By Scott Ronalds

A quick reminder that with the exception of the Savings Fund, the year-end distributions of all our funds will be calculated on December 15th and paid on December 16th. The distribution for the Savings Fund will be calculated on December 31st.

Distributions represent the mechanism whereby mutual funds transfer to unitholders any interest and dividend income, along with any return of capital (ROC) and realized capital gains they have accrued over the course of the year.

Remember that immediately following a distribution, the price of a fund drops by an amount equivalent to the payment. However, you will receive additional units in the fund which are equivalent in value to the amount of the distribution. The end result is that the value of your investment doesn’t change, but you own more units in the fund at a lower unit price.

For example, assume you own 100 units in a fund that is valued at $10.00/unit (your investment is worth $1,000). If the fund pays a distribution of $0.10/unit, its price will drop to $9.90 following the distribution. However, you will receive an additional 1.01 units in the fund ($0.10/$9.90), so the value of your investment remains unchanged (101.01 units x $9.90/unit = $1,000).

The estimated distributions for our funds are as follows:

• Income Fund: $0.12/unit
  
• Equity Fund: $0.05/unit
  
• Global Equity Fund: $0.04/unit
  
• Small-Cap Equity Fund: $0.08/unit

Please note that these are only estimates and are subject to change.

If you have any questions about distributions, feel free to give us a call at 1-888-888-3147.