It depends what their underlying investments are. Ireland-domiciled funds that have invested more than 60% in bonds at any time during an accounting year are deemed to pay income in the form of interest, while funds that have always had less than 60% invested in bonds pay income as dividends. In practical terms, this means it’s highly likely that our Ireland-domiciled equity funds will pay income in the form of dividends, while income from our Ireland-domiciled bond funds will be deemed as interest.
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