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  • Distribution fee

    A distribution fee is the annual service fee paid by the fund company to the seller or distributor of the fund. This fee is paid to the distributor as long as you hold units in the fund. These fees generally range between 0.25% and 1%, and are paid from the ongoing costs of the fund. A distribution fee is a fee for services. This means that the seller or distributor must provide services to the purchaser of the fund, such as answering any questions he might have about the performance of his fund, the free provision of mandatory documents and most recent NAV.

  • Distributor

    The distributor, also known as the fund underwriter of the fund, is the company that distributes the shares of the fund. This task usually includes offering the fund distributing fund literature, including KIID. This is what MeDirect does.

  • Dividend Option

    Distribution of a dividend to shareholders with a choice to receive shares or cash. To be distinguished from dividend reinvestment, here the company creates new share capital in exchange for the dividend rather than investing the dividend in the market.

  • Dividend Reinvestment

    Dividend payment where holders can keep cash or have the cash reinvested in the market by the issuer into additional shares in the issuing company. To be distinguished from a dividend option event, the company invests the dividend in the market rather than creating new share capital in exchange for the dividend.