eMaxis Slim dividend reinvestment

[JapaneseMike]

So most? All? of the eMaxis slim products seem to say

分配金履歴
<date> 0 円

Now these funds are new so we don't have a lot of history to go with, I assume the longer the funds are running the more likely they are to pay out (or reinvest equivalent of) some form of dividend. But wondering if the extremely low fee structure could prevent or decrease likelihood of dividend later. If these are funds matching the S&P for example, shouldn't it pay out an equivalent of the benchmarked dividend from the index it tracks?

Right now most of my yen is in eMaxis funds and without dividends my gains will come in the form of asset price increase only.....

What are peoples thoughts on this?

[jcc]

the internal reinvestment is why I use it.

instead of receiving dividends you get taxed on you get to backload that tax to capital gains.

it also expands your nisa "slot" size

[JapaneseMike]

the internal reinvestment is why I use it.

instead of receiving dividends you get taxed on you get to backload that tax to capital gains.

it also expands your nisa "slot" size

I uae the reinvestment option too, but the dividend info should be the same whether we reinvest or not. Either it pays out a dividend of equivalent value, or it reinvests a valurle equivalent to the dividend value.

My question is that the dividend value seema to be 0. What do people think about that?

[adamu]

The prospectus says they pay dividend once a year on 25 April. It also says:

分配金額の決定にあたっては、信託財産の成長を優先し、原則として分配を抑制する方針とします。

Which means as a rule they try to avoid paying a dividend in favour of increasing the fund's value. I'm not sure how that's implemented in practice though...

[gerdemb]

Someone please correct me if I'm wrong, but I believe that many funds in Japan including the eMaxis Slim series are accumulating funds which means they reinvest their dividends internally. I believe this is more tax efficient.

[JapaneseMike]

Someone please correct me if I'm wrong, but I believe that many funds in Japan including the eMaxis Slim series are accumulating funds which means they reinvest their dividends internally. I believe this is more tax efficient.

I think that aligns with what adamu said above, if that's the case then there isn't really a difference in selecting the receive dividend or reinvest dividend courses when selecting these funds

Right?

[gerdemb]

I think that aligns with what adamu said above, if that's the case then there isn't really a difference in selecting the receive dividend or reinvest dividend courses when selecting these funds

Right?

Yes, I believe that is correct.

[jcc]

the internal reinvestment is why I use it.

instead of receiving dividends you get taxed on you get to backload that tax to capital gains.

it also expands your nisa "slot" size

I uae the reinvestment option too, but the dividend info should be the same whether we reinvest or not. Either it pays out a dividend of equivalent value, or it reinvests a valurle equivalent to the dividend value.

My question is that the dividend value seema to be 0. What do people think about that?

I didn't mean the reinvestment option. That would still generate dividend taxes.

I specifically mean I use funds that generate 0 dividends due to the tax efficiency.

Now officially they're meant to generate dividends(it's why every single one of them can be kind of vague in the prospectus), but they also come with a byline that says something like "in certain cases we may not generate dividends". There's a real possibility financial regulators will eventually jump in to change this and they will be forced to release the dividends

[adamu]

The cynic in me also wonders if during the reinvestment if it's not a convenient opportunity to deduct a bunch of "costs", or put it through some complex derivatives before buying the new units.

I don't think what they do with the underlying dividends are documented anywhere? At least I didn't see it in the prospectus.