Aviva plc Return of Capital Update.

[Laughton]

iDealing posted both the divi and return of capital to my ISA account today.

[peterh]

Received both dividend and return of capital today. Reinvested the return of capital back into Aviva via my Iweb ISA account. So I have the same number of shares as pre return of capital but a slightly higher % of the company. An inconsistent performer in the past but they just might be a strong dividend stock going forward. Time will tell.

Divi has now arrived in my HSDL ISA (in the income and dividend tabs, but has not yet been swept to the cash tab). No sign of the capital payment, but I'm not sure where it will turn up, as its not income or a normal dividend so maybe it won't turn up in either the income or divi tabs but will appear in the cash tab later.

Interesting that iweb is being quicker than its parent HSDL, I wonder if they use the same back office?

The return of capital has appeared in my HSDL ISA account in the last hour (the dividend popped up earlier). It's just showing in the cash history tab as "Corporate Action: xxxx AVIVA ORD GBP0.25".

In the valuation tab, my reduced Aviva holding is still showing the pre-consolidation book cost of the original holding.

[Andy46]

No dividend and no return of capital in my Barclays account

[moorfield]

Yes I've just checked and received both too today.

I must say I'm a little irritated by how AJBell have handled the accounting of all this (probably not their fault). My 19 new "consolidated" shares still show the same book cost as the original 25 - normally a return of capital event would reduce the book cost in this case by ~6/25ths - and thus my position is now showing a ~25% capital loss, which is not strictly true.

I am not a holder of Aviva but if I were in your position, I would I think be counting the cost of the now 19 shares as the original cost less the return of capital which you have now received, because in effect you have 'sold' the 6 shares. Of course if in an ISA or SIPP it does not matter.

Dod

Well it's academic anyway, I shall soon be disposing of the rest of my AV and recycling it into ITs.

I suspect that may be a good idea. It has a very chequered history and I have never held it. Will the CEO get it right? I would not count on it although she certainly seems to be decisive and gets things done which is more than can be said for some of her predecessors.

Dod

Ok now I am completely stumped, this is the reply I have had from AJBell this morning, which makes no sense.

Please be advised, I have received confirmation that we have already reduced the book costs based on the Return of Capital. This has been
reduced by around 19.94% based on the proportion of the value returned.

As I wrote, I'll be selling soon anyway, but may be of interest to others who may be trying to reconcile this event in their own records.

[tjh290633]

I had a notification from Lloyds Direct Investements about 10pm last night that the cash was in my account.

TJH

[triatharoo]

Ok now I am completely stumped, this is the reply I have had from AJBell this morning, which makes no sense.

Please be advised, I have received confirmation that we have already reduced the book costs based on the Return of Capital. This has been
reduced by around 19.94% based on the proportion of the value returned.

I think it is processing. As my account stands at the moment I have a big profit, 'cause the number of shares I have has gone back to that I had pre-consolidation. Quick sale in order?

[Breelander]

No dividend and no return of capital in my Barclays account

My Barclays Smart Investor ISA shows it is there now:

20/05/2022	Return of Capital: 1.0169 per Aviva PLC ORD 32 17/19P (AV..XLON.GB) share

[Andy46]

Money just arrived in my Barclays account. I re-invested it back into Aviva. What a waste of time the cash return was lol.

Not got my dividend though yet.

[shares4me2]

Hi all,

Sorry if this is a stupid question!

Can some of you knowledgeable Fools please help me out. This AVIVA share split and return of capital has completely addled my brain.
A normal split I can cope with fine in my spreadsheet but this has got me beat. This is the first time I have had a share split with return of capital which has also changed my initial purchase price and returned some extra capital.

I will use my actual figures so as not to confuse the numbers. So....

I originally owned 1599 shares which were split 76/100 so I now own 1215 having lost 0.25 of a share

My cost price was £3813.40 and has been reduced by £760.45 so now showing a cost price of ££3052.95 = 19.94% reduction as was said by AJ Bell above.

They have also paid £1626.02 cash into my account as return of capital which is £1.0169 per share.

So I really can't get my head around how to account for this event. I have received the £16k in cash but how do I account for the £760 reduction in cost.

At least I think that is what I need to know. I am not as young as I was and just can't work out what has exactly happened and as far as I can find Mr. Google is no help either.

