Update: AXA Framlington Monthly Income to compensate investors with bumper June dividend

Impact of Covid-19

The AXA Framlington Monthly Income fund will pay unitholders a dividend twice the size of its payout in the same month the previous year, as it looks to make up a shortfall of income when it failed to distribute cash in April.

AXA told Investment Week on Tuesday (9 June) its 'R' share class would issue a dividend for June of 1.20p per unit, almost double June 2019's 0.65p distribution. The move comes after it was revealed the fund was left with "insufficient income" to pay investors a dividend in April, after a number of its holdings reneged on payout promises due to the Covid-19 pandemic. The £290m fund, which pledges to pay investors dividends every month, told Investment Week that as of its 6 March year-end date it had been expecting to receive dividends that had gone ex-dividend in the fund's last finan...