Maybe one for Steve, but if anyone else can clarify too that would be good. I had someone ask me today some detailed questions about how the distribution is calculated and I found I still had a couple of questions......... Let's say for arguments sake that we start on the first day of a new Quarter when the last distribution has just been paid. The nominal value of the Fund at this date is say $100mil. Ok......after almost 3 months: 1. The trading(buying low/selling high) has generated an additional 2.5%($2.5mil) in profits 2. The Fund has received about 0.75% ($750K) in Fully Franked Dividends. 3. The Fund has received about $250K in interest on the average 20% ($20mil) cash held for the Quarter. 4. The value of the unsold shares in the Fund has also grown at 1%($1mil) Questions: 1. Does the 'Quarterly Distribution' paid out to Unitholders in Cash(forget about reinvestments for now) only include (1) above or does it include (1), (2) and (3)? ie. do the dividends received get paid out in cash Quarterly too or do they simply go back into the Fund and are reflected in a higher Fund Unit Price? If the Dividends went into the Fund rather than being distributed each Quarter, then Units would presumably need to be sold to obtain this component? 2. While I understand that an Income Fund is required to 'pay out' all profits to Unitholders each year, is it totally at the discretion of the Fund Manager how this is paid out in all but the final Quarter? For example, as some Unitholders may need a reasonably regular flow of funds for interest payments/living expenses etc, up to a point, would the Fund generally try to 'hold back' some parts or early Quarterly Distributions to ensure that a reasonably regular payout is maintained all year round? 3. I would think there would be some profit made on the Buy/Sell spreads too. I presume this isn't included in the cash distribution component. Does it go back into the Fund to be reflected in the Unit Price? 4. If the Retail Fund were to declare a 5% Quarterly Distribution and a Unitholder held $100K in Units, it's my understanding that the Cash Distribution paid would be a bit less than $5K. Can you give an example of what components make up the 5% Distribution? 5. When looking at what comprises most of the Fund Investment Return, would it be true to say that this primarily comes from a) profits made on share trading b) dividends received c) interest earned on cash held and d) growth in currently held shares? Have I missed anything? 6. Are Franking Credits received passed on at the end of the Financial Year? Thanks Steve and/or others.