Vanguard investment query

Easyjet77

eskbanker said:

gerdo said:

The money is part of my pension account which I'm not taking yet so it's not being paid to my bank account

Why choose an income fund if you weren't after income?

In fairness, the acc version has only been made available recently.

eskbanker

Easyjet77 said:

eskbanker said:

gerdo said:

The money is part of my pension account which I'm not taking yet so it's not being paid to my bank account

Why choose an income fund if you weren't after income?

In fairness, the acc version has only been made available recently.

Well yes, Vanguard's acc variant was launched this year, but there are other STMMFs available in accumulating versions, so one of those ought to have been a better fit for OP's requirement, or if OP felt committed to Vanguard for whatever reason then they could/should have made arrangements to reinvest dividends manually if capital growth was/is the objective....

Easyjet77

eskbanker said:

Easyjet77 said:

eskbanker said:

gerdo said:

The money is part of my pension account which I'm not taking yet so it's not being paid to my bank account

Why choose an income fund if you weren't after income?

In fairness, the acc version has only been made available recently.

Well yes, Vanguard's acc variant was launched this year, but there are other STMMFs available in accumulating versions, so one of those ought to have been a better fit for OP's requirement, or if OP felt committed to Vanguard for whatever reason then they could/should have made arrangements to reinvest dividends manually if capital growth was/is the objective....

Well the title in the opening post in this thread is "vanguard  investment query". Hence my observation. 

No need to go pedantic and start bun fights. Regards

Alexland

Easyjet77 said:

I have the vanguard  accumulation money market fund, every month I see the number of units held increase, and so far that is reflected by an increase in my holdings value. Please clarify what I am misunderstanding.  The income version pays cash and the acc increases units held?

The unit price of an Acc unit will increase with retained income but the number of units will be static unless you are making new contributions to buy more.

If you are seeing the number of units regularly increasing without new contributions you may have Inc units and then have setup income reinvestment on your platform account? In that scenario the fund is paying out income as cash and the platform is buying more units.

Easyjet77

Alexland said:

Easyjet77 said:

I have the vanguard  accumulation money market fund, every month I see the number of units held increase, and so far that is reflected by an increase in my holdings value. Please clarify what I am misunderstanding.  The income version pays cash and the acc increases units held?

The unit price of an Acc unit will increase with retained income but the number of units will be static unless you are making new contributions to buy more.

If you are seeing the number of units regularly increasing without new contributions you may have Inc units and then have setup income reinvestment on your platform account? In that scenario the fund is paying out income as cash and the platform is buying more units.

Thank you Alexland. I do have the acc version but I  have also made  additional  investments into the fund. It's a little clearer now. Thanks again

dunstonh

   I understand you are one of the most knowledgeable and helpful contributors and when I saw you had replied my first thought was that it was going to be your normal downer re all things vanguard! Regards

I am not down on Vanguard. I have several of their funds in my portfolio.  I am down on the fanboys who cannot see any option other than Vanguard, as they worship the brand.     Vanguard gets mentioned more than any other fund house.   So, it's inevitable that more posts appear about them than others.      

What made you pick the Vanguard fund instead of say RL STMM?

Alexland

Easyjet77 said:

Thank you Alexland. I do have the acc version but I  have also made  additional  investments into the fund. It's a little clearer now. Thanks again

No problem - this is the kind of pattern you see on an Inc unit of a money market fund where the unit price accumulates income before dropping to the baseline price to make a regular payout. If you bought into the fund midway through the rise then you might keep seeing it drop below your original purchase price per unit which might generate an unnecessary emotional response.




With an Acc fund the unit price just keeps going up which can compound impressively such as this developed world stock market tracker fund. Of course you get similar compounding of value by reinvesting income from an Inc unit you just end up with more units that are each worth less.



Look how small that Covid market crash of 2020 now appears. When it was happening I remember my pensions going down by tens of thousands of pounds a day. Now it's just a blip. The crashes don't get easier as the amount at risk keeps going up so the drops keep getting bigger in £ value and retaliative to income plus as you get older you have less years to earn it back. Still the more you learn the better prepared you are to accept when it happens.

Easyjet77

dunstonh said:

   I understand you are one of the most knowledgeable and helpful contributors and when I saw you had replied my first thought was that it was going to be your normal downer re all things vanguard! Regards

I am not down on Vanguard. I have several of their funds in my portfolio.  I am down on the fanboys who cannot see any option other than Vanguard, as they worship the brand.     Vanguard gets mentioned more than any other fund house.   So, it's inevitable that more posts appear about them than others.      

What made you pick the Vanguard fund instead of say RL STMM?

Thanks for reply. I have held an ISA with Vanguard for several years. I also have a pension with Vanguard to which I contribute. I also have a drawdown pension with Vanguard from which I take occasional payments. I hold vls100 in ISA and developed world etf in pension and money market in drawdown.
   I fully realise that other  companies offer a huge variety of comparable  funds and very often better returns and performance.
     However, I am happy with the performance, customer service, ease of and cost( or lack of cost) of dealing, provided by Vanguard. The simplicity and convenience of dealing with one company suits me just fine, and I have no inclination to chase better returns from the current flavour of month.
          I am enjoying my retirement safe in the knowledge that my investments are secure and growing in value, with no further input from myself.
       My DB pension provides everyday needs and any surplus is directed into savings accounts. 
    That is why I chose the Vanguard fund!
           I have gained useful info reading your many helpful posts over the years.
  Regards

     

eskbanker

Easyjet77 said:

eskbanker said:

Easyjet77 said:

eskbanker said:

gerdo said:

The money is part of my pension account which I'm not taking yet so it's not being paid to my bank account

Why choose an income fund if you weren't after income?

In fairness, the acc version has only been made available recently.

Well yes, Vanguard's acc variant was launched this year, but there are other STMMFs available in accumulating versions, so one of those ought to have been a better fit for OP's requirement, or if OP felt committed to Vanguard for whatever reason then they could/should have made arrangements to reinvest dividends manually if capital growth was/is the objective....

Well the title in the opening post in this thread is "vanguard  investment query". Hence my observation. 

No need to go pedantic and start bun fights. Regards

I wasn't disagreeing with you, just clarifying, primarily for OP's benefit, that there may be more suitable options for them if they're not looking for income generation....

Easyjet77

eskbanker said:

Easyjet77 said:

eskbanker said:

Easyjet77 said:

eskbanker said:

gerdo said:

The money is part of my pension account which I'm not taking yet so it's not being paid to my bank account

Why choose an income fund if you weren't after income?

In fairness, the acc version has only been made available recently.

Well yes, Vanguard's acc variant was launched this year, but there are other STMMFs available in accumulating versions, so one of those ought to have been a better fit for OP's requirement, or if OP felt committed to Vanguard for whatever reason then they could/should have made arrangements to reinvest dividends manually if capital growth was/is the objective....

Well the title in the opening post in this thread is "vanguard  investment query". Hence my observation. 

No need to go pedantic and start bun fights. Regards

I wasn't disagreeing with you, just clarifying, primarily for OP's benefit, that there may be more suitable options for them if they're not looking for income generation....

Yes, im sorry if i sounded rude.👍