Q1: What is cash dividend?
A1: Cash dividend refers to the distribution of dividends in the form of cash to investors.
Q2: What is dividend reinvestment?
A2: Cash dividends will be reinvested to purchase more shares of the fund, and you will receive your dividends in the form of additional units in your relevant holding.
Q3: What is the default dividend method for Tiger Brokers?
A3: The default dividend method for Tiger Brokers is cash dividend, but the actual method depends on the distribution policy of the Fund House. Shares of the fund may be distributed to you instead of cash in the event we receive shares instead of cash from the Fund House.
Q4: What happens if I change the dividend payment method from the default method?
A4: If the selected dividend method is different from the default method, Tiger Brokers will place a dividend conversion order according to your choice:
If the default method is cash dividend and you choose dividend reinvestment, Tiger Brokers will place a purchase order with the cash dividend amount allocated to your account, so that you may receive shares.
If the default method is dividend reinvestment and you choose to receive cash dividends, Tiger Brokers will place a redemption order with the dividend shares allocated to your account so that you may receive cash.
Q5: When does the selected dividend method take effect?
A5: Generally, the selected dividend method takes effect on the next fund dividend, depending on the distribution timing of the dividend.
Q6: How is the net value of dividend reinvestment and cash dividend determined?
A6: If the dividend method you choose is different from the default method, the NAV of the dividend reinvestment/cash dividend depends on the order placement time by Tiger Brokers. Dividend reinvestment and cash dividend correspond to purchase orders and redemption orders timelines respectively, subject to the trading rules for fund purchase/redemption by Tiger Brokers. Please refer to the Official Website > Help Center > Fund Mall > Buy & Sell for more details.
Q7: Why can't the cash dividend and dividend distributed to the account be used?
A7: By default, Tiger Brokers will distribute cash dividends and dividends in units to your account one working day after the payment date or the date we receive them from the Fund House. If the dividend method you choose is different from the default method, Tiger Brokers will place fund purchase orders and redemption orders based on the cash dividend amount and dividend distribution quantity respectively. This will lock your dividend assets, and your locked assets can not be used until the dividend orders are confirmed and settled.
Q8: Why is the conversion dividend received later than the payment date after selecting the dividend method?
A8: Tiger Brokers generally distributes cash dividends and dividend reinvestment shares to your account one working day after the payment date, subject to the actual distribution timing per fund. If your dividend needs to be converted, and your default dividend is credited before 11:00 AM SGT, the dividend conversion will happen on the same day. If your dividend distribution time is close to or later than 11:00 AM SGT, the dividend conversion order will be processed on the next day. After the order is processed, it needs to be confirmed by the fund company before the dividend is allocated to your account.
Q9: Why did I receive cash dividends even though I selected dividend reinvestment?
A9: There are three scenarios in which dividend reinvestment will not be carried out:
If the dividend amount is less than $1.
There is a debt in your account.
The respective Fund Manager is not able to process the reinvestment as stated in the Fund's Prospectus.
Q10: Where can I see the dividend orders?
A10: After the dividend orders are confirmed, you can view the executed orders in the App > Holdings > Transaction Records > Completed Orders.