This may be a naive question, but is there a direct correlation between fund performance and dividend distribution? I ask this as I am having a plan drawn up by NFS, and was browsing the NI site looking at historical performance and dividend distributions, when I noted that for the January 05 - March 05 quarter, the fund performance was 0.71% while the dividend distribution was 4.15%. Does this align with the fund's intent to provide consistent income as priority over growth? Does the distribution come from the cash holdings, or from selling down shares? I couldn't find any further details on the NI site, but as someone who is interested in the fund solely from an income perspective to assist serviceability in holding negative geared IPs, I would be very happy with a fund that will provide that income regardless, even by sacrificing overall capital when the market is down. Can anyone shed more light?