What are distributions?<\/h2>\n<\/div>\n\n\nDistributions from mutual funds can contain any of the following: interest income, dividends, realized capital gains, return of capital, withholding taxes, foreign income, among others. If a mutual fund only holds dividend-paying stocks, the distributions are likely to be composed primarily of dividends, not interest income.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhy do mutual funds have distributions?<\/h2>\n<\/div>\n\n\nTax efficiency is a key reason mutual funds distribute cash to clients. Mutual funds are structured as unit trusts which means they benefit from a non-taxable status provided they distribute earned capital gains and income within the calendar year. Investors must pay tax on these distributions however the individual will pay tax at their own marginal tax rate which is usually lower than the fund\u2019s marginal tax rate. Distributions received in a registered account, such as a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Plan (TFSA), are not subject to taxation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhat are the sources of the distributions?<\/h2>\n<\/div>\n\n\nThe types of investments held in the fund determine the source of the distributions. For example, a fund invested in fixed-income assets such as bonds or money markets, will receive interest from them and distribute interest income. Funds invested in dividend-paying equities, will receive distributions in the form of dividend income and distribute dividend income. Funds may generate capital gains from selling investments and distribute likewise. Funds may also invest in assets that do not make distributions.<\/p>\n
![\"\"](\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2023\/11\/Distributions-calculation-1-1024x159.jpg\")
<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions calculated?<\/h2>\n<\/div>\n\n\nUnitholders receive distributions based on the number of units they hold on the \u201crecord date\u201d. Example: If you held 100 mutual fund units on the record date, and the distribution was $0.50 per unit, you would receive a distribution of $50.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhat effect do distributions have on the value of the fund and on my investments?<\/h2>\n<\/div>\n\n\nA distribution reduces the net asset value (NAV) of the fund by the exact amount that was paid out. This does not affect your portfolio value when you leave the funds in a tax-exempt account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions taxed?<\/h2>\n<\/div>\n\n\nIn non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
\n\n\n\n\n\n\n\nDistribution Option<\/strong><\/td>\nImpact on Fund Value <\/strong><\/td>\nImpact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n\nOption 1: Cash Distribution<\/td>\n Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n \nOption 2: Reinvested Distribution<\/td>\n Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<\/h2>\n![\"\"](\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2023\/11\/Distributions-example-1024x461.jpg\")
<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n\nAt Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n
Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n
\n\nFonds actions<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds d\u2019opportunit\u00e9s \u00e0 petites capitalisations Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nPender Small\/Mid Cap Dividend Fund<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds de valeur Pender<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nFonds Revenu Fixe<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds univers obligataire Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds d\u2019obligations de soci\u00e9t\u00e9s Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nBalanced Fund<\/strong><\/p>\n<\/div>\n
\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds strat\u00e9gique de croissance et de revenu Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\nFonds alternatifs liquides<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds alternatif \u00e0 rendement absolu Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage plus Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de revenu multistrat\u00e9gie Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de situations sp\u00e9ciales Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n
Mutual Fund Distributions: What investors need to know - PenderFund Capital Management<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\" \/>\n<meta property=\"og:description\" content=\"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"PenderFund Capital Management\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/penderfund\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T20:09:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-22T15:21:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelsey Wokke\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@penderfund\" \/>\n<meta name=\"twitter:site\" content=\"@penderfund\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelsey Wokke\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"author\":{\"name\":\"Kelsey Wokke\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\"},\"headline\":\"Mutual Fund Distributions: What investors need to know\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"wordCount\":936,\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"articleSection\":[\"Education\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"url\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"name\":\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\"},\"inLanguage\":\"fr-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/staging.penderfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Fund Distributions: What investors need to know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/staging.penderfund.com\/#website\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"name\":\"PenderFund Capital Management\",\"description\":\"Forward thinking. Finding value.\",\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/staging.penderfund.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/staging.penderfund.com\/#organization\",\"name\":\"PenderFund Capital Management\",\"alternateName\":\"PenderFund\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"width\":850,\"height\":250,\"caption\":\"PenderFund Capital Management\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/penderfund\/\",\"https:\/\/x.com\/penderfund\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\",\"name\":\"Kelsey Wokke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"caption\":\"Kelsey Wokke\"},\"url\":\"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"fr_CA","og_type":"article","og_title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","og_description":"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]","og_url":"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/","og_site_name":"PenderFund Capital Management","article_publisher":"https:\/\/www.facebook.com\/penderfund\/","article_published_time":"2023-11-30T20:09:36+00:00","article_modified_time":"2025-09-22T15:21:10+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","type":"image\/jpeg"}],"author":"Kelsey Wokke","twitter_card":"summary_large_image","twitter_creator":"@penderfund","twitter_site":"@penderfund","twitter_misc":{"\u00c9crit par":"Kelsey Wokke","Estimation