Capitalization

Capitalization is a choice made by an OPC not to distribute to holders the income received from the securities held in the portfolio but to reinvest it within its portfolio.

The legal and commercial documentation of each OPC specifies whether it distributes or capitalizes income. When income is capitalized, it contributes to the increase in the net asset value of SICAV shares and FCP units.

For distribution OPCs, income is distributed periodically in the form of dividends for shares and coupons for bonds.