Do the AJ Bell funds pay out income?

Both the AJ Bell Income Fund and the AJ Bell Income & Growth Fund have been designed specifically to target an income return from investment within them.

Income is paid out from each fund monthly and paid into the account holding the fund (ISA, SIPP etc). We smooth the amount paid over the course of the year to make the monthly payments more predictable. See how it works in practice.

The AJ Bell funds also have ‘Inc’ (“Income”) share classes available, which pay a dividend twice a year. While the objective of these funds is to generate growth (rather than return income to investors), a ‘natural’ income is generated from their underlying investments which is paid to investors through these share classes. Your entitlement to each dividend payment is usually triggered by owning shares in a fund on the day before the ex-dividend date. You must still own those shares at the valuation point (midday) on the day before the ex-dividend date to qualify for the dividend.

The ex-dividend date is the day the fund starts trading without the value of its next dividend payment.

All AJ Bell funds have ‘Acc’ (“Accumulation”) share classes that are designed to reinvest any income generated from the underlying investments within a fund, that is then reflected within the published price of that share class, increasing the price of each share. If you choose to buy these accumulation shares within an AJ Bell Fund you will not receive income payments. If you would like the income paid into your bank account, you can set up a regular income withdrawal.

Read more information about the types of share classes in funds.