MANAGE U.S. MUTUAL FUND DIVIDEND ELECTION
US Mutual Funds
US mutual fund offered by IBKR which pay dividends automatically reinvest those dividends in additional shares at the closing price of the fund on the day the dividend is paid, unless you opt for cash. You can see this reinvestment in the Trades section of your Daily Activity Statement. There will be a Mutual Funds section with a purchase coded "R" for reinvested. The dividends are reinvested up to the 2nd decimal, clients will receive the remaining part in cash.
U.S. legal residents with an IBLLC account can use the button above or follow the procedure below to elect to have U.S. mutual fund dividends be paid in cash rather than shares:
- Log in to Client Portal
- Click the User menu (head and shoulders icon in the top right corner) followed by Settings
- Under Account Settings section find the Trading section
- Select Dividend Election
- Check Reinvest or Receive Cash for Mutual Fund Defaults under Account Level Settings
- Click on Continue and complete the steps presented
Non-US Mutual Funds
Dividends from non-US mutual funds will be processed as follows, based on the intermediary:
- Allfunds & Euronext:
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- Income funds (labeled "Inc") - Paid as cash
- Accumulation funds (labeled "Acc") - Automatically reinvested at source
- FundSettle:
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- Automatically reinvested unless prohibited by the specific fund or fund company
Please Note
- Mutual fund cash dividend election is only available for U.S. mutual funds, which are only available to customers who are U.S. legal residents and have a U.S. address.
- Mutual fund dividend election changes are effective the 5th business day of the following month.
- In case of mutual fund dividend election to reinvest dividends, dividends are reinvested up to the 2nd decimal, clients will receive the remaining part in cash.
Disclosure: Mutual Funds are investments that pool the funds of investors to purchase a range of securities to meet specified objectives, such as growth, income or both. Investors are reminded to consider the various objectives, fees, and other risks associated with investing in Mutual Funds. Please read the prospectus accordingly. This communication is not to be construed as a recommendation, solicitation or promotion of any specific fund, or family of funds. Interactive Brokers may receive compensation from fund companies in connection with purchases and holdings of mutual fund shares. Such compensation is paid out of the funds’ assets. However, IBKR does not solicit you to invest in specific funds and does not recommend specific funds or any other products to you. For additional information please view our Mutual Fund Product Listings.
Mutual funds trade once per day. Each fund has a cut off time, after which an instruction to buy or sell cannot go through until the next day. Any attempt that you make to cancel or modify an order will be considered a request to cancel or modify that order. We will do our best to meet your request but cannot guarantee that your order can be changed or cancelled, even where the request is submitted before the cut off time. We shall not be liable to you if we are unable to cancel or modify an order. You remain responsible for executions even where you have made a request to cancel or modify an order.