Why don't I get dividends from my pension plan?

Redlander

I have an Aviva pension policy comprising ten funds: The funds amount to 47.81% International Equities and 18.29% UK Equities. Equities means stocks and shares, right? 
I would have throught that if I am investing in stocks and shares, I would expect to receive dividends from time to time; and yet, apparently I do not (so I was told when I enquired on Aviva's live chat)
Why are there no dividends? The funds are:
Aviva Pensions UK Equity
Aviva Pensions European Equity
Aviva Pensions Blackrock Developed World Fossil Fuel Screened
Aviva Pensions Man GLG Japan CoreAlpha S6
Aviva Pensions Stewart Investors Asia Pacific Leaders
Aviva Pensions Property S2
Aviva Pensions IndexLinked Gilts S6
Aviva Pensions M&G Global Themes S6
Aviva Pensions M&G Gilt and Fixed Interest S6
Aviva Pensions Fidelity Emerging Markets S6

Pat38493

Probably one or both of

- The fund is invested in companies or shares which don't happen to pay dividends (not all companies do).
- Even more likely, the funds you are invested in are ones which are accumulation funds, so they auutomatically re-invest any dividends into the balance, so you won't see them as such, so you are getting the benefit of the dividends but you won't actually get paid that money.

You can change your fund selections to funds which are income distribution funds and in this case you will receive any income or dividends back into your cash part (at the expense of your invested balance growing more slowly).

I hope I didn't say anything wrong there but I'm sure someone will correct me if so.

Dazed_and_C0nfused

If any have this option did you choose Accumulation or Income units?

Marcon

Redlander said:

I have an Aviva pension policy comprising ten funds: The funds amount to 47.81% International Equities and 18.29% UK Equities. Equities means stocks and shares, right? 
I would have throught that if I am investing in stocks and shares, I would expect to receive dividends from time to time; and yet, apparently I do not (so I was told when I enquired on Aviva's live chat)
Why are there no dividends? The funds are:
Aviva Pensions UK Equity
Aviva Pensions European Equity
Aviva Pensions Blackrock Developed World Fossil Fuel Screened
Aviva Pensions Man GLG Japan CoreAlpha S6
Aviva Pensions Stewart Investors Asia Pacific Leaders
Aviva Pensions Property S2
Aviva Pensions IndexLinked Gilts S6
Aviva Pensions M&G Global Themes S6
Aviva Pensions M&G Gilt and Fixed Interest S6
Aviva Pensions Fidelity Emerging Markets S6

You don't own the shares - the pension scheme does. Any dividends paid will be reinvested in the relevant fund, increasing its value (which is how individuals policyholders benefit).

Prism

Looks like you are in the type of pension that cannot hold cash and uses accumulation funds. You will be receiving the dividends and they will be reinvested within the funds themselves.

Redlander

Thanks to all who replied. I had imagined that each unit of a fund would represent a fixed number of shares, and that dividends would accumulate by disbursing extra units of the fund

dunstonh

Why don't I get dividends from my pension plan?

The investments within the pension do.
The pension wrapper, like all wrappers does not.

Why are there no dividends? The funds are:

All those funds have dividends.  However, they are all accumulation units.  So, the dividends are held within the fund and the unit price increased to reflect that.

. I had imagined that each unit of a fund would represent a fixed number of shares, and that dividends would accumulate by disbursing extra units of the fund

That is what happens when you buy income units and reinvest the units.  You have bought accumulation units, so the number of units remains the same but the unit price goes up.   i.e. 5x4 vs 4x5.

Marcon

Dazed_and_C0nfused said:

If any have this option did you choose Accumulation or Income units?

Not an option in a pooled pension fund - it would be impossible to administer from both a tax perspective (?25% of each dividend tax free?!) and if the individual is under minimum pension age.