"“Credit Product Fund Sweep” applied to iWeb ISA cash balance?

itm2

I have an S&S ISA with Halifax iWeb, and noticed a series of mysterious “Credit Product Fund Sweep” credits which have been applied to my cash balance on a regular basis. They range in value from £5 to £700. At first I thought that they might be dividend payments, but I have opted to re-invest dividends, and can see those separately in my account. Any idea what these “Credit Product Fund Sweeps” might be?

bowlhead99

Is it the fact that although you want to reinvest dividends there may be cash left over from the process? e.g. you receive a £25 dividend and the share price is £20 so they buy you one more share and credit you with the leftover £5? Though if it is £700 from just one transaction, that would be a bit surprising.

Or do you have some product that pays interest or other income with UK tax deducted at source and the ISA manager is claiming it back for you? Generally UK OEICs holding bonds started to distribute interest gross from about 2017.

Or perhaps you hold some expensive 'bundled' class of shares or units in some investment funds which charge a high management fee (originally intended to provide a kickback to an investment advisor or fund platform service), where an element of the fee is periodically rebated to you to put you in the same position as if you had just bought a cheaper 'clean' class of the same fund units with a lower management fee.

There aren't many reasons why money just randomly arrives in your account if it is not to do with dividends so if you're receiving nice credits to your account periodically and you don't know why, it would make sense to ask the ISA manager what those items on your statement mean...

xylophone

 This old thread refers to the same description where a div has been received but there is not enough to re-invest.
https://forums.moneysavingexpert.com/discussion/2976850/dividend-reinvestment-query

itm2

Thanks for the replies. I have now confirmed that these were in fact dividends - there were some discrepancies between these cash items and the stock repurchases but I have now reconciled/explained them.