du temps de lecture":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"author":{"name":"Kelsey Wokke","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33"},"headline":"Mutual Fund Distributions: What investors need to know","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","mainEntityOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"wordCount":936,"publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","articleSection":["Education"],"inLanguage":"fr-CA"},{"@type":"WebPage","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","url":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","name":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","breadcrumb":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb"},"inLanguage":"fr-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/staging.penderfund.com\/"},{"@type":"ListItem","position":2,"name":"Mutual Fund Distributions: What investors need to know"}]},{"@type":"WebSite","@id":"https:\/\/staging.penderfund.com\/#website","url":"https:\/\/staging.penderfund.com\/","name":"Gestion de capital PenderFund lt\u00e9e","description":"Forward thinking. Finding value.","publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/staging.penderfund.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-CA"},{"@type":"Organization","@id":"https:\/\/staging.penderfund.com\/#organization","name":"Gestion de capital PenderFund lt\u00e9e","alternateName":"PenderFund","url":"https:\/\/staging.penderfund.com\/","logo":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","width":850,"height":250,"caption":"PenderFund Capital Management"},"image":{"@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/penderfund\/","https:\/\/x.com\/penderfund"]},{"@type":"Person","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33","name":"Kelsey Wokke","image":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","caption":"Kelsey Wokke"},"url":"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/"}]}},"_links":{"self":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/comments?post=69734"}],"version-history":[{"count":10,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions"}],"predecessor-version":[{"id":70527,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions\/70527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media\/69163"}],"wp:attachment":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media?parent=69734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/categories?post=69734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/tags?post=69734"},{"taxonomy":"fund-type","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/fund-type?post=69734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Distributions from mutual funds can contain any of the following: interest income, dividends, realized capital gains, return of capital, withholding taxes, foreign income, among others. If a mutual fund only holds dividend-paying stocks, the distributions are likely to be composed primarily of dividends, not interest income.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Why do mutual funds have distributions?<\/h2>\n<\/div>\n\n\nTax efficiency is a key reason mutual funds distribute cash to clients. Mutual funds are structured as unit trusts which means they benefit from a non-taxable status provided they distribute earned capital gains and income within the calendar year. Investors must pay tax on these distributions however the individual will pay tax at their own marginal tax rate which is usually lower than the fund\u2019s marginal tax rate. Distributions received in a registered account, such as a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Plan (TFSA), are not subject to taxation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhat are the sources of the distributions?<\/h2>\n<\/div>\n\n\nThe types of investments held in the fund determine the source of the distributions. For example, a fund invested in fixed-income assets such as bonds or money markets, will receive interest from them and distribute interest income. Funds invested in dividend-paying equities, will receive distributions in the form of dividend income and distribute dividend income. Funds may generate capital gains from selling investments and distribute likewise. Funds may also invest in assets that do not make distributions.<\/p>\n
<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions calculated?<\/h2>\n<\/div>\n\n\nUnitholders receive distributions based on the number of units they hold on the \u201crecord date\u201d. Example: If you held 100 mutual fund units on the record date, and the distribution was $0.50 per unit, you would receive a distribution of $50.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhat effect do distributions have on the value of the fund and on my investments?<\/h2>\n<\/div>\n\n\nA distribution reduces the net asset value (NAV) of the fund by the exact amount that was paid out. This does not affect your portfolio value when you leave the funds in a tax-exempt account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions taxed?<\/h2>\n<\/div>\n\n\nIn non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
\n\n\n\n\n\n\n\nDistribution Option<\/strong><\/td>\nImpact on Fund Value <\/strong><\/td>\nImpact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n\nOption 1: Cash Distribution<\/td>\n Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n \nOption 2: Reinvested Distribution<\/td>\n Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<\/h2>\n<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n\nAt Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n
Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n
\n\nFonds actions<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds d\u2019opportunit\u00e9s \u00e0 petites capitalisations Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nPender Small\/Mid Cap Dividend Fund<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds de valeur Pender<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nFonds Revenu Fixe<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds univers obligataire Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds d\u2019obligations de soci\u00e9t\u00e9s Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nBalanced Fund<\/strong><\/p>\n<\/div>\n
\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds strat\u00e9gique de croissance et de revenu Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\nFonds alternatifs liquides<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds alternatif \u00e0 rendement absolu Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage plus Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de revenu multistrat\u00e9gie Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de situations sp\u00e9ciales Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n
