VLS Acc Question

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Hi,
I wonder if someone can help me. I have some VLS 60% Acc since last year in a CSD S&S IA. As the dividend date is 31st May, I'm assuming that my holding should increase following the dividend which is re-invested. I haven't seen anything yet, is it too early or am I missing something ?
Thanks in advance

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  • masonic
    masonic Posts: 23,523 Forumite
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    That's not how it works. The Inc units will reduce in value by the approximate value of the dividend on the ex-dividend date. The Acc units will be unaffected since the dividend is not paid out.
  • dunstonh
    dunstonh Posts: 116,661 Forumite
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    I'm assuming that my holding should increase following the dividend which is re-invested.

    You bought accumulation units. So, you do not directly see the distributions. However, the distribution is not lost. It is reinvested within the fund and that pushes the unit price up. The Income units do not see their unit price go up the same way as the income is paid out.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • BLB53
    BLB53 Posts: 1,583 Forumite
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    The income is reinvested within the fund and is reflected in the price.

    The inc and acc funds both started off at £100 in June 2011. The price of the inc units is currently £133.84 and the price of the acc units is £144.33. The difference is £10.49 - 7.8% higher for the acc which translates to roughly 1.5% p.a.
  • littleboo
    littleboo Posts: 1,516 Forumite
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    Thanks everyone, I had a feeling that I might have not understood how it worked, it all makes sense now. Cheers
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