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What’s the difference between ICVC accumulation and income shares?

ICVC accumulation shares reinvest income earned by the fund while ICVC income shares pay income out to shareholders

Accumulation shares

At the end of each accounting period, on the ex-dividend (XD) date, the net income that’s been earned by accumulation shares in the fund is reinvested into the fund on behalf of the shareholders.

This means that shareholders don’t get any income payments in cash.

Income shares

At the end of each accounting period, on the ex-dividend (XD) date, the net income that’s been earned by income shares in the fund is paid out to shareholders who hold income shares.

For bond fund holders, it’s paid in the form of an interest payment and for equity fund holders, in the form of a dividend.

The price of income shares will decrease relative to the price of accumulation shares at the time an income distribution is made.