Mutual Fund Distributions: What investors need to know - PenderFund Capital Management<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\" \/>\n<meta property=\"og:description\" content=\"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"PenderFund Capital Management\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/penderfund\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T20:09:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-22T15:21:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelsey Wokke\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@penderfund\" \/>\n<meta name=\"twitter:site\" content=\"@penderfund\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelsey Wokke\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"author\":{\"name\":\"Kelsey Wokke\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\"},\"headline\":\"Mutual Fund Distributions: What investors need to know\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"wordCount\":936,\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"articleSection\":[\"Education\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"url\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"name\":\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\"},\"inLanguage\":\"fr-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/staging.penderfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Fund Distributions: What investors need to know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/staging.penderfund.com\/#website\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"name\":\"PenderFund Capital Management\",\"description\":\"Forward thinking. Finding value.\",\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/staging.penderfund.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/staging.penderfund.com\/#organization\",\"name\":\"PenderFund Capital Management\",\"alternateName\":\"PenderFund\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"width\":850,\"height\":250,\"caption\":\"PenderFund Capital Management\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/penderfund\/\",\"https:\/\/x.com\/penderfund\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\",\"name\":\"Kelsey Wokke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"caption\":\"Kelsey Wokke\"},\"url\":\"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"fr_CA","og_type":"article","og_title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","og_description":"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]","og_url":"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/","og_site_name":"PenderFund Capital Management","article_publisher":"https:\/\/www.facebook.com\/penderfund\/","article_published_time":"2023-11-30T20:09:36+00:00","article_modified_time":"2025-09-22T15:21:10+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","type":"image\/jpeg"}],"author":"Kelsey Wokke","twitter_card":"summary_large_image","twitter_creator":"@penderfund","twitter_site":"@penderfund","twitter_misc":{"\u00c9crit par":"Kelsey Wokke","Estimation du temps de lecture":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"author":{"name":"Kelsey Wokke","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33"},"headline":"Mutual Fund Distributions: What investors need to know","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","mainEntityOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"wordCount":936,"publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","articleSection":["Education"],"inLanguage":"fr-CA"},{"@type":"WebPage","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","url":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","name":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","breadcrumb":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb"},"inLanguage":"fr-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/staging.penderfund.com\/"},{"@type":"ListItem","position":2,"name":"Mutual Fund Distributions: What investors need to know"}]},{"@type":"WebSite","@id":"https:\/\/staging.penderfund.com\/#website","url":"https:\/\/staging.penderfund.com\/","name":"Gestion de capital PenderFund lt\u00e9e","description":"Forward thinking. Finding value.","publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/staging.penderfund.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-CA"},{"@type":"Organization","@id":"https:\/\/staging.penderfund.com\/#organization","name":"Gestion de capital PenderFund lt\u00e9e","alternateName":"PenderFund","url":"https:\/\/staging.penderfund.com\/","logo":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","width":850,"height":250,"caption":"PenderFund Capital Management"},"image":{"@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/penderfund\/","https:\/\/x.com\/penderfund"]},{"@type":"Person","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33","name":"Kelsey Wokke","image":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","caption":"Kelsey Wokke"},"url":"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/"}]}},"_links":{"self":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/comments?post=69734"}],"version-history":[{"count":10,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions"}],"predecessor-version":[{"id":70527,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions\/70527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media\/69163"}],"wp:attachment":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media?parent=69734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/categories?post=69734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/tags?post=69734"},{"taxonomy":"fund-type","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/fund-type?post=69734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Tax efficiency is a key reason mutual funds distribute cash to clients. Mutual funds are structured as unit trusts which means they benefit from a non-taxable status provided they distribute earned capital gains and income within the calendar year. Investors must pay tax on these distributions however the individual will pay tax at their own marginal tax rate which is usually lower than the fund\u2019s marginal tax rate. Distributions received in a registered account, such as a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Plan (TFSA), are not subject to taxation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
What are the sources of the distributions?<\/h2>\n<\/div>\n\n\nThe types of investments held in the fund determine the source of the distributions. For example, a fund invested in fixed-income assets such as bonds or money markets, will receive interest from them and distribute interest income. Funds invested in dividend-paying equities, will receive distributions in the form of dividend income and distribute dividend income. Funds may generate capital gains from selling investments and distribute likewise. Funds may also invest in assets that do not make distributions.<\/p>\n
<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions calculated?<\/h2>\n<\/div>\n\n\nUnitholders receive distributions based on the number of units they hold on the \u201crecord date\u201d. Example: If you held 100 mutual fund units on the record date, and the distribution was $0.50 per unit, you would receive a distribution of $50.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhat effect do distributions have on the value of the fund and on my investments?<\/h2>\n<\/div>\n\n\nA distribution reduces the net asset value (NAV) of the fund by the exact amount that was paid out. This does not affect your portfolio value when you leave the funds in a tax-exempt account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions taxed?<\/h2>\n<\/div>\n\n\nIn non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
\n\n\n\n\n\n\n\nDistribution Option<\/strong><\/td>\nImpact on Fund Value <\/strong><\/td>\nImpact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n\nOption 1: Cash Distribution<\/td>\n Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n \nOption 2: Reinvested Distribution<\/td>\n Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<\/h2>\n<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n\nAt Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n
Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n
\n\nFonds actions<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds d\u2019opportunit\u00e9s \u00e0 petites capitalisations Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nPender Small\/Mid Cap Dividend Fund<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds de valeur Pender<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nFonds Revenu Fixe<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds univers obligataire Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds d\u2019obligations de soci\u00e9t\u00e9s Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nBalanced Fund<\/strong><\/p>\n<\/div>\n
\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds strat\u00e9gique de croissance et de revenu Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\nFonds alternatifs liquides<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds alternatif \u00e0 rendement absolu Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage plus Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de revenu multistrat\u00e9gie Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de situations sp\u00e9ciales Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n
Mutual Fund Distributions: What investors need to know - PenderFund Capital Management<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\" \/>\n<meta property=\"og:description\" content=\"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"PenderFund Capital Management\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/penderfund\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T20:09:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-22T15:21:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelsey Wokke\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@penderfund\" \/>\n<meta name=\"twitter:site\" content=\"@penderfund\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelsey Wokke\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"author\":{\"name\":\"Kelsey Wokke\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\"},\"headline\":\"Mutual Fund Distributions: What investors need to know\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"wordCount\":936,\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"articleSection\":[\"Education\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"url\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"name\":\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\"},\"inLanguage\":\"fr-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/staging.penderfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Fund Distributions: What investors need to know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/staging.penderfund.com\/#website\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"name\":\"PenderFund Capital Management\",\"description\":\"Forward thinking. Finding value.\",\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/staging.penderfund.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/staging.penderfund.com\/#organization\",\"name\":\"PenderFund Capital Management\",\"alternateName\":\"PenderFund\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"width\":850,\"height\":250,\"caption\":\"PenderFund Capital Management\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/penderfund\/\",\"https:\/\/x.com\/penderfund\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\",\"name\":\"Kelsey Wokke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"caption\":\"Kelsey Wokke\"},\"url\":\"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"fr_CA","og_type":"article","og_title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","og_description":"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]","og_url":"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/","og_site_name":"PenderFund Capital Management","article_publisher":"https:\/\/www.facebook.com\/penderfund\/","article_published_time":"2023-11-30T20:09:36+00:00","article_modified_time":"2025-09-22T15:21:10+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","type":"image\/jpeg"}],"author":"Kelsey Wokke","twitter_card":"summary_large_image","twitter_creator":"@penderfund","twitter_site":"@penderfund","twitter_misc":{"\u00c9crit par":"Kelsey Wokke","Estimation du temps de lecture":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"author":{"name":"Kelsey Wokke","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33"},"headline":"Mutual Fund Distributions: What investors need to know","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","mainEntityOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"wordCount":936,"publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","articleSection":["Education"],"inLanguage":"fr-CA"},{"@type":"WebPage","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","url":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","name":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","breadcrumb":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb"},"inLanguage":"fr-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/staging.penderfund.com\/"},{"@type":"ListItem","position":2,"name":"Mutual Fund Distributions: What investors need to know"}]},{"@type":"WebSite","@id":"https:\/\/staging.penderfund.com\/#website","url":"https:\/\/staging.penderfund.com\/","name":"Gestion de capital PenderFund lt\u00e9e","description":"Forward thinking. Finding value.","publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/staging.penderfund.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-CA"},{"@type":"Organization","@id":"https:\/\/staging.penderfund.com\/#organization","name":"Gestion de capital PenderFund lt\u00e9e","alternateName":"PenderFund","url":"https:\/\/staging.penderfund.com\/","logo":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","width":850,"height":250,"caption":"PenderFund Capital Management"},"image":{"@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/penderfund\/","https:\/\/x.com\/penderfund"]},{"@type":"Person","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33","name":"Kelsey Wokke","image":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","caption":"Kelsey Wokke"},"url":"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/"}]}},"_links":{"self":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/comments?post=69734"}],"version-history":[{"count":10,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions"}],"predecessor-version":[{"id":70527,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions\/70527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media\/69163"}],"wp:attachment":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media?parent=69734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/categories?post=69734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/tags?post=69734"},{"taxonomy":"fund-type","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/fund-type?post=69734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The types of investments held in the fund determine the source of the distributions. For example, a fund invested in fixed-income assets such as bonds or money markets, will receive interest from them and distribute interest income. Funds invested in dividend-paying equities, will receive distributions in the form of dividend income and distribute dividend income. Funds may generate capital gains from selling investments and distribute likewise. Funds may also invest in assets that do not make distributions.<\/p>\n
