Twentyfour bond fund Acc not paying dividends?

mrichard69

I have some cash in the TwentyFour bond fund with accumulation since the beginning of 2021 invested via AJBell's Youinvest portal, and I can see no evidence that any dividend has ever been paid. I know that bonds have had a tough time and my holding is still worth less than I paid for it, but doesn't higher bond yield mean there should be some return going into the fund? I also have cash in another bond fund, also worth less than I paid for it, but it regularly accumulates dividends.  I've contacted Twentyfour asset management who have ignored me. Does anyone know how I can find out the story here?

InvesterJones

Why are you expecting an accumulation fund to pay dividends?

masonic

Just because a fund accumulates income, you should not expect it to increase in value. If capital losses are greater than income, then the value of your investment will fall, and this could happen over long periods of time. My understanding is that Twentyfour specialises in the risky end of the bond market, resulting in a great deal of price volatility.

dunstonh

I have some cash in the TwentyFour bond fund with accumulation since the beginning of 2021 invested via AJBell's Youinvest portal, and I can see no evidence that any dividend has ever been paid.

Being an ACC fund means that any income is retained and reflected in the unit price.   If you wanted the income, you should select INC units.

ColdIron

mrichard69 said:

I have some cash in the TwentyFour bond fund with accumulation since the beginning of 2021 invested via AJBell's Youinvest portal, and I can see no evidence that any dividend has ever been paid.

Bond funds don't pay dividends but they do pay interest, same thing but different tax treatment

If it's an Acc fund the interest isn't paid out as cash, it's simply retained within the fund and increases the unit price so there are no cash distributions to be seen on your statements but they are still paid

mrichard69

Thanks for all the replies, but I think I didn't make myself clear. This isn't about the value of my holdings, or no cash being paid. I mean there is no record at all of any accumulation taking place since 2021. The fund has a yield of 7% on average, shouldn't that have resulted in an accumulation? 

masonic

mrichard69 said:

Thanks for all the replies, but I think I didn't make myself clear. This isn't about the value of my holdings, or no cash being paid. I mean there is no record at all of any accumulation taking place since 2021. The fund has a yield of 7% on average, shouldn't that have resulted in an accumulation? 

I understood what you are getting at when I posted the following:

masonic said:

Just because a fund accumulates income, you should not expect it to increase in value. If capital losses are greater than income, then the value of your investment will fall, and this could happen over long periods of time. My understanding is that Twentyfour specialises in the risky end of the bond market, resulting in a great deal of price volatility.

wmb194

mrichard69 said:

Thanks for all the replies, but I think I didn't make myself clear. This isn't about the value of my holdings, or no cash being paid. I mean there is no record at all of any accumulation taking place since 2021. The fund has a yield of 7% on average, shouldn't that have resulted in an accumulation? 

You're not clear on the actual fund you're referring to but Fidelity shows recent dividends paid by and reinvested in the accumulation units of e.g., TF's Dynamic and Corporate Bond funds.

https://www.fidelity.co.uk/factsheet-data/factsheet/IE00BSMTGG87-twentyfour-corporate-bond-i-gbp-acc/dividends

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B5VRV677-mi-twentyfour-am-dynamic-bond-i-a/dividends

EthicsGradient

mrichard69 said:

Thanks for all the replies, but I think I didn't make myself clear. This isn't about the value of my holdings, or no cash being paid. I mean there is no record at all of any accumulation taking place since 2021. The fund has a yield of 7% on average, shouldn't that have resulted in an accumulation? 

You hold it with AJ Bell - is that in an ISA or SIPP, or in an unsheltered trading account? If ISA or SIPP, AJ Bell might not report the accumulation, since the figure is not needed for tax purposes. If unsheltered, they should report it in a tax certificate.

dunstonh

mrichard69 said:

Thanks for all the replies, but I think I didn't make myself clear. This isn't about the value of my holdings, or no cash being paid. I mean there is no record at all of any accumulation taking place since 2021. The fund has a yield of 7% on average, shouldn't that have resulted in an accumulation? 

Bond funds peaked in November 2021 and then spent most of the next 2 years losing money.