If your balance looks lower around 30 June, it's most likely because your portfolio has paid a distribution. This is normal and expected — your overall investment value doesn't change.
What is a distribution?
Throughout the financial year, a managed fund (such as the Spaceship Voyager portfolios) earns income through dividends from the companies it holds, or gains from trading activity within the portfolio. At the end of the financial year, this accumulated income and any gains are paid out to investors as a distribution.
When a distribution is paid, the fund's total assets decrease by the value of that distribution, which causes the unit price to drop. The key thing to know is that the drop in unit price is offset by the distribution you receive, so your overall investment value stays the same.
What happens to your distribution depends on your portfolio
Different Spaceship Voyager portfolios handle distributions differently:
Cash distributions
The Spaceship Origin Portfolio and the Spaceship Universe Portfolio pay cash distributions. Your unit price drops by the distribution amount, but you receive that value as a cash payment to your available money. If your Spaceship Voyager account is no longer active, the payment goes to your linked bank account instead. Your total value is unchanged.
You can elect to automatically reinvest cash distributions through the Spaceship app.
Reinvested distributions
The Spaceship Earth Portfolio, the Spaceship Galaxy Portfolio, and the Spaceship Explorer Portfolio reinvest distributions automatically. Instead of receiving cash, you're issued additional units at the post-distribution unit price. Your unit price drops, but your unit count increases. Your total value stays the same.
Why does the unit price drop look bigger some years?
The size of the unit price drop reflects the size of the distribution. In years where the portfolio has earned more income or gains, the distribution per unit will be higher and the unit price drop will be more noticeable. The unit price is also affected by market movements day to day, so while a noticeable drop around 30 June is likely related to the annual distribution, market activity at the time plays a role too.
What if my balance dropped and there was no distribution?
In years where a portfolio doesn't pay a distribution, any movement in unit price around 30 June reflects ordinary market activity rather than a distribution event.
When will I receive my distribution?
The timing of distribution payments can vary, but they're generally processed within 90 days of 30 June.