Fund companies have been starting to distribute and update their estimated 2018 distributions/capital gains estimates.With that in mind we thought it would be helpful to provide a few, important bullet points:
- Each client’s tax situation is different and a tax professional should be engaged as needed. This article is not intended as tax advice.
- During this time of year especially, pay attention to the record and pay dates for distributions.
Specifically, when making new purchases this time of year, try to avoid buying into the distribution, a scenario where you are buying an investment after the record date but before the payable date, thus subjecting the client to the NAV drop from the distribution but not receiving the distribution.
- Similarly, if an investment has a relatively large distribution, try to avoid buying into the investment before the record date and pay date so the client doesn’t receive a distribution from a security they really haven’t held throughout the year.
Below are links to the distribution schedules for some of the fund companies we use most often. Please note these websites include estimates and those estimates are subject to change so be sure to check back as needed.
And for advisors approved for Dimensional Funds:
If you have any questions please email firstname.lastname@example.org or call (360) 301-7579.
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About XY Investment Solutions, LLC
XY Investment Solutions, LLC (“XYIS”), through its partnership with East Bay Financial Services, LLC (“East Bay”), builds investment models through a technology solution, and supports financial planners with investment strategies based on research, experience, and sound rationale. XYIS primarily allocates client assets among various mutual funds and/or ETFs. XYIS may also allocate client assets in individual debt and equity securities, options and independent investment managers. XYIS's services are based on long-term investment strategies incorporating the principles of Modern Portfolio Theory. XYIS manages client investments in portfolios on a discretionary basis.
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