Royal London Short Term Money Market Fund Y Inc

qbadger

Anyone know why the price dropped at the beginning of December? 

https://markets.ft.com/data/funds/tearsheet/charts?s=GB00B3P2RZ52:GBP

masonic

Presumably it was the ex-dividend date, just like the earlier ones.

Stargunner

I hold the Acc version of this  The price doesn’t drop, but I don't receive dividends from it.

They both give the same overall return.

Bravepants

With the Inc fund money is taken out of the fund to pay the dividend. The Acc fund accumulates/reinvests the dividend back into the fund.

masonic

Seems to be a bit of an anomaly. It is there in the Inc version, but not the Acc. If you go to a better charting site and compare Acc with Inc (income reinvested) you can see the two track perfectly until 2nd Dec:

Since the dividend declared in November isn't paid until 31st December, it is unlikely this represents further distributed income, and the data feeds are not treating it as such.

MPLMPL

I had a message from Fidelity in October stating that the income fund is changing from 6 monthly to monthly income payments. First payment under new schedule is 31st December,  so assume the smaller drop at end of November was this new monthly income payment?

masonic

So double dividend on 31st December and the data feeds have not caught up with the new distribution schedule then. That would explain it. It is a shame we don't have the equivalent of RNS for open ended funds.

Bravepants

MPLMPL said:

I had a message from Fidelity in October stating that the income fund is changing from 6 monthly to monthly income payments. First payment under new schedule is 31st December,  so assume the smaller drop at end of November was this new monthly income payment?

Oh this is great news actually.

Snot

Is there any clarity on why the price dropped at the beginning of Nov and again in Dec ?
I've received my div today and it equates to the expected 6 month dividend.

dunstonh

Is there any clarity on why the price dropped at the beginning of Nov and again in Dec ?

income units always fall in value when the fund goes ex-dividend (XD).    Remember that up to that point, any interest/income obtained is retained by the fund and shown in the unit price.  Once it goes XD, that income is stripped out and the unit price lowers by the equivalent amount.

Royal London switched to monthly and is no longer 6 monthly.

Stargunner

Snot said:

Is there any clarity on why the price dropped at the beginning of Nov and again in Dec ?
I've received my div today and it equates to the expected 6 month dividend.

MPLMPL has already given the reason for this a few posts back