How will dividend payments and capital gains distributions affect my account now that EBP uses share accounting?
With share accounting, dividends and capital gains are now posted directly to your plan account. Previously, dividend and capital gain payments were included in the unitized net asset value of each mutual fund. When dividends and capital gains are declared and announced by a mutual fund, the fund designates a record date. If your plan account is invested in the fund on the record date, you will receive a portion of the dividend or capital gain. The amount you receive will be based on the number of shares of the fund that are in your account on the record date. The share price of the mutual fund will decrease on the Ex-Dividend Date, which is the date the mutual fund distributes the dividend or capital gain. Please note that when the dividend or capital gain is paid by the mutual fund, the reinvested shares will be posted to your plan account. Once the reinvested shares are added to your plan account, the market value of your plan account will increase by the same amount of the market v
