According to Vanguard's portfolio information for Lifestrategy 60 Inc units, the sub-funds of which it's made up are entirely Acc units (with the exception of an inconsequential 0.0% in a distributing gilts ETF).
But somehow the fund manages to pay out a ~1.6% yield (paid annually).
How is this actually achieved? Is the portfolio information incorrect (there are actually more Inc units held?) or are Vanguard doing something like liquidating a proportion of assets to generate some yield every year? Something else?
Morningstar's data seems to confirm the same all-Acc units picture.
Curiously the Vanguard portfolio information for Lifestrategy 80 and Lifestrategy 100 Inc units shows a bit more of a mix of Acc and Inc types for the sub-funds, although I'm dubious the relatively small proportion of Inc types held is sufficient to generate the stated yields (1.8% and 2.0% respectively) in either case.
I've had a look over the LifeStrategy prospectus inspecting all the mentions of "yield", "income" and "dividends" and while there's plenty of mention of how they're handled there was nothing about where they come from.