Can the bank change the dividend payout ratio? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

Can the bank change the dividend payout ratio?

Asked by Banky team 2 months ago 1 views
Banky team Reviewed editorial answer

The profit-sharing ratio between the investor and the investment manager is a fundamental part of the investment partnership.

Key points

  • Any change must be clearly communicated to the investor before it takes effect, in accordance with the agreed-upon terms.

  • Do not confuse the profit-sharing ratio with the expected rate of return.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

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