Baillie Gifford Manged Fund - Corporate Action Charge appearing in the account

mazibee

Please can someone explain what is this Corporate Action charge appearing in my HL account.

I have listed transactions in my HL account for Baillie Gifford Manged Fund account

Date	Type	Unit Cost (Pence	Qty	Cost( £)
31/03/2021	Corporate action	0.00	0.00	-4.36
12/02/2021	Bought	1678.00	59.60	1000.00
09/02/2021	Bought	1661.13	6.02	100.00
26/01/2021	Bought	1644.00	94.28	1550.00

Thanks in advance.

IvanOpinion

Does this help
https://www.hl.co.uk/shares/corporate-actions/corporate_action_frequently_asked_questions
Although that says it is free?

ColdIron

It could be an equalisation payment even though it is not paid as cash if you have Acc units. Has it reduced the value in the 'cost' column?

wmb194

If you follow the link embedded in "corporate action" in the OP one option is, "return of capital." Given it's shown as a negative cost could this be it?

wmb194

Or it could be a dividend: "Distribution Last day of March and September each year"

https://www.bailliegifford.com/en/uk/individual-investors/funds/managed-fund/

Eyeful

Ask HL, after all they put it there. Then you can come back and tell us!

The minus sign suggests they are returning money to you for some reason.

mazibee

ColdIron said:

It could be an equalisation payment even though it is not paid as cash if you have Acc units. Has it reduced the value in the 'cost' column?

Yes you are right i @ColdIron it  has reduced the value.

 It was 2650 before and after that entry on 31-3-2021 the cost has gone down to 2645.64

Its a cccumulation fund to its strange and I hope that this is not the dividend.

I posted as HL is closed over the weekend and thought might be someone else knows what is that entry for?

mazibee

Eyeful said:

Ask HL, after all they put it there. Then you can come back and tell us!

The minus sign suggests they are returning money to you for some reason.

Yes I will ring them on MOnday I will get back

mazibee

wmb194 said:

Or it could be a dividend: "Distribution Last day of March and September each year"

https://www.bailliegifford.com/en/uk/individual-investors/funds/managed-fund/

Its an accumulation fund so its strange that why they are paying me dividend.

george4064

mazibee said:

wmb194 said:

Or it could be a dividend: "Distribution Last day of March and September each year"

https://www.bailliegifford.com/en/uk/individual-investors/funds/managed-fund/

Its an accumulation fund so its strange that why they are paying me dividend.

It’s just an adjustment made, whilst they have not and will not ‘pay’ you a dividend you still benefit from dividends within the accumulation fund as that increases the unit price of the fund.

Sometimes when you buy the accumulation version of the fund, there is a mismatch something to do with the unit price you paid and the dividends accumulating within the fund that affects the unit price. The platforms therefore fix that mismatch by making a small payment of cash to your account, and in order to keep the books in the balance they have to amend the cost price to account for that small cash payment.