S&S Dividend Question

SpinnerB

Hello,

I'm feeling a bit stupid here regarding the way accumulation funds and Corp.A dividends work, whilst I watch Nottingham have quite a good fight back up at Durham (shouldn't have typed that as Hales wicket went as I typed it ! ).

I started my S&S isa wwith H&L at the end of the 2008 tax year with 4 funds lump funded for 1k each. I won't bore you with the details of selection, lets just say overall it was a baptism by fire ...

One fund was Invesco Perp High Income Accumulation Units - 1k bought me 242.99 units in March 08. On my statement it then says in August there was a Corp.A payment of £8.37. This is then reflected in that they say on the main statement that they only cost £991.63 not £1k - I'm not getting that bit.

I then started a new one in 08/09 and drip fed money into this fund and in Feb and August CorpA figures are given (on this ISA) and again have reduced the 'cost' I have invested. But there is nothing in the account for the initial investment in 08 in Feb or August.

Could anybody give me a simple answer to how this works re the accounting and why I don't get dividends for the 1k of units bought last year. Feeling a bit stupid here (and two more wickets have gone so I'd better stop typing :rotfl:)

Thanks for any info

RayWolfe

Accumulation units do not pay dividends, they are rolled up into the price.
The Corp.A is H-L's way of showing the effect of buying units before dividends are factored into the price. Imagine buying units 6 months before divs are due compared to buying units 6 days before divs are due. The 6 month purchase should have a higher claim than the 6 day purchase and this is reflected in the value that H-L shows on it's capital account. I agree it is confusing but you are not losing by it.