Reinvestment: Cash dividends are automatically converted into additional fund or investment product units. Consequently, the client's total unit holdings will increase following the reinvestment.
- Payout Timeline: There is typically a 2-5 days delay between the dividend announcement date and the actual date funds arrive in the account, as time is required for US clearing and settlement institutions to process the transaction.
- Special Cases: For certain funds, the Record Date may occur after the Ex-Dividend Date. Please refer to the detailed rules of each fund for specific terms.
