Stocks and Shares ISA funds not paying out dividends

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
9 replies 1.3K views
thebritishseathebritishsea Forumite
3 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hey folks wonder if you can help as I cannot get my head around this one!

I have had a couple of investment funds running for a year or so using Fidelity. Stocks and Shares ISA portfolio investments, managed funds.

I have not had any dividend payments, ever. Am I missing something? Should I not be getting something at some point?

BMO Responsible UK Income SC2 Acc is one of the funds and it pays out every Q.

If someone could help me understand whats going on I would be very grateful as I cannot find the answer with google for the life of me.
Thanks!

Replies

  • ChrisJ1988ChrisJ1988 Forumite
    60 Posts
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    Maybe they are making a loss therefore nothing to pay. You will have to check that the terms are otherwise we will only be guessing also.
  • Definitely not making a loss nope has grown 3%
  • SystemSystem Forumite
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    The clue is in the name 'Acc'!
  • Tom99Tom99 Forumite
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    Hey folks wonder if you can help as I cannot get my head around this one!

    I have had a couple of investment funds running for a year or so using Fidelity. Stocks and Shares ISA portfolio investments, managed funds.

    I have not had any dividend payments, ever. Am I missing something? Should I not be getting something at some point?

    BMO Responsible UK Income SC2 Acc is one of the funds and it pays out every Q.

    If someone could help me understand whats going on I would be very grateful as I cannot find the answer with google for the life of me.
    Thanks!
    Acc = Accumulation ie dividends are reinvested in the fund and not paid out. I expect the other fund you have is also an accumulation fund.
    If you want the dividends from a fund to be reinvested in the same fund then its easier to hold the Acc version of that fund. There is usually an Inc version of the same fund which will pay out the dividends in cash to your S&S ISA account.
  • ColdIronColdIron Forumite
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    I have not had any dividend payments, ever. Am I missing something? Should I not be getting something at some point?
    You are but it's the Acc(umulation) class where dividends are retained within the fund and reinvested. If you want the dividends paid out to you then you would want the Inc(ome) class. The dividend will be the same either way. What would you do with the dividends? If you would just reinvest them anyway to benefit from compounding then the Acc class saves you the bother and perhaps some dealing fees
  • Ah that's interesting and I am sure explains it. I cannot see any evidence of this happening though. Should it not be clear on the account it's being reinvested?
  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    In the Acc funds of my SIPP, the reinvestments are handled by revaluing the original units. The original number of units bought remains the same. Not sure if all funds work like this, nor why additional units are not bought. The latter would seem more straightforward to me, but maybe I'm missing something.
  • Tom99Tom99 Forumite
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    Ah that's interesting and I am sure explains it. I cannot see any evidence of this happening though. Should it not be clear on the account it's being reinvested?
    No you will not see any evidence on the ISA account. If you held the same fund outside an ISA or SIPP you would receive an end of year tax certificate telling you the amount of dividend which had been reinvested because, even though you do not see the dividend as cash it is still subject to income tax.
    Not sure if the fund itself would publish the dividend on ACC funds but if not you could look at the %age dividend paid on the INC units and work it out that way.
  • londoninvestorlondoninvestor Forumite
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    Tom99 wrote: »
    Not sure if the fund itself would publish the dividend on ACC funds but if not you could look at the %age dividend paid on the INC units and work it out that way.

    Some do (e.g. the Fidelity one below...scroll down to the Dividends part of the page and expand it). But not all as far as I'm aware.

    https://www.fidelity.co.uk/factsheets/Fidelity-Index-World-Fund/GB00BJS8SJ34-GBP/?id=GB00BJS8SJ34&idType=isin&marketCode=&idCurrencyId=
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