What are the important dates surrounding a dividend or distribution?
A shareholder must own shares on the record date in order to be entitled to distributions. The following business day is the ex-dividend date, when distributions or capital gains are deducted from the fund’s assets or set aside to be paid to the shareholder. On this day, the fund’s net asset value decreases by the amount of distribution to be paid out, plus or minus any market activity. The distributions are actually scheduled to be paid on the payable date.
