Why is the Magnum Global Fund not declaring dividend every Financial Year? It does so only in alternate Financial Years though the NAV is good. You have given a 3 star rating. Is something amiss when you compare this Performance with its peer Funds? Does it mean it generates distributable profit only once in two Financial Years?
The Fund Rating (Star Rating) is based the historical risk-free return from a fund relative to its peers. For calculating the return of any fund we take into account the total return which assumes reinvestment of any dividend.
Most funds offer two options -- growth and dividend. In the growth plan all gains and income to the fund accumulates and reflected in NAV. The dividend plan delivers periodic dividend based on availability of distributable surplus i.e. income by way of interest, dividend and realized gains from investment.
Magnum Global has been liberal with its dividend in recent years – 50% in March 2007, 42% in June 2005, 24% in Nov 2004, 25% in Jan 2004 and 10% in Nov 2003.