2 funds I do not understand

ggmf

Wonder if anybody can advise please. My SIPP is made up of 12 funds selected by my IFA and has been running for just over 2 years. The value of funds fluctuate with the markets as I would expect, none of the 12 funds have shown an increase in the quantity of units held within the funds (as they are mostly Inc. not Acc. as far as I am aware). There are 2 funds that have not provided any dividends for the 2 year period either, would this be right? The funds are:

iShares Core MSCI World UCITS ETF USD Acc (GBP)
Vanguard FTSE Developed World ex-UKEquity Index Fund Inc

I will be looking to start flexible drawdown in approx. 12 months.

Thank you,

Alexland

The first is an accumulation ETF and the second is a fund which is available in both accumulation and income versions (assume you have the accumulation version). Accumulation means that the dividends for the underlying companies are automatically reinvested without the ETF/fund paying dividends which causes the unit price to rise faster.

ggmf

Thank you.

If the fist is an accumulation should the number of holdings in the funds increase? (seems to be what happened with my Standard Life funds before being moved by the IFA)
The Vanguard appears to be the income not the accumulation, so should this have paid dividends regardless of how small these may have been?

Alexland

Hi,

With accumulation funds it's the unit price not the unit quantity that increases with reinvested dividends.

If you have the income version of the Vanguard fund you should have seen annual distributions:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ex-uk-equity-index-fund-income-shares/distributions

Alex

squirrelpie

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ex-uk-equity-index-fund-income-shares/distributions



Something's gone wrong. We can't find the page you're looking for.

Alexland

squirrelpie wrote: »

Something's gone wrong. We can't find the page you're looking for.

That link works fine for me on my tablet and pc. If the link doesn't work for you then navigate to the fund webpage on Vanguard Investor, select the income version then select the distributions sub-page. It then details that the fund goes ex-divdend in November and become payable in December although some platforms may take longer to add it into the account.

Alex

AnotherJoe

ggmf wrote: »

Thank you.

If the first is an accumulation should the number of holdings in the funds increase? (seems to be what happened with my Standard Life funds before being moved by the IFA)
No and that shouldn't have happened to your SL funds either if they were Acc. The price increases in line with dividends eg if dividends of the INC is 2% price of Acc would rise by 2% but you wouldn't notice that as it's spread over the year.
The Vanguard appears to be the income not the accumulation, so should this have paid dividends regardless of how small these may have been?

Yep. Have you looked at your account to see any income coming in? Ask your adviser.