Distribution Policy & Tax Related Issues

How do distributions come about?
When will distributions be declared?
Are distributions fixed?
How are distributions paid?
What happens if the unit holder fails to bank in the income distribution cheque with in six (6) months from the date of issue?
Is it beneficial to reinvest the distribution or cash out?
Can I be allowed to change my distribution instruction?
Is it better to invest prior to a distribution?
Do I need to pay tax on the capital gains derived from the principal investment?
Are cash distributions subject to tax?

Distributions come about when the Funds earn money from the dividends and profits realised from the underlying assets in which the External Fund Manager invests in.

Distributions (if any) will usually be declared at the end of a financial year or any specified period as may be approved by the Trustee.


By selecting the proper option in the Master Trust Application Form, unit holders may choose their distributions to be:

  • Paid out – cheque sent to your registered address
  • Reinvested into additional units of that Fund.
    • All income reinvestments will be effected based on the NAV per unit as at the end of the distribution date. The income will be credited at the NAV per unit.

All income reinvestments will not be subject to the minimum additional investment requireme

The units will automatically be reinvested into additional units of that Fund.

It is generally considered beneficial to reinvest the distribution because reinvestment provides a convenient and cost effective way for you to increase your investment in the Fund without incurring any charges e.g. sales charge.

Yes you can. A unit holder may notify Pheim Unit Trusts 14 Business Days prior to the distribution date on any change of income distribution instructions.

There is no difference between investing just prior or after a distribution. This is because the Funds’ unit trust pricing would be adjusted after the distribution to reflect the amount that has been paid out.

No. Under the Malaysian law, there are no capital gains taxes being imposed on unit trust investments.

Yes, income distribution received from a unit trust by a unit holder or beneficiary (whether an individual, company or institution) is treated like any other investment income and would fall under the Income Tax Act 1967. However, since the cash distribution has already been taxed at source (before the distribution), you are entitled to claim a tax credit. A tax voucher will thus be sent to you at the end of Calendar year for tax credit against your tax liabilities.