Switzer Dividend Growth Fund Distribution

The Switzer Dividend Growth Fund is to pay a $0.98 dividend on the 28/4/17 franked to $0.88. Whilst pleasantly surprised, I am concerned that the fund is paying out of its capital? My super fund holds shares hence the query.

Regards

A: Thanks for the question.

I wish we were paying a $0.98 distribution, but it is in fact $0.0098 per unit (approx. 1c per unit). 89.5% will be franked, meaning that the franked component is $0.0088 per unit.

I can assure you that we are not paying out of capital. The distribution represents the net income received from the period of 24 February to 31 March.

Best regards


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