FT all share index

leicestersq

Hello,

just a question.

The FT all share index is a weighted index of share prices. I am wondering if it included dividends?

If you could assume a fund that perfectly managed to buy shares in proportion to their weightings in the index, would that fund beat the index over time due to the receipt of dividends from those shares? Or does the index include the notional reinvestment of dividends?

Hope that the above question makes sense. I am looking at one fund that closely matches the all share index in terms of performance, but i had assumed that indexes do not include the payout of dividends, so a fund that receives dividends should handily outpace the index over time.

Can anyone correct my thinking?

coyrls

You can view the index in two forms: with or without dividend reinvestment. You can track the index with reinvestment of dividends with an FTSE All Share Index Accumulator fund.

leicestersq

That would be great. I dont know where to find these two indexes.

Out of interest, this is the fund that I am looking at.

BlackRock Aquila Connect UK Equity Pn S2
NAV

I cant work out from the information provided on the fact sheets what is going on here. It tracks its index like bloodhound, but I dont understand how this index is constructed. Can you tell?

I do note that the fund pays no dividends.

coyrls

One way of seeing the two indexes is to go here: https://www2.trustnet.com/Tools/Charting.aspx?. Deselect A, B, C & D under the chart and then in the drop down boxes on the right hand side select "Indicies" under "Investment Type" and then "FTSE All Share" in the box below. You can flip between versions with and without dividends reinvested by selecting "With reinvestment" or "Without income reinvestment" under "Chart Basis"


I'm not familiar with the fund you have picked but is looks like a FTSE All Share tracker accumulator. If you want to choose a fund that invests in all the companies in the FTSE All Share tracker, choose one that uses "full physical replication". You can compare some funds here: https://www2.trustnet.com/passive-funds/uk-equities.html, if you click on "Underlying Index", they will be sorted by the index they track and it will be easy to see those that track the FTSE All Share Index.

dividendhero

coyrls wrote: »

One way of seeing the two indexes is to go here: https://www2.trustnet.com/Tools/Charting.aspx?. Deselect A, B, C & D under the chart and then in the drop down boxes on the right hand side select "Indicies" under "Investment Type" and then "FTSE All Share" in the box below. You can flip between versions with and without dividends reinvested by selecting "With reinvestment" or "Without income reinvestment" under "Chart Basis"

Thanks for that, very useful:beer:

They also allow comparison to RPI - something I've been after for ages. It's obviously a very important benchmark..I did suggest to HL to add RPI/CPI indices to their website, but was basically told to go do one:(