Change of Dividend payments – NN Euro Obligatie Fonds

Change of Dividend payments

As you all know, I have a “Safe-haven-sleep-well” part in my Vrijheid Fonds. This part consists only of mutual funds. I have selected these mutual funds for their dividend history and dividend payment strategy.




At this moment my “Safe-haven-sleep-well” part consists of three mutual funds:

Mutual Fund Weight
NN* Euro Obligatie Fonds 4.82%
NN* premium Dividend Fonds 4.91%
Kempen European High Dividend Fund 1.99%

* NN are mutual funds from the NN Group bv.

I love these three mutual funds. Some of these funds I have already more than 6 years! In total I have invested € 9,171.87 and received € 1,028.09 in dividends over these years.

These three mutual funds pay a quarterly dividend. The total combined projected annual dividend for 2018 of these mutual funds is approx. €563.75 or 17.49% of my total projected annual dividend for my Vrijheid Fonds.


Change of payment

Till so far the good news. Two weeks ago I have received an email that rocked my “Safe-haven-sleep-well” part of my Vrijheid Fonds. This email stated that the NN Euro Obligatie Fonds (Euro Bond Fund) will no longer issue a quarterly dividend from 2018 onwards. From now on, the dividend payment will take place once a year. This came totally out of the blue for me.

After some contact I learned that the payment of the quarterly dividend was temporary as a result of tax obligations that have now been completed. This means that the fund returns to an annual dividend payment. Until 2014 this fund paid dividends once a year.

The new annual dividend payment will be expected in July of 2018. The amount of the dividend to be paid in 2018 is not yet known. However, because the temporary dividend component (tax liability) has been stopped, the dividend is expected tot be lower than in the past. And of course the current market conditions – the relatively low interest rates on euro bonds – also play a role.

From now on, no dividend tax of 15% will be withheld from the distributable dividend. The gross dividend to be received will therefore also be the net dividend for this fund.



I’m not happy with this change. I have specifically chosen quarterly dividend paying funds. Why you ask? Because with automatically reinvesting the dividends every quarter, I will get my compounding snowball roll faster and get momentum sooner. This because with quarterly dividend you have a three quarter head start, especially if you have reinvested the dividends.

After some long thinking I decided not to take action on this fund and keep this fund. But I will not buy more partials of this fund. I have to look for a new quarterly dividend-paying fund.

Do you have any suggestion for a quarterly dividend-paying mutual fund or ETF? Which one do you prefer?

I like to hear from you,





5 thoughts on “Change of Dividend payments – NN Euro Obligatie Fonds

  1. Ron van den Heuvel


    I also read this and lucky for me i own not so many shares of that one.

    I own: NN First Class Obligatie Fond, i really love this one.

    It give me +/- 4 % dividends and paying each quarter.

    I think you will also love this one.

    Good luck with your vrijheid fonds!

    1. Pollie Post author

      Hello Ron,

      Thanks for taking the time to give a reaction on my post!
      I know NN First class Obligation fund. This is also a good MF. However a couple of years ago I decided to buy the NN Euro obligatie fund. At that time I thought that this fund was better. But now I’m surprised by their announcement and have to re-evaluate my position. But I already missed a dividend payment 😞

  2. Team CF

    This is why we like the monthly REIT’s too, every month we get more shares and accumulate throughout the year. We don’t have any ETFs or mutual funds that pay per quarter, all of them are yearly, but those are capital growth funds for us (not dividend investments).

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