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  • FIRST POST
    • Cliveman Pieman
    • By Cliveman Pieman 17th May 17, 2:04 PM
    • 81Posts
    • 204Thanks
    Cliveman Pieman
    Hargreaves Lansdown
    • #1
    • 17th May 17, 2:04 PM
    Hargreaves Lansdown 17th May 17 at 2:04 PM
    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.


    WTF?! 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.
Page 1
    • george4064
    • By george4064 17th May 17, 2:22 PM
    • 786 Posts
    • 824 Thanks
    george4064
    • #2
    • 17th May 17, 2:22 PM
    • #2
    • 17th May 17, 2:22 PM
    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

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
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    • Redski69
    • By Redski69 17th May 17, 2:26 PM
    • 22 Posts
    • 12 Thanks
    Redski69
    • #3
    • 17th May 17, 2:26 PM
    • #3
    • 17th May 17, 2:26 PM
    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.


    WTF?! 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.
    Originally posted by Cliveman Pieman

    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 ?
    • le loup
    • By le loup 17th May 17, 2:32 PM
    • 3,534 Posts
    • 3,339 Thanks
    le loup
    • #4
    • 17th May 17, 2:32 PM
    • #4
    • 17th May 17, 2:32 PM
    Probably because automatic reinvestment of dividends are done in bulk at a lower charge.
    • frugalmacdugal
    • By frugalmacdugal 17th May 17, 2:35 PM
    • 5,926 Posts
    • 5,124 Thanks
    frugalmacdugal
    • #5
    • 17th May 17, 2:35 PM
    • #5
    • 17th May 17, 2:35 PM
    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.
    Y'all take care now.
    • ColdIron
    • By ColdIron 17th May 17, 3:18 PM
    • 3,201 Posts
    • 3,656 Thanks
    ColdIron
    • #6
    • 17th May 17, 3:18 PM
    • #6
    • 17th May 17, 3:18 PM
    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 ?
    Originally posted by Redski69
    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
    • aldershot
    • By aldershot 17th May 17, 3:26 PM
    • 140 Posts
    • 131 Thanks
    aldershot
    • #7
    • 17th May 17, 3:26 PM
    • #7
    • 17th May 17, 3:26 PM
    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.
    • Redski69
    • By Redski69 17th May 17, 3:44 PM
    • 22 Posts
    • 12 Thanks
    Redski69
    • #8
    • 17th May 17, 3:44 PM
    • #8
    • 17th May 17, 3:44 PM
    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
    Originally posted by ColdIron

    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 !
    • jimjames
    • By jimjames 17th May 17, 5:07 PM
    • 11,908 Posts
    • 10,291 Thanks
    jimjames
    • #9
    • 17th May 17, 5:07 PM
    • #9
    • 17th May 17, 5:07 PM
    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.
    Originally posted by Cliveman Pieman
    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.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • ColdIron
    • By ColdIron 17th May 17, 5:14 PM
    • 3,201 Posts
    • 3,656 Thanks
    ColdIron
    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 ?
    Originally posted by Redski69
    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 13:01
    • george4064
    • By george4064 17th May 17, 5:29 PM
    • 786 Posts
    • 824 Thanks
    george4064
    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 !
    Originally posted by Redski69
    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 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £8,248.84/£12,000 (69%)
    • Cliveman Pieman
    • By Cliveman Pieman 17th May 17, 5:39 PM
    • 81 Posts
    • 204 Thanks
    Cliveman Pieman
    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.
    Originally posted by jimjames
    Yes, I am now looking at the various fees and terms of a number of providers. I note that Halifax and iii both reinvested clients Lloyds dividends immediately, although I cannot determine whether that was a one off for Lloyds, or if that is standard practice.


    That said the dividend reinvestment timeliness is not a game changer, I'm mostly looking at getting the fees down a bit. I chose HL because they were a "name" (I work in Bristol), but should probably have been more thorough. You live and learn.
    • Cliveman Pieman
    • By Cliveman Pieman 17th May 17, 5:41 PM
    • 81 Posts
    • 204 Thanks
    Cliveman Pieman
    Do you choose your investments the same way? Efficient reinvestment of your dividends should be the last of your worries.
    Originally posted by aldershot
    Thank you for your concern. Since moving away from the most bog standard of funds, yes I do a lot more due diligence, and am very happy with my portfolio so far.
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