A little query-Accumulation units..

C_Mababejive

Sums is not my greatest talent and so i wonder if the finance gurus could assist with this one..

In March of this year i bought 4,079.030 units of these

<link not working !<

The total cost at the time per unit was 147.100168p

Now i see that there is a monthly yield quoted though i dont take an income as im on accumulation units.

Now as you can see,the price per unit has dipped somewhat from the circa 147 that i paid to the current circa 142p.

Thats just down to market forces..

But where has my monthly icome gone and how is it reflected? Would i have lost more had it not been for the income which has been rolled up?

What visibility is there of any rolled up income that has been paid /attributed to me?

Thanks for clearing up what may be obvious misunderstandings !

Ark_Welder

I take it that the fund is this one. We can't see your link (you'll be glad to hear!) due to it being from when you are logged into your account.

You will not see a difference in the price of accumulation units unless you compare the price history against the equivalent income units. When income units go ex-dividend their price drops by the amount of the dividend that will be paid. This fall does not happen with accumulation units because the dividend is not paid out, but rolled up within the fund instead.

So yes, the price of the fund would have fallen more if the income had not been rolled up inside - just as adding the dividend paid on the income units reduces the fall on these. Think 'total return'.

You will receive a consolidated tax certificate just after the end of the tax year that will show the notional distribution from the accumulation units along with the associated tax deducted - in this particular case, or tax credit for equities. If you are a non taxpayer then this deduction can be reclaimed. If it is held within an ISA then the platform will (i.e. should) claim this back automatically for you.

Shaolin_Monkey

This graph shows the price history of the accumulation units (black) and the income units (green) from March 21. The red line is the sector index for comparison, which is on a total return basis. As you can see there is a difference between the inc and acc versions, and it's because of the income re-invested into the fund on the accumulation units.

C_Mababejive

Hmmm..yes..thanks you knowledgeable people. I had thought i had linked direct to the product page and docs.


The fund seems to be lagging the sector somewhat.

I'm wondering whether to sit tight and take a hit and ditch..