The value of your investment can go up or down, and you may get back less than you invested. Nothing in this article is investment, tax or legal advice. |
When a fund you hold makes a distribution, how and whether you see it depends on your share class and where you look in the app.
Mutual funds are available to UK residents only and are being rolled out gradually, so they may not be available to you yet. If you're eligible but don't have access yet, you can join the waitlist in the app and we'll let you know when access becomes available to you.
What is a distribution?
A distribution is how a fund passes on the income it has generated (for example, from dividends or interest received by its underlying holdings) to investors. Depending on the fund and your share class, this is either paid out as cash, paid as new units, or simply reflected in a rising unit price.
A cash distribution can also appear in your account first and then be replaced with new units shortly after, if the fund manager decides to reinvest it on your behalf.
Where will I see a cash distribution?
If you hold an Income (Inc) share class, a cash distribution appears once in your in-app History, under the "Dividends" tab.
Where will I see a distribution that's paid as new units?
If a distribution is reinvested into new units rather than paid in cash, this appears as an order in your in-app History rather than as a cash entry.
Why don't I see anything for my Accumulation (Acc) share class?
Accumulation share classes don't create a cash or unit entry when a distribution occurs; the income is retained by the fund and reflected automatically in a higher unit price (NAV). Outside a tax-free wrapper such as an ISA or SIPP, this is usually still taxable income, even though you don't receive it as cash. It will be reflected in your annual statement for self-assessment tax reporting purposes.
What do "Group 1" and "Group 2" mean in my statement?
These relate to when you bought your units relative to the fund's distribution period.
Group 1 units were held since the last distribution and received the full taxable distribution.
Group 2 units were bought during the period, so part of the first payment you receive is "equalisation", treated as a return of your own capital rather than income.
This is calculated and shown for you in your Annual Statement / Consolidated Tax Certificate (CTC).
This covers the income-versus-capital split of a distribution you've received. It's separate from the cost basis adjustments described in "What is a mutual fund distribution?", which affect your gain or loss when you later sell. Those aren't calculated for you, and you're responsible for keeping the records needed for that calculation.
Where can I see the total income I've received from mutual funds?
Your Activity/Monthly Statement's Mutual fund distribution section, and your annual costs and charges / tax statement, summarise this for you. We don't provide tax advice. If you have questions about your specific position, please speak to a qualified tax adviser.
Will distributions show up in my CSV export?
Yes, mutual fund transactions, including distributions, are included in the CSV export from the app.