Money Market funds

L9XSS

plumb1_2 said:

Ya I have £40k in vanguard mmf, last dividend payment I received was 31march
so I expected my next dividend payment date would have been 28 April. But it states it paid within 10 business days of the payable/ effective date. So that could be upto the 16th May
Very poor service from Vanguard, bet I don’t get any interest paid on the money their holding back.
Plus delaying me from re- investing it.

Can I ask what dividend it returned for your 40k? (Was it close to 4%).

Bravepants

Yes there's a pipeline delay, but philosophically as long as the money comes in once a month there's no problem?

plumb1_2

Well I I received my 1st dividend on 31st March,  about £134 then reinvested the divi. But still had the £40k lump sum still invested. So I expected my next dividend payment to be 28th April. This has still not arrived in my vanguard sipp.

plumb1_2

L9XSS said:

Can I ask what dividend it returned for your 40k? (Was it close to 4%).

Tbh, i can’t realistically tell you as I’ve been adding to it almost weekly , and over£50k in it now. 

Any spare money for the next few week/months I going to put into my isa.

plumb1_2

Bravepants said:

Yes there's a pipeline delay, but philosophically as long as the money comes in once a month there's no problem?

But it hasn’t , invested feb, dividend 31march and no April payment yet.🙁
I go into corporate actions and states Not posted.
I’ve just sent a secure message so hopefully have a reply tomorrow?

wmb194

dunstonh said:

so I expected my next dividend payment date would have been 28 April. But it states it paid within 10 business days of the payable/ effective date. So that could be upto the 16th May
Very poor service from Vanguard, bet I don’t get any interest paid on the money their holding back.
Plus delaying me from re- investing it.

That is not poor service.  You have misunderstood how XD and payment works.

The XD date was 28th April.  That means anyone that holds the money upto then gets the distribution. If you sold on the 29th April, you would still get it. But if you invested on the 29th April, you would not.

The payment date is 31st May.  So you do not receive the interest payment until after that.  it can take upto 10 days to arrive at your chosen platform but that is pretty much worst-case scenario.  Usually, it is 3-4 days.   That delay is to allow the fund house to send the money to the platform which then needs to apply it to your account.     

If your platform also happens to be Vanguard, then remember that the platform and the fund house are two different things.  And it's not Vanguard that power the platform.  It is FNZ.   All FNZ based platforms get the distribution and apply it on the same day.

The payment date is the date the platform/broker should receive the dividend/interest payment. It's an important date as it counts as the point for tax that income arises: HMRC isn't interested in broker, 'delays.' Delays are due to... Well...

I'm seeing this with my myriad brokers. I've collected a few via cashback offers and I tend to buy the same shares and funds in each and so I've been 'racing' them to see how quickly they pay interest and dividends. For example, I own an Invesco OEIC which pays interest monthly. HSBC has consistently credited the interest to my account early in the morning on the payment date and it's available for withdrawal by faster payment whilst iWeb takes its sweet time, sometimes a week, and even then its withdrawals are on Bacs timescales. Fidelity is usually on time as well and the nice thing about that platform is that it shows them as coming in a 'pending' transactions list.

It's inexcusable that Vanguard apparently takes so long to credit distributions from its own funds on its own platform.

Rheumatoid

It's inexcusable that Vanguard apparently takes so long to credit distributions from its own funds on its own platform.

I agree. I have a lot of VG 'FTSE U.K. Equity Income Index Fund - Income' with VG and HL. Payments in HL happen on the day. VG a few days later!

GeoffTF

My experience is that iWeb is much faster at paying Vanguard dividends than Vanguard is on its own platform. I agree that Vanguard should sharpen up its act here.

flopsy1973

I have 50k in my isa with iweb as cash waiting to drop into market is there Mmf with iweb I could utilise while I'm waiting. ? 

Stargunner

flopsy1973 said:

I have 50k in my isa with iweb as cash waiting to drop into market is there Mmf with iweb I could utilise while I'm waiting. ? 

Royal London Short Term Money Market Y Acc/Inc