Vanguard Dividend Payment

dd95

I've had the same but mine is the acc version - i would have thought it would still tell me how much was reinvested?

lindabea

Is anyone able to confirm whether or not they received their div payment on Friday 29th May

Keith80

In the past year this has happened quite often to me with a number of funds (etfs and oeics) on Vanguard's own platform, especially where the underlying holdings are not sterling denominated. They have always appeared eventually, sometimes up to a week late. Go to corporate actions on the transactions menu and select 'not posted'. Your dividend-paying fund should be listed there and you will know that it will pay out in due course. It's not ideal, especially if you have been counting on timely payment to meet urgent expenses, but it will certainly be paid, probably in the next two or three days; accounts are often credited in the late afternoon.

dunstonh

Just checking that you have inc units and not acc units?

And in answer to the question, yes, VLS60 inc distributions were credited to accounts on Friday on FNZ based platforms.   (Vanguard use FNZ)

lindabea

Keith80 said:

In the past year this has happened quite often to me with a number of funds (etfs and oeics) on Vanguard's own platform, especially where the underlying holdings are not sterling denominated. They have always appeared eventually, sometimes up to a week late. Go to corporate actions on the transactions menu and select 'not posted'. Your dividend-paying fund should be listed there and you will know that it will pay out in due course. It's not ideal, especially if you have been counting on timely payment to meet urgent expenses, but it will certainly be paid, probably in the next two or three days; accounts are often credited in the late afternoon.

Thank you for your helpful reply.  I checked my Vanguard account, and as you quite rightly say, my dividend appears on the 'corporate section of my transactions as 'posted'.  However, reading through their T&C's they make reference that the dividend payment 'may take upto 10 days to appear on my account'  I find it hard to believe that this is acceptable practice with such a straight forward and simple process.  

lindabea

dunstonh said:

Just checking that you have inc units and not acc units?

And in answer to the question, yes, VLS60 inc distributions were credited to accounts on Friday on FNZ based platforms.   (Vanguard use FNZ)

Thank you for your reply Dunstonh.  So, would you have expected the dividend payment to be distributed to my account on Friday, or is Vanguard justified to require upto 10 working days to complete the payment  

Keith80

I agree, it's less than ideal, and it would be good if more account holders would query it via their secure messaging facility. I can't be certain, but I believe what happens is that the platform receives the dividend for the units/shares of all of its account holders on the effective date and then proceeds to allocate fractions of that dividend to the individual accounts. It is the second step that slows things down because they seem to do some kind of internal auditing to ensure that accounts will be correctly credited. As another poster pointed out, it should all be automated and instantaneous if the platform's systems are up to scratch, so I'm not sure what the issue is. They could at least point out in their FAQs the possibility that accounts will be credited late, but the FAQs are if anything less informative now than they were when the platform first opened to retail investors three years ago. As I wrote above, I have become used to this happening in the past year. It bothers me less than it did when it first started occurring because I no longer expect to have the use of the funds on the effective date itself.

dunstonh

lindabea said:

dunstonh said:

Just checking that you have inc units and not acc units?

And in answer to the question, yes, VLS60 inc distributions were credited to accounts on Friday on FNZ based platforms.   (Vanguard use FNZ)

Thank you for your reply Dunstonh.  So, would you have expected the dividend payment to be distributed to my account on Friday, or is Vanguard justified to require upto 10 working days to complete the payment  

I checked an FNZ platform and on this, it shows they were credited on Friday. Both in the corporate actions section and on the transactions section of individual accounts.   So, yes, you would expect them to be there.  There is no 10 days needed.

However, I don't believe Vanguard do any pre-funding.  Whereas the FNZ based platforms I looked at do pre-fund.  So, maybe there is a delay with Vanguard.    There must be other Vanguard platform customers posting here who could look at the date for you on previous ones to see if there was a delay with those.

learningmoneybasics

I hold investments on the Vanguard platform and everytime a dividend has been due it's always been around 2-3 days after the payment date that it actually appears.

dd95

dunstonh said:

Just checking that you have inc units and not acc units?

And in answer to the question, yes, VLS60 inc distributions were credited to accounts on Friday on FNZ based platforms.   (Vanguard use FNZ)

Does it still show what is reinvested if you have the ACC version? Under 'my corporate actions' it states the dividend as 'not yet posted'