Why is my Vanguard. Money Market Fund not making any money

plumb1_2

DarwinBoy said:

I am assuming this relates to the Vanguard Sterling Short-Term Money Market Fund

If you invested on Feb 21st you shouldn’t have been paid any interest/dividend to date.

The “record date” for this fund is on the last day of every month (eg. Feb 28th). The interest/dividend is then paid out on the last day of the following month (eg, March 31st).

See link to Vanguard website for info this fund including the distribution dates.

https://www.vanguardinvestor.co.uk/investments/vanguard-sterling-short-term-money-market-fund-investor-gbp-income-shares/distributions

Your payment on March 31st should be £0.0027 x the number of units you owned on Feb 28th

I suspect the 4.88 you mentioned is the capital increase on the units. These go up during the month then drop after the “record date”.

Think you’ve explained it very well, thank you, Yes the £4.88 increase is as you say the movement in the unit price, as last week it was a negative sum
Thanks to all the replies definitely older and a little wiser now. I’ll write this down, not a clue how to do a spreadsheet 

plumb1_2

Bobziz said:

ex-divi date 1st Feb, so perhaps no income is paid at all because you invested on the 21st? Distribution of £0.0027 for Mar is not paid until the end of the month. Is the £4.88 something else ?

DarwinBoy has explained it., the £4.88 is the unit price gain, so a little misleading ( to me anyway)
as this will fluctuate each month. And basically stop around the £1 mark.
Once again thanks to all.

GeoffTF

Vanguard can be very slow at paying dividends on their own platform. Their standard response if you complain is that they are allowed up to ten working days. The competition is much better than that.  As has been said, you do not get the dividend if you buy on or after the ex-dividend date.

plumb1_2

Hi folks I received my first dividend payment yesterday (31st) £134.17 

But that figure of £4.88 is now £60.27 today in green so I presume it’s classified as profit?  Does this mean the unit price has increased?

Easyjet77

plumb1_2 said:

Hi folks I received my first dividend payment yesterday (31st) £134.17 

But that figure of £4.88 is now £60.27 today in green so I presume it’s classified as profit?  Does this mean the unit price has increased?

Hello plumb_2, you appear to have invested in a product of which you have very little or no understanding. I suggest you contact vanguard customer services and explain your ignorance on the matter. They are usually very helpful and will answer you in a clear, concise and correct manner.  Regards

plumb1_2

Easyjet77 said:

plumb1_2 said:

Hi folks I received my first dividend payment yesterday (31st) £134.17 

But that figure of £4.88 is now £60.27 today in green so I presume it’s classified as profit?  Does this mean the unit price has increased?

Hello plumb_2, you appear to have invested in a product of which you have very little or no understanding. I suggest you contact vanguard customer services and explain your ignorance on the matter. They are usually very helpful and will answer you in a clear, concise and correct manner.  Regards

Thank for your input, I would like to say appreciated ?

Easyjet77

plumb1_2 said:

Easyjet77 said:

plumb1_2 said:

Hi folks I received my first dividend payment yesterday (31st) £134.17 

But that figure of £4.88 is now £60.27 today in green so I presume it’s classified as profit?  Does this mean the unit price has increased?

Hello plumb_2, you appear to have invested in a product of which you have very little or no understanding. I suggest you contact vanguard customer services and explain your ignorance on the matter. They are usually very helpful and will answer you in a clear, concise and correct manner.  Regards

Thank for your input, I would like to say appreciated ?

No need for thanks or appreciation,any time I need information or clarification, I have always found vanguard customer services to be extremely patient and sympathetic to my lack of knowledge. They are always willing to take the time to satisfy my queries in an idiot proof manner, whilst conveying the correct info. Regards

wmb194

plumb1_2 said:

Hi folks I received my first dividend payment yesterday (31st) £134.17 

But that figure of £4.88 is now £60.27 today in green so I presume it’s classified as profit?  Does this mean the unit price has increased?

*capital gain.

Doesn't Vanguard's website show you the current unit price? Simply compare this to the price you paid. If it's ex-dividend on Monday you will see that the price will fall.

https://www.vanguardinvestor.co.uk/investments/vanguard-sterling-short-term-money-market-fund-investor-gbp-income-shares/price-performance

plumb1_2

Yes the price is £1.0029 , so it will revert closer to the £1.000 unit price after divi payment.

Another question, say if I have another £10k to put into the fund, is it best to do it at the start of the month or wait until the unit price drops closer to the £1. I suppose the longer it’s invested the better, as time will out weigh say a £0.0025 increase 

GeoffTF

plumb1_2 said:

Yes the price is £1.0029 , so it will revert closer to the £1.000 unit price after divi payment.

Another question, say if I have another £10k to put into the fund, is it best to do it at the start of the month or wait until the unit price drops closer to the £1. I suppose the longer it’s invested the better, as time will out weigh say a £0.0025 increase 

No. The blue line here shows the total return, which includes both capital gain and income:

https://www.trustnet.com/factsheets/p/i3uk/lv=-vanguard-sterling-short-term-money-market-pn-s2

The sooner you invest your money, the more return you will get, but there have been a few blips. The much bigger Royal London money market fund has given a smoother ride.