Dividend time of closed-end funds:
All fund contracts have instructions. Dividends are usually paid twice a year, in the middle and at the end of the year. Now is the dividend period of closed-end funds, but there is a hard condition that the dividend of closed-end funds must be based on profit. If the fund's expected annualized expected return this year is negative, it can't pay dividends.
Closed-end fund dividend method:
Different from open-end funds, the share of closed-end funds is unchanged, and dividends can only be paid in cash, not in the form of dividend reinvestment. For closed-end funds with long-term discount trading, dividends can play a role in enhancing the investment value of funds.
N0 represents the unit net value of the closed-end fund before dividends, and D0 represents the dividend amount of the unit share, assuming that the normal discount rate of the closed-end fund is p.
Compared with non-dividend, dividend increases the unit fund share value by PD0, and fund dividend increases the investment value of closed-end funds, which is positively related to the discount rate and dividend amount. In fact, because the dividends of closed-end funds enhance the investment value, closed-end funds are favored by funds before a large proportion of dividends, and the discount rate will be greatly reduced. But in practice, investors should pay attention to whether the discount reduction degree of closed-end funds overdraws the dividend promotion degree in advance.