"Reinvestment of dividends"

1) For the purposes of total value performance statistics, it is assumed that any dividends received on an investment trust company share are reinvested back into the shares of the investment trust.
2) The process of reinvesting dividends by buying additional shares in the investment trust. A useful tool for shareholders who have no immediate need for this income. Many management groups now offer saving schemes where dividends can be reinvested. Repurchase The sale of units back to the fund manager to realise/cash in the investment. It is also referred to as redemption, although not to be confused with the redemption of a gilt or bond.

Depository glossary and terms by letter

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