INC vs ACC - are my sums right?

Sea_Shell

How do you estimate what income you'll get from INC versions of a fund, vs the ACC price.

All my S&S are in ACC funds, and thinking of switching, but have I got the maths right. (appreciate this is all "in-hindsight" not what will happen)

Take my HSBC Global fund

The ACC version was at 273.52 in Jan 25 and now 296.65

The INC version was 222.77 and now 236.95

If i'd had £1000 invested in each of the funds, I would have bought 365 ACC units and they would now be worth £1084.56. The INC would have been 449 units and now be be worth £1063.65

Is the £20.91 difference what the INC fund would have paid out in income (dividends), and is that the YIELD % quoted on factsheets, fund data etc.?

So if instead i had £100,000 invested, that would have returned £2091, and I would still have my 449 units worth more than I paid for them.

Assuming all this is correct, how does it work if the price drops? Can you have negative yield?

Sorry if this is all very newbie stuff, but i've always just bought ACC units and forgotten about them.

FrugaiMacDugal

Google says this.

OldScientist

While I'm not sure exactly which fund you are referring to, the amount paid out in dividends per share amount (i.e., per unit) (this information can be found online, e.g., https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BMJJJG09-HSBC-FTSE-All-World-Index-Fund-C-Inc/dividends ) can be used to calculate how much would have been generated in income (much easier than using yield since that can be forward looking, backward looking or instantaneous depending on the source looked at).

Sea_Shell

The actual fund in question is this...

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B76WP695GBP-hsbc-global-strategy-balanced-portfolio-c-acc/dividends

leosayer

Using your examples, last year your 449 ACC units would have accumulated dividends of:

16-Oct-2025 365 x 0.0334 = £12.91

16-Apr-2025 365 x 0.018877 = £6.89

and your 365 income units would have paid:

16-Oct-2025 449 x 0.027 = £12.12

16-Apr-2025 449 x 0.016025 = £7.20

The historic yield field on the link below (for the income fund) is 1.83% but this doesn't predict what you will get in the future which is entirely down to changing future investment performance and company dividend payouts.

Income fund link here:

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B7PHDP01-hsbc-global-strategy-balanced-port-inc-c/key-statistics

Why are you switching to income units?

EthicsGradient

Using as much accuracy as reasonable, and if those Fidelity figures are exactly right (but Fidelity figures on their web pages for funds from other managers aren't always precise):

£1000 buys 1000/2.2277=448.89 income units

These gave £12.12 and £7.19 income = £19.31

now worth £1063.65

or

£1000 buys 1000/2.7352=365.60 accumulation units

now worth £1084.56 (£20.91 more than the income increase)

accumulated dividends on which you still pay income tax

£12.21 and £6.90 = £19.11

But there will also be the equalisation split of newly-bought units to take into account (we're comparing Jan to Jan prices, and the dividends are in April and October). You'll only find out the equalisation split if you actually own them, and then your platform will tell you, after the end of the tax year.

Sea_Shell

Why? So as to have more "excess income" for gifting purposes. Capital gains don't count.

All within ISA is so no income tax payable.