AJ Bell SIPP Dividend Handling

Doglegger

Hello all, hoping someone can explain this to me. Transferred into an AJ Bell SIPP from works pension last year. In that time I've had two dividend payments, one in Dec and the other earlier this month totalling just under £5k (it looks like to me anyway). The fund I'm in is the acc version.
However, looking through all transactions, there has been no increase in units for both periods and no increase in cash in my cash statement.
I'm assuming they haven't diddled me here so why would I not see any kind of increase when dividends are paid? If I'm being totally thick I do apologise. 

booneruk

The number of units won't change, unless you buy more with new money (cash added yourself, or cash from an INC fund dividend). The value of the units goes up in an ACC fund when dividends are paid.

squirrelpie

See https://www.ajbell.co.uk/learn/compare-acc-inc-funds  You say you have received no cash and no extra units, but has the price of the units gone up (more than the price of the corresponding income fund if there's any doubt)?

Doglegger

Thanks both for the above. Yes, the acc units are higher than the inc. That explains it cheers.

ColdIron

As the dividends from the underlying investments roll in between the ex dividend dates they increase the unit price of the fund

If you had Income units the unit price would drop on the ex date to reflect the loss of value to the fund by the dividend payment. In due course, on the payment date, you would receive a cash payment

With Accumulation units the dividends are simply retained within the fund. You will receive no extra units and no cash payment but your fund will be more valuable because of the increase in unit price

If you had income units you could reinvest the cash distribution and then have more units (of lower value) as you have bought more but there would be no point and might even cost you a transaction fee

poseidon1

Doglegger said:

Thanks both for the above. Yes, the acc units are higher than the inc. That explains it cheers.

A little worrying you have moved into a self managed pension arrangement, with little understanding of the basics of investing.

Yes, this forum with its kind contributors can answer specific queries, but if  you are to avoid potential costly  mistakes in future, suggest a period of self learning is called for. 

If you are finding the intial investment process a little challenging, decision making on decumulation and mechanics of drawdown options  ( when the time comes ) will be even more so.

Doglegger

poseidon1 said:

Doglegger said:

Thanks both for the above. Yes, the acc units are higher than the inc. That explains it cheers.

A little worrying you have moved into a self managed pension arrangement, with little understanding of the basics of investing.

Yes, this forum with its kind contributors can answer specific queries, but if  you are to avoid potential costly  mistakes in future, suggest a period of self learning is called for. 

If you are finding the intial investment process a little challenging, decision making on decumulation and mechanics of drawdown options  ( when the time comes ) will be even more so.

Genuinely touched that you are worried about what I don't know but no need, I'm doing absolutely fine in the decumulation stage. Cheers.