<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
How are distributions calculated?<\/h2>\n<\/div>\n\n\nUnitholders receive distributions based on the number of units they hold on the \u201crecord date\u201d. Example: If you held 100 mutual fund units on the record date, and the distribution was $0.50 per unit, you would receive a distribution of $50.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nWhat effect do distributions have on the value of the fund and on my investments?<\/h2>\n<\/div>\n\n\nA distribution reduces the net asset value (NAV) of the fund by the exact amount that was paid out. This does not affect your portfolio value when you leave the funds in a tax-exempt account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions taxed?<\/h2>\n<\/div>\n\n\nIn non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
\n\n\n\n\n\n\n\nDistribution Option<\/strong><\/td>\nImpact on Fund Value <\/strong><\/td>\nImpact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n\nOption 1: Cash Distribution<\/td>\n Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n \nOption 2: Reinvested Distribution<\/td>\n Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<\/h2>\n<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n\nAt Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n
Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n
\n\nFonds actions<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds d\u2019opportunit\u00e9s \u00e0 petites capitalisations Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nPender Small\/Mid Cap Dividend Fund<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds de valeur Pender<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nFonds Revenu Fixe<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds univers obligataire Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds d\u2019obligations de soci\u00e9t\u00e9s Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nBalanced Fund<\/strong><\/p>\n<\/div>\n
\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds strat\u00e9gique de croissance et de revenu Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\nFonds alternatifs liquides<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds alternatif \u00e0 rendement absolu Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage plus Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de revenu multistrat\u00e9gie Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de situations sp\u00e9ciales Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n
Mutual Fund Distributions: What investors need to know - PenderFund Capital Management<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\" \/>\n<meta property=\"og:description\" content=\"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"PenderFund Capital Management\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/penderfund\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T20:09:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-22T15:21:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelsey Wokke\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@penderfund\" \/>\n<meta name=\"twitter:site\" content=\"@penderfund\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelsey Wokke\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"author\":{\"name\":\"Kelsey Wokke\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\"},\"headline\":\"Mutual Fund Distributions: What investors need to know\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"wordCount\":936,\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"articleSection\":[\"Education\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"url\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"name\":\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\"},\"inLanguage\":\"fr-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/staging.penderfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Fund Distributions: What investors need to know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/staging.penderfund.com\/#website\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"name\":\"PenderFund Capital Management\",\"description\":\"Forward thinking. Finding value.\",\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/staging.penderfund.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/staging.penderfund.com\/#organization\",\"name\":\"PenderFund Capital Management\",\"alternateName\":\"PenderFund\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"width\":850,\"height\":250,\"caption\":\"PenderFund Capital Management\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/penderfund\/\",\"https:\/\/x.com\/penderfund\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\",\"name\":\"Kelsey Wokke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"caption\":\"Kelsey Wokke\"},\"url\":\"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"fr_CA","og_type":"article","og_title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","og_description":"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]","og_url":"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/","og_site_name":"PenderFund Capital Management","article_publisher":"https:\/\/www.facebook.com\/penderfund\/","article_published_time":"2023-11-30T20:09:36+00:00","article_modified_time":"2025-09-22T15:21:10+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","type":"image\/jpeg"}],"author":"Kelsey Wokke","twitter_card":"summary_large_image","twitter_creator":"@penderfund","twitter_site":"@penderfund","twitter_misc":{"\u00c9crit par":"Kelsey Wokke","Estimation du temps de lecture":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"author":{"name":"Kelsey Wokke","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33"},"headline":"Mutual Fund Distributions: What investors need to know","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","mainEntityOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"wordCount":936,"publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","articleSection":["Education"],"inLanguage":"fr-CA"},{"@type":"WebPage","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","url":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","name":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","breadcrumb":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb"},"inLanguage":"fr-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/staging.penderfund.com\/"},{"@type":"ListItem","position":2,"name":"Mutual Fund Distributions: What investors need to know"}]},{"@type":"WebSite","@id":"https:\/\/staging.penderfund.com\/#website","url":"https:\/\/staging.penderfund.com\/","name":"Gestion de capital PenderFund lt\u00e9e","description":"Forward thinking. Finding value.","publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/staging.penderfund.