Understand Investment Funds distributions

A distribution is profit earned by an investment fund and paid to investors.

Throughout the financial year, an investment fund will earn income from its investments. These could be in the form of:

• dividends
• interest and
• foreign income.

The investment fund may also make gains or losses when investments are sold.

You have the option to either:

1. reinvest your distribution. This means you reinvest all distributions in additional units in the fund from which the income was earned, or
2. receive a payment in the form of income. This will be deposited to your nominated bank account.

You can change between the options at any time. You can do this by logging in to Member Online or by completing the Member details form.

Depending on the investment fund you have invested in, distributions will be paid at different times.

Quarterly distribution payments

The following investment funds distribute the net income of each Fund at the end of each September, December, March and June quarter:

• Cash Fund
• Fixed Interest Fund
• Capital Stable Fund
• Moderate Fund
• Balanced Fund.

Half-yearly distribution payments

The following investment funds distribute the net income of each fund half yearly, as at the end of December and June:
 

• Growth Fund
• Australian Equities Fund
• International Equities Fund.

How much you receive will depend on:
 

• which investment funds you hold and the number of units held in each fund
  
• the amount that is distributed per fund, also known as 'cents per unit'.

An investment fund does not generally pay tax, unless in certain circumstances.

However, any money you earn on investments is considered income. You’ll need to declare it as part of your tax return.

You can access your tax statement on your Member Online at the end of the income year.