Investment Return

Help & FAQs General FAQs
1

Hello,

Novice question I’m afraid; when I look at the “investment return” expressed as a £ and % in an ISA portfolio, does this include dividend income received please…?

Thanks in advance,

Rob

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2

That “investment return” you refer to is basically the difference between what you put in and what it’s worth at this moment. Dividends are just a bit of “free” money on the sideline to thank you for your support and participation and not part of that return value. When you decide not to pocket the dividend and blow it on strippers and booze, but rather use it to buy even more of the same or any other share/ETF, then that money is counted the same as any other funds you use to buy said investment item.

…or something like that.

I’m sure the internet will brutally correct me if I’m wrong

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3

If you click into each ETF in your portfolio, you’ll see that the £ and % change is labelled as “Total return”. That term generally means dividend is accounted for when calculating the return.

If you click on the question mark, a more detailed explanation is given:

image
image1828×974 87 KB

(Figures have been doctored, obviously.)

I have no idea what they do with dividends when calculating time-weighted return, though. Especially when there’s no way for InvestEngine to know if you intend to reinvest it or to blow it on… things.

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4

Thanks for getting back to me both of you, much appreciated!

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