Dividend reinvestment

Gsaver1

I've changed platforms recently and I've selected dividend reinvestment as I prefer compounding, rather than getting the cash and deciding what to do with it. My problem is that II are saying that the funds I have dividends cannot be reinvested. With the last platform, I was able to get my dividends reinvested so what do I at this point?

[Deleted User]

Hi,

you could use the dividend money to buy more units at normal dealing charges.

What are the funds?

eskbanker

Are your funds available in Accumulation units?

EthicsGradient

Are there accumulation versions of the funds that you can switch to (without incurring a capital gain event, eg this is in an ISA)?

dunstonh

With the last platform, I was able to get my dividends reinvested so what do I at this point?

Different platforms have different features and quirks.  You should not let the platform dictate what you can, or cannot do.  In other words, you should not have gone to ii if they did not offer the functionality you want.   They should have been filtered out of your research to only show the platforms that meet your needs.

You can use ACC units but if you have unwrapped holdings, that may not be desirable.   You could let the income go into the cash account and then periodically purchase new units.  Or you can move to a platform that meets your needs.

Andy7856

II (like many) charge you re-investment for the dividend (per stock).  What I do is use the free monthly trade credit once my dividend appears as cash balance to reinvest ahoc.  Sometimes I use the free regular saving function to invest for free. (by increasing the monthly payments as a one off without actually increasing the DD amount).

Gsaver1

frugalmacdugal said:

Hi,

you could use the dividend money to buy more units at normal dealing charges.

What are the funds?

Fidelity World and Blackrock Continental European are two of them. I've got some funds in my portfolio that are accumulation so just some in income. 

Gsaver1

eskbanker said:

Are your funds available in Accumulation units?

Yes, they are. Got some in accumulation units already. Just a small percentage are in income.

Gsaver1

EthicsGradient said:

Are there accumulation versions of the funds that you can switch to (without incurring a capital gain event, eg this is in an ISA)?

All holdings are in an ISA. Could switch to the accumulation version or what has been mentioned further down this thread is also a consideration for the future.

Gsaver1

dunstonh said:

With the last platform, I was able to get my dividends reinvested so what do I at this point?

Different platforms have different features and quirks.  You should not let the platform dictate what you can, or cannot do.  In other words, you should not have gone to ii if they did not offer the functionality you want.   They should have been filtered out of your research to only show the platforms that meet your needs.

You can use ACC units but if you have unwrapped holdings, that may not be desirable.   You could let the income go into the cash account and then periodically purchase new units.  Or you can move to a platform that meets your needs.

I moved from the other platform as the monthly charges were a bit steep. I think what you have mentioned with the income going into the cash account and then purchasing new units every so often is what I will do. 

Gsaver1

Andy7856 said:

II (like many) charge you re-investment for the dividend (per stock).  What I do is use the free monthly trade credit once my dividend appears as cash balance to reinvest ahoc.  Sometimes I use the free regular saving function to invest for free. (by increasing the monthly payments as a one off without actually increasing the DD amount).

I like this idea very much and will consider this as well as what dunstonh has suggested in the post above.