What happens to dividend payments? How and when do investors receive dividend?
The manager of a tracker fund receives dividend from the constituent shares in the index, which is then paid out to the holders of trackers. Trackers do not pay dividend unless the constituent shares pay dividend. Some trackers have a different dividend policy because they use synthetic constructions to ensure compliance with EU regulations governing investment funds. Dividends can either be paid out or reinvested, depending on the individual tracker. More information on the dividend policy used for an individual tracker can be found in the relevant prospectus.
