Why do Wasatch Funds shareholders receive a distribution?
Mutual funds are required by the IRS to distribute substantially all realized profits they earn to shareholders on at least an annual basis. If a fund has net gains from the sale of securities, or if it earns dividends or interest from securities, the fund must distribute those earnings to its shareholders. All distributions are taxable, unless an investor’s shares are held in a tax-deferred or tax-exempt account such as an IRA. Wasatch Funds shareholders have the option to receive their distributions in cash or to automatically reinvest the distribution back into the Fund.

This information is not intended to provide tax advice. Please consult a qualified tax professional for advice specific to your circumstances.