When a fund pays a distribution, the unit price usually falls by roughly the same amount as the distribution. This is because the cash that's being paid out (or reinvested) is no longer included in the fund's unit price.
Example: If a fund unit is $2.00 and pays a 3c distribution, the unit price may drop to about $1.97.
This price drop is normal and expected.
When will I see the transactions in my account?
On the distribution date, you may see your fund value drop before the related transactions show in your Activity tab. That’s because the orders need to finish processing. Once processing is complete:
reinvestors will see a “buy” of new units, and
cash recipients will see a payment to their Kernel wallet.
This processing typically completes 2-3 business days after the distribution date.
What happens if I reinvest distributions?
If you’ve chosen to reinvest, your unit price will drop following the distribution, but you’ll receive new units from the reinvested amount. When you combine:
the lower unit price, and
the extra units you receive,
your total holding value should be the same as before the distribution (investment gains or losses aside).
What happens if I take distributions as cash?
If you’ve chosen to receive cash, you won’t get new units. Instead:
the unit price will drop after the distribution, and
the same amount will be paid to your Kernel wallet as cash.
Your total wealth is unchanged by the distribution itself; it’s simply split between fund units and cash (investment gains or losses aside).
When are Kernel distributions paid?
Kernel fund distributions are paid quarterly, around the second week of:
January
April
July
October
Exact timing can vary slightly.