VLS60 Inc

Hugeass304

Hi, does anyone know what the dividend is for the income version of VLS60. I believe it went ex-dividend yesterday.
Thanks in advance

DarwinBoy

Dividend for VLS60 is £2.6132 per unit. 

Strangely Vanguard shows the latest dividend information on their financial advisor part of their website but not on the personal investors part.

[Deleted User]

Would you also happen to know the Equalisation rate for the LS60 please 

Hugeass304

Thank you DarwinBoy. I'm not sure I understand what the equalisation rate means

[Deleted User]

When you buy a fund between the prior and next dividend payment date, you get an equalisation payment.  Like the dividend payment, it is expressed as a rate per share/unit. Basically, it is a return of capital and is deducted from the dividend payment for tax purposes.  

Hugeass304

Thank you, so does it affect what I will receive? DarwinBoy has said the payment is £2.6132 per unit, is that what I will get per unit?

[Deleted User]

You will receive a total dividend amount of 2.6132 per unit.  However, if you bought any units between the prior ex-div date and the one in April 22, you will need to subtract the equalisation rate multplied by the number of units, this is known as group 2.  Group 2 units will then become group 1 units, and these  will have the full dividend rate applied to them on the next ex-dividend date.  

Hugeass304

Thank you, I think I understand that. Yes mine were all bought either in June or November. So after the equalisation figure is deducted it's the remainder that's used for tax purposes unless they're in an ISA. I take it this will be classed as dividend income rather than interest

ColdIron

[Deleted User] said:

Would you also happen to know the Equalisation rate for the LS60 please 

There is no published 'rate'. The equalisation payment is just that portion of the declared dividend that is classified and treated as return of capital for tax purposes and is entirely dependant on the date you buy. If you buy soon after the ex date your dividends received might be 90% of the full declared dividend and 10% return of capital. If you buy soon before the ex date it will be the other way around

[Deleted User]

Yes - that is my understanding.  When you determined the equalisation payment, you deduct this from the total div amount for tax purposes.  However, I'm not entirely sure about this, as it may also be that you deduct the equalisation amount from the acquisition cost and this will then become your actual acquisition cost as the equalisation payment is a return of capital  Perhaps someone more knowledgeable can clarify.

Regarding your last question, yes - since we're talking about the VLS 60, it will be classed as dividend not interest.  My understanding is that it has to be a fund of less than 40% equity to be classed as interest.  .  .   

Hugeass304

ColdIron said:

[Deleted User] said:

Would you also happen to know the Equalisation rate for the LS60 please 

There is no published 'rate'. The equalisation payment is just that portion of the declared dividend that is classified and treated as return of capital for tax purposes and is entirely dependant on the date you buy. If you buy soon after the ex date your dividends received might be 90% of the full declared dividend and 10% return of capital. If you buy soon before the ex date it will be the other way around

Thanks Coldiron, is the split made clear when the dividend is paid? Mine are held in an Halifax Share Account, some in an ISA and some not