Investimenti Arancio funds: dividend payment

Dividendo Arancio, Euro Arancio and Mattone Arancio, the three funds in ING Direct’s “Investimenti Arancio” category, will pay dividends on June 29th. Dividends will be payed on the basis of shares owned the 21st of June: this time interval is only needed to perform NAV calculation and to credit dividends on saving accounts, so there is no way (as someone dreamed) to sell shares at “full value” and also get dividends. In fact, it would be more correct to say that dividends are payed the 22nd, and credited on saving accounts the 29th.

  • Dividendo Arancio will pay a 2.00 euro dividend per share;
  • Euro Arancio will pay a 0.25 euro dividend per share;
  • Mattone Arancio will pay a 0.75 euro dividend per share;

All these value are before taxes, that on dividends in Italy are 12.5%. As you may have noticed, the fourth fund of Investimenti Arancio group, Convertibile Arancio, won’t distribute dividends. This is because the fund is too “young”, having been created just a few months ago.

I have to say that I expected a higher dividend from Mattone Arancio, since in a recent interview Michael Lipsch, Mattone Arancio fund manager in ING Investment Management, said that the companies in portfolio distributed in average dividends near to 4% of share value. Since dividends should be relative to last year results, that didn’t suffer today’s negative period, I thought Mattone Arancio dividend would have been around that amount, that would have meant around 2 euro per share.

I imagine that maybe ING decided to cut Mattone Arancio dividends to avoid a fall in NAV, in share price, that could discourage investors, although on an emotional point of view, that shouldn’t be determinative when one choose how to invest his saving, but nevertheless is surely relevant.

Italian translation of this post: Investimenti arancio: distribuzione dividendi

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