Thanks for any help.

S4M2

[Andy46]

Money just arrived in my Barclays account. I re-invested it back into Aviva. What a waste of time the cash return was lol.

Not got my dividend though yet.

Its arrived

[moorfield]

Hi all,

Sorry if this is a stupid question!

Can some of you knowledgeable Fools please help me out. This AVIVA share split and return of capital has completely addled my brain.
A normal split I can cope with fine in my spreadsheet but this has got me beat. This is the first time I have had a share split with return of capital which has also changed my initial purchase price and returned some extra capital.

I will use my actual figures so as not to confuse the numbers. So....

I originally owned 1599 shares which were split 76/100 so I now own 1215 having lost 0.25 of a share

My cost price was £3813.40 and has been reduced by £760.45 so now showing a cost price of ££3052.95 = 19.94% reduction as was said by AJ Bell above.

They have also paid £1626.02 cash into my account as return of capital which is £1.0169 per share.

So I really can't get my head around how to account for this event. I have received the £16k in cash but how do I account for the £760 reduction in cost.

At least I think that is what I need to know. I am not as young as I was and just can't work out what has exactly happened and as far as I can find Mr. Google is no help either.

Thanks for any help.

S4M2

Don't worry you're not alone. I don't understand how this adjustment has been done either. In my Microsoft Money if I enter a return of capital of (in your case) 1626.02 it would reduce the cost price to 2817.38. That is how it worked the last time I received a return of capital, several years ago now, with IMI.

Still scratching my head over where 19.94% has come from.

[scrumpyjack]

For tax purposes the cost of your original Aviva holding will be apportioned between (a) the cash received and (b) the revised Aviva shareholding based on the cash payment and the market value of your revised Aviva shareholding based on the closing price on the first day of trading. Those figures have not yet been announced but another fool posted his calculation the other day and it seemed to me to be correct. Aviva will no doubt publish an RNS in due course giving the figures.

[marronier]

Hi all,

Sorry if this is a stupid question!

Can some of you knowledgeable Fools please help me out. This AVIVA share split and return of capital has completely addled my brain.
A normal split I can cope with fine in my spreadsheet but this has got me beat. This is the first time I have had a share split with return of capital which has also changed my initial purchase price and returned some extra capital.

I will use my actual figures so as not to confuse the numbers. So....

I originally owned 1599 shares which were split 76/100 so I now own 1215 having lost 0.25 of a share

My cost price was £3813.40 and has been reduced by £760.45 so now showing a cost price of ££3052.95 = 19.94% reduction as was said by AJ Bell above.

They have also paid £1626.02 cash into my account as return of capital which is £1.0169 per share.

So I really can't get my head around how to account for this event. I have received the £16k in cash but how do I account for the £760 reduction in cost.

At least I think that is what I need to know. I am not as young as I was and just can't work out what has exactly happened and as far as I can find Mr. Google is no help either.

Thanks for any help.

S4M2

First of all. It was not a share split but a consolidation. A share split is when 2000 shares @ 200p are split into 4000 shares @ 100p. This was a consolidation when 1000 shares became 760 with compensation for apparent loss.

Your original purchase of 1599 shares @ 238p became 1215 @ today's 412.1p ( £5007 ) plus £1626 ( returned capital) , so your original 1599 shares would stand @ 414p. The missing 0.19p per share would be dealing cost and stamp duty.

[Arborbridge]

Fortunately, my broker has made life easy by paying the return of capital separately from the dividend.

In effect, I've just sold ("had sold for me") some of my holding, so that's easy to account for from a HYPers POV.
Now, of course, the whole thing turns out to be be just a pointless exercise (again, from my POV). All that's happened is my 95% median holding has been reduced to 73%, which puts Aviva back in the top three of my topup table to have more shares bought to bring it back up.

I have a choice what to do with the cash, of course, but given that I didn't particular want this choice, all we have is a circular procedure which makes others a bit richer at my expense. A job creation scheme which I pay for?

Arb.

[seagles]

Fortunately, my broker has made life easy by paying the return of capital separately from the dividend.

In effect, I've just sold ("had sold for me") some of my holding, so that's easy to account for from a HYPers POV.
Now, of course, the whole thing turns out to be be just a pointless exercise (again, from my POV). All that's happened is my 95% median holding has been reduced to 73%, which puts Aviva back in the top three of my topup table to have more shares bought to bring it back up.

