PAYABLE DATE

PAYABLE DATE
Payable date is the date on which a dividend is paid by the paying agent.

RECORD DATE

RECORD DATE
Record date is the date set by a fund's Board of Director's which determines eligibility to receive a currently declared dividend. Those parties who are "on record" with the fund's transfer agent on this date will receive the dividend, regardless of whether they are entitled to it. Record date usually occurs four business days after ex-date.

EX-DATE

EX-DATE
Ex-date is the date which determines whether the owner of a fund is entitled to the current dividend. The holder of a fund is eligible to receive a dividend if the fund is owned prior to the beginning of trading on ex-date.
Also, on ex-date the price of the fund should drop by the approximate amount of the dividend. NOTE: If a fund is purchased on or after ex-date, the new owner is NOT eligible to receive the current dividend.

DECLARATION DATE

DECLARATION DATE
Declaration date is the date on which a fund announces that a dividend will be paid to the fund's shareholders. All dividends must be authorized by the Board of Directors

INCOME DISTRIBUTIONS

INCOME DISTRIBUTIONS
Income that the mutual fund earns from interest or dividends generated by the fund's portfolio less the fund's expenses is distributed to the fund's shareholders. This is taxed by U.S. Government as ordinary income

CAPITAL GAINS DISTRIBUTIONS

CAPITAL GAINS DISTRIBUTIONS

Capital Gains are the profits made by a mutual fund's portfolio. They are created when a security is sold for a higher price than was paid for its purchase. Mutual funds, as registered investment companies, do not have to pay taxes on these gains. All capital gains are annually distributed to the fund's individual share holders who then become liable for the tax consequences of the mutual fund's activity. These distributions are normally made towards the end of the year. This money is taxed by the U.S. Government as a capital gain.Capital losses are not distributed annually. They are carried forward and used to offset future capital gains.

Expense Types

Expense Types

• Fixed Expenses remain constant and only change when the client sends written authorization confirming a new factor.
  
• Variable Expenses usually fluctuate with the total net assets of the funds. The client provides a ratio that the Fund Groups use as a basis point to calculated the daily accrual amounts.
  

For more detail, please see your area's specific Standard Operating Procedure.