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Cliveman_Pieman
Posts: 85 Forumite
I received a dividend from Lloyds yesterday. The instructions on my account were to automatically reinvest. After phoning the helpdesk, it turns out that the income has to be in the account on the 10th, then they reinvest "at some point in the next 11 days". So my dividend received on May 16th will be invested between June 11 and June 21.
!!!!!!?! Until now, I have been very passive and invested in accumulation funds. However I now have a number of individual shareholdings, so this will reoccur. Am I being unrealistic in thinking this is dreadful service? To wait for a month for them to carry out my instruction is ludicrous in my eyes.
Apologies if any of the terminology above is incorrect, I'm fairly green to all of this. I suppose I could transfer to another provider, I chose HL simply because they popped up in an ad. Any thoughts would be appreciated.
!!!!!!?! Until now, I have been very passive and invested in accumulation funds. However I now have a number of individual shareholdings, so this will reoccur. Am I being unrealistic in thinking this is dreadful service? To wait for a month for them to carry out my instruction is ludicrous in my eyes.
Apologies if any of the terminology above is incorrect, I'm fairly green to all of this. I suppose I could transfer to another provider, I chose HL simply because they popped up in an ad. Any thoughts would be appreciated.
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This is pretty standard for platforms, some are faster and some are slower."If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
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Cliveman_Pieman wrote: »I received a dividend from Lloyds yesterday. The instructions on my account were to automatically reinvest. After phoning the helpdesk, it turns out that the income has to be in the account on the 10th, then they reinvest "at some point in the next 11 days". So my dividend received on May 16th will be invested between June 11 and June 21.
!!!!!!?! Until now, I have been very passive and invested in accumulation funds. However I now have a number of individual shareholdings, so this will reoccur. Am I being unrealistic in thinking this is dreadful service? To wait for a month for them to carry out my instruction is ludicrous in my eyes.
Apologies if any of the terminology above is incorrect, I'm fairly green to all of this. I suppose I could transfer to another provider, I chose HL simply because they popped up in an ad. Any thoughts would be appreciated.
That doesn't sound right to me ... in my experience, competitors make the reinvestment the next day at the next Pricing Point for the assets ... maybe worth asking them why there is a delay on the reinvestment ?0 -
Probably because automatic reinvestment of dividends are done in bulk at a lower charge.0
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Hi,
from HL T&Cs,
You choose how you would like income to be treated within each
Account you hold. If, on a later application, you change your income
instructions for that Account, we will abide by your later instructions.
Your instructions will apply per Account, not per individual holding.
If you choose automatic reinvestment, in each Account, any dividends
you receive will be held in the income account and reinvested, where
we are able, in more of the same type of fund or share that paid the
income. Income will be reinvested once per month on the date we
determine, and only once it has reached £10 per holding. Alternatively
you may choose the threshold at which we will reinvest, between £10
and £1000. Where we are not able to invest, your income will be
transferred to the capital account and left pending your further
instruction. Please note you must hold at least one whole unit or share
for reinvestment to occur. We will normally place the deal between the
11th and 21st of the month or as soon as practicable thereafter. We are
not liable for any loss that may arise from price movements before or
after your automatic reinvestment takes place. If you apply to transfer
all your investments to another entity, any income payments or
dividends received in the Account after the date we receive your transfer
application will be held as cash and not reinvested.0 -
Shares don't have a pricing pointThat doesn't sound right to me ... in my experience, competitors make the reinvestment the next day at the next Pricing Point for the assets ... maybe worth asking them why there is a delay on the reinvestment ?
It's clear on the income instruction screen
We will reinvest any income automatically for you when it reaches £10 (or your chosen minimum) per holding. Automatic re-investments take place between the 11th and 21st of the month and are charged at 1%, minimum £1, maximum £10.
Remember you are paying a quid or so for this service. You have the choice to have it paid to your capital account where you can do it yourself for £11.95
Some you win, some you lose. My BATS income was paid 05/05 and reinvested 11/050 -
I chose HL simply because they popped up in an ad.
Do you choose your investments the same way? Efficient reinvestment of your dividends should be the last of your worries.:)0 -
Shares don't have a pricing point
It's clear on the income instruction screen
We will reinvest any income automatically for you when it reaches £10 (or your chosen minimum) per holding. Automatic re-investments take place between the 11th and 21st of the month and are charged at 1%, minimum £1, maximum £10.
Remember you are paying a quid or so for this service. You have the choice to have it paid to your capital account where you can do it yourself for £11.95
Some you win, some you lose. My BATS income was paid 05/05 and reinvested 11/05
Don't they aggregate up with all the other End Of Day Share Deals and get placed @ End Of Day at the End Of Day Price ?
Great point that it may be below the minimum threshold though, hadn't considered this !0 -
My thought is that you should have a very careful look at what you have chosen and if it actually meets your needs. The costs and limitations may not be what you expect if you opened just based on a pop up ad.Cliveman_Pieman wrote: »Apologies if any of the terminology above is incorrect, I'm fairly green to all of this. I suppose I could transfer to another provider, I chose HL simply because they popped up in an ad. Any thoughts would be appreciated.Remember the saying: if it looks too good to be true it almost certainly is.0 -
For fund purchases you will normally get the price at the next valuation point, often but not always 12:00. However for shares such as Lloyds the price will be whatever it is when you/they place the deal. Don't forget that for dividend reinvestment with HL this could be many days after the Payment Date. I've never checked before but the contract note for my BATS reinvestment was 11/05 08:39. The one before that was 13:01Don't they aggregate up with all the other End Of Day Share Deals and get placed @ End Of Day at the End Of Day Price ?0 -
Don't they aggregate up with all the other End Of Day Share Deals and get placed @ End Of Day at the End Of Day Price ?
Great point that it may be below the minimum threshold though, hadn't considered this !
For example, all HL clients who hold Lloyd shares and have opted for dividend income to be re-invested. At a set time between 11th and 20th working day, HL will place a single deal using all the money and allocate the shares accordingly to each client account."If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
Save £12k in 2021 - #027 £15,268 (76%)0
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