Distribution

Investment funds usually distribute their income to investors once a year. This distribution takes place no later than four months after the end of the fund's financial year.

The investment company determines the amount of the distribution each year. It has a certain amount of leeway in this regard. The only legal requirement is that capital gains tax (KESt) must be paid on the taxable income generated by the fund.

The distribution is usually based on the income generated by the fund. However, it is also possible that less or more than this income is distributed. If more is distributed than the income accrued, the payment is made from the fund's assets (substance).

A distinction is made between

• ordinary income, such as dividends and interest, and
• extraordinary income, such as gains from the sale of securities.

On the distribution date (ex date), the value of the fund unit falls by the amount of the distribution. The amount of the distribution is not a quality feature and does not allow any conclusions to be drawn about the quality of the fund or its management.