DWS 2023 Interim Capital Gains
To view the latest by fund, please click HERE.
Capital gains are distributions related to the sale of a security within a mutual fund portfolio. Each security can be sold at a gain or loss, which means the price at sale was either more or less than the initial purchase price.
For mutual fund investors, the sum of all gains and losses are brought together which may result in a distribution to shareholders in a year. This is called a capital gain. Generally, this distribution is taxable unless your account is in an individual retirement account (“IRA”) or other type of qualified retirement plan account. In some years there is a net capital gain paid to mutual fund shareholders, and in some years, there are none. It all depends on the underlying portfolio security sales each year. Any capital gains are paid in dollar terms. DWS will also publish this payment as well as a percentage of the mutual fund’s net asset value (NAV) for illustrative purposes.
It is important for shareholders to understand that capital gains can be paid even in years when the fund has negative performance. This can happen if a security in the portfolio was bought years earlier at a low cost and then is sold at a higher price. At times securities must be sold to meet shareholder redemptions which can result in taxable gains. Portfolio managers work to manage this impact but it is a factor when investing in a mutual fund.
Please consult a tax advisor regarding your specific tax situation. DWS does not provide tax advice.
Will I receive this distribution?
The distribution is paid to shareholders that own the fund on the “Record Date” which can vary by fund. You must own the fund on the record date to receive the distribution. Shareholders that wait to purchase shares of a fund after the record date, or sell their position prior to the record date, will not receive this distribution.
What is the Ex-Date?
The “Ex Date” or “Ex-dividend date” is the date when the fund shares are no longer subject to the capital gain distribution. Shareholders will notice that the net asset value (NAV) or purchase price will decrease on this date relative to the amount of the capital gain being paid to shareholders and removed from the fund.
What is the payable date?
The “Payable Date” is the date on which the fund’s capital gain is paid (if applicable).
Below is an example of how DWS reports Estimated Capital Gains*
|
Fund Name |
Record Date |
Ex-Date |
Payable Date |
Realized Short-Term Capital Gains |
Realized Long-Term Capital Gains |
Total Gains |
Total gains as % of NAV |
|
DWS Mutual Fund - Example |
12/12/2022 |
12/13/2022 |
12/14/2022 |
$0.0000 |
$0.1161 |
$0.1161 |
1.1598% |
|
Capital Gains Explained |
Date that captures all shareholders who own the fund. You must be a record holder on this date to be subject to capital gains distribution. |
Date on which the fund is no longer subject to a capital gain distribution. If you buy the fund on this date you will not be subject to a gain in 2022. |
Date on which all capital gain distributions are paid. |
Portion of the capital gain that is subject to the short-term capital gains rate as defined by the IRS. |
Portion of the capital gain that is subject to the long-term capital gains rate as defined by the IRS. |
The combined value of short term and long-term capital gains that is distributed. |
An illustration of the capital gains distribution as a percentage of the funds net asset value. |
*This chart is an illustration of the published capital gains estimates on dws.com. Please consult a tax advisor regarding your specific tax situation. DWS does not provide tax advice.
Capital Gain Distribution Options
Shareholders can elect to have their capital gain distributed to them directly or to have the distribution reinvested within their account. Regardless of what option is chosen, the gain will be subject to taxation unless if you own an IRA or other type of qualified retirement plan account.
To verify and/or change the distribution option, shareholders can log into their account at dws.com or contact DWS Shareholder Services at (800) 728-3337, Monday through Friday between the hours of 7:00 a.m. and 6:00 p.m. Central Time.
DWS will be updating capital gain estimates continuously. To view the latest estimates by fund, please click HERE.