I have a choice what to do with the cash, of course, but given that I didn't particular want this choice, all we have is a circular procedure which makes others a bit richer at my expense. A job creation scheme which I pay for?

Arb.

I was fortunate in that althouigh AV. was top of the list, it failed in the sector as I have a large "chunk" of LGEN (Legal & General). Eventually topped up ADM (Admiral) which was 4th in the list (2 and 3 failed the "throwing money at" rule, ).

[Dod101]

Fortunately, my broker has made life easy by paying the return of capital separately from the dividend.

In effect, I've just sold ("had sold for me") some of my holding, so that's easy to account for from a HYPers POV.
Now, of course, the whole thing turns out to be be just a pointless exercise (again, from my POV). All that's happened is my 95% median holding has been reduced to 73%, which puts Aviva back in the top three of my topup table to have more shares bought to bring it back up.

I have a choice what to do with the cash, of course, but given that I didn't particular want this choice, all we have is a circular procedure which makes others a bit richer at my expense. A job creation scheme which I pay for?

Arb.

I was fortunate in that althouigh AV. was top of the list, it failed in the sector as I have a large "chunk" of LGEN (Legal & General). Eventually topped up ADM (Admiral) which was 4th in the list (2 and 3 failed the "throwing money at" rule, ).

I hope a good choice as I made an unusual (for me) top up this week of Admiral as well.

Dod

[monabri]

Fortunately, my broker has made life easy by paying the return of capital separately from the dividend.

In effect, I've just sold ("had sold for me") some of my holding, so that's easy to account for from a HYPers POV.
Now, of course, the whole thing turns out to be be just a pointless exercise (again, from my POV). All that's happened is my 95% median holding has been reduced to 73%, which puts Aviva back in the top three of my topup table to have more shares bought to bring it back up.

I have a choice what to do with the cash, of course, but given that I didn't particular want this choice, all we have is a circular procedure which makes others a bit richer at my expense. A job creation scheme which I pay for?

Arb.

I was fortunate in that althouigh AV. was top of the list, it failed in the sector as I have a large "chunk" of LGEN (Legal & General). Eventually topped up ADM (Admiral) which was 4th in the list (2 and 3 failed the "throwing money at" rule, ).

I hope a good choice as I made an unusual (for me) top up this week of Admiral as well.

Dod

John Kingham review (April 22) on Admiral.

https://seekingalpha.com/article/450159 ... dend-yield

I see from my records that I have a negative total return on Admiral (yet positive on Aviva) probably reflecting when each was acquired. I hold ADM at 2.5% and Av at 4.3% of my portfolio holdings (so from an overall TR point of view, I shouldn't complain).

ADM shareprice history last 5 years. Data sourced from Google Finance.




p.s. ignore the highlighted price (2100p), the cursor happened to fall on that part of the graph when I took the snapshot.

[monabri]

My current XIRR on ADM is -3.5%. Yet, less than one year ago I posted .....







.I made further top ups in Oct 21 & March 2022. The increase in "yield on offer" (ie sp reduction!) has lead to quite a fall in the XIRR. With a 30% fall in shareprice, year to date, maybe now is a good time to invest...but I thought that in Oct and March.

[pyad]

...What a waste of time the cash return was lol...

I don't agree. You received the cash to use as you wish, thereby giving you the freedom of numerous options. You did not have to reinvest it in AV. but even if you felt that was the optimum choice in your particular portfolio, the freedom was still worth having. Many other HYPers with AV. will have chosen different shares or perhaps withdrawn the money. In my view cash returns like this are nearly always worth having, part of what I've termed "market trading".

[monabri]

...What a waste of time the cash return was lol...

I don't agree. You received the cash to use as you wish, thereby giving you the freedom of numerous options. You did not have to reinvest it in AV. but even if you felt that was the optimum choice in your particular portfolio, the freedom was still worth having. Many other HYPers with AV. will have chosen different shares or perhaps withdrawn the money. In my view cash returns like this are nearly always worth having, part of what I've termed "market trading".

IF you had reinvested the proceeds there is a significant uplift in dividend to look forward to, 31p for year 2022 and 32.5p for 2023. Let's hope the company delivers on this "promised " divi.