Accumulating vs distributing share class
Accumulating share classes reinvest income inside the fund; distributing share classes pay it out to investors, usually quarterly, semi-annually or annually.Definition
An accumulating share class (Acc, sometimes C or "capitalisation") keeps the dividends and coupons the fund receives and reinvests them, so income shows up as a higher NAV. A distributing share class (Dist, Inc or D) pays that income out to shareholders on a set schedule and the NAV falls by the amount paid on the ex-dividend date.
Both classes hold the same portfolio and follow the same objective. Many UCITS funds offer both under separate ISINs: the iShares Core MSCI World UCITS ETF USD Acc (IE00B4L5Y983) accumulates, while the Vanguard FTSE All-World UCITS ETF USD Dist (IE00B3RBWM25) distributes.
Why it matters
The choice changes cash flows, not exposure. Distributing classes suit investors who want income paid out; accumulating classes avoid reinvestment friction. Tax treatment differs by country and by investor, so an application should display the policy clearly rather than recommend one. It also matters for performance data: a distributing class's price series understates total return unless distributions are added back, which is why factsheets quote total-return figures.
In the API
The policy is in keyFacts.distribution and the class label in shareClass. Example values:
json
Common pitfalls
Never merge Acc and Dist classes into one record: they have different ISINs, NAVs and price histories. When comparing across classes, use total-return figures such as calendarReturns.fund, which assume distributions are reinvested. See share class and distribution yield.