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Originally posted by Occam Logic
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Forgot about this one, sorry folks. Did get to the bottom of this eventually (I had the same frustrating conversation, they are terrible at explaining it). VAS is not a stand alone fund, it is a share class of an overarching fund which has their managed fund as a separate share class. It was the managed fund that suffered a very large redemption from an institutional investor. When managed funds get large redemptions, it can create taxation implications that can in turn impact distributions for the remaining investors. I would have thought that any significant redemption from the managed fund should have been quarantined, not flow over to the VAS ETF. Apparently not. The reference to the 'higher than normal distribution the quarter before' was poorly articulated (I had the same problem). It was a reference to that same quarter in the previous year, not the immediately preceding quarter.
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Thanks for the explanation Occam. My understanding was that distributions were merely a reflection of what dividends/payments all of the companies in the ASX 300 paid out? I would have thought that inflow/outflows of money going into the fund would not matter...
