Distributing share class

An investment fund has one or more share classes. These are also referred to as tranches. Each share class has its own ISIN.

A share class with regular distributions is usually marked with (A). With this tranche, investors receive a distribution at least once a year. This takes place no later than four months after the end of the fund's financial year.

The investment company (KAG) reassesses the amount of the distribution each year. The only legal requirement is that capital gains tax (KESt) must be paid on the taxable income generated by the fund. The KAG may also distribute more than the income generated. In this case, the payment is made from the fund's assets (substance).

Important to know: Every distribution always comes from the fund's assets. This reduces both the fund's assets and the calculated value (share price) of the fund accordingly.

Another form of share class is the accumulating share class. In this class, the income is not paid out. Instead, it is automatically reinvested in the fund.