RetireJapan

I hope everyone is staying safe and healthy during these uncertain times.
I have been using this time to research about NISA and would like to ask whether mutual funds, in particular the eMAXIS SLIM fund series such as 全世界株式 除く日本 or 全世界株式 オール・カントリー pay dividends. Based on my research and still developing knowledge of investing Japanese it would appear they don't. As a typical dividend focused Australian this seemed a little unusual and I wonder if its related to the structure/design of the NISA itself.

Thank you,

JBDT

jbdt wrote: ↑Tue May 05, 2020 8:14 am I hope everyone is staying safe and healthy during these uncertain times.
I have been using this time to research about NISA and would like to ask whether mutual funds, in particular the eMAXIS SLIM fund series such as 全世界株式 除く日本 or 全世界株式 オール・カントリー pay dividends. Based on my research and still developing knowledge of investing Japanese it would appear they don't. As a typical dividend focused Australian this seemed a little unusual and I wonder if its related to the structure/design of the NISA itself.

Thank you,

JBDT

I think they are following the index with dividends reinvested so you will not be receiving the dividends as separate payments (they are rolled into the net asset value). For the MSCI all country fund at:

https://www.rakuten-sec.co.jp/web/fund/ ... 90C000H1T1

it states a latest dividend date as 4/25 with the dividend amount as 0. And in the fund description at:

https://www.rakuten-sec.co.jp/web/fund/ ... isplay.asp

It states:

ファンドのベンチマークである『ＭＳＣＩ オール・カントリー・ワールド・イ
ンデックス（配当込み、円換算ベース）』について
ＭＳＣＩ オール・カントリー・ワールド・インデックスとは、MSCI Inc.が開発した株価指数で、世界の先進国・新興国の
株式で構成されています。ＭＳＣＩ オール・カントリー・ワールド・インデックス（配当込み、円換算ベース）は、ＭＳ
ＣＩ オール・カントリー・ワールド・インデックス（配当込み、米ドルベース）をもとに、委託会社が計算したものです。
ＭＳＣＩ オール

You still get the benefit of the dividends because you are in an index which tracks these stocks with dividends reinvested but you don't see the dividends as individual quarterly or monthly payments.

For NISA, it's more tax-efficient for the dividends to be re-invested, because it means you can defer paying the tax on the dividend for longer (until you sell the fund), with more money invested tax-free for longer.

If you invest in a fund that pays out the dividends, you get the dividend tax-free, but if you want to use that to buy more fund, it has to come out of your annual NISA allowance.

Dear TokyoWart and Adamu thank you for your explanation of the NISA structure, that makes sense now!

Stay safe,

JBDT

As I understand it, the argument against paying dividends from an investment perspective is: I want my money to increase in value as much as possible from the point in time when I put it there. Any dividend is the company taking any profit made by the company AFTER paying tax on it then giving me a percentage.

On the money that im given I need to pay tax again just for receiving it, then if my plan for that money is to invest it I'm using after tax money.

The concept being that rather than have the company give me the money then me give it back that they just keep it and increase the value of the company via their share price going up and I can sell portions of it when I want to to get as large a payout as I need.

NZ companies also pay out large dividend percentages then have to take out loans when times get hard because they've not got much reserves.