Where are my dividends??

FDa65rdk

I have (another) query regarding the Jupiter India fund.

I first invested in the fund through Hargreaves Lansdown at the start of the 2017/18 tax year and the next dividend payment date is tomorrow - 30th September.

The dividends are paid annually and the ex-dividend date was 1st August 2018.

I would therefore assume that the previous ex-dividend date was 1st August 2017 (after I first invested in the fund) and therefore I was entitled to receive a dividend on 30th September 2017.

But as far as I can tell I never received one!

My current holding is the exact total of the units I bought in April 2017 and July 2018 so I haven't received additional units via a dividend and when I look at the income history tab for the fund it is blank.

Shouldn't I have received something by now? Or am I looking in the wrong place for the information?

In fact, this seems to be the case with ALL my investments!!! I've held all of them since before the ex-dividend date of the last dividend so how come I haven't received anything??

firestone

first guess would be that you have accumulation units which is why the number of units did not increase

frugalmacdugal

Hi,


Jupiter India Acc,

• What is the difference between income and accumulation units?
• The type of unit you hold determines how any income generated from the fund's underlying investments is treated.
  
• With income units, income is paid out to fund holders as cash. This could provide the investor with an income stream or the cash could be reinvested to buy additional units.
  
• 
  With accumulation units income is retained within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest income, accumulation units offer a more convenient and cost-effective way of doing so.
  

FDa65rdk

Thanks for the responses.

With the exception of the Lindsell Train Global Equity fund all my investments are accumulation funds.

But I'm a bit confused (and I must have got the next bit wrong) because I thought that with an accumulation fund the dividends were re-invested in the fund to purchase more units.

Let's suppose I receive £100 in dividends and the fund is priced at £2 a unit, wouldn't it be better to use the £100 to buy another 50 units than it would to invest £100 in a fund worth hundreds of millions of pounds which would be a drop in the ocean and hardly raise the unit price at all?

Apologies if this is a really daft question.

frugalmacdugal

Hi,


so what happens to the 'dividends' from all your other acc funds?

FDa65rdk

frugalmacdugal wrote: »

Hi,


so what happens to the 'dividends' from all your other acc funds?

As far as I can tell, nothing.

But that may be because I've been looking in the wrong places to find the information.

frugalmacdugal

Hi,

FDa65rdk wrote: »

But I'm a bit confused (and I must have got the next bit wrong) because I thought that with an accumulation fund the dividends were re-invested in the fund to purchase more units.

With accumulation units income is retained within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest income, accumulation units offer a more convenient and cost-effective way of doing so.

If you want to purchase more units with 'dividends' then get an income fund and set up dividend reinvestment.

FDa65rdk

Thanks.

So should I be able to see some record on my Hargreaves Lansdown account of the dividends being reinvested?


There's also my earlier question... If I receive £100 in dividends and the fund is priced at £2 a unit, wouldn't it be better to use the £100 to buy another 50 units than it would to invest £100 in a fund worth hundreds of millions of pounds which would be a drop in the ocean and hardly raise the unit price at all?

Or does it not make any difference?

Alexland

OEIC fund units are not traded but priced on the net asset value of underlying holdings. As such your purchase of further units has no effect on the fund unit price. It's open ended so can grow and shrink in accordance with demand. The money would go into the fund as cash for the manager to hold or invest as they see fit. The manager's investment performance drives the unit price.

frugalmacdugal

Hi,

FDa65rdk wrote: »

There's also my earlier question... If I receive £100 in dividends and the fund is priced at £2 a unit, wouldn't it be better to use the £100 to buy another 50 units than it would to invest £100 in a fund worth hundreds of millions of pounds which would be a drop in the ocean and hardly raise the unit price at all?

so, if you buy another 50 units in the same fund you are still investing in the same fund, no difference.

Linton

With ACC funds not held in an ISA or pension you are liable for tax on the dividends even though you don’t see them directly. That is why you are told about the dividend and dividend date. However the date is fictitious since your fund holding is credited with dividends each time the fund receives one and this is reflected as an increase in the fund unit price.

iI you hold the fund in an ISA or pension you are still sent the dividend notification but it is irrelevant.