Yes if you invest in the Distribution Class.
It depends to some extent on how many companies in the FTSE 350 are paying dividends. Most of them do but allowing for those that don’t and removing Investment Trusts brings the number down to about 300.
A company’s dividend payment is the only number in a company’s accounts that is not an opinion.
No they don’t. To interview all 300 companies twice a year after each set of results would be too time consuming. Besides, company directors are very restricted now in what they can say that is not already in the public domain. We don’t think it is the best use of our time.
It depends on the class of units you invest in. The charges range from an annual fee of 0.75% to 1.5%. In addition there may be an initial charge if you use a financial advisor. All the details on charges are detailed in the section on How to Invest.
Charges are allocated to capital.
Dividends are only paid on the distribution units. The yield will vary with the market and the amount companies pay out in dividends and, to a lesser extent, on exchange rates. Overall, the yield on the fund can be expected to be slightly higher than the market because the fund does not invest in companies that don’t pay a dividend.
Like all equity investments your capital is at risk. However, The Munro UK Dividend Fund is less risky than most because it holds so many shares, about 145. That means the risk to the portfolio from any individual company is reduced. There is still the overall market risk, but you need to take some risk to get a return that is better than the risk free rate available from bonds or cash deposits. All the evidence shows that investing in equities for periods of ten years or more give better returns than other asset classes do.
A tracker fund holds shares in the index in proportion to their market capitalisation. In other words the share price multiplied by the number of shares. That does not have a direct correlation with the underlying fundamental financial attributes of the company. In some cases the market may ascribe a very high valuation to a company, such as happened with technology shares in the dot com boom, or it may put a very low valuation on a company if that sector is unfashionable. The Munro UK Dividend Fund does not use share prices to calculate how much of a company to hold. It only uses the amount of cash a company is forecast to pay out to shareholders.