Reinvest your distributions

You can automatically reinvest your distributions

One of the advantages of investing in a managed fund is the option of automatically reinvesting your distributions – something that you don’t get with all direct share investments.

Opting to have your dividends automatically reinvested can make a big difference to your managed fund earnings because doing this keeps increasing, or compounding, the amount you have invested. Each time you earn a distribution or income payment from your managed fund investment, the amount of the distribution is used to purchase more units in that investment at the market price on the day the distribution is made.

Snowball your investment returns

Your original investment plus the additional reinvestments then have the potential to earn more distributions. You then reinvest these earnings and so on, in effect ‘snowballing’ your investment and potentially increasing your capital growth and distributions in the future.

Automatic distribution reinvestment also provides you with the discipline not to spend your dividend payments, and while your distributions may be relatively modest, the wealth they add to your investments over the long term could be substantial.

This graph is not a projection of expected returns and is only intended to demonstrate the effect of compounding. See ‘Important information regarding the graph’ at the bottom of the page for further information.

The chart above illustrates the benefits of reinvesting your distributions in the flagship BT Australian Share Fund between the period 2000 to 2006. An initial investment of $10,000 is made in May 2000. The chart compares the difference in the total investment value with both reinvesting distributions into your investment versus spending any income or growth from the investment. As you can see, the difference over the period is significant. Even when the market dipped slightly in 2003, the total value of the investment with the distributions reinvested remained favourable.

How to change your distribution options

Opting to automatically reinvest Fund distributions is free of charge, and is a simple process for BT Investors. Please note if you don't nominate a distribution method, your distributions will be automatically reinvested.

The following products let you reinvest:

  • BT Investment Funds
  • BT Investor Choice Funds
  • BT Premium Cash Fund
  • BT Classic Investment Funds

Choose a method to change your distribution options:

If you have registered to use BT Online, log in using your Investor Number and Password. If you have not yet registered to use BT Online, click here to register .

After log in to BT Online, follow these steps:

  1. Select your account
  2. On the left hand side menu, click on Account Administration
  3. On the dropdown list, click on Account Details
  4. Select your fund from the ‘Your product and Fund Details’ list
  5. Click on arrow next to Distribution Option
  6. Change your distribution

Call BT Customer Relations on 1300 887 769 to change your distribution method to reinvest - have your Investor Number ready when you call.

Important information regarding the graph: this graph is not a projection of expected returns and is only intended to demonstrate the effecting of compounding. Total returns are calculated at 31 May each year, using exit prices taking into account management costs for the Fund. No reduction is made to the unit price (or performance) to allow for tax that you may pay as an investor. Certain other fees such as contribution fees or withdrawal fees (if any) are not taken into account. The investment returns shown are historical. Investment can go up and down and past performance is not a reliable indicator of future performance. Future performance is not a guarantee. BT Funds Management Limited (ABN 63 002 916 458) is the responsible entity of the Fund. The responsible entity if a fund is the issuer of units in that fund. A Product Disclosure Statement (PDS) is available for the Fund and can be obtained by calling BT Customer Relations on 132 135, or downloading form this website. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of units in the Fund. This information is general information only and has been prepared without taking into account your individual objectives, financial situation or needs. You should assess whether this information is appropriate to you and talk to your financial adviser before making an investment decision. The information is based on current tax laws and their interpretation. The levels of and basis of taxation may change. The application of taxation laws depends on investors’ individual circumstances. You should, therefore, seek professional advice on the taxation implications of investing and should not rely on this information, which should be used as a guide only.