FTSE Global All Cap Index Fund - acc vs dist

Marcusian

Genuinely curious and purely information finding.

I have £20k in the FTSE Global All Cap Index Find (Acc) and have maxed out this year's ISA allowance, and for the rest of the year i will save cash until i can add to it next year. Buy and hold, at least 10+ year horizon. Just keep paying and leaving be, I am 38. 

What i am curious about is that there is a distribution version of this fund? Why would someone be minded to choose that? I am guessing the obvious answer would be a passive income, but isn't that superseded by the 'focus on the overall return' aspect? I noticed it today on the vanguard site and made me wonder. 

george4064

Its a passive fund, so its aim is to simply track its respective benchmark. Not much more to say than that about the fund, with regards to investors you will never know what reasons other investors have for opting for the Distributing or Accumulation share class.

Just choose whichever is best for you and your objectives. Personally I'd go Acc all the way.

Swipe

I have GAC accumulation in my SIPP and ISA and Distribution/income in my GIA so I don't have to work out the dividends

MX5huggy

Do you want to hold cash till next April? No reason not to invest the cash over the year in a General Investment Account in the FTSE Global (or whatever ever fund) you’ll be very lucky if Capital Gains Tax became an issue. Moving the funds to an ISA in April is called Bed & ISA. 

Marcusian

MX5huggy said:

Do you want to hold cash till next April? No reason not to invest the cash over the year in a General Investment Account in the FTSE Global (or whatever ever fund) you’ll be very lucky if Capital Gains Tax became an issue. Moving the funds to an ISA in April is called Bed & ISA. 

Yes, think this might be well be something I do. Thanks for the help. 
edit: so reading up on this, thanks by the way, I can essentially keep investing in a GIA, then Bed and ISA April 22? I have a GIA with freetrade, but I think just for ease I will set up a GIA with Vanguard, then continue to invest (I would imagine around 500 a month) then transfer it over?

aroominyork

Swipe said:

I have GAC accumulation in my SIPP and ISA and Distribution/income in my GIA so I don't have to work out the dividends

Presumably that is only an issue if the accumulated distributions are over the £2000 dividend tax allowance?

underground99

aroominyork said:

Swipe said:

I have GAC accumulation in my SIPP and ISA and Distribution/income in my GIA so I don't have to work out the dividends

Presumably that is only an issue if the accumulated distributions are over the £2000 dividend tax allowance?

As well as being relevant for income tax, you would also need to know the amounts of the accumulated dividends for CGT purposes on a future sale of shares in the fund, because those internally reinvested dividends increase your allowable cost for a CGT calculation.

If the dividends are paid out and you manually control whether to reinvest them or not, its easy to see them - which prompts you to record them as they happen rather than look for them later to prove you don't owe income tax or CGT (or how much you do owe).