Why your account balance may change

Why account balances can temporarily look lower and what it means for you.

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Distributions are a normal part of investing in managed funds. At certain times of the year, you may notice your account balance looks lower for a short period, but this doesn’t mean your investment has lost value.
Temporary drops aren’t losses

Your balance may look lower while income is being processed.

You’re still receiving income

Distributions can include dividends, rent, interest and capital gains.

Timing matters

There can be a short delay before income appears in your account.

Your total value remains the same

Once processed, your account reflects both your investments and the income paid.

What's happening during a distribution

Managed funds generate income throughout the year, which is then paid to investors at certain times.

Why your balance may look different
  • Before a distribution, your unit price includes both investment value and accumulated income
  • When the income is paid out, the unit price adjusts
  • This can make your balance appear temporarily lower.
Account balance
Account balance closing 14 July
Account balance
Account balance closing 16 July
Interpreting the account balance 

1. During processing (e.g. 14 July). Income has been paid but is still being processed by the custodian. As a result, the account balance may appear lower and not reflect the full value.

2. After reconciliation (e.g. 16 July). Once processing is complete, the income is applied to the account and the balance adjusts

Changes in investment earnings reflect normal market movements, not the distribution itself.

3. The full account value is restored. The account now reflects both the underlying investments and the distributed income, showing the true value.

 

What to expect

  • During processing

    Your income has been generated but may not yet show in your account. This can make your balance look lower than expected.

  • After processing is complete
    • Your income is applied to your account
    • Your balance adjusts
    • Your full investment value is reflected.

The distribution process

North estimated distribution timeframes
Effective dates of Income distributions  30 June  31 December
Period when the account balance will be lower than expected  Between above dates and below dates Between above dates and below dates
Date income is received on North By 31 July*
 By 31 January*


* We expect the majority of distributions should be received by the above dates, however some fund managers may take longer.

 

Key takeaway

Short-term changes in your account during distribution periods are normal. They reflect how income is paid and processed - not a loss of value.

In many cases, you may hold more units after a distribution or receive income separately. Either way, your overall investment value remains consistent.

 

Frequently Asked Questions

When a distribution is paid, the value of your investment may temporarily decrease because the distribution amount is reflected in the fund’s unit price. This is a normal part of how managed funds operate.

A distribution is the income a managed fund earns (e.g. dividends, interest, gains) that is paid to investors who are invested in the fund on the date when the distribution is paid during the distribution period.

Log into North Online > Click on the account > Account movements 

Generally, No. When a distribution is paid, the value is transferred from your investment to the cash account. Your overall account balance may still vary depending on market movements.

We do not have fixed timeframes for this process, as it depends on when the fund manager processes the distribution. We rely on external fund managers to provide this information. Typically, distributions are paid by the last week of the month following the end of the distribution period.

Fund managers distributed income generated by the investment. Once received and processed, the distribution is paid into your cash account and then invested as per the investment instructions that havebeen set by your financial adviser or you.

Managed Funds earn income in the form of dividends and interest. They also realise capital gains. Funds managers are obligated by tax law to pay out both of these components to investors in the form of distributions.

Distribution payments can take the form of cash paid to the investor or as additional units reinvested into the relevant managed fund. Cash payments are paid into your cash account and reinvested based on your buy instructions.

Distribution amounts vary and depend on the income and investment performance generated by the fund.

Distribution timing is determined by the fund manager, and processing timeframes may vary.

The distribution amount is reflected in the unit price once it is paid, which can result in corresponding reduction in unit price.

Even after a fund manager has made a payment, it may take a little longer for the distribution to appear in your account. This is because the payment needs to be processed and applied to the correct investors.

Unfortunately, North cannot manually expedite individual distributions payment. Distributions are processed through a controlled process to ensure all investors received the correct entitlement. Once all required has been received and validated, distributions are processed as soon as practicable. 

Not necessarily. Distributions vary from year to year and are not guaranteed. Some investments may pay a distribution. Some may not pay a distribution at all in a given year depending on the income generated by the investment and market conditions

Important information

® North and MyNorth are trademarks registered to NMMT. 

The information on this page has been provided by NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT). It contains general advice only, does not take account of your client’s personal objectives, financial situation or needs, and a client should consider whether this information is appropriate for them before making any decisions. It’s important your client consider their circumstances and read the relevant product disclosure statement (PDS), investor directed portfolio guide (IDPS Guide) and target market determination (TMD), available from northonline.com.au or by contacting the North Service Centre on 1800 667 841, before deciding what’s right for them.  

MyNorth Investment and North Investment are operated by NMMT. MyNorth Investment Guarantee is issued by National Mutual Funds Management Limited ABN 32 006 787 720, AFSL 234652 (NMFM). MyNorth Super and Pension (including MyNorth Lifetime), MyNorth Super and Pension Guarantee and North Super and Pension are issued by N.M. Superannuation Proprietary Limited (ABN 31 008 428 322, AFSL 234654 (NM Super) as trustee of the Wealth Personal Superannuation and Pension Fund (the Fund) ABN 92 381 911 598. NMMT issues the interests in and is the responsible entity for MyNorth Managed Portfolios. All managed portfolios may not be available across all products on the North platform. All of the products above are referred to collectively as MyNorth Products.  The information on this page is provided only for the use of advisers, it is not intended for clients. This page provides a brief overview of some of the benefits of investing in MyNorth Products. The adviser remains responsible for any advice/services they provide to clients including making their own inquiries and ensuring that the advice/services are appropriate and in accordance with all legal requirements. 

You can read the Financial Services Guide online for more information, including the fees and benefits that companies related to NMMT, N.M. Superannuation Proprietary Limited ABN 31 008 428 322, AFSL 234654 (N.M. Super) and their representatives may receive in relation to products and services provided.   

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