Ch8 S5

Front 1

Capitial gains distributions from the fund company are:

Back 1

1.Derived from REALIZED LT gains
2.ALWAYS LT to the inv
3.Taxable each year REGARDLESS of how they are taken
4.Must be paid out 100% to inv,at least once a year
5.When paid, reduce the NAV of the fund
6,Reinvested at NAV,no sales charge

Front 2

Investment income or dividends from shares owned:

Back 2

1.Derived from dividends, interest and ST gains
2.ALWAYS taxed as ORDINARY INCOME
3.Fund deducts its operating expense prior to paying company
4.Reinvestment will increase CB
5.Dividend distributions may be reinvested at POP or less

Front 3

Regulated investment companies

Back 3

Funds which pay out 90% of net inv invcome which means they are exempt from paying tax on dividends distributed but pay tax on dividends not distributed

Front 4

The ex-dividend for a MF is set by:

Back 4

the fund

Front 5

MF expense ratio measures:

Back 5

1.The funds operating efficiency or operating cost

formula:
operating expenses/avg net assets

Front 6

Total return on a MF:

Back 6

Considers the funds dividends, CG and CL.
-Considered to be the best measurement of a funds performance