ACT 40 DIVIDENDS
Dedicated Information Research Platform for the Global Close-End-Fund Universe.
Act 40 Dividends Research Platform tracks, reclassifies, and monetizes the distributions of over 500 Closed-End-Funds.
INVESTMENT COMPANY ACT OF 1940 - DIVIDENDS.
section 19: it shall be unlawful for any registered investment company to pay any dividend, or to make any distribution in the nature of a dividend payment , wholly or partly from any source other than--
(1) such company's accumulated undistributed net income, determined in accordance with good accounting practice and not including profits or losses realized upon the sale of securities or other properties; or
(2) such company's net income so determined for the current or preceding fiscal year;
unless such payment is accompanied by a written statement which adequately discloses the source or sources of such payment
WHY SHOULD INVESTORS CARE?
Generally, dividend income is taxed as ordinary income, which carries the highest tax rate possible for an individual investor. Section 19a notices alert investors that a portion of an upcoming dividend is either being tax classified as a long-term gain or as return of capital. Long-term gains offer the lowest possible tax rate for an investor and return of capital bears no immediate tax liability as it lowers your cost basis in the investment.
HOW CAN INVESTORS BENEFIT?
The Investment Company Act of 1940 governs three types of investment management companies: Mutual Funds, Closed-End Funds, and Exchange-Traded Funds. Unlike its peers, Closed-End Funds can trade at substantial discounts to their underlying net asset value. These discounts create an opportunity for investors to buy $1 worth of tax-advantaged dividends for less than $1
FOR ACCOUNTANTS AND ADMINISTRATORS:
We monitor over 500 closed-end funds and determine the breakdown of each distribution and its impact on cost basis. This allows you to post actual cost basis on a monthly basis which makes reconciling to the year end 1099 much easier.
FOR INDIVIDUAL INVESTORS:
On dividend declaration date we let you know the characterization of the dividend and the ex-dividend date. Increases or decrease in the dividend, amount of long and short term gain, and even return of capital can all cause significant volatility in the underlying security. Knowing the current cost basis makes trading easier.
TRADING ADVISORY SERVICES & ASSET ALLOCATION MODELS:
Our closed-end fund specialists make trading recommendations based on current share price, current premium/discounts and several other quantitative factors that impact a fund's price action.
YEAR-END TAX CLASSIFICATION SUPPORT:
Provide year-end tax classification breakdowns of your portfolio to determine tax liability
Act 40 dividends tracks the long term capital gains and return of capital distributions of the Closed-End-Funds Universe. The goal is to help investors choose tax advantaged funds to meet their Investment objectives.
OUR RESEARCH PARTNER
BRIGHT PEI CONSULTING LLC
Chinese Industrial Research Partner
ACT 40 DIVIDENDS
The U.S. Information Research Partner
(Close-end fund tracking)