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-CA"},{"@type":"Organization","@id":"https:\/\/staging.penderfund.com\/#organization","name":"Gestion de capital PenderFund lt\u00e9e","alternateName":"PenderFund","url":"https:\/\/staging.penderfund.com\/","logo":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","width":850,"height":250,"caption":"PenderFund Capital Management"},"image":{"@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/penderfund\/","https:\/\/x.com\/penderfund"]},{"@type":"Person","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33","name":"Kelsey Wokke","image":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","caption":"Kelsey Wokke"},"url":"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/"}]}},"_links":{"self":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/comments?post=69734"}],"version-history":[{"count":10,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions"}],"predecessor-version":[{"id":70527,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions\/70527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media\/69163"}],"wp:attachment":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media?parent=69734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/categories?post=69734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/tags?post=69734"},{"taxonomy":"fund-type","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/fund-type?post=69734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Unitholders receive distributions based on the number of units they hold on the \u201crecord date\u201d. Example: If you held 100 mutual fund units on the record date, and the distribution was $0.50 per unit, you would receive a distribution of $50.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
What effect do distributions have on the value of the fund and on my investments?<\/h2>\n<\/div>\n\n\nA distribution reduces the net asset value (NAV) of the fund by the exact amount that was paid out. This does not affect your portfolio value when you leave the funds in a tax-exempt account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\n\nHow are distributions taxed?<\/h2>\n<\/div>\n\n\nIn non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
\n\n\n\n\n\n\n\nDistribution Option<\/strong><\/td>\nImpact on Fund Value <\/strong><\/td>\nImpact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n\nOption 1: Cash Distribution<\/td>\n Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n \nOption 2: Reinvested Distribution<\/td>\n Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<\/h2>\n<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n\nAt Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n
Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n
\n\nFonds actions<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds d\u2019opportunit\u00e9s \u00e0 petites capitalisations Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nPender Small\/Mid Cap Dividend Fund<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds de valeur Pender<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nFonds Revenu Fixe<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds univers obligataire Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds d\u2019obligations de soci\u00e9t\u00e9s Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nBalanced Fund<\/strong><\/p>\n<\/div>\n
\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds strat\u00e9gique de croissance et de revenu Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\nFonds alternatifs liquides<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds alternatif \u00e0 rendement absolu Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage plus Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de revenu multistrat\u00e9gie Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de situations sp\u00e9ciales Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n
Mutual Fund Distributions: What investors need to know - PenderFund Capital Management<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\" \/>\n<meta property=\"og:description\" content=\"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"PenderFund Capital Management\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/penderfund\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T20:09:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-22T15:21:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelsey Wokke\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@penderfund\" \/>\n<meta name=\"twitter:site\" content=\"@penderfund\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelsey Wokke\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"author\":{\"name\":\"Kelsey Wokke\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\"},\"headline\":\"Mutual Fund Distributions: What investors need to know\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"wordCount\":936,\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"articleSection\":[\"Education\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"url\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"name\":\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\"},\"inLanguage\":\"fr-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/staging.penderfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Fund Distributions: What investors need to know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/staging.penderfund.com\/#website\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"name\":\"PenderFund Capital Management\",\"description\":\"Forward thinking. Finding value.\",\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/staging.penderfund.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/staging.penderfund.com\/#organization\",\"name\":\"PenderFund Capital Management\",\"alternateName\":\"PenderFund\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"width\":850,\"height\":250,\"caption\":\"PenderFund Capital Management\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/penderfund\/\",\"https:\/\/x.com\/penderfund\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\",\"name\":\"Kelsey Wokke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"caption\":\"Kelsey Wokke\"},\"url\":\"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"fr_CA","og_type":"article","og_title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","og_description":"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]","og_url":"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/","og_site_name":"PenderFund Capital Management","article_publisher":"https:\/\/www.facebook.com\/penderfund\/","article_published_time":"2023-11-30T20:09:36+00:00","article_modified_time":"2025-09-22T15:21:10+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","type":"image\/jpeg"}],"author":"Kelsey Wokke","twitter_card":"summary_large_image","twitter_creator":"@penderfund","twitter_site":"@penderfund","twitter_misc":{"\u00c9crit par":"Kelsey Wokke","Estimation du temps de lecture":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"author":{"name":"Kelsey Wokke","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33"},"headline":"Mutual Fund Distributions: What investors need to know","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","mainEntityOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"wordCount":936,"publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","articleSection":["Education"],"inLanguage":"fr-CA"},{"@type":"WebPage","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","url":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","name":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","breadcrumb":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb"},"inLanguage":"fr-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/staging.penderfund.com\/"},{"@type":"ListItem","position":2,"name":"Mutual Fund Distributions: What investors need to know"}]},{"@type":"WebSite","@id":"https:\/\/staging.penderfund.com\/#website","url":"https:\/\/staging.penderfund.com\/","name":"Gestion de capital PenderFund lt\u00e9e","description":"Forward thinking. Finding value.","publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/staging.penderfund.