For funds predominantly invested in bonds, we show the ‘distribution yield’. This reflects the amounts that may be expected to be distributed over the next 12 months, as a percentage of the fund share price at the date shown. It is based on a snapshot of the portfolio on that day. Investors may be subject to tax on distributions.
For all other funds, we show the ‘historic yield’. This reflects distributions declared over the past 12 months, as a percentage of the share price at the date shown. Investors may be subject to tax on their distributions. For share classes with an incomplete distribution history, and those affected by a 2016 change in our charging policy, an estimated yield is quoted.
For the income share classes of all funds (except the M&G Property Portfolio and M&G Feeder of Property Portfolio) certain charges, including the annual management charge, administration charge and share class hedging charge (where applicable) are taken from capital. This has the effect of increasing the yield and constraining the share class’s capital performance to an equivalent extent. For the accumulation share classes of these funds, these charges are taken from income. As a result, yield figures for a fund’s income and accumulation share classes may differ significantly. Please see the relevant Annual Report for the effect of the charge being taken from capital.