Stocks and Shares ISA Automatic Reinvestment

chewthecarpet

I (a complete novice) opened a S+S ISA a few years ago and set the account to Automatic Reinvestment'. I waited for my number of shares to increase as the fund's value increased, but they did not. I contacted the help desk and was told that my account did not qualify for this action. So, all that happens is that the value of my shares goes up and down and there is no accumulation, so I do not see how this fund is a good investment. Any advice would be appreciated.

Ayr_Rage

What exactly are you invested in and with which provider?

If you hold shares that pay dividends where has that cash gone over the last few years?

dunstonh

chewthecarpet said:

I (a complete novice) opened a S+S ISA a few years ago and set the account to Automatic Reinvestment'. I waited for my number of shares to increase as the fund's value increased, but they did not. I contacted the help desk and was told that my account did not qualify for this action. So, all that happens is that the value of my shares goes up and down and there is no accumulation, so I do not see how this fund is a good investment. Any advice would be appreciated.

From that, are we to assume that you bought ACC units instead of INC units?

Please tell us the investment fund(s) you hold including whether they are INC or ACC.

jimjames

chewthecarpet said:

I (a complete novice) opened a S+S ISA a few years ago and set the account to Automatic Reinvestment'. I waited for my number of shares to increase as the fund's value increased, but they did not. I contacted the help desk and was told that my account did not qualify for this action. So, all that happens is that the value of my shares goes up and down and there is no accumulation, so I do not see how this fund is a good investment. Any advice would be appreciated.

The funds value has increased. Why does that mean it isn't a good investment?

wmb194

chewthecarpet said:

I (a complete novice) opened a S+S ISA a few years ago and set the account to Automatic Reinvestment'. I waited for my number of shares to increase as the fund's value increased, but they did not. I contacted the help desk and was told that my account did not qualify for this action. So, all that happens is that the value of my shares goes up and down and there is no accumulation, so I do not see how this fund is a good investment. Any advice would be appreciated.

Automatic reinvestment will relate to automatically reinvesting dividends and interest. What are you invested in? Does it pay dividends and/or interest? If it doesn't pay out any income there will be nothing to reinvest.

chewthecarpet

Hi,

I am with Hargreaves Lansdown, and the portfolio was decided by their advisers. There was no discussion about ACC or INC, I assumed that as I chose 'Automatic Reinvestment' that if the value of the shares increased or a dividend was paid out, that the money would be used to purchase extra shares. If this is not the case, then what is the point of the option of 'Automatic Reinvestment'? I am surprised that HL did not discuss this with me. It seems to me that all my ISA has given me is an investment in shares, with no dividend, with an exemption from tax on any increase in the share value, so I do not see any advantage over a standard ISA, which at least has the benefit of being risk-free.

Ayr_Rage

chewthecarpet said:

Hi,

I am with Hargreaves Lansdown, and the portfolio was decided by their advisers. There was no discussion about ACC or INC, I assumed that as I chose 'Automatic Reinvestment' that if the value of the shares increased or a dividend was paid out, that the money would be used to purchase extra shares. If this is not the case, then what is the point of the option of 'Automatic Reinvestment'? I am surprised that HL did not discuss this with me. It seems to me that all my ISA has given me is an investment in shares, with no dividend, with an exemption from tax on any increase in the share value, so I do not see any advantage over a standard ISA, which at least has the benefit of being risk-free.

You still haven't said what FUNDS or SHARES you have!

Hoenir

chewthecarpet said:

I am with Hargreaves Lansdown, and the portfolio was decided by their advisers. 

With what input from yourself in deciding the level of risk ? 

chewthecarpet

Global Bond; Multi Manager Balanced and Multi Manager Special, so a mix of investments decided by HL with medium risk.

dunstonh

I am with Hargreaves Lansdown, and the portfolio was decided by their advisers. 

If they are your advisers, what have they said when you asked them the question?

 There was no discussion about ACC or INC, I assumed that as I chose 'Automatic Reinvestment' that if the value of the shares increased or a dividend was paid out, that the money would be used to purchase extra shares

Its not something you tend to talk about unless it is relevant to the advice.   However, if they were providing advice, why did you have to select anything?   Advised cases normally see the adviser submit and complete the processing.

 If this is not the case, then what is the point of the option of 'Automatic Reinvestment'?

Its for when INC units are selected and whether you want the income to build up in the cash float or to be reinvested.

 I am surprised that HL did not discuss this with me.

What in your circumstances would need them to discuss it with you?

t seems to me that all my ISA has given me is an investment in shares, with no dividend, with an exemption from tax on any increase in the share value, so I do not see any advantage over a standard ISA, which at least has the benefit of being risk-free.

IIRC, HL does not provide advice on shares.   Their advice service is restricted and only on their own product range (i.e. HL own brand funds).   

Are you sure you used the HL advice service and not their non-advised product offering?  Or you sure you have shares and not funds?

As already asked several times, what are the investments you hold?

I do not see any advantage over a standard ISA, which at least has the benefit of being risk-free.

That is a misunderstanding on your part.   INC with income reinvested or ACC gives identical returns.

edit added as cross posted:

Global Bond; Multi Manager Balanced and Multi Manager Special, so a mix of investments decided by HL with medium risk.

You posted that as I posted my response.     Are these INC units or Acc units?

wmb194

chewthecarpet said:

Global Bond; Multi Manager Balanced and Multi Manager Special, so a mix of investments decided by HL with medium risk.

Is there more detail? Can you see whether they say, “ACC” (accumulation) in the fund names?