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-CA"},{"@type":"Organization","@id":"https:\/\/staging.penderfund.com\/#organization","name":"Gestion de capital PenderFund lt\u00e9e","alternateName":"PenderFund","url":"https:\/\/staging.penderfund.com\/","logo":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","width":850,"height":250,"caption":"PenderFund Capital Management"},"image":{"@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/penderfund\/","https:\/\/x.com\/penderfund"]},{"@type":"Person","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33","name":"Kelsey Wokke","image":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","caption":"Kelsey Wokke"},"url":"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/"}]}},"_links":{"self":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/comments?post=69734"}],"version-history":[{"count":10,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions"}],"predecessor-version":[{"id":70527,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions\/70527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media\/69163"}],"wp:attachment":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media?parent=69734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/categories?post=69734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/tags?post=69734"},{"taxonomy":"fund-type","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/fund-type?post=69734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
A distribution reduces the net asset value (NAV) of the fund by the exact amount that was paid out. This does not affect your portfolio value when you leave the funds in a tax-exempt account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
How are distributions taxed?<\/h2>\n<\/div>\n\n\nIn non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
\n\n\n\n\n\n\n\nDistribution Option<\/strong><\/td>\nImpact on Fund Value <\/strong><\/td>\nImpact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n\nOption 1: Cash Distribution<\/td>\n Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n \nOption 2: Reinvested Distribution<\/td>\n Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<\/h2>\n<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n\nAt Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n
Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n
\n\nFonds actions<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds d\u2019opportunit\u00e9s \u00e0 petites capitalisations Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nPender Small\/Mid Cap Dividend Fund<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds de valeur Pender<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nFonds Revenu Fixe<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds univers obligataire Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds d\u2019obligations de soci\u00e9t\u00e9s Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n\nBalanced Fund<\/strong><\/p>\n<\/div>\n
\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds strat\u00e9gique de croissance et de revenu Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\nFonds alternatifs liquides<\/strong><\/p>\n<\/div>\n
\n\n\n\n\n\n\n\n\nName of Fund<\/strong><\/td>\nDistributions<\/strong><\/td>\n<\/tr>\n\nFonds alternatif \u00e0 rendement absolu Pender (Anglais)<\/td>\n Net income monthly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif d\u2019arbitrage plus Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de revenu multistrat\u00e9gie Pender (Anglais)<\/td>\n Net income quarterly; net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n \nFonds alternatif de situations sp\u00e9ciales Pender (Anglais)<\/td>\n Net income and net capital gains annually. Automatically reinvested in additional units; cash upon request.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n
Mutual Fund Distributions: What investors need to know - PenderFund Capital Management<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\" \/>\n<meta property=\"og:description\" content=\"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/\" \/>\n<meta property=\"og:site_name\" content=\"PenderFund Capital Management\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/penderfund\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T20:09:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-22T15:21:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kelsey Wokke\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@penderfund\" \/>\n<meta name=\"twitter:site\" content=\"@penderfund\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kelsey Wokke\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"author\":{\"name\":\"Kelsey Wokke\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\"},\"headline\":\"Mutual Fund Distributions: What investors need to know\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"},\"wordCount\":936,\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"articleSection\":[\"Education\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"url\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\",\"name\":\"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management\",\"isPartOf\":{\"@id\":\"https:\/\/staging.penderfund.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"datePublished\":\"2023-11-30T20:09:36+00:00\",\"dateModified\":\"2025-09-22T15:21:10+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\"},\"inLanguage\":\"fr-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg\",\"width\":2560,\"height\":1707},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/staging.penderfund.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Mutual Fund Distributions: What investors need to know\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/staging.penderfund.com\/#website\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"name\":\"PenderFund Capital Management\",\"description\":\"Forward thinking. Finding value.\",\"publisher\":{\"@id\":\"https:\/\/staging.penderfund.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/staging.penderfund.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-CA\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/staging.penderfund.com\/#organization\",\"name\":\"PenderFund Capital Management\",\"alternateName\":\"PenderFund\",\"url\":\"https:\/\/staging.penderfund.