When you invest in a Trend (managed fund), the return you make is made up of:

  • capital gains; and
  • distributions.

Capital Gains

The capital gain figure shown on your ‘My Trends’ dashboard represents the change in value of your investment. 

When you invest in a Trend, you’re allocated a number of units based on the Trend’s effective unit price on the day your completed investment application was received (or next business day if received after 4pm Sydney time).  

Unit prices are calculated on each business day and are based on the underlying share prices of the companies the Trend invests in. As the unit prices change, so will the current value of your investment.

For example, if you invested $10,000 and the effective unit price was $1.00 you would receive 10,000 units in the Trend. If the unit price increased to $1.08: 

  • The current value of your investment would be $10,800 – equal to 10,000 units you own multiplied by $1.08 current price
  • You would have made a capital gain of $800 or 8%.

The 'Estimated Capital Gains/Loss' figure shown on your ‘My Trends’ Dashboard does not include the additional returns you made from any distributions you received. The Capital Gains/Losses shown is calculated on an average basis, please consult with your tax accountant for further assistance.

Distributions

You may receive distributions from investing in a Trend. These are in addition to any capital gains you may make.

The distribution amount depends on the underlying dividends received by the Trend from the companies they invest in, and also any realised capital gains (or losses) when shares are sold.

A dividend is a payment made by a company to its shareholders when it makes a profit or has surplus cash. Not all companies pay dividends. Some companies may choose to not pay out any dividends as they are more focused on reinvesting any profits they make for growth and innovation instead.

The Trends pay distributions annually and you can elect to have them paid as cash or reinvested as additional units in your Trend.

The ‘Distributions Received’ figures on your ‘My Trends’ dashboard comprise of all distributions you've received since investing in the Trends, including any distributions already paid to you (or reinvested) that relate to any units which you may have redeemed.


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