The percentage of current income earned per share. It is calculated by dividing the fund´s net investment income by its average NAV. (The net investment income is the total income of the fund, less operating expenses.) The income ratio indicates how much of the fund´s total return comes from income.
A high income ratio suggests that the underlying fund depends on dividend distributions or coupon payments to fill out its total return while a low income ratio suggests that capital appreciation is very likely responsible for the fund´s total return.