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"contentUrl\":\"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png\",\"width\":850,\"height\":250,\"caption\":\"PenderFund Capital Management\"},\"image\":{\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/penderfund\/\",\"https:\/\/x.com\/penderfund\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33\",\"name\":\"Kelsey Wokke\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-CA\",\"@id\":\"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g\",\"caption\":\"Kelsey Wokke\"},\"url\":\"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"fr_CA","og_type":"article","og_title":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","og_description":"As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]","og_url":"https:\/\/staging.penderfund.com\/fr\/education\/mutual-fund-distributions-what-investors-need-to-know\/","og_site_name":"PenderFund Capital Management","article_publisher":"https:\/\/www.facebook.com\/penderfund\/","article_published_time":"2023-11-30T20:09:36+00:00","article_modified_time":"2025-09-22T15:21:10+00:00","og_image":[{"width":2560,"height":1707,"url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","type":"image\/jpeg"}],"author":"Kelsey Wokke","twitter_card":"summary_large_image","twitter_creator":"@penderfund","twitter_site":"@penderfund","twitter_misc":{"\u00c9crit par":"Kelsey Wokke","Estimation du temps de lecture":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#article","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"author":{"name":"Kelsey Wokke","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33"},"headline":"Mutual Fund Distributions: What investors need to know","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","mainEntityOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"},"wordCount":936,"publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","articleSection":["Education"],"inLanguage":"fr-CA"},{"@type":"WebPage","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","url":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/","name":"Mutual Fund Distributions: What investors need to know - PenderFund Capital Management","isPartOf":{"@id":"https:\/\/staging.penderfund.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"image":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage"},"thumbnailUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","datePublished":"2023-11-30T20:09:36+00:00","dateModified":"2025-09-22T15:21:10+00:00","breadcrumb":{"@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb"},"inLanguage":"fr-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/"]}]},{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#primaryimage","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/08\/pexels-ave-calvar-martinez-5610090-scaled-1.jpg","width":2560,"height":1707},{"@type":"BreadcrumbList","@id":"https:\/\/staging.penderfund.com\/education\/mutual-fund-distributions-what-investors-need-to-know\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/staging.penderfund.com\/"},{"@type":"ListItem","position":2,"name":"Mutual Fund Distributions: What investors need to know"}]},{"@type":"WebSite","@id":"https:\/\/staging.penderfund.com\/#website","url":"https:\/\/staging.penderfund.com\/","name":"Gestion de capital PenderFund lt\u00e9e","description":"Forward thinking. Finding value.","publisher":{"@id":"https:\/\/staging.penderfund.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/staging.penderfund.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-CA"},{"@type":"Organization","@id":"https:\/\/staging.penderfund.com\/#organization","name":"Gestion de capital PenderFund lt\u00e9e","alternateName":"PenderFund","url":"https:\/\/staging.penderfund.com\/","logo":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/","url":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","contentUrl":"https:\/\/staging.penderfund.com\/wp-content\/uploads\/2025\/06\/PenderFund-Cap-Man-Logo_English.png","width":850,"height":250,"caption":"PenderFund Capital Management"},"image":{"@id":"https:\/\/staging.penderfund.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/penderfund\/","https:\/\/x.com\/penderfund"]},{"@type":"Person","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/62bdaff29ca1a4a76154dd275e7e1b33","name":"Kelsey Wokke","image":{"@type":"ImageObject","inLanguage":"fr-CA","@id":"https:\/\/staging.penderfund.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b99c52fa8d49d81279f552b6f130d736c069245061050294609d04d4b7edfe66?s=96&d=mm&r=g","caption":"Kelsey Wokke"},"url":"https:\/\/staging.penderfund.com\/fr\/author\/kwokke\/"}]}},"_links":{"self":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/comments?post=69734"}],"version-history":[{"count":10,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions"}],"predecessor-version":[{"id":70527,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/posts\/69734\/revisions\/70527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media\/69163"}],"wp:attachment":[{"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/media?parent=69734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/categories?post=69734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/tags?post=69734"},{"taxonomy":"fund-type","embeddable":true,"href":"https:\/\/staging.penderfund.com\/fr\/wp-json\/wp\/v2\/fund-type?post=69734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
In non-registered accounts, the type of underlying asset in the fund determines the kind of tax treatment. For example, fixed income will be taxed as interest income at your marginal tax rate. Dividends from Canadian corporations and capital gains are taxed at a lower rate. In simple terms, when a fund pays a distribution, you get taxed on it. When the distribution is in fund units, the book value increases at the same time by the amount of the distribution to avoid double taxation. This information is reported on your T3 slip (Relev\u00e9 16 for Quebec residents).<\/p>\n
In registered accounts, reinvested distributions are not immediately taxed. They also do not affect your contribution room in your RRSP and TFSA.<\/p>\n<\/div>\n
Distribution Option<\/strong><\/td>\n| Impact on Fund Value <\/strong><\/td>\n | Impact on Adjusted Cost Base (ACB) <\/strong><\/td>\n<\/tr>\n | Option 1: Cash Distribution<\/td>\n | Unit price decreases by the amount of the distribution and the total fund value decreases.<\/td>\n | No impact on ACB unless the distribution consists of Return of Capital (ROC), which will reduce the ACB by the ROC amount.<\/td>\n<\/tr>\n | Option 2: Reinvested Distribution<\/td>\n | Unit price decreases by the amount of the distribution; however, since the distribution is reinvested, the total fund value does not change.<\/td>\n | The total ACB increases by the reinvestment distribution amount less any ROC component of such distribution.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n | \n \n \n <\/h2>\n<\/h2>\nWhat are the distributions for each of the Pender Funds?<\/h2>\n<\/div>\n\n At Pender, our goal is to protect and grow wealth for our investors over time. Our team of security analysts and seasoned investment professionals manage a suite of differentiated fund strategies with the goal of achieving first-quartile, award-winning performance.<\/p>\n Below is a list of our funds and how we approach distributions in each of them.<\/p>\n<\/div>\n \n \n Fonds actions<\/strong><\/p>\n<\/div>\n \n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Fonds Revenu Fixe<\/strong><\/p>\n<\/div>\n Balanced Fund<\/strong><\/p>\n<\/div>\n Fonds alternatifs liquides<\/strong><\/p>\n<\/div>\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":" As an owner of a mutual fund that makes distributions, you are entitled to receive these payments. Not all mutual funds make distributions, but many do. If you own one of these funds, from time-to-time, a cash payment or additional fund units will be deposited into your account. This may occur on a monthly, quarterly, […]<\/p>","protected":false},"author":10,"featured_media":69163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[124],"tags":[],"fund-type":[],"class_list":["post-69734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"acf":[],"yoast